95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008
HB0870


 
Introduced 2/7/2007, by Rep. Robert S. Molaro
 
SYNOPSIS AS INTRODUCED:
 		












40 ILCS 5/17-116
  from Ch. 108 1/2, par. 17-116




30 ILCS 805/8.31 new











    Amends the Chicago Teacher Article of the Illinois Pension Code.  Provides that a
teacher may receive a retirement pension at age 60 with 10 years of service.
Amends the State Mandates Act to require implementation without reimbursement.
Effective immediately.
















LRB095 04406 AMC 24451 b

















FISCAL NOTE ACT MAY APPLY


PENSION IMPACT NOTE ACT MAY APPLY


STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT
















 


 


A BILL FOR









 











HB0870

LRB095 04406 AMC 24451 b






1
    AN ACT in relation to public employee benefits. 

 
2
    Be it enacted by the People of the State of Illinois, 
3
represented in the General Assembly: 


 
4
    Section 5. The Illinois Pension Code is amended by changing 
5
Section 17-116
as follows:


 
6
    (40 ILCS 5/17-116)  (from Ch. 108 1/2, par. 17-116)

7
    Sec. 17-116. Service retirement pension.


8
    (a) Each teacher having 20 years of service upon attainment 
9
of age 55,
or who thereafter attains age 55 shall be entitled 
10
to a service retirement
pension upon or after attainment of age 
11
55; and each teacher in service on or
after July 1, 1971, with 
12
5 or more but less than 20 years of service shall be
entitled 
13
to receive a service retirement pension upon or after 
14
attainment of
age 62.  Each teacher in service on or after July 
15
1, 2007 with 10 or more but
less than 20 years of service shall 
16
be entitled to receive a service retirement
pension upon or 
17
after attainment of age 60.


18
    (b) The service retirement pension
for a teacher who 
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retires on or after June 25, 1971, at age
60 or over, shall be 
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calculated as follows:


21
        (1) For creditable service earned before July 1, 1998 
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    that has not been
augmented under Section 17-119.1: 1.67% 
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    for each of the first 10 years
of service; 1.90% for each 
 


 






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1
    of the next 10 years of service; 2.10% for
each year of 
2
    service in excess of 20 but not exceeding 30; and 2.30% for

3
    each year of service in excess of 30, based upon average 
4
    salary as
herein defined.


5
        (2) For creditable service earned on or after July 1, 
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    1998 by a member
who has at least 30 years of creditable 
7
    service on July 1, 1998 and who does
not elect to augment 
8
    service under Section 17-119.1:  2.3% of average salary
for 
9
    each year of creditable service earned on or after July 1, 
10
    1998.


11
        (3) For all other creditable service:  2.2% of average 
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    salary
for each year of creditable service.


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    (c) When computing such service retirement pensions, the

14
following conditions shall apply:


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        1. Average salary shall consist of the average annual 
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    rate of salary
for the 4 consecutive years of validated 
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    service within the last 10 years
of service when such 
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    average annual rate was highest.  In the determination
of 
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    average salary for retirement allowance purposes, for 
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    members who
commenced employment after August 31, 1979, 
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    that part of the salary for any
year shall be excluded 
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    which exceeds the annual full-time salary rate for
the 
23
    preceding year by more than 20%.  In the case of a member 
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    who commenced
employment before August 31, 1979 and who 
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    receives salary during any year
after September 1, 1983 
26
    which exceeds the annual full time salary rate for
the 
 


 






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1
    preceding year by more than 20%,
an Employer and other 
2
    employers of
eligible contributors as defined in Section 
3
    17-106
shall pay to the Fund an amount equal to the present 
4
    value of the
additional service retirement pension 
5
    resulting from such excess salary.
The present value of the 
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    additional service retirement pension shall be
computed by 
7
    the Board on the basis of actuarial tables adopted by the

8
    Board.  If a member elects to receive a pension from this 
9
    Fund
provided by
Section 20-121, his salary under the State 
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    Universities Retirement System
and the Teachers' 
11
    Retirement System of the State of Illinois shall be

12
    considered in determining such average salary.  Amounts 
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    paid after the
effective date of this amendatory Act of 
14
    1991 for unused vacation time
earned after that effective 
15
    date shall not under any circumstances be
included in the 
16
    calculation of average salary or the annual rate of salary

17
    for the purposes of this Article.


18
        2. Proportionate credit shall be given for validated 
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    service of less
than one year.


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        3. For retirement at age 60 or over the pension shall 
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    be payable at
the full rate.


22
        4. For separation from service below age 60 to a 
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    minimum age of 55,
the pension shall be discounted at the 
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    rate of 1/2 of one per cent for
each month that the age of 
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    the contributor is less than 60, but a
teacher may elect to 
26
    defer the effective date of pension in order to
eliminate 
 


 






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1
    or reduce this discount.  This discount shall not be 
2
    applicable
to any participant who has at least 34 years of 
3
    service or a
retirement pension of at least 74.6% of 
4
    average salary on the date the
retirement annuity begins.


5
        5. No additional pension shall be granted for service 
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    exceeding 45
years.  Beginning June 26, 1971 no pension 
7
    shall exceed the greater of
$1,500 per month or 75% of 
8
    average salary as herein defined.


9
        6. Service retirement pensions shall begin on the 
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    effective date of
resignation, retirement, the day 
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    following the close of the payroll
period for which service 
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    credit was validated, or the time the person
resigning or 
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    retiring attains age 55, or on a date elected by the

14
    teacher, whichever shall be latest.


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        7. A member who is eligible to receive a retirement 
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    pension of at least
74.6% of average salary and will attain 
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    age 55 on or before December 31
during the year which 
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    commences on July 1 shall be deemed to attain age 55 on
the 
19
    preceding June 1.


20
        8. A member retiring after the effective date of this 
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    amendatory Act
of 1998 shall receive a pension equal to 75% 
22
    of average salary if the
member is qualified to receive a 
23
    retirement pension equal to at least 74.6%
of average 
24
    salary under this Article or as proportional annuities 
25
    under
Article 20 of this Code.


26
(Source: P.A. 90-566, eff. 1-2-98; 90-582, eff. 5-27-98.)


 
 


 






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1
    Section 90. The State Mandates Act is amended by adding 
2
Section 8.31 as follows:
 
3
    (30 ILCS 805/8.31 new)
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    Sec. 8.31. Exempt mandate. Notwithstanding Sections 6 and 8 
5
of this Act, no reimbursement by the State is required for the 
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implementation of any mandate created by this amendatory Act of 
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the 95th General Assembly.
 
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    Section 99. Effective date. This Act takes effect upon 
9
becoming law.