96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010
HB0677


 
Introduced 02/06/09, by Rep. Joseph M. Lyons
 
SYNOPSIS AS INTRODUCED:
 		








  



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



30 ILCS 805/8.33 new










    Amends the Chicago Teacher Article of the Illinois Pension Code. Provides that a teacher, member, or contributor who has left validated service and later re-enters validated service as a teacher, member, or contributor must acquire one year of additional validated service in order to be eligible  (A) to retire on a pension at a rate and under conditions other than those in force or attained at the time he or she left validated service and (B) to receive reimbursement for the cost of health insurance coverage or health insurance premium payments. Amends the State Mandates Act to require implementation without reimbursement. 
















LRB096 03529 AMC 13554 b

















FISCAL NOTE ACT MAY APPLY


PENSION IMPACT NOTE ACT MAY APPLY


STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT
















 


 


A BILL FOR









 











HB0677

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    AN ACT concerning 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 17-116 as follows:
 



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



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    Sec. 17-116. Service retirement pension. 

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    (a) Each teacher having 20 years of service upon attainment 
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of age 55,
or who thereafter attains age 55 shall be entitled 
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to a service retirement
pension upon or after attainment of age 
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55; and each teacher in service on or
after July 1, 1971, with 
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5 or more but less than 20 years of service shall be
entitled 
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to receive a service retirement pension upon or after 
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attainment of
age 62. 

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    (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:


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

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    each year of service in excess of 30, based upon average 
 


 






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    salary as
herein defined.


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        (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 
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    service on July 1, 1998 and who does
not elect to augment 
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    service under Section 17-119.1:  2.3% of average salary
for 
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    each year of creditable service earned on or after July 1, 
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    1998.


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        (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

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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 
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    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 
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    which exceeds the annual full time salary rate for
the 
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    preceding year by more than 20%,
an Employer and other 
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    employers of
eligible contributors as defined in Section 
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    17-106
shall pay to the Fund an amount equal to the present 
 


 






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    value of the
additional service retirement pension 
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    resulting from such excess salary.
The present value of the 
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    additional service retirement pension shall be
computed by 
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    the Board on the basis of actuarial tables adopted by the

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

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

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    for the purposes of this Article.


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        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.


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        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 
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    defer the effective date of pension in order to
eliminate 
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    or reduce this discount.  This discount shall not be 
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    applicable
to any participant who has at least 34 years of 
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    service or a
retirement pension of at least 74.6% of 
 


 






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    average salary on the date the
retirement annuity begins.


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


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        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

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    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 
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    preceding June 1.


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        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% 
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    of average salary if the
member is qualified to receive a 
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    retirement pension equal to at least 74.6%
of average 
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    salary under this Article or as proportional annuities 
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    under
Article 20 of this Code.

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        9. A teacher, member, or contributor who has left 
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    validated service and later re-enters validated service as 
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    a teacher, member, or contributor must acquire one year of 
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    additional validated service in order to be eligible  (A) to 
 


 






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    retire on a pension at a rate and under conditions other 
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    than those in force or attained at the time he or she left 
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    validated service and (B) to receive reimbursement for the 
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    cost of health insurance coverage or health insurance 
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    premium payments in accordance with Section 17-142.1. This 
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    item 9 shall not apply in the event that the teacher, 
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    member, or contributor dies in service prior to acquiring 
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    one year of additional validated service. This item 9 shall 
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    not apply to the re-employment of any person receiving a 
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    service retirement or disability pension; the 
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    re-employment of such a person shall be governed by Section 
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    17-149. 
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(Source: P.A. 90-566, eff. 1-2-98; 90-582, eff. 5-27-98.)

 
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    Section 90. The State Mandates Act is amended by adding 
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Section 8.33 as follows:
 
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    (30 ILCS 805/8.33 new)
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    Sec. 8.33. 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 96th General Assembly.