Full Text of SB1782 101st General Assembly
SB1782 101ST GENERAL ASSEMBLY |
| | 101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020 SB1782 Introduced 2/15/2019, by Sen. Emil Jones, III SYNOPSIS AS INTRODUCED: |
| 40 ILCS 5/17-116 | from Ch. 108 1/2, par. 17-116 | 40 ILCS 5/17-125 | from Ch. 108 1/2, par. 17-125 |
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Amends the Chicago Teacher Article of the Illinois Pension Code. Provides that service retirement pensions shall begin on the effective date of termination as reflected in the records of the Employer. Provides that upon certification of a member's termination (instead of cancellation of his teaching certificate) and on written application, a teacher shall be paid a refund. Provides that to obtain a refund for a member who has completed the minimum term of service required to establish eligibility for a pension, the member must execute and deliver to the Board a written acknowledgment of forfeiture of all service credit and rights to pension payments (instead of a written receipt and acknowledgment). Makes other changes. Effective immediately.
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| | FISCAL NOTE ACT MAY APPLY | | PENSION IMPACT NOTE ACT MAY APPLY |
| | A BILL FOR |
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| | | SB1782 | | LRB101 08810 RPS 53898 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 | | Sections 17-116 and 17-125 as follows:
| 6 | | (40 ILCS 5/17-116) (from Ch. 108 1/2, par. 17-116)
| 7 | | Sec. 17-116. Service retirement pension.
| 8 | | (a) Each teacher having 20 years of service upon attainment | 9 | | of age 55,
or who thereafter attains age 55 shall be entitled | 10 | | to a service retirement
pension upon or after attainment of age | 11 | | 55; and each teacher in service on or
after July 1, 1971, with | 12 | | 5 or more but less than 20 years of service shall be
entitled | 13 | | to receive a service retirement pension upon or after | 14 | | attainment of
age 62.
| 15 | | (b) The service retirement pension
for a teacher who | 16 | | retires on or after June 25, 1971, at age
60 or over, shall be | 17 | | calculated as follows:
| 18 | | (1) For creditable service earned before July 1, 1998 | 19 | | that has not been
augmented under Section 17-119.1: 1.67% | 20 | | for each of the first 10 years
of service; 1.90% for each | 21 | | of the next 10 years of service; 2.10% for
each year of | 22 | | service in excess of 20 but not exceeding 30; and 2.30% for
| 23 | | each year of service in excess of 30, based upon average |
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| 1 | | salary as
herein defined.
| 2 | | (2) For creditable service earned on or after July 1, | 3 | | 1998 by a member
who has at least 30 years of creditable | 4 | | service on July 1, 1998 and who does
not elect to augment | 5 | | service under Section 17-119.1: 2.3% of average salary
for | 6 | | each year of creditable service earned on or after July 1, | 7 | | 1998.
| 8 | | (3) For all other creditable service: 2.2% of average | 9 | | salary
for each year of creditable service.
| 10 | | (c) When computing such service retirement pensions, the
| 11 | | following conditions shall apply:
| 12 | | 1. Average salary shall consist of the average annual | 13 | | rate of salary
for the 4 consecutive years of validated | 14 | | service within the last 10 years
of service when such | 15 | | average annual rate was highest. In the determination
of | 16 | | average salary for retirement allowance purposes, for | 17 | | members who
commenced employment after August 31, 1979, | 18 | | that part of the salary for any
year shall be excluded | 19 | | which exceeds the annual full-time salary rate for
the | 20 | | preceding year by more than 20%. In the case of a member | 21 | | who commenced
employment before August 31, 1979 and who | 22 | | receives salary during any year
after September 1, 1983 | 23 | | which exceeds the annual full time salary rate for
the | 24 | | preceding year by more than 20%,
an Employer and other | 25 | | employers of
eligible contributors as defined in Section | 26 | | 17-106
shall pay to the Fund an amount equal to the present |
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| 1 | | value of the
additional service retirement pension | 2 | | resulting from such excess salary.
