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90_SB0282
40 ILCS 5/15-136.4 new
40 ILCS 5/15-136.5 new
Amends the Illinois Pension Code to provide early
retirement incentives for members of the State Universities
Retirement System. Applies to certain persons applying for
retirement following the school years ending in 1998 and
1999. Grants a 10% increase in the amount of annuity
calculated under Rule 1. Requires an employer contribution
and an employee contribution. Lowers the service requirement
for retirement without age discount from 35 to 30 years.
Requires the employer to pay the employee contribution for
persons under age 60 with less than 30 years of service who
qualify for early retirement without discount. Effective
immediately.
LRB9000552EGfg
LRB9000552EGfg
1 AN ACT to amend the Illinois Pension Code by adding
2 Sections 15-136.4 and 15-136.5.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Illinois Pension Code is amended by adding
6 Sections 15-136.4 and 15-136.5 as follows:
7 (40 ILCS 5/15-136.4 new)
8 Sec. 15-136.4. Early retirement incentives.
9 (a) To be eligible for the benefits provided in this
10 Section, a person must:
11 (1) be a member of this System who, on or after
12 November 1, 1997, is (i) in active payroll status in a
13 position of employment with an employer under this
14 Article, or (ii) on layoff status from such a position
15 with a right of re-employment or recall to service, or
16 (iii) on disability or leave of absence from such a
17 position, but only if the member has not been receiving a
18 disability benefit under this Article for a continuous
19 period of 2 years or more as of the date of application;
20 (2) have not retired under this Article;
21 (3) file with the Board before March 1, 1998, a
22 written application requesting the benefits provided in
23 this Section;
24 (4) establish eligibility to receive a retirement
25 annuity under this Article and elect to receive the
26 retirement annuity beginning no earlier than June 1, 1998
27 and no later than September 1, 1998;
28 (5) have attained age 55 or accumulated 30 or more
29 years of creditable service by the effective date of the
30 retirement annuity.
31 (b) A person who qualifies for early retirement
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1 incentives under this Section and has at least 30 years of
2 service is entitled to receive a retirement annuity at any
3 age, notwithstanding Section 15-135.
4 A person who qualifies for early retirement incentives
5 under this Section and has at least 30 years of service is
6 not subject to the reduction due to retirement before age 60
7 imposed under subsection (b) of Section 15-136.
8 In the case of a person under age 60 with less than 30
9 years of service who qualifies for early retirement
10 incentives under this Section and qualifies for early
11 retirement without discount under Section 15-136.2, the
12 employee contribution required under Section 15-136.2 shall
13 be paid by the employer rather than the employee.
14 A person need not elect to receive the increase under
15 subsection (c) or make any additional contribution to qualify
16 for the early retirement incentives provided under this
17 subsection (b).
18 (c) A person who qualifies for early retirement
19 incentives under this Section may elect at the time of
20 applying for early retirement incentives under this Section
21 to have his or her retirement annuity, as calculated under
22 Rule 1 of subsection (a) of Section 15-136, increased by 10%.
23 This increase shall be calculated after the reduction due to
24 retirement before age 60 that is imposed under subsection (b)
25 of Section 15-136, if the person has less than 30 years of
26 service and that reduction is applicable. This election
27 obligates the person and the last employer to make a one-time
28 nonrefundable contribution to the System.
29 The one-time employee contribution shall be 6%, and the
30 employer contribution shall be 20%, of the retiring person's
31 highest full-time annual salary rate during the academic
32 years that were considered in determining his or her final
33 rate of earnings, or if employment was not full-time, then
34 the full-time equivalent. The employer shall pay the
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1 employer contribution from the same source of funds used in
2 paying earnings to the employee.
3 Upon receipt of the election the System shall determine
4 the one-time employee and employer contributions. The
5 increase shall not be effective until both the employee and
6 employer contributions (other than amounts postponed because
7 of Section 415 limitations) have been received by the System;
8 however, the date the contributions are received shall not
9 affect the effective date of retirement.
10 If the required employee contribution exceeds an
11 applicable contribution limitation under Section 415 of the
12 Internal Revenue Code of 1986, then the amount of the
13 employee contribution in excess of the Section 415 limitation
14 shall instead be paid by the annuitant in January of the
15 calendar year after the retirement annuity takes effect, or
16 as soon as possible under the provisions of Section 415. If
17 this additional amount is not paid as required, the
18 retirement annuity shall be suspended until the required
19 contribution is received.
20 The increase provided under this subsection is limited by
21 the 75% of final rate of earnings limitation of subsection
22 (c) of Section 15-136 or, in the case of a person who was a
23 participant on September 15, 1977, by the maximum percentage
24 of final rate of earnings that would have been payable to the
25 person under the provisions of this Article in effect before
26 September 15, 1977. If a person receives less than the full
27 10% increase as a result of this limitation, the System shall
28 calculate a proportionate reduction in the employee and
29 employer contributions due.
30 The increase provided under this subsection may be used
31 for all purposes under this Article, including calculation of
32 a proportionate annuity payable by this System under the
33 Retirement Systems Reciprocal Act. However, the increase
34 shall not be used in determining benefits payable under other
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1 Articles of this Code under the Retirement Systems Reciprocal
2 Act.
3 (d) Notwithstanding Section 15-139, an annuitant who has
4 received any early retirement benefit under this Section and
5 who reenters service under this Article and exceeds the
6 earnings limitation under Section 15-139 shall thereby
7 forfeit the early retirement benefit and become entitled to a
8 refund of the contributions made under to this Section.
