093_SB1134

 
                                     LRB093 06788 LRD 06928 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
 5    changing Section 17-119 as follows:

 6        (40 ILCS 5/17-119) (from Ch. 108 1/2, par. 17-119)
 7        Sec. 17-119.  Automatic annual increase in pension.
 8        (a)  Each teacher retiring on or after September 1, 1959,
 9    is entitled  to  the  annual  increase  in  pension,  defined
10    herein, while he is receiving a pension from the Fund.
11             1.  The   term   "base   pension"  means  a  service
12        retirement or disability retirement pension in the amount
13        fixed and payable at the date of retirement of a teacher.
14             2.  The annual increase in pension shall be  at  the
15        rate of 1 1/2% of base pension. This increase shall first
16        occur  in  January  of  the year next following the first
17        anniversary of retirement. At such time  the  Fund  shall
18        pay the pro rata part of the increase for the period from
19        the  first  anniversary  date  to  the  date of the first
20        increase in pension.  Beginning January 1, 1972, the rate
21        of annual increase in pension shall be  2%  of  the  base
22        pension.   Beginning  January 1, 1979, the rate of annual
23        increase in pension shall be  3%  of  the  base  pension.
24        Beginning January 1, 1990, all automatic annual increases
25        payable  under  this  Section  shall  be  calculated as a
26        percentage of the total pension payable at  the  time  of
27        the  increase, including all increases previously granted
28        under this Article, notwithstanding Section 17-157.
29             3.  An increase in pension shall be granted only  if
30        the  retired  teacher  is age 60 or over.  If the teacher
31        attains age 60 after retirement, the increase in  pension
 
                            -2-      LRB093 06788 LRD 06928 b
 1        shall  begin  in  January  of the year following the 61st
 2        birthday.  At such time the Fund also shall pay  the  pro
 3        rata   part  of  the  increase  from  the  later  of  (i)
 4        attainment of age 55 or (ii) the date of retirement  61st
 5        birthday to the date of first increase in pension.
 6        (b)  In addition to other increases which may be provided
 7    by  this  Section,  on  January  1,  1981 any teacher who was
 8    receiving a retirement pension on or before January  1,  1971
 9    shall  have  his retirement pension then being paid increased
10    $1 per month for each year of creditable service.  On January
11    1, 1982, any teacher whose retirement  pension  began  on  or
12    before  January  1,  1977,  shall have his retirement pension
13    then being paid increased $1  per  month  for  each  year  of
14    creditable service.
15        On  January 1, 1987, any teacher whose retirement pension
16    began on or before January 1, 1977, shall  have  the  monthly
17    retirement  pension  increased  by  an amount equal to 8¢ per
18    year of creditable service times the  number  of  years  that
19    have elapsed since the retirement pension began.
20    (Source: P.A. 90-566, eff. 1-2-98.)

21        Section  90.  The State Mandates Act is amended by adding
22    Section 8.27 as follows:

23        (30 ILCS 805/8.27 new)
24        Sec. 8.27. Exempt mandate.   Notwithstanding  Sections  6
25    and  8 of this Act, no reimbursement by the State is required
26    for  the  implementation  of  any  mandate  created  by  this
27    amendatory Act of the 93rd General Assembly.

28        Section 99. Effective date.  This Act takes  effect  upon
29    becoming law.