Illinois General Assembly - Full Text of SB2584
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Full Text of SB2584  99th General Assembly




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1    AN ACT concerning public employee benefits.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 5. The Illinois Pension Code is amended by changing
5Section 17-116 as follows:
6    (40 ILCS 5/17-116)  (from Ch. 108 1/2, par. 17-116)
7    (Text of Section WITHOUT the changes made by P.A. 98-599,
8which has been held unconstitutional)
9    Sec. 17-116. Service retirement pension.
10    (a) Each teacher having 20 years of service upon attainment
11of age 55, or who thereafter attains age 55 shall be entitled
12to a service retirement pension upon or after attainment of age
1355; and each teacher in service on or after July 1, 1971, with
145 or more but less than 20 years of service shall be entitled
15to receive a service retirement pension upon or after
16attainment of age 62.
17    (b) The service retirement pension for a teacher who
18retires on or after June 25, 1971, at age 60 or over, shall be
19calculated as follows:
20        (1) For creditable service earned before July 1, 1998
21    that has not been augmented under Section 17-119.1: 1.67%
22    for each of the first 10 years of service; 1.90% for each
23    of the next 10 years of service; 2.10% for each year of



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1    service in excess of 20 but not exceeding 30; and 2.30% for
2    each year of service in excess of 30, based upon average
3    salary as herein defined.
4        (2) For creditable service earned on or after July 1,
5    1998 by a member who has at least 30 years of creditable
6    service on July 1, 1998 and who does not elect to augment
7    service under Section 17-119.1: 2.3% of average salary for
8    each year of creditable service earned on or after July 1,
9    1998.
10        (3) For all other creditable service: 2.2% of average
11    salary for each year of creditable service.
12    (c) When computing such service retirement pensions, the
13following conditions shall apply:
14        1. Average salary shall consist of the average annual
15    rate of salary for the 4 consecutive years of validated
16    service within the last 10 years of service when such
17    average annual rate was highest. In the determination of
18    average salary for retirement allowance purposes, for
19    members who commenced employment after August 31, 1979,
20    that part of the salary for any year shall be excluded
21    which exceeds the annual full-time salary rate for the
22    preceding year by more than 20%. In the case of a member
23    who commenced employment before August 31, 1979 and who
24    receives salary during any year after September 1, 1983
25    which exceeds the annual full time salary rate for the
26    preceding year by more than 20%, an Employer and other



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1    employers of eligible contributors as defined in Section
2    17-106 shall pay to the Fund an amount equal to the present
3    value of the additional service retirement pension
4    resulting from such excess salary. The present value of the
5    additional service retirement pension shall be computed by
6    the Board on the basis of actuarial tables adopted by the
7    Board. If a member elects to receive a pension from this
8    Fund provided by Section 20-121, his salary under the State
9    Universities Retirement System and the Teachers'
10    Retirement System of the State of Illinois shall be
11    considered in determining such average salary. Amounts
12    paid after the effective date of this amendatory Act of
13    1991 for unused vacation time earned after that effective
14    date shall not under any circumstances be included in the
15    calculation of average salary or the annual rate of salary
16    for the purposes of this Article.
17        2. Proportionate credit shall be given for validated
18    service of less than one year.
19        3. For retirement at age 60 or over the pension shall
20    be payable at the full rate.
21        4. For separation from service below age 60 to a
22    minimum age of 55, the pension shall be discounted at the
23    rate of 1/2 of one per cent for each month that the age of
24    the contributor is less than 60, but a teacher may elect to
25    defer the effective date of pension in order to eliminate
26    or reduce this discount. This discount shall not be



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1    applicable to any participant who has at least 34 years of
2    service or a retirement pension of at least 74.6% of
3    average salary on the date the retirement annuity begins.
4        5. No additional pension shall be granted for service
5    exceeding 45 years. Beginning June 26, 1971 no pension
6    shall exceed the greater of $1,500 per month or 75% of
7    average salary as herein defined.
8        6. Service retirement pensions shall begin on the
9    effective date of resignation, retirement, the day
10    following the close of the payroll period for which service
11    credit was validated, or the time the person resigning or
12    retiring attains age 55, or on a date elected by the
13    teacher, whichever shall be latest; provided that, for a
14    person who first becomes a member after the effective date
15    of this amendatory Act of the 99th General Assembly, the
16    benefit shall not commence more than one year prior to the
17    date of the Fund's receipt of an application for the
18    benefit.
19        7. A member who is eligible to receive a retirement
20    pension of at least 74.6% of average salary and will attain
21    age 55 on or before December 31 during the year which
22    commences on July 1 shall be deemed to attain age 55 on the
23    preceding June 1.
24        8. A member retiring after the effective date of this
25    amendatory Act of 1998 shall receive a pension equal to 75%
26    of average salary if the member is qualified to receive a



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1    retirement pension equal to at least 74.6% of average
2    salary under this Article or as proportional annuities
3    under Article 20 of this Code.
4(Source: P.A. 90-566, eff. 1-2-98; 90-582, eff. 5-27-98.)
5    Section 99. Effective date. This Act takes effect upon
6becoming law.