Full Text of HB2900 98th General Assembly
HB2900 98TH GENERAL ASSEMBLY |
| | 98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014 HB2900 Introduced , by Rep. Elaine Nekritz SYNOPSIS AS INTRODUCED: |
| 40 ILCS 5/16-133.2 | from Ch. 108 1/2, par. 16-133.2 |
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Amends the Downstate Teacher Article of the Illinois Pension Code. Continues the program of early retirement without discount. Increases the required employee and employer contributions to 14.4% and 29.3% of salary, respectively, as recommended by the Commission on Government Forecasting and Accountability. Effective immediately.
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| | FISCAL NOTE ACT MAY APPLY | | PENSION IMPACT NOTE ACT MAY APPLY |
| | A BILL FOR |
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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 16-133.2 as follows:
| 6 | | (40 ILCS 5/16-133.2) (from Ch. 108 1/2, par. 16-133.2)
| 7 | | Sec. 16-133.2. Early retirement without discount. | 8 | | (a) A member
retiring after June 1, 1980 and on or before | 9 | | June 30, 2005 (or as provided in subsection (b) of this | 10 | | Section), and
applying for a retirement annuity within 6 months | 11 | | of the last day of
teaching for which retirement contributions | 12 | | were required,
may elect at the time of application for a | 13 | | retirement annuity, to make
a one time member contribution to | 14 | | the System and thereby
avoid the reduction in the retirement | 15 | | annuity for retirement before age
60 specified in paragraph (B) | 16 | | of Section 16-133. The exercise of the
election shall also | 17 | | obligate the last employer to make a one time
non-refundable | 18 | | contribution to the System. Substitute teachers wishing to
| 19 | | exercise this election must teach 85 or more days in one school | 20 | | term with
one employer, who shall be deemed the last employer | 21 | | for purposes of this
Section. The last day of teaching with | 22 | | that employer must be within 6
months of the date of | 23 | | application for retirement. All substitute
teaching credit |
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| 1 | | applied toward the required 85 days must be earned after
June | 2 | | 30, 1990.
| 3 | | The one time member and employer contributions shall be a | 4 | | percentage of
the retiring member's highest annual salary rate | 5 | | used in the determination
of the average salary for retirement | 6 | | annuity purposes. However, when
determining the one-time | 7 | | member and employer contributions, that part of a
member's | 8 | | salary with the same employer which exceeds the annual salary | 9 | | rate
for the preceding year by more than 20% shall be excluded. | 10 | | The member
contribution shall be at the rate of 7% for the | 11 | | lesser of the following 2
periods: (1) for each year that the | 12 | | member is less than age 60; or (2) for
each year that the | 13 | | member's creditable service is less than 35 years. If a
member | 14 | | is at least age 55 and has at least 34 years of creditable | 15 | | service, no
member or employer contribution for the early | 16 | | retirement option shall be
required. The employer contribution | 17 | | shall be at the rate of 20% for each year
the member is under | 18 | | age 60.
| 19 | | Upon receipt of the application and election, the System | 20 | | shall determine
the one time employee and employer | 21 | | contributions required. The member
contribution shall be | 22 | | credited to the individual account of the member and
the | 23 | | employer contribution shall be credited to the Benefit Trust | 24 | | Reserve. The
provisions of this subsection (a) providing for | 25 | | the avoidance of the reduction in retirement annuity shall
not | 26 | | be applicable until the member's contribution, if any, has been |
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| 1 | | received
by the System; however, the date such contributions | 2 | | are received shall not be
considered in determining the | 3 | | effective date of retirement.
| 4 | | The number of members working for a single employer who may
| 5 | | retire under this subsection or subsection (b) in any year may | 6 | | be limited at the option
of the employer to a specified | 7 | | percentage of those eligible, not less
than 30%, with the right | 8 | | to participate to be allocated among those
applying on the | 9 | | basis of seniority in the service of the employer.
| 10 | | (b) The provisions of subsection (a) of this Section shall | 11 | | remain in effect for a member retiring after June 30, 2005 and | 12 | | on or before July 1, 2007, provided that the member satisfies | 13 | | both of the following requirements: | 14 | | (1) the member notified his or her employer of intent | 15 | | to retire under this Article on or before the effective | 16 | | date of this amendatory Act of the 94th General Assembly | 17 | | under the terms of a contract or collective bargaining | 18 | | agreement entered into, amended, or renewed with the | 19 | | employer on or before the effective date of this amendatory | 20 | | Act of the 94th General Assembly; and
| 21 | | (2) the effective date of the member's retirement is on | 22 | | or before July 1, 2007. | 23 | | The member's employer must give evidence of the member's | 24 | | notification by providing to the System:
| 25 | | (i) a copy of the member's notification to the employer | 26 | | or the record of that notification;
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| 1 | | (ii) an affidavit signed by the member and the | 2 | | employer, verifying the notification; and
| 3 | | (iii) any additional documentation that the System may | 4 | | require.
| 5 | | (c) Except as otherwise provided in subsection (b), and | 6 | | subject to the provisions of Section 16-176, a member retiring | 7 | | on or after July 1, 2005, and applying for a retirement annuity | 8 | | within 6 months of the last day of teaching for which | 9 | | retirement contributions were required, may elect at the time | 10 | | of application for a retirement annuity, to make a one-time | 11 | | member contribution to the System and thereby avoid the | 12 | | reduction in the retirement annuity for retirement before age | 13 | | 60 specified in paragraph (B) of Section 16-133. The exercise | 14 | | of the election shall also obligate the last employer to make a | 15 | | one-time nonrefundable contribution to the System. Substitute | 16 | | teachers wishing to exercise this election must teach 85 or | 17 | | more days in one school term with one employer, who shall be | 18 | | deemed the last employer for purposes of this Section. The last | 19 | | day of teaching with that employer must be within 6 months of | 20 | | the date of application for retirement. All substitute teaching | 21 | | credit applied toward the required 85 days must be earned after | 22 | | June 30, 1990. | 23 | | The one-time member and employer contributions shall be a | 24 | | percentage of the retiring member's highest annual salary rate | 25 | | used in the determination of the average salary for retirement | 26 | | annuity purposes. However, when determining the one-time |
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| 1 | | member and employer contributions, that part of a member's | 2 | | salary with the same employer which exceeds the annual salary | 3 | | rate for the preceding year by more than 20% shall be excluded. | 4 | | The member contribution shall be at the rate of 11.5% for the | 5 | | lesser of the following 2 periods: (1) for each year that the | 6 | | member is less than age 60; or (2) for each year that the | 7 | | member's creditable service is less than 35 years. The employer | 8 | | contribution shall be at the rate of 23.5% for each year the | 9 | | member is under age 60. However, for eligible members whose | 10 | | last day of teaching for which retirement contributions are | 11 | | required occurs on or after July 1, 2013, the member | 12 | | contribution shall be at the rate of 14.4% and the employer | 13 | | contribution shall be at the rate of 29.3%. This increase | 14 | | reflects the recommended adjustment of the Commission on | 15 | | Government Forecasting and Accountability and is intended to | 16 | | prevent the termination of the program under Section 16-176 | 17 | | that would otherwise occur on July 1, 2013. | 18 | | Upon receipt of the application and election, the System | 19 | | shall determine the one-time employee and employer | 20 | | contributions required. The member contribution shall be | 21 | | credited to the individual account of the member and the | 22 | | employer contribution shall be credited to the Benefit Trust | 23 | | Reserve. The avoidance of the reduction in retirement annuity | 24 | | provided under this subsection (c) is not applicable until the | 25 | | member's contribution, if any, has been received by the System; | 26 | | however, the date that contribution is received shall not be |
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| 1 | | considered in determining the effective date of retirement.
| 2 | | The number of members working for a single employer who may | 3 | | retire under this subsection (c) in any year may be limited at | 4 | | the option of the employer to a specified percentage of those | 5 | | eligible, not less than 10%, with the right to participate to | 6 | | be allocated among those applying on the basis of seniority in | 7 | | the service of the employer. | 8 | | (Source: P.A. 93-469, eff. 8-8-03; 94-4, eff. 6-1-05.)
| 9 | | Section 99. Effective date. This Act takes effect upon | 10 | | becoming law.
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