093_HB2802

 
                                     LRB093 09724 EFG 09964 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 17-119.1 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
 9    Act  of the 93rd General Assembly, a member of the Fund shall
10    may qualify for the augmented rate under  subdivision  (b)(3)
11    of  Section 17-116 for all years of creditable service earned
12    before July 1,  1998  without  by  making  any  the  optional
13    contribution.   Any such contribution already paid under this
14    Section shall be refunded by  the  Fund  to  the  teacher  or
15    pensioner  (or,  if  deceased,  to the teacher or pensioner's
16    survivor, beneficiary, or estate), together with interest  at
17    the rate of 5%, compounded annually, from the date of payment
18    of  the  contribution  to the date of refund; except that any
19    such contribution that has been paid  by  an  employer  under
20    subsection  (e) shall be refunded to the employer.  specified
21    in subsection (b); except that a member  who  retires  on  or
22    after  July  1,  1998  with  at  least 30 years of creditable
23    service  at  retirement  qualifies  for  the  augmented  rate
24    without making any contribution under subsection (b).
25        Any member who retires on  or  after  July  1,  1998  and
26    before  the effective date of this amendatory Act of the 93rd
27    92nd General Assembly and whose pension was calculated  using
28    an   unaugmented   rate   may   elect  to  have  the  pension
29    recalculated using the applicable augmented rate and to  with
30    at  least 30 years of creditable service shall be paid a lump
31    sum equal to the amount he or she would have  received  under
 
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 1    the  augmented  rate  minus  the  amount  he  or she actually
 2    received prior to the effective date of the recalculation.
 3        The changes to this Section made by this  amendatory  Act
 4    of  the 93rd General Assembly apply without regard to whether
 5    the member was in service on or after its effective date  and
 6    notwithstanding Section 17-157.
 7        A  member may not elect to qualify for the augmented rate
 8    for only a portion of his or her  creditable  service  earned
 9    before July 1, 1998.
10        (b)  (Blank).  The  contribution shall be an amount equal
11    to 1.0%  of  the  member's  highest  salary  rate  in  the  4
12    consecutive   school  years  immediately  prior  to  but  not
13    including the school year in which  the  application  occurs,
14    multiplied  by  the  number  of  years  of creditable service
15    earned by the member before July 1, 1998 or 20, whichever  is
16    less.   This  contribution  shall  be reduced by 1.0% of that
17    salary rate for every 3  full  years  of  creditable  service
18    earned  by  the member after June 30, 1998.  The contribution
19    shall  be  further  reduced  at  the  rate  of  25%  of   the
20    contribution (as reduced for service after June 30, 1998) for
21    each  year of the member's total creditable service in excess
22    of 34 years.  The contribution shall not in any event  exceed
23    20% of that salary rate.
24        The  member  shall  pay  to  the  Fund  the amount of the
25    contribution as calculated at the time of  application  under
26    this  Section.   The  amount  of  the contribution determined
27    under this subsection shall be recalculated at  the  time  of
28    retirement,  and  if the Fund determines that the amount paid
29    by the member exceeds the recalculated amount, the Fund shall
30    refund the difference to the  member  with  regular  interest
31    from the date of payment to the date of refund.
32        The  contribution  required  by  this subsection shall be
33    paid in one of the following ways or in a combination of  the
34    following ways that does not extend over more than 5 years:
 
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 1             (i)  in  a  lump  sum  on  or  before  the  date  of
 2        retirement;
 3             (ii)  in  substantially  equal  installments  over a
 4        period of time not to exceed 5 years, as a deduction from
 5        salary in accordance with Section 17-130.2;
 6             (iii)  in substantially equal  monthly  installments
 7        over   a   24-month  period,  by  a  deduction  from  the
 8        annuitant's monthly benefit.
 9        (c)  (Blank). If  the  member  fails  to  make  the  full
10    contribution  under  this  Section  in  a timely fashion, the
11    payments made under this Section shall  be  refunded  to  the
12    member,  without interest.  If the member (including a member
13    who has become an annuitant)  dies  before  making  the  full
14    contribution,  the  payments made under this Section shall be
15    refunded to the member's designated beneficiary if  there  is
16    no  survivor's  or  children's  pension  benefit payable.  If
17    there is a survivor's or children's benefit payable, then all
18    payments made under this Section shall  be  retained  by  the
19    Fund  and  all such survivor's or children's benefits payable
20    shall be calculated as if all  contributions  required  under
21    this Section have been paid in full.
22        (d)  (Blank). For purposes of this Section and subsection
23    (b)   of   Section   17-116,   optional   creditable  service
24    established by a member shall be deemed to have  been  earned
25    at  the time of the employment or other qualifying event upon
26    which the service is based,  rather  than  at  the  time  the
27    credit was established in this Fund.
28        (e)  (Blank).   The  contributions  required  under  this
29    Section are the responsibility of the  teacher  and  not  the
30    teacher's  employer.   However,  an employer of teachers may,
31    after the effective date of  this  amendatory  Act  of  1998,
32    specifically   agree,   through   collective   bargaining  or
33    otherwise, to make the contributions required by this Section
34    on behalf of those teachers.
 
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 1    (Source: P.A.  91-17,  eff.  6-4-99;  92-416,  eff.  8-17-01;
 2    92-599, eff. 6-28-02; 92-651, eff. 7-11-02.)

 3        Section  90.  The State Mandates Act is amended by adding
 4    Section 8.27 as follows:

 5        (30 ILCS 805/8.27 new)
 6        Sec. 8.27. Exempt mandate.   Notwithstanding  Sections  6
 7    and  8 of this Act, no reimbursement by the State is required
 8    for  the  implementation  of  any  mandate  created  by  this
 9    amendatory Act of the 93rd General Assembly.

10        Section 99.  Effective date.  This Act takes effect  upon
11    becoming law.