Illinois General Assembly - Full Text of SB0193
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Full Text of SB0193  93rd General Assembly

SB0193eng 93rd General Assembly


SB193 Engrossed                      LRB093 07867 EFG 08056 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 16-133.2 as follows:

 6        (40 ILCS 5/16-133.2) (from Ch. 108 1/2, par. 16-133.2)
 7        Sec. 16-133.2.  Early  retirement  without  discount.   A
 8    member  retiring after June 1, 1980 and on or before June 30,
 9    2010 2005, and applying for a  retirement  annuity  within  6
10    months  of  the  last  day  of  teaching for which retirement
11    contributions  were  required,  may  elect  at  the  time  of
12    application for a retirement annuity,  to  make  a  one  time
13    member  contribution  to  the  System  and  thereby avoid the
14    reduction in the retirement annuity for retirement before age
15    60  specified  in  paragraph  (B)  of  Section  16-133.   The
16    exercise  of  the  election  shall  also  obligate  the  last
17    employer to make a one time  non-refundable  contribution  to
18    the  System.   Substitute  teachers  wishing to exercise this
19    election must teach 85 or more days in one school  term  with
20    one  employer,  who  shall  be  deemed  the last employer for
21    purposes of this Section.  The last day of teaching with that
22    employer must be within 6 months of the date  of  application
23    for  retirement.   All  substitute  teaching  credit  applied
24    toward  the  required  85  days must be earned after June 30,
25    1990.
26        The one time member and employer contributions shall be a
27    percentage of the retiring  member's  highest  annual  salary
28    rate  used  in  the  determination  of the average salary for
29    retirement annuity purposes.  However, when  determining  the
30    one-time  member  and  employer contributions, that part of a
31    member's salary with the  same  employer  which  exceeds  the
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 1    annual  salary  rate  for the preceding year by more than 20%
 2    shall be excluded.  The member contribution shall be  at  the
 3    rate  of  7%  for the lesser of the following 2 periods:  (1)
 4    for each year that the member is less than age 60; or (2) for
 5    each year that the member's creditable service is  less  than
 6    34 35 years.  If a member is at least age 55 and has at least
 7    34  years  of  creditable  service,  no  member  or  employer
 8    contribution   for  the  early  retirement  option  shall  be
 9    required.  The employer contribution shall be at the rate  of
10    20% for each year the member is under age 60.
11        Upon  receipt of the application and election, the System
12    shall  determine  the  one   time   employee   and   employer
13    contributions  required.   The  member  contribution shall be
14    credited to the individual account  of  the  member  and  the
15    employer  contribution  shall  be  credited to the Employer's
16    Contribution Reserve.  The provisions of this  Section  shall
17    not  be  applicable  until the member's contribution, if any,
18    has been received by  the  System;  however,  the  date  such
19    contributions   are  received  shall  not  be  considered  in
20    determining the effective date of retirement.
21        The number of members working for a single  employer  who
22    may  retire  under this Section in any year may be limited at
23    the option of the employer to a specified percentage of those
24    eligible, not less than 30%, with the right to participate to
25    be allocated among those applying on the basis  of  seniority
26    in the service of the employer.
27    (Source: P.A. 90-582, eff. 5-27-98; 91-17, eff. 6-4-99.)

28        Section  90.  The State Mandates Act is amended by adding
29    Section 8.27 as follows:

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

 3        Section 99.  Effective date.  This Act takes effect  upon
 4    becoming law.