Full Text of HB3392 97th General Assembly
HB3392 97TH GENERAL ASSEMBLY |
| | 97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012 HB3392 Introduced 2/24/2011, by Rep. Robert Rita SYNOPSIS AS INTRODUCED: | | 40 ILCS 5/17-119.1 | | 30 ILCS 805/8.35 new | |
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Amends the Chicago Teacher Article of the Illinois Pension Code.
Eliminates the required contribution for converting past service to
the augmented retirement formula, and provides for a refund of such
contributions already paid. Also provides for recalculation of the
pension and a lump sum payment of the difference between the augmented
and unaugmented rates for certain pensioners. Amends the State Mandates
Act to require implementation without reimbursement. Effective immediately.
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| | FISCAL NOTE ACT MAY APPLY | PENSION IMPACT NOTE ACT MAY APPLY | STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT |
| | A BILL FOR |
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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 changing | 5 | | 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 Act | 9 | | of the 97th
General Assembly, a member of the Fund shall
may | 10 | | qualify for the
augmented rate
under subdivision (b)(3) of | 11 | | 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 such | 19 | | contribution that
has been paid by an employer under subsection | 20 | | (e) shall be refunded to the
employer.
specified in subsection | 21 | | (b); except that a member who retires
on or after July 1, 1998 | 22 | | with at least 30 years of creditable service at
retirement | 23 | | qualifies for the augmented rate without making any |
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| 1 | | contribution
under subsection (b).
| 2 | | Any member who retires on or after July 1, 1998 and before | 3 | | the effective
date of this amendatory Act of the 97th
92nd | 4 | | General Assembly and
whose pension was calculated using an | 5 | | unaugmented rate may elect to have the
pension recalculated | 6 | | using the applicable augmented rate and to
with at
least 30 | 7 | | years of creditable service shall be paid a lump sum equal to | 8 | | the
amount he or she would have received under the augmented | 9 | | rate minus the amount
he or she actually received prior to the | 10 | | effective date of the
recalculation .
| 11 | | The changes to this Section made by this amendatory Act of | 12 | | the 97th
General Assembly apply without regard to whether the | 13 | | member was in service
on or after its effective date and | 14 | | notwithstanding Section 17-157.
| 15 | | A member may not elect to qualify for the augmented rate | 16 | | for only
a portion of his or her creditable service earned | 17 | | before July 1, 1998.
| 18 | | (b) (Blank).
The contribution shall be an amount equal to | 19 | | 1.0% of the
member's
highest salary rate in the 4 consecutive | 20 | | school years immediately prior to but
not including the school | 21 | | year in which the application occurs, multiplied by
the number | 22 | | of years of creditable service earned by the member before July | 23 | | 1,
1998 or 20, whichever is less. This contribution shall be | 24 | | reduced by 1.0% of
that salary rate for every 3 full years of | 25 | | creditable service earned by the
member after June 30, 1998. | 26 | | The contribution shall be further reduced at
the rate of 25% of |
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| 1 | | the contribution (as reduced for service after June 30,
1998) | 2 | | for each year of the member's total creditable service in | 3 | | excess of 34
years. The contribution shall not in any event | 4 | | exceed 20% of that salary
rate.
| 5 | | The member shall pay to the Fund the amount of the | 6 | | contribution as
calculated at the time of application under | 7 | | this Section. The amount of the
contribution determined under | 8 | | this subsection shall be recalculated at the time
of | 9 | | retirement, and if the Fund determines that the amount paid by | 10 | | the member
exceeds the recalculated amount, the Fund shall | 11 | | refund the difference to the
member with regular interest from | 12 | | the date of payment to the date of refund.
| 13 | | The contribution required by this subsection shall be paid | 14 | | in one of the
following ways or in a combination of the | 15 | | following ways that does not extend
over more than 5 years:
| 16 | | (i) in a lump sum on or before the date of retirement;
| 17 | | (ii) in substantially equal installments over a period | 18 | | of time not to
exceed 5 years, as a deduction from salary | 19 | | in accordance with Section 17-130.2;
| 20 | | (iii) in
substantially equal monthly installments over | 21 | | a 24-month period, by a
deduction from the annuitant's | 22 | | monthly benefit.
| 23 | | (c) (Blank).
If the member fails to make the full | 24 | | contribution under
this Section
in a timely fashion, the | 25 | | payments made under this Section shall be refunded
to the | 26 | | member, without interest. If the member (including a member who |
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| 1 | | has
become an annuitant) dies before making the full
| 2 | | contribution, the payments made under this Section shall be | 3 | | refunded to the
member's designated beneficiary if there is no | 4 | | survivor's or children's
pension benefit payable. If there is a | 5 | | survivor's or children's benefit
payable, then all payments | 6 | | made under this Section shall be retained by the
Fund and all | 7 | | such survivor's or children's benefits payable shall be | 8 | | calculated
as if all contributions required under this Section | 9 | | have been paid in full.
| 10 | | (d) (Blank).
For purposes of this Section and subsection | 11 | | (b) of
Section 17-116, optional creditable service established | 12 | | by a member shall be
deemed to have been earned at the time of | 13 | | the employment or other qualifying
event upon which the service | 14 | | is based, rather than at the time the credit was
established in | 15 | | this Fund.
| 16 | | (e) (Blank).
The contributions required under this Section | 17 | | are the
responsibility of the teacher and not the teacher's | 18 | | employer. However, an
employer of teachers may, after the | 19 | | effective date of this amendatory Act of
1998, specifically | 20 | | agree, through collective bargaining or otherwise, to make
the | 21 | | contributions required by this Section on behalf of those | 22 | | teachers.
| 23 | | (Source: P.A. 91-17, eff. 6-4-99; 92-416, eff. 8-17-01; 92-599, | 24 | | eff. 6-28-02;
92-651, eff. 7-11-02.)
| 25 | | Section 90. The State Mandates Act is amended by adding |
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| 1 | | Section 8.35 as follows: | 2 | | (30 ILCS 805/8.35 new) | 3 | | Sec. 8.35. Exempt mandate. Notwithstanding Sections 6 and 8 | 4 | | of this Act, no reimbursement by the State is required for the | 5 | | implementation of any mandate created by this amendatory Act of | 6 | | the 97th General Assembly. | 7 | | Section 99. Effective date. This Act takes effect upon | 8 | | becoming law. |
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