Full Text of SB1765 101st General Assembly
SB1765 101ST GENERAL ASSEMBLY |
| | 101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020 SB1765 Introduced 2/15/2019, by Sen. Mattie Hunter SYNOPSIS AS INTRODUCED: |
| 40 ILCS 5/17-119.1 | | 40 ILCS 5/17-116.1 rep. | | 40 ILCS 5/17-116.3 rep. | | 40 ILCS 5/17-116.4 rep. | | 40 ILCS 5/17-116.5 rep. | | 40 ILCS 5/17-116.6 rep. | |
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Amends the Chicago Teacher Article of the Illinois Pension Code. Removes a provision concerning a reduction in a specified contribution for certain members who retire before July 1, 1998. Repeals obsolete provisions concerning early retirement incentives. Effective immediately.
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| | | PENSION IMPACT NOTE ACT MAY APPLY | |
| | A BILL FOR |
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| | | SB1765 | | LRB101 08811 RPS 53900 b |
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| 1 | | AN ACT concerning 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) A member of the Fund may qualify for the augmented rate | 9 | | under
subdivision (b)(3) of Section 17-116 for all years of | 10 | | creditable service
earned before July 1, 1998 by making the | 11 | | optional contribution specified in
subsection (b); except that | 12 | | a member who retires on or after July 1, 1998
with at least 30 | 13 | | years of creditable service at retirement qualifies for the
| 14 | | augmented rate without making any contribution under | 15 | | subsection (b). Any
member who retires on or after July 1, 1998 | 16 | | and before the effective date of
this amendatory Act of the | 17 | | 92nd General Assembly with at least 30 years of
creditable | 18 | | service shall be paid a lump sum equal to the amount he or she | 19 | | would
have received under the augmented rate minus the amount | 20 | | he or she actually
received. A member may not elect to qualify | 21 | | for the augmented rate for only
a portion of his or her | 22 | | creditable service earned before July 1, 1998.
| 23 | | (b) The contribution shall be an amount equal to 1.0% of |
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| 1 | | the member's
highest salary rate in the 4 consecutive school | 2 | | years immediately prior to but
not including the school year in | 3 | | which the application occurs, multiplied by
the number of years | 4 | | of creditable service earned by the member before July 1,
1998 | 5 | | or 20, whichever is less. This contribution shall be reduced by | 6 | | 1.0% of
that salary rate for every 3 full years of creditable | 7 | | service earned by the
member after June 30, 1998. The | 8 | | contribution shall be further reduced at
the rate of 25% of the | 9 | | contribution (as reduced for service after June 30,
1998) for | 10 | | each year of the member's total creditable service in excess of | 11 | | 34
years. The contribution shall not in any event exceed 20% of | 12 | | that salary
rate.
| 13 | | The member shall pay to the Fund the amount of the | 14 | | contribution as
calculated at the time of application under | 15 | | this Section. The amount of the
contribution determined under | 16 | | this subsection shall be recalculated at the time
of | 17 | | retirement, and if the Fund determines that the amount paid by | 18 | | the member
exceeds the recalculated amount, the Fund shall | 19 | | refund the difference to the
member with regular interest from | 20 | | the date of payment to the date of refund.
| 21 | | The contribution required by this subsection shall be paid | 22 | | in one of the
following ways or in a combination of the | 23 | | following ways that does not extend
over more than 5 years:
| 24 | | (i) in a lump sum on or before the date of retirement;
| 25 | | (ii) in substantially equal installments over a period | 26 | | of time not to
exceed 5 years, as a deduction from salary |
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| 1 | | in accordance with Section 17-130.2;
| 2 | | (iii) in
substantially equal monthly installments over | 3 | | a 24-month period, by a
deduction from the annuitant's | 4 | | monthly benefit.
| 5 | | (c) If the member fails to make the full contribution under | 6 | | this Section
in a timely fashion, the payments made under this | 7 | | Section shall be refunded
to the member, without interest. If | 8 | | the member (including a member who has
become an annuitant) | 9 | | dies before making the full
contribution, the payments made | 10 | | under this Section shall be refunded to the
member's designated | 11 | | beneficiary if there is no survivor's or children's
pension | 12 | | benefit payable. If there is a survivor's or children's benefit
| 13 | | payable, then all payments made under this Section shall be | 14 | | retained by the
Fund and all such survivor's or children's | 15 | | benefits payable shall be calculated
as if all contributions | 16 | | required under this Section have been paid in full.
| 17 | | (d) For purposes of this Section and subsection (b) of | 18 | | Section
17-116, optional creditable service established by a | 19 | | member shall be deemed to
have been earned at the time of the | 20 | | employment or other qualifying event upon
which the service is | 21 | | based, rather than at the time the credit was established
in | 22 | | this Fund.
| 23 | | (e) The contributions required under this Section are the | 24 | | responsibility of
the teacher and not the teacher's employer. | 25 | | However, an employer of teachers
may, after the effective date | 26 | | of this amendatory Act of 1998,
specifically agree, through |
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| 1 | | collective bargaining or otherwise, to make the
contributions | 2 | | required by this Section on behalf of those teachers.
| 3 | | (Source: P.A. 91-17, eff. 6-4-99; 92-416, eff. 8-17-01; 92-599, | 4 | | eff. 6-28-02;
92-651, eff. 7-11-02.)
| 5 | | (40 ILCS 5/17-116.1 rep.)
| 6 | | (40 ILCS 5/17-116.3 rep.)
| 7 | | (40 ILCS 5/17-116.4 rep.)
| 8 | | (40 ILCS 5/17-116.5 rep.)
| 9 | | (40 ILCS 5/17-116.6 rep.)
| 10 | | Section 10. The Illinois Pension Code is amended by | 11 | | repealing Sections 17-116.1, 17-116.3, 17-116.4, 17-116.5, and | 12 | | 17-116.6.
| 13 | | Section 99. Effective date. This Act takes effect upon | 14 | | becoming law.
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