Full Text of SB0217 95th General Assembly
SB0217 95TH GENERAL ASSEMBLY
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95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008 SB0217
Introduced 2/7/2007, by Sen. Iris Y. Martinez SYNOPSIS AS INTRODUCED: |
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40 ILCS 5/17-116 |
from Ch. 108 1/2, par. 17-116 |
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. Provides that the service retirement pension for a teacher who retires on or after the effective date of this amendatory Act shall be 2.4% (now 2.2%) of
average salary for each year of creditable service. 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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SB0217 |
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LRB095 04411 AMC 24456 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 |
| Sections 17-116 and
17-119.1 as follows:
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| (40 ILCS 5/17-116) (from Ch. 108 1/2, par. 17-116)
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| Sec. 17-116. Service retirement pension.
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| (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.
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| (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:
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| (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
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| each year of service in excess of 30, based upon average |
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LRB095 04411 AMC 24456 b |
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| salary as
herein defined.
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| (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.
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| (3) For all other creditable service: for persons who | 9 |
| retire before the effective date of this amendatory Act of | 10 |
| the 95th General Assembly, 2.2% of average salary
for each | 11 |
| year of creditable service , for persons who retire on or | 12 |
| after the effective date of this amendatory Act of the 95th | 13 |
| General Assembly, 2.4% of average salary
for each year of | 14 |
| creditable service .
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| (c) When computing such service retirement pensions, the
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| following conditions shall apply:
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| 1. Average salary shall consist of the average annual | 18 |
| rate of salary
for the 4 consecutive years of validated | 19 |
| service within the last 10 years
of service when such | 20 |
| average annual rate was highest. In the determination
of | 21 |
| average salary for retirement allowance purposes, for | 22 |
| members who
commenced employment after August 31, 1979, | 23 |
| that part of the salary for any
year shall be excluded | 24 |
| which exceeds the annual full-time salary rate for
the | 25 |
| preceding year by more than 20%. In the case of a member | 26 |
| who commenced
employment before August 31, 1979 and who |
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| receives salary during any year
after September 1, 1983 | 2 |
| which exceeds the annual full time salary rate for
the | 3 |
| preceding year by more than 20%,
an Employer and other | 4 |
| employers of
eligible contributors as defined in Section | 5 |
| 17-106
shall pay to the Fund an amount equal to the present | 6 |
| value of the
additional service retirement pension | 7 |
| resulting from such excess salary.
The present value of the | 8 |
| additional service retirement pension shall be
computed by | 9 |
| the Board on the basis of actuarial tables adopted by the
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| Board. If a member elects to receive a pension from this | 11 |
| Fund
provided by
Section 20-121, his salary under the State | 12 |
| Universities Retirement System
and the Teachers' | 13 |
| Retirement System of the State of Illinois shall be
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| considered in determining such average salary. Amounts | 15 |
| paid after the
effective date of this amendatory Act of | 16 |
| 1991 for unused vacation time
earned after that effective | 17 |
| date shall not under any circumstances be
included in the | 18 |
| calculation of average salary or the annual rate of salary
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| for the purposes of this Article.
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| 2. Proportionate credit shall be given for validated | 21 |
| service of less
than one year.
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| 3. For retirement at age 60 or over the pension shall | 23 |
| be payable at
the full rate.
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| 4. For separation from service below age 60 to a | 25 |
| minimum age of 55,
the pension shall be discounted at the | 26 |
| rate of 1/2 of one per cent for
each month that the age of |
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| the contributor is less than 60, but a
teacher may elect to | 2 |
| defer the effective date of pension in order to
eliminate | 3 |
| or reduce this discount. This discount shall not be | 4 |
| applicable
to any participant who has at least 34 years of | 5 |
| service or a
retirement pension of at least 74.6% of | 6 |
| average salary on the date the
retirement annuity begins.
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| 5. No additional pension shall be granted for service | 8 |
| exceeding 45
years. Beginning June 26, 1971 no pension | 9 |
| shall exceed the greater of
$1,500 per month or 75% of | 10 |
| average salary as herein defined.
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| 6. Service retirement pensions shall begin on the | 12 |
| effective date of
resignation, retirement, the day | 13 |
| following the close of the payroll
period for which service | 14 |
| credit was validated, or the time the person
resigning or | 15 |
| retiring attains age 55, or on a date elected by the
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| teacher, whichever shall be latest.
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| 7. A member who is eligible to receive a retirement | 18 |
| pension of at least
74.6% of average salary and will attain | 19 |
| age 55 on or before December 31
during the year which | 20 |
| commences on July 1 shall be deemed to attain age 55 on
the | 21 |
| preceding June 1.
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| 8. A member retiring after the effective date of this | 23 |
| amendatory Act
of 1998 shall receive a pension equal to 75% | 24 |
| of average salary if the
member is qualified to receive a | 25 |
| retirement pension equal to at least 74.6%
of average | 26 |
| salary under this Article or as proportional annuities |
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| under
Article 20 of this Code.
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| (Source: P.A. 90-566, eff. 1-2-98; 90-582, eff. 5-27-98.)
