97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB3392

 

Introduced 2/24/2011, by Rep. Robert Rita

 

SYNOPSIS AS INTRODUCED:
 
40 ILCS 5/17-119.1
30 ILCS 805/8.35 new

    Amends the Chicago Teacher Article of the Illinois Pension Code. Eliminates the required contribution for converting past service to the augmented retirement formula, and provides for a refund of such contributions already paid. Also provides for recalculation of the pension and a lump sum payment of the difference between the augmented and unaugmented rates for certain pensioners. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.


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FISCAL NOTE ACT MAY APPLY
PENSION IMPACT NOTE ACT MAY APPLY
STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT

 

 

A BILL FOR

 

HB3392LRB097 05112 JDS 45157 b

1    AN ACT in relation to public employee benefits.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Pension Code is amended by changing
5Section 17-119.1 as follows:
 
6    (40 ILCS 5/17-119.1)
7    Sec. 17-119.1. Optional increase in retirement annuity.
8    (a) Beginning on the effective date of this amendatory Act
9of the 97th General Assembly, a member of the Fund shall may
10qualify for the augmented rate under subdivision (b)(3) of
11Section 17-116 for all years of creditable service earned
12before July 1, 1998 without by making any the optional
13contribution. Any such contribution already paid under this
14Section shall be refunded by the Fund to the teacher or
15pensioner (or, if deceased, to the teacher or pensioner's
16survivor, beneficiary, or estate), together with interest at
17the rate of 5%, compounded annually, from the date of payment
18of the contribution to the date of refund; except that any such
19contribution that has been paid by an employer under subsection
20(e) shall be refunded to the employer. specified in subsection
21(b); except that a member who retires on or after July 1, 1998
22with at least 30 years of creditable service at retirement
23qualifies for the augmented rate without making any

 

 

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1contribution under subsection (b).
2    Any member who retires on or after July 1, 1998 and before
3the effective date of this amendatory Act of the 97th 92nd
4General Assembly and whose pension was calculated using an
5unaugmented rate may elect to have the pension recalculated
6using the applicable augmented rate and to with at least 30
7years of creditable service shall be paid a lump sum equal to
8the amount he or she would have received under the augmented
9rate minus the amount he or she actually received prior to the
10effective date of the recalculation.
11    The changes to this Section made by this amendatory Act of
12the 97th General Assembly apply without regard to whether the
13member was in service on or after its effective date and
14notwithstanding Section 17-157.
15    A member may not elect to qualify for the augmented rate
16for only a portion of his or her creditable service earned
17before July 1, 1998.
18    (b) (Blank). The contribution shall be an amount equal to
191.0% of the member's highest salary rate in the 4 consecutive
20school years immediately prior to but not including the school
21year in which the application occurs, multiplied by the number
22of years of creditable service earned by the member before July
231, 1998 or 20, whichever is less. This contribution shall be
24reduced by 1.0% of that salary rate for every 3 full years of
25creditable service earned by the member after June 30, 1998.
26The contribution shall be further reduced at the rate of 25% of

 

 

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1the contribution (as reduced for service after June 30, 1998)
2for each year of the member's total creditable service in
3excess of 34 years. The contribution shall not in any event
4exceed 20% of that salary rate.
5    The member shall pay to the Fund the amount of the
6contribution as calculated at the time of application under
7this Section. The amount of the contribution determined under
8this subsection shall be recalculated at the time of
9retirement, and if the Fund determines that the amount paid by
10the member exceeds the recalculated amount, the Fund shall
11refund the difference to the member with regular interest from
12the date of payment to the date of refund.
13    The contribution required by this subsection shall be paid
14in one of the following ways or in a combination of the
15following ways that does not extend over more than 5 years:
16        (i) in a lump sum on or before the date of retirement;
17        (ii) in substantially equal installments over a period
18    of time not to exceed 5 years, as a deduction from salary
19    in accordance with Section 17-130.2;
20        (iii) in substantially equal monthly installments over
21    a 24-month period, by a deduction from the annuitant's
22    monthly benefit.
23    (c) (Blank). If the member fails to make the full
24contribution under this Section in a timely fashion, the
25payments made under this Section shall be refunded to the
26member, without interest. If the member (including a member who

 

 

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1has become an annuitant) dies before making the full
2contribution, the payments made under this Section shall be
3refunded to the member's designated beneficiary if there is no
4survivor's or children's pension benefit payable. If there is a
5survivor's or children's benefit payable, then all payments
6made under this Section shall be retained by the Fund and all
7such survivor's or children's benefits payable shall be
8calculated as if all contributions required under this Section
9have been paid in full.
10    (d) (Blank). For purposes of this Section and subsection
11(b) of Section 17-116, optional creditable service established
12by a member shall be deemed to have been earned at the time of
13the employment or other qualifying event upon which the service
14is based, rather than at the time the credit was established in
15this Fund.
16    (e) (Blank). The contributions required under this Section
17are the responsibility of the teacher and not the teacher's
18employer. However, an employer of teachers may, after the
19effective date of this amendatory Act of 1998, specifically
20agree, through collective bargaining or otherwise, to make the
21contributions required by this Section on behalf of those
22teachers.
23(Source: P.A. 91-17, eff. 6-4-99; 92-416, eff. 8-17-01; 92-599,
24eff. 6-28-02; 92-651, eff. 7-11-02.)
 
25    Section 90. The State Mandates Act is amended by adding

 

 

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1Section 8.35 as follows:
 
2    (30 ILCS 805/8.35 new)
3    Sec. 8.35. Exempt mandate. Notwithstanding Sections 6 and 8
4of this Act, no reimbursement by the State is required for the
5implementation of any mandate created by this amendatory Act of
6the 97th General Assembly.
 
7    Section 99. Effective date. This Act takes effect upon
8becoming law.