[ Search ] [ Legislation ] [ Bill Summary ]
[ Home ] [ Back ] [ Bottom ]
90_HB3570
40 ILCS 5/17-116 from Ch. 108 1/2, par. 17-116
40 ILCS 5/17-122 from Ch. 108 1/2, par. 17-122
30 ILCS 805/8.22 new
Amends the Chicago Teacher Article of the Pension Code to
change the period used to determine average salary, from 4
years to 3 years. Amends the State Mandates Act to require
implementation without reimbursement. Effective immediately.
LRB9011536EGfg
LRB9011536EGfg
1 AN ACT to amend the Illinois Pension Code by changing
2 Sections 17-116 and 17-122 and to amend the State Mandates
3 Act.
4 Be it enacted by the People of the State of Illinois,
5 represented in the General Assembly:
6 Section 5. The Illinois Pension Code is amended by
7 changing Sections 17-116 and 17-122 as follows:
8 (40 ILCS 5/17-116) (from Ch. 108 1/2, par. 17-116)
9 Sec. 17-116. Service retirement pension. Each teacher
10 having 20 years of service upon attainment of age 55, or who
11 thereafter attains age 55 shall be entitled to a service
12 retirement pension upon or after attainment of age 55; and
13 each teacher in service on or after July 1, 1971, with 5 or
14 more but less than 20 years of service shall be entitled to
15 receive a service retirement pension upon or after attainment
16 of age 62. Such pension is to be calculated as follows:
17 Beginning as of June 25, 1971, the service retirement
18 pension for a teacher who retires on or after that such date,
19 at age 60 or over, shall be 1.67% for each of the first 10
20 years of service; 1.90% for each of the next 10 years of
21 service; 2.10% for each year of service in excess of 20 but
22 not exceeding 30; and 2.30% for each year of service in
23 excess of 30, based upon average salary as herein defined.
24 When computing such service retirement pensions, the
25 following conditions shall apply:
26 1. Average salary shall consist of the average annual
27 rate of salary for the 3 the 4 consecutive years of validated
28 service within the last 10 years of service when such average
29 annual rate was highest. In the determination of average
30 salary for retirement allowance purposes, for members who
31 commenced employment after August 31, 1979, that part of the
-2- LRB9011536EGfg
1 salary for any year shall be excluded which exceeds the
2 annual full-time salary rate for the preceding year by more
3 than 20%. In the case of a member who commenced employment
4 before August 31, 1979 and who receives salary during any
5 year after September 1, 1983 which exceeds the annual full
6 time salary rate for the preceding year by more than 20%, an
7 Employer and other employers of eligible contributors as
8 defined in Section 17-106 shall pay to the Fund an amount
9 equal to the present value of the additional service
10 retirement pension resulting from such excess salary. The
11 present value of the additional service retirement pension
12 shall be computed by the Board on the basis of actuarial
13 tables adopted by the Board. If a member elects to receive a
14 pension from this Fund provided by Section 20-121, his salary
15 under the State Universities Retirement System and the
16 Teachers' Retirement System of the State of Illinois shall be
17 considered in determining such average salary. Amounts paid
18 after the effective date of this amendatory Act of 1991 for
19 unused vacation time earned after that effective date shall
20 not under any circumstances be included in the calculation of
21 average salary or the annual rate of salary for the purposes
22 of this Article.
23 2. Proportionate credit shall be given for validated
24 service of less than one year.
25 3. For retirement at age 60 or over the pension shall be
26 