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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 | 6 |
| 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 | 8 |
| Section 17-116 for all years of creditable service
without
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| earned before July 1, 1998
by making any
the optional
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| contribution . Any such contribution already paid under this | 11 |
| Section shall
be refunded by the Fund to the teacher or | 12 |
| pensioner (or, if deceased, to the
teacher or pensioner's | 13 |
| survivor, beneficiary, or estate), together with
interest at | 14 |
| the rate of 5%, compounded annually, from the date of payment | 15 |
| of
the contribution to the date of refund; except that any such | 16 |
| contribution that
has been paid by an employer under subsection | 17 |
| (e) shall be refunded to the
employer.
specified in subsection | 18 |
| (b); except that a member who retires
on or after July 1, 1998 | 19 |
| with at least 30 years of creditable service at
retirement | 20 |
| qualifies for the augmented rate without making any | 21 |
| contribution
under subsection (b).
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| Any member who retires on or after July 1, 1998 and before | 23 |
| the effective
date of this amendatory Act of the 95th
92nd
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| General Assembly and
whose pension was calculated using an | 25 |
| unaugmented rate may elect to have the
pension recalculated |
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| using the applicable augmented rate and to
with at
least 30 | 2 |
| years of creditable service shall be paid a lump sum equal to | 3 |
| the
amount he or she would have received under the augmented | 4 |
| rate minus the amount
he or she actually received prior to the | 5 |
| effective date of the
recalculation .
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| The changes to this Section made by this amendatory Act of | 7 |
| the 95th
General Assembly apply without regard to whether the | 8 |
| member was in service
on or after its effective date and | 9 |
| notwithstanding Section 17-157.
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| A member may not elect to qualify for the augmented rate | 11 |
| for only
a portion of his or her creditable service earned | 12 |
| before July 1, 1998.
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| (b) (Blank).
The contribution shall be an amount equal to | 14 |
| 1.0% of the
member's
highest salary rate in the 4 consecutive | 15 |
| school years immediately prior to but
not including the school | 16 |
| year in which the application occurs, multiplied by
the number | 17 |
| of years of creditable service earned by the member before July | 18 |
| 1,
1998 or 20, whichever is less. This contribution shall be | 19 |
| reduced by 1.0% of
that salary rate for every 3 full years of | 20 |
| creditable service earned by the
member after June 30, 1998. | 21 |
| The contribution shall be further reduced at
the rate of 25% of | 22 |
| the contribution (as reduced for service after June 30,
1998) | 23 |
| for each year of the member's total creditable service in | 24 |
| excess of 34
years. The contribution shall not in any event | 25 |
| exceed 20% of that salary
rate.
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| The member shall pay to the Fund the amount of the |
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| contribution as
calculated at the time of application under | 2 |
| this Section. The amount of the
contribution determined under | 3 |
| this subsection shall be recalculated at the time
of | 4 |
| retirement, and if the Fund determines that the amount paid by | 5 |
| the member
exceeds the recalculated amount, the Fund shall | 6 |
| refund the difference to the
member with regular interest from | 7 |
| the date of payment to the date of refund.
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| The contribution required by this subsection shall be paid | 9 |
| in one of the
following ways or in a combination of the | 10 |
| 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 | 13 |
| of time not to
exceed 5 years, as a deduction from salary | 14 |
| in accordance with Section 17-130.2;
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| (iii) in
substantially equal monthly installments over | 16 |
| a 24-month period, by a
deduction from the annuitant's | 17 |
| monthly benefit.
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| (c) (Blank).
If the member fails to make the full | 19 |
| contribution under
this Section
in a timely fashion, the | 20 |
| payments made under this Section shall be refunded
to the | 21 |
| member, without interest. If the member (including a member who | 22 |
| has
become an annuitant) dies before making the full
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| contribution, the payments made under this Section shall be | 24 |
| refunded to the
member's designated beneficiary if there is no | 25 |
| survivor's or children's
pension benefit payable. If there is a | 26 |
| survivor's or children's benefit
payable, then all payments |
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| made under this Section shall be retained by the
Fund and all | 2 |
| such survivor's or children's benefits payable shall be | 3 |
| calculated
as if all contributions required under this Section | 4 |
| have been paid in full.
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| (d) (Blank).
For purposes of this Section and subsection | 6 |
| (b) of
Section 17-116, optional creditable service established | 7 |
| by a member shall be
deemed to have been earned at the time of | 8 |
| the employment or other qualifying
event upon which the service | 9 |
| is based, rather than at the time the credit was
established in | 10 |
| this Fund.
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| (e) (Blank).
The contributions required under this Section | 12 |
| are the
responsibility of the teacher and not the teacher's | 13 |
| employer. However, an
employer of teachers may, after the | 14 |
| effective date of this amendatory Act of
1998, specifically | 15 |
| agree, through collective bargaining or otherwise, to make
the | 16 |
| contributions required by this Section on behalf of those | 17 |
| teachers.
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| (Source: P.A. 91-17, eff. 6-4-99; 92-416, eff. 8-17-01; 92-599, | 19 |
| eff. 6-28-02;
92-651, eff. 7-11-02.)
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| Section 90. The State Mandates Act is amended by adding | 21 |
| Section 8.31 as follows: | 22 |
| (30 ILCS 805/8.31 new) | 23 |
| Sec. 8.31. Exempt mandate. Notwithstanding Sections 6 and 8 | 24 |
| of this Act, no reimbursement by the State is required for the |
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| implementation of any mandate created by this amendatory Act of | 2 |
| the 95th General Assembly. | 3 |
| Section 99. Effective date. This Act takes effect upon | 4 |
| becoming law. |
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