9 (e) A member who receives any early retirement incentive
10 under Section 15-136.5 may not receive any early retirement
11 incentive under this Section.
12 (40 ILCS 5/15-136.5 new)
13 Sec. 15-136.5. Early retirement incentives.
14 (a) To be eligible for the benefits provided in this
15 Section, a person must:
16 (1) be a member of this System who, on or after
17 November 1, 1998, is (i) in active payroll status in a
18 position of employment with an employer under this
19 Article, or (ii) on layoff status from such a position
20 with a right of re-employment or recall to service, or
21 (iii) on disability or leave of absence from such a
22 position, but only if the member has not been receiving a
23 disability benefit under this Article for a continuous
24 period of 2 years or more as of the date of application;
25 (2) have not retired under this Article;
26 (3) file with the Board before March 1, 1999, a
27 written application requesting the benefits provided in
28 this Section;
29 (4) establish eligibility to receive a retirement
30 annuity under this Article and elect to receive the
31 retirement annuity beginning no earlier than June 1, 1999
32 and no later than September 1, 1999;
33 (5) have attained age 55 or accumulated 30 or more
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1 years of creditable service by the effective date of the
2 retirement annuity.
3 (b) A person who qualifies for early retirement
4 incentives under this Section and has at least 30 years of
5 service is entitled to receive a retirement annuity at any
6 age, notwithstanding Section 15-135.
7 A person who qualifies for early retirement incentives
8 under this Section and has at least 30 years of service is
9 not subject to the reduction due to retirement before age 60
10 imposed under subsection (b) of Section 15-136.
11 In the case of a person under age 60 with less than 30
12 years of service who qualifies for early retirement
13 incentives under this Section and qualifies for early
14 retirement without discount under Section 15-136.2, the
15 employee contribution required under Section 15-136.2 shall
16 be paid by the employer rather than the employee.
17 A person need not elect to receive the increase under
18 subsection (c) or make any additional contribution to qualify
19 for the early retirement incentives provided under this
20 subsection (b).
21 (c) A person who qualifies for early retirement
22 incentives under this Section may elect at the time of
23 applying for early retirement incentives under this Section
24 to have his or her retirement annuity, as calculated under
25 Rule 1 of subsection (a) of Section 15-136, increased by 10%.
26 This increase shall be calculated after the reduction due to
27 retirement before age 60 that is imposed under subsection (b)
28 of Section 15-136, if the person has less than 30 years of
29 service and that reduction is applicable. This election
30 obligates the person and the last employer to make a one-time
31 nonrefundable contribution to the System.
32 The one-time employee contribution shall be 6%, and the
33 employer contribution shall be 20%, of the retiring person's
34 highest full-time annual salary rate during the academic
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1 years that were considered in determining his or her final
2 rate of earnings, or if employment was not full-time, then
3 the full-time equivalent. The employer shall pay the
4 employer contribution from the same source of funds used in
5 paying earnings to the employee.
6 Upon receipt of the election the System shall determine
7 the one-time employee and employer contributions. The
8 increase shall not be effective until both the employee and
9 employer contributions (other than amounts postponed because
10 of Section 415 limitations) have been received by the System;
11 however, the date the contributions are received shall not
12 affect the effective date of retirement.
13 If the required employee contribution exceeds an
14 applicable contribution limitation under Section 415 of the
15 Internal Revenue Code of 1986, then the amount of the
16 employee contribution in excess of the Section 415 limitation
17 shall instead be paid by the annuitant in January of the
18 calendar year after the retirement annuity takes effect, or
19 as soon as possible under the provisions of Section 415. If
20 this additional amount is not paid as required, the
21 retirement annuity shall be suspended until the required
22 contribution is received.
23 The increase provided under this subsection is limited by
24 the 75% of final rate of earnings limitation of subsection
25 (c) of Section 15-136 or, in the case of a person who was a
26 participant on September 15, 1977, by the maximum percentage
27 of final rate of earnings that would have been payable to the
28 person under the provisions of this Article in effect before
29 September 15, 1977. If a person receives less than the full
30 10% increase as a result of this limitation, the System shall
31 calculate a proportionate reduction in the employee and
32 employer contributions due.
33 The increase provided under this subsection may be used
34 for all purposes under this Article, including calculation of
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1 a proportionate annuity payable by this System under the
2 Retirement Systems Reciprocal Act. However, the increase
3 shall not be used in determining benefits payable under other
4 Articles of this Code under the Retirement Systems Reciprocal
5 Act.
6 (d) Notwithstanding Section 15-139, an annuitant who has
7 received any early retirement benefit under this Section and
8 who reenters service under this Article and exceeds the
9 earnings limitation under Section 15-139 shall thereby
10 forfeit the early retirement benefit and become entitled to a
11 refund of the contributions made under to this Section.
12 (e) A member who receives any early retirement incentive
13 under Section 15-136.4 may not receive any early retirement
14 incentive under this Section.
15 Section 99. Effective date. This Act takes effect upon
16 becoming law.
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