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Sen. Bill Brady
Filed: 5/5/2004
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09300HB6616sam001 |
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LRB093 19757 EFG 50563 a |
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| AMENDMENT TO HOUSE BILL 6616
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| AMENDMENT NO. ______. Amend House Bill 6616 on page 1, in |
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| line 5, by changing "Section 7-132" to "Sections 7-132 and |
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| 16-133.2"; and
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| on page 9, below line 4, by inserting the following:
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| "(40 ILCS 5/16-133.2) (from Ch. 108 1/2, par. 16-133.2)
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| Sec. 16-133.2. Early retirement without discount. A member
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| retiring after June 1, 1980 and on or before June 30, 2010
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| 2005, and
applying for a retirement annuity within 6 months of |
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| the last day of
teaching for which retirement contributions |
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| were required,
may elect at the time of application for a |
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| retirement annuity, to make
a one time member contribution to |
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| the System and thereby
avoid the reduction in the retirement |
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| annuity for retirement before age
60 specified in paragraph (B) |
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| of Section 16-133. The exercise of the
election shall also |
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| obligate the last employer to make a one time
non-refundable |
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| contribution to the System. Substitute teachers wishing to
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| exercise this election must teach 85 or more days in one school |
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| term with
one employer, who shall be deemed the last employer |
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| for purposes of this
Section. The last day of teaching with |
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| that employer must be within 6
months of the date of |
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| application for retirement. All substitute
teaching credit |
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| applied toward the required 85 days must be earned after
June |
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| 30, 1990.
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09300HB6616sam001 |
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LRB093 19757 EFG 50563 a |
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| The one time member and employer contributions shall be a |
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| percentage of
the retiring member's highest annual salary rate |
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| used in the determination
of the average salary for retirement |
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| annuity purposes. However, when
determining the one-time |
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| member and employer contributions, that part of a
member's |
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| salary with the same employer which exceeds the annual salary |
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| rate
for the preceding year by more than 20% shall be excluded. |
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| The member
contribution shall be at the rate of 7% for the |
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| lesser of the following 2
periods: (1) for each year that the |
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| member is less than age 60; or (2) for
each year that the |
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| member's creditable service is less than 34
35 years. If a
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| member is at least age 55 and has at least 34 years of |
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| creditable service, no
member or employer contribution for the |
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| early retirement option shall be
required. The employer |
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| contribution shall be at the rate of 20% for each year
the |
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| member is under age 60.
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| Upon receipt of the application and election, the System |
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| shall determine
the one time employee and employer |
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| contributions required. The member
contribution shall be |
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| credited to the individual account of the member and
the |
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| employer contribution shall be credited to the Benefit Trust |
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| Reserve. The
provisions of this Section shall
not be applicable |
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| until the member's contribution, if any, has been received
by |
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| the System; however, the date such contributions are received |
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| shall not be
considered in determining the effective date of |
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| retirement.
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| The number of members working for a single employer who may
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| retire under this Section in any year may be limited at the |
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| option
of the employer to a specified percentage of those |
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| eligible, not less
than 30%, with the right to participate to |
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| be allocated among those
applying on the basis of seniority in |
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| the service of the employer.
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| (Source: P.A. 93-469, eff. 8-8-03.)
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