The present value of the | 3 | | additional service retirement pension shall be
computed by | 4 | | the Board on the basis of actuarial tables adopted by the
| 5 | | Board. If a member elects to receive a pension from this | 6 | | Fund
provided by
Section 20-121, his salary under the State | 7 | | Universities Retirement System
and the Teachers' | 8 | | Retirement System of the State of Illinois shall be
| 9 | | considered in determining such average salary. Amounts | 10 | | paid after the
effective date of this amendatory Act of | 11 | | 1991 for unused vacation time
earned after that effective | 12 | | date shall not under any circumstances be
included in the | 13 | | calculation of average salary or the annual rate of salary
| 14 | | for the purposes of this Article.
| 15 | | 2. Proportionate credit shall be given for validated | 16 | | service of less
than one year.
| 17 | | 3. For retirement at age 60 or over the pension shall | 18 | | be payable at
the full rate.
| 19 | | 4. For separation from service below age 60 to a | 20 | | minimum age of 55,
the pension shall be discounted at the | 21 | | rate of 1/2 of one per cent for
each month that the age of | 22 | | the contributor is less than 60, but a
teacher may elect to | 23 | | defer the effective date of pension in order to
eliminate | 24 | | or reduce this discount. This discount shall not be | 25 | | applicable
to any participant who has at least 34 years of | 26 | | service or a
retirement pension of at least 74.6% of |
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| 1 | | average salary on the date the
retirement annuity begins.
| 2 | | 5. No additional pension shall be granted for service | 3 | | exceeding 45
years. Beginning June 26, 1971 no pension | 4 | | shall exceed the greater of
$1,500 per month or 75% of | 5 | | average salary as herein defined.
| 6 | | 6. Service retirement pensions shall begin on the | 7 | | effective date of
resignation or termination as reflected | 8 | | in the records of the Employer , retirement, the day | 9 | | following the close of the payroll
period for which service | 10 | | credit was validated, or the time the person
resigning or | 11 | | retiring attains age 55, or on a date elected by the
| 12 | | teacher, whichever shall be latest; provided that, for a | 13 | | person who first becomes a member after July 29, 2016 ( the | 14 | | effective date of Public Act 99-702) this amendatory Act of | 15 | | the 99th General Assembly , the benefit shall not commence | 16 | | more than one year prior to the date of the Fund's receipt | 17 | | of an application for the benefit.
| 18 | | 7. A member who is eligible to receive a retirement | 19 | | pension of at least
74.6% of average salary and will attain | 20 | | age 55 on or before December 31
during the year which | 21 | | commences on July 1 shall be deemed to attain age 55 on
the | 22 | | preceding June 1.
| 23 | | 8. A member retiring after the effective date of this | 24 | | amendatory Act
of 1998 shall receive a pension equal to 75% | 25 | | of average salary if the
member is qualified to receive a | 26 | | retirement pension equal to at least 74.6%
of average |
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| 1 | | salary under this Article or as proportional annuities | 2 | | under
Article 20 of this Code.
| 3 | | (Source: P.A. 99-702, eff. 7-29-16.)
| 4 | | (40 ILCS 5/17-125) (from Ch. 108 1/2, par. 17-125)
| 5 | | Sec. 17-125. Refund of contributions. Upon certification | 6 | | by the Employer of a member's his resignation or termination | 7 | | cancellation
of his teaching certificate prior to completion of | 8 | | the
minimum term of service required to establish eligibility | 9 | | for a pension
and on written application therefor, a teacher | 10 | | shall be paid a refund of
all the amounts the member he has | 11 | | contributed to the Fund, less any former
refund
that has not | 12 | | been repaid.
| 13 | | Upon certification by the Employer of the member's his | 14 | | resignation or termination
cancellation of his teaching | 15 | | certificate after completion of the minimum
term of service | 16 | | required to establish eligibility for a pension and on
written | 17 | | application therefor, a teacher shall be paid a refund of all
| 18 | | the amounts the member he has contributed, less (1) any former | 19 | | refund that has not
been repaid, and (2) pension payments | 20 | | received, provided the member he has executed
and delivered to | 21 | | the Board a written acknowledgment of forfeiture of all service | 22 | | credit and rights to pension payments his written receipt and | 23 | | release in
that
behalf . Thereupon, the member he shall have no | 24 | | further interest in or claim against
the Fund.
| 25 | | A request for refund under either of the preceding |
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| 1 | | paragraphs shall
be considered valid if the member's withdrawal | 2 | | from service occurred at least 2
months prior to the filing of | 3 | | such request.
| 4 | | Upon retirement of a teacher either on immediate or | 5 | | deferred pension,
if the teacher is not then married, or if the | 6 | | member's his spouse or children do not
meet the qualifying | 7 | | conditions for a survivor's or children's pension pensions ,
the | 8 | | total amount contributed by the member him or otherwise paid by | 9 | | deductions from
salary for survivor's pension, shall be | 10 | | refunded to the member him , without
interest. No survivor's or | 11 | | children's pension rights shall be effective
thereafter in such | 12 | | a case.
| 13 | | During a teacher's term of service, no refund is payable | 14 | | except
contributions made in error.
| 15 | | (Source: P.A. 90-566, eff. 1-2-98.)
| 16 | | Section 99. Effective date. This Act takes effect upon | 17 | | becoming law.
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