Full Text of HB4867 093rd General Assembly
HB4867 93RD GENERAL ASSEMBLY
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93RD GENERAL ASSEMBLY
State of Illinois
2003 and 2004 HB4867
Introduced 2/4/2004, by Angelo Saviano SYNOPSIS AS INTRODUCED: |
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40 ILCS 5/17-116.1 |
from Ch. 108 1/2, par. 17-116.1 |
30 ILCS 805/8.28 new |
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Amends the Chicago Teachers Article of the Illinois Pension Code. Provides
that
a member who retires after June 1, 2005 and before June 30, 2010 and within 6
months of
the last day of teaching for which contributions were required may make a one
time
contribution to the system and thereby avoid early retirement reduction in
allowance.
Provides that an election by a member to make such a contribution obligates the
last
Employer to make a one time contribution to the Fund. 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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HB4867 |
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LRB093 14989 LRD 40558 b |
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| AN ACT concerning public employee benefits.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 5. The Illinois Pension Code is amended by changing | 5 |
| Section 17-116.1
as follows:
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| (40 ILCS 5/17-116.1) (from Ch. 108 1/2, par. 17-116.1)
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| Sec. 17-116.1. Early retirement without discount.
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| (a) A member retiring after June 1, 1980 and before June | 9 |
| 30, 1995 and within
6 months of the last day of teaching for | 10 |
| which retirement contributions were
required, may elect at the | 11 |
| time of application to make a one time employee
contribution to | 12 |
| the system and thereby avoid the early retirement reduction in
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| allowance specified in paragraph (4) of Section 17-116 of this | 14 |
| Article. The
exercise of the election shall obligate the last | 15 |
| Employer to also make a one
time non-refundable contribution to | 16 |
| the Fund.
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| (a-5) A member retiring after June 1, 2005 and before June | 18 |
| 30, 2010 and
within 6
months of the last day of teaching for | 19 |
| which retirement contributions were
required, may
elect at the | 20 |
| time of application to make a one time employee contribution to
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| the system
and thereby avoid the early retirement reduction in | 22 |
| allowance specified in
paragraph (4)
of Section 17-116. The | 23 |
| exercise of the election shall obligate the last
Employer to | 24 |
| also
make a one time non-refundable contribution to the Fund.
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| (b) Subject to authorization by the Employer as provided | 26 |
| in subsection (c),
a member retiring on or after June 30, 1995 | 27 |
| and on or before June 1, 2005
June 30, 2005 and
within 6 months | 28 |
| of the last day of teaching for which retirement
contributions | 29 |
| were required may elect at the time of application to make a
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| one-time employee contribution to the Fund and thereby avoid | 31 |
| the early
retirement reduction in allowance specified in | 32 |
| paragraph (4) of Section
17-116. The exercise of the election |
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HB4867 |
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LRB093 14989 LRD 40558 b |
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| shall obligate the last Employer to
also make a one-time | 2 |
| nonrefundable contribution to the Fund.
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| (c) The benefits provided in subsection (b) are available | 4 |
| only to members
who retire, during a specified period, from | 5 |
| employment with an Employer that
has adopted and filed with the | 6 |
| Board a resolution expressly providing for the
creation of an | 7 |
| early retirement without discount program under this Section | 8 |
| for
that period.
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| The Employer has the full discretion and authority to | 10 |
| determine whether an
early retirement without discount program | 11 |
| is in its best interest and to
provide such a program to its | 12 |
| eligible employees in accordance with this
Section. The | 13 |
| Employer may decide to authorize such a program for one or more
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| of the following periods: for the period beginning July 1, 1997 | 15 |
| and ending
June 30, 1998, in which case the resolution must be | 16 |
| adopted by January 1, 1998;
for the period beginning July 1, | 17 |
| 1998 and ending June 30, 1999, in which case
the resolution | 18 |
| must be adopted by March 31, 1998; for the period
beginning | 19 |
| July 1, 1999 and ending June 30, 2000, in which case the | 20 |
| resolution
must be adopted by March 31, 1999; for the period | 21 |
| beginning July 1, 2000 and
ending June 30, 2001, in which case | 22 |
| the resolution must be
adopted by March 31,
2000; for the | 23 |
| period beginning July 1, 2001 and ending June 30, 2002, in
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| which
case the resolution must be adopted by March 31, 2001; | 25 |
| for the period beginning
July 1, 2002 and ending June 30, 2003, | 26 |
| in which case the resolution must be
adopted by March 31, 2002; | 27 |
| for the period beginning July 1, 2003 and
ending
June 30, 2004, | 28 |
| in which case the resolution must be
adopted by March 31, 2003;
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| and for the period beginning July 1, 2004 and ending June 1, | 30 |
| 2005
June 30, 2005 , in which
case the resolution must be | 31 |
| adopted by March 31, 2004.
