Full Text of HB0604 95th General Assembly
HB0604 95TH GENERAL ASSEMBLY
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95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008 HB0604
Introduced 2/5/2007, by Rep. Angelo Saviano 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 |
from Ch. 108 1/2, par. 17-119 |
30 ILCS 805/8.31 new |
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Amends the Chicago Teacher Article of the Illinois Pension Code. Establishes
a
minimum retirement pension of $1,500 per month for teachers with at least
20 years of service credit in 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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HB0604 |
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LRB095 04404 AMC 24449 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 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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HB0604 |
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LRB095 04404 AMC 24449 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: 2.2% of average | 9 |
| salary
for each year of 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 | 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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HB0604 |
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LRB095 04404 AMC 24449 b |
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| 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
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| 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
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| 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
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| for the purposes of this Article.
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| 2. Proportionate credit shall be given for validated | 16 |
| service of less
than one year.
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| 3. For retirement at age 60 or over the pension shall | 18 |
| be payable at
the full rate.
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| 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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HB0604 |
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LRB095 04404 AMC 24449 b |
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| average salary on the date the
retirement annuity begins.
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| 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.
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| 6. Service retirement pensions shall begin on the | 7 |
| effective date of
resignation, retirement, the day | 8 |
| following the close of the payroll
period for which service | 9 |
| credit was validated, or the time the person
resigning or | 10 |
| 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 | 13 |
| pension of at least
74.6% of average salary and will attain | 14 |
| age 55 on or before December 31
during the year which | 15 |
| commences on July 1 shall be deemed to attain age 55 on
the | 16 |
| preceding June 1.
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| 8. A member retiring after the effective date of this | 18 |
| amendatory Act
of 1998 shall receive a pension equal to 75% | 19 |
| of average salary if the
member is qualified to receive a | 20 |
| retirement pension equal to at least 74.6%
of average | 21 |
| salary under this Article or as proportional annuities | 22 |
| under
Article 20 of this Code.
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| (d) Notwithstanding the other provisions of this Section, | 24 |
| the minimum
retirement pension payable to a person with at | 25 |
| least 20 years of service credit
under this Article who begins | 26 |
| receiving a retirement pension (other than a
reversionary |
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HB0604 |
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LRB095 04404 AMC 24449 b |
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| pension) on or after January 1, 2008 shall be $1,500 per
month.
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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) (from Ch. 108 1/2, par. 17-119)
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| Sec. 17-119. Automatic annual increase in pension.
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| (a) Each teacher retiring on or after September 1, 1959, is | 6 |
| entitled to
the annual increase in pension, defined herein, | 7 |
| while he is receiving a pension
from the Fund.
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| 1. The term "base pension" means a service retirement | 9 |
| or disability
retirement pension in the amount fixed and | 10 |
| payable at the date of
retirement of a teacher.
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| 2. The annual increase in pension shall be at the rate | 12 |
| of 1 1/2% of
base pension. This increase shall first occur | 13 |
| in January of the year
next following the first anniversary | 14 |
| of retirement. At such time the
Fund shall pay the pro rata | 15 |
| part of the increase for the period
from the first | 16 |
| anniversary date to the date of the first increase in
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| pension. Beginning January 1, 1972, the rate of annual | 18 |
| increase in
pension shall be 2% of the base pension. | 19 |
| Beginning January 1, 1979, the
rate of annual increase in | 20 |
| pension shall be 3% of the base pension.
Beginning January | 21 |
| 1, 1990, all automatic annual increases payable under
this | 22 |
| Section shall be calculated as a percentage of the total | 23 |
| pension
payable at the time of the increase, including all | 24 |
| increases previously
granted under this Article, | 25 |
| notwithstanding Section 17-157.
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LRB095 04404 AMC 24449 b |
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| 3. An increase in pension shall be granted only if the | 2 |
| retired
teacher is age 60 or over. If the teacher attains | 3 |
| age 60 after
retirement, the increase in pension shall | 4 |
| begin in January of the
year following the 61st birthday. | 5 |
| At such time the Fund also shall pay
the pro rata part of | 6 |
| the increase from the 61st birthday to the date of
first | 7 |
| increase in pension.
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| (b) In addition to other increases which may be provided by | 9 |
| this
Section, on January 1, 1981 any teacher who was receiving | 10 |
| a retirement pension
on or before January 1, 1971 shall have | 11 |
| his retirement pension then being paid
increased $1 per month | 12 |
| for each year of creditable service. On January
1, 1982, any | 13 |
| teacher whose retirement pension began on or before January 1,
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| 1977, shall have his retirement pension then being paid | 15 |
| increased $1 per
month for each year of creditable service.
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| (c) On January 1, 1987, any teacher whose retirement | 17 |
| pension began
on or before January 1, 1977, shall have the | 18 |
| monthly retirement pension
increased by an amount equal to 8˘ | 19 |
| per year of creditable service times the
number of years that | 20 |
| have elapsed since the retirement pension began.
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| (d) On January 1, 2008, every pensioner with at least 20 | 22 |
| years of service
credit under this Article who is receiving a | 23 |
| retirement pension (other than
a reversionary pension) of less | 24 |
| than $1,500 per month shall have the
retirement pension | 25 |
| increased to $1,500 on that date, notwithstanding
Section | 26 |
| 17-157. The increase under this subsection shall be included in |
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HB0604 |
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LRB095 04404 AMC 24449 b |
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| the
calculation of the increases granted on that date or | 2 |
| thereafter under
subsection (a) of this Section.
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| (Source: P.A. 90-566, eff. 1-2-98.)
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| Section 90. The State Mandates Act is amended by adding | 5 |
| Section 8.31 as follows: | 6 |
| (30 ILCS 805/8.31 new) | 7 |
| Sec. 8.31. Exempt mandate. Notwithstanding Sections 6 and 8 | 8 |
| of this Act, no reimbursement by the State is required for the | 9 |
| implementation of any mandate created by this amendatory Act of | 10 |
| the 95th General Assembly. | 11 |
| Section 99. Effective date. This Act takes effect upon | 12 |
| becoming law. |
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