093_SB0194

 
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 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    2005,  and  applying for a retirement annuity within 6 months
10    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    35 years.  If a member is at least age 55 and has at least 34
 7    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.