(40 ILCS 5/15-136.2) (from Ch. 108 1/2, par. 15-136.2)
Sec. 15-136.2.
Early retirement without discount.
A participant whose
retirement annuity begins after June 1, 1981 and on or before September 1,
2002 and within six months of the last day of employment for which
retirement contributions were required, may elect at the time of
application to make a one time employee contribution to the System and
thereby avoid the early retirement reduction in retirement annuity
specified under subsection (b) of Section 15-136. The exercise of the
election shall obligate the last employer to also make a one time
non-refundable contribution to the System.
The one time employee and employer contributions shall be a percentage
of the retiring participant's highest full time annual salary rate during
the academic years which were considered in determining his or her final
rate of earnings, or if not full time then the full time equivalent. The
employee contribution rate shall be 7% multiplied by the lesser of the
following 2 sums: (1) the number of years that the participant is less than
age 60; or (2) the number of years that the participant's creditable
service is less than 35 years. The employer contribution shall be at the
rate of 20% for each year the participant is less than age 60. The
employer shall pay the employer contribution from the same source of funds
which is used in paying earnings to employees.
Upon receipt of the application and election, the System shall determine
the one time employee and employer contributions. The provisions of this
Section shall not be applicable until all the above outlined contributions
have been received by the System; however, the date such contributions are
received shall not be considered in determining the effective date of
retirement.
Employee and employer contributions under this Section shall be used only
to eliminate the reduction for early retirement under Rules 1 and 3 of Section
15-136 and shall not be used in calculating annuities under Rules 2
or 4
set forth in Section 15-136. This amendatory Act of the 91st General
Assembly is a clarification of existing law and applies to every participant
and annuitant without regard to whether status as an employee terminates before
the effective date of this amendatory Act.
For persons who apply to the Board after the effective date of this
amendatory Act of 1993 and before July 1, 1993, requesting a retirement annuity
to begin no earlier than July 1, 1993 and no later than June 30, 1994, the
employer shall pay both the employee and employer contributions required under
this Section.
The number of employees retiring under this Section in any fiscal year
may be limited at the option of the employer to no less than 15% of those
eligible. The right to elect early retirement without discount shall be
allocated among those applying on the basis of seniority in the service of
the last employer.
(Source: P.A. 90-65, eff. 7-7-97; 90-511, eff. 8-22-97; 91-887, eff. 7-6-00.)
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