95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008
SB0218


 
Introduced 2/7/2007, by Sen. Iris Y. Martinez
 
SYNOPSIS AS INTRODUCED:
 		












40 ILCS 5/17-119
  from Ch. 108 1/2, par. 17-119




30 ILCS 805/8.31 new











    Amends the Chicago Teacher Article of the Illinois Pension Code.  Accelerates the
initial annual increase in retirement pension to the January following the
first anniversary of retirement.  Amends the State Mandates Act to require
implementation without reimbursement.  Effective immediately.
















LRB095 04398 AMC 24443 b

















FISCAL NOTE ACT MAY APPLY


PENSION IMPACT NOTE ACT MAY APPLY


STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT
















 


 


A BILL FOR









 











SB0218

LRB095 04398 AMC 24443 b






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    AN ACT in relation to public employee benefits. 

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


 
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    Section 5. The Illinois Pension Code is amended by changing 
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Section 17-119
as follows:


 
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    (40 ILCS 5/17-119)  (from Ch. 108 1/2, par. 17-119)

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    Sec. 17-119. Automatic annual increase in pension.


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    (a) Each teacher retiring on or after September 1, 1959, is 
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entitled to
the annual increase in pension, defined herein, 
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while he is receiving a pension
from the Fund.


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        1. The term "base pension" means a service retirement 
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    or disability
retirement pension in the amount fixed and 
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    payable at the date of
retirement of a teacher.


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        2. The annual increase in pension shall be at the rate 
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    of 1 1/2% of
base pension. This increase shall first occur 
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    in January of the year
next following the first anniversary 
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    of retirement. At such time the
Fund shall pay the pro rata 
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    part of the increase for the period from the
first 
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    anniversary date to the date of the first increase in

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    pension.  Beginning January 1, 1972, the rate of annual 
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    increase in
pension shall be 2% of the base pension.  
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    Beginning January 1, 1979, the
rate of annual increase in 
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    pension shall be 3% of the base pension.
Beginning January 
 


 






SB0218
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LRB095 04398 AMC 24443 b




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    1, 1990, all automatic annual increases payable under
this 
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    Section shall be calculated as a percentage of the total 
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    pension
payable at the time of the increase, including all 
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    increases previously
granted under this Article, 
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    notwithstanding Section 17-157.


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        3. For a retired teacher who withdraws from service 
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    before January 1,
2008, an increase in pension shall be 
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    granted only if the retired teacher is
age 60 or over.  If 
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    the teacher attains age 60 after retirement, the increase

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    in pension shall begin in January of the year following the 
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    61st birthday.  At
such time the Fund also shall pay the pro 
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    rata part of the increase from the
61st birthday to the 
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    date of first increase in pension.


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        For a retired teacher who withdraws from service on or 
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    after January 1,
2008, the increase in pension shall begin 
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    in the January next following the
first anniversary of 
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    retirement.  At such time the Fund shall also pay the pro

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    rata part of the increase from the first anniversary of 
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    retirement to the date
of first increase in pension.


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    (b) In addition to other increases which may be provided by 
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this
Section, on January 1, 1981 any teacher who was receiving 
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a retirement pension
on or before January 1, 1971 shall have 
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his retirement pension then being paid
increased $1 per month 
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for each year of creditable service.  On January 1,
1982, any 
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teacher whose retirement pension began on or before January 1, 
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1977,
shall have his retirement pension then being paid 
 


 






SB0218
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LRB095 04398 AMC 24443 b




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increased $1 per month for
each year of creditable service.


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    On January 1, 1987, any teacher whose retirement pension 
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began
on or before January 1, 1977, shall have the monthly 
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retirement pension
increased by an amount equal to 8¢ per year 
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of creditable service times the
number of years that have 
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elapsed since the retirement pension began.


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(Source: P.A. 90-566, eff. 1-2-98.)


 
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    Section 90. The State Mandates Act is amended by adding 
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Section 8.31 as follows:
 
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    (30 ILCS 805/8.31 new)
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    Sec. 8.31. Exempt mandate. Notwithstanding Sections 6 and 8 
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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 
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becoming law.