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90_HB1095
40 ILCS 5/15-136.4 new
Amends the Pension Code to provide early retirement
incentives for police officers under the State Universities
Retirement System. Applies to persons applying for
retirement at the end of the school year ending in 1998.
Grants up to 5 years of creditable service and 5 years of age
enhancement. Requires an employer contribution and an
employee contribution. Effective immediately.
LRB9004018EGfg
LRB9004018EGfg
1 AN ACT to amend the Illinois Pension Code by adding
2 Section 15-136.4.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Illinois Pension Code is amended by adding
6 Section 15-136.4 as follows:
7 (40 ILCS 5/15-136.4 new)
8 Sec. 15-136.4. Early retirement incentives for police
9 officers.
10 (a) To be eligible for the benefits provided in this
11 Section, a person must:
12 (1) be a member of this System who, on or after
13 March 1, 1998, is (i) in active payroll status as a
14 police officer with an employer under this Article, (ii)
15 on layoff status from such a position with a right of
16 re-employment or recall to service, or (iii) on
17 disability or leave of absence from such a position, but
18 only if the member has not been receiving a disability
19 benefit under this Article for a continuous period of 2
20 years or more as of the date of application;
21 (2) have not retired under this Article;
22 (3) file with the Board before March 1, 1998, a
23 written application requesting the benefits provided in
24 this Section;
25 (4) establish eligibility to receive a retirement
26 annuity under this Article (for which purpose any age
27 enhancement or creditable service received under this
28 Section may be used) and elect to receive the retirement
29 annuity beginning no earlier than May 1, 1998 and no
30 later than September 1, 1998 (September 1, 1999 if
31 retirement is delayed under subsection (e) of this
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1 Section);
2 (5) have attained age 50 or accumulated 30 or more
3 years of creditable service (without the use of any age
4 enhancement or creditable service received under this
5 Section) by the effective date of the retirement annuity.
6 (b) An eligible person may establish up to 5 years of
7 creditable service under this Article, in increments of one
8 month, by making the contributions specified in subsection
9 (c). In addition, for each month of creditable service
10 established under this Section, a person's age at retirement
11 shall be deemed to be one month older than it actually is.
12 The creditable service established under this Section may
13 be used for all purposes under this Article and the
14 Retirement Systems Reciprocal Act, except for the purposes of
15 Section 15-136.2, the computation of final rate of earnings
16 under Section 15-112, or the determination of earnings or
17 compensation under this or any other Article of this Code.
18 The age enhancement established under this Section may be
19 used for all purposes under this Article (including
20 calculation of a proportionate annuity payable by this System
21 under the Retirement Systems Reciprocal Act), except for
22 purposes of the earning limitation under Section 15-139, the
23 reversionary annuity under Section 15-140, and distributions
24 required by federal law on account of age. However, age
25 enhancement established under this Section shall not be used
26 in determining benefits payable under other Articles of this
27 Code under the Retirement Systems Reciprocal Act.
28 (c) For all creditable service established under this
29 Section, the employer must pay to the System an employer
30 contribution consisting of 9% of the member's full-time rate
31 of compensation at the time of withdrawal from service for
32 each year of creditable service granted under this Section.
33 The employer contribution shall be paid to the System in
34 one of the following ways: (i) in a single sum at the time
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1 of the member's retirement, (ii) in equal quarterly
2 installments over a period of 5 years from the date of
3 retirement, or (iii) subject to the approval of the Board of
4 the System, in unequal installments over a period of no more
5 than 10 years from the date of retirement, as provided in a
6 payment plan designed by the System to accommodate the needs
7 of the employer. The employer's failure to make the required
8 contributions in a timely manner does not affect the payment
9 of the retirement annuity.
10 For all creditable service established under this
11 Section, the employee must pay to the System an employee
12 contribution consisting of 4% of the member's full-time rate
13 of compensation at the time of withdrawal from service for
14 each year of creditable service granted under this Section.
15 The employee may elect either to pay the employee
16 contribution in full before the retirement annuity commences
17 or to have it deducted from the retirement annuity in 12
18 monthly installments.
19 (d) Notwithstanding Section 15-139, an annuitant who has
20 received any age enhancement or creditable service under this
21 Section and who reenters service under this Article and
22 exceeds the earnings limitation under Section 15-139 shall
23 thereby forfeit the age enhancement and creditable service
24 and become entitled to a refund of the contributions made
25 pursuant to this Section.
26 (e) If the number of employees of an employer that
27 actually apply for early retirement under this Section
28 exceeds 15% of those eligible, the employer may require that,
29 for the number of applicants in excess of that 15%, the
30 starting date of the retirement annuity enhanced under this
31 Section may not be earlier than June 1, 1999. The right to
32 have the retirement annuity begin before that date shall be
33 allocated among the applicants on the basis of seniority in
34 the service of that employer.
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1 This delay applies only to persons who are applying for
2 early retirement incentives under this Section and does not
3 prevent a person whose application for early retirement
4 incentives has been withdrawn from receiving a retirement
5 annuity on the earliest date upon which the person is
6 otherwise eligible under this Article.
7 Section 99. Effective date. This Act takes effect upon
8 becoming law.