Full Text of SB0160 95th General Assembly
SB0160 95TH GENERAL ASSEMBLY
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95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008 SB0160
Introduced 1/31/2007, by Sen. James A. DeLeo SYNOPSIS AS INTRODUCED: |
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40 ILCS 5/17-119.1 |
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30 ILCS 805/8.31 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 |
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A BILL FOR
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SB0160 |
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LRB095 04408 AMC 24453 b |
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| AN ACT in relation to public employee benefits.
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| Be it enacted by the People of the State of Illinois, | 3 |
| represented in the General Assembly:
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| Section 5. The Illinois Pension Code is amended by changing | 5 |
| Section
17-119.1 as follows:
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| (40 ILCS 5/17-119.1)
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| Sec. 17-119.1. Optional increase in retirement annuity.
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| (a) Beginning on the effective date of this amendatory Act | 9 |
| of the 95th
General Assembly, a member of the Fund shall
may
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| 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
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| 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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SB0160 |
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LRB095 04408 AMC 24453 b |
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| contribution
under subsection (b).
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| Any member who retires on or after July 1, 1998 and before | 3 |
| the effective
date of this amendatory Act of the 95th
92nd
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| 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 .
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| The changes to this Section made by this amendatory Act of | 12 |
| the 95th
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.
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| 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.
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| (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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SB0160 |
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LRB095 04408 AMC 24453 b |
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| 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.
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| 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.
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| 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:
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| (i) in a lump sum on or before the date of retirement;
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| (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;
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| (iii) in
substantially equal monthly installments over | 21 |
| a 24-month period, by a
deduction from the annuitant's | 22 |
| monthly benefit.
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| (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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| has
become an annuitant) dies before making the full
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| 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.
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| (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.
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| (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.
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| (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.)
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| Section 90. The State Mandates Act is amended by adding |
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| Section 8.31 as follows: | 2 |
| (30 ILCS 805/8.31 new) | 3 |
| Sec. 8.31. 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 95th General Assembly. | 7 |
| Section 99. Effective date. This Act takes effect upon | 8 |
| becoming law. |
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