The resolution must be filed with | 32 |
| the Board within 10 days after it is
adopted. A single | 33 |
| resolution may authorize an early retirement without
discount | 34 |
| program as provided in this Section for more than one period.
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| Notwithstanding Section 17-157, the Employer shall also | 36 |
| have full discretion
and authority to determine whether to |
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HB4867 |
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LRB093 14989 LRD 40558 b |
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| allow its employees who withdrew from
service on or after June | 2 |
| 30, 1995 and before June 27, 1997 to participate in an
early | 3 |
| retirement without discount program under subsection (b). An | 4 |
| early
retirement without discount program for those who | 5 |
| withdrew from service on or
after June 30, 1995 and before June | 6 |
| 27, 1997 may be authorized only by a
resolution of the Employer | 7 |
| that is adopted by January 1, 1998 and filed with
the Board | 8 |
| within 10 days after its adoption. If such a resolution is duly
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| adopted and filed, a person who (i) withdrew from service with | 10 |
| the Employer on
or after June 30, 1995 and before June 27, | 11 |
| 1997, (ii) qualifies for early
retirement without discount | 12 |
| under subsection (b), (iii) applies to the Fund
within 90 days | 13 |
| after the authorizing resolution is adopted, and (iv) pays the
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| required employee contribution shall have his or her retirement | 15 |
| pension
recalculated in accordance with subsection (b). The | 16 |
| resulting increase shall
be effective retroactively to the | 17 |
| starting date of the retirement pension.
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| (d) The one-time employee contribution shall be equal to | 19 |
| 7% of the retiring
member's highest full-time annual salary | 20 |
| rate used in the determination of the
average salary rate for | 21 |
| retirement pension, or if not full-time then the
full-time | 22 |
| equivalent, multiplied by (1) the number of years the teacher | 23 |
| is
under age 60, or (2) the number of years the employee's | 24 |
| creditable service is
less than 34 years, whichever is less.
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| The Employer contribution shall be 20% of such salary | 26 |
| multiplied by such
number of years.
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| (e) Upon receipt of the application and election, the | 28 |
| Board shall determine
the one time employee and Employer | 29 |
| contributions. The provisions of this
Section shall not be | 30 |
| applicable until the employee contribution, if any,
has been | 31 |
| received by the Fund;
however, the date that contribution is | 32 |
| received
shall not be considered in determining the effective | 33 |
| date of retirement.
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| (f) The number of employees who may retire under this | 35 |
| Section in any year
may be limited at the option of the | 36 |
| Employer to a specified percentage of those
eligible, not lower |
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| than 30%, with the right to participate to be allocated
among | 2 |
| those applying on the basis of seniority in the service of the | 3 |
| Employer.
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| (Source: P.A. 90-32, eff. 6-27-97; 90-448, eff. 8-16-97; | 5 |
| 90-566, eff.
1-2-98; 91-17, eff. 6-4-99.)
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| Section 90. The State Mandates Act is amended by adding | 7 |
| Section 8.28 as
follows:
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| (30 ILCS 805/8.28 new)
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| Sec. 8.28. Exempt mandate. Notwithstanding Sections 6 and 8 | 10 |
| of this
Act, no reimbursement by the State is required for the | 11 |
| implementation of
any mandate created by this amendatory Act of | 12 |
| the 93rd General Assembly.
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| Section 99. Effective date. This Act takes effect upon | 14 |
| becoming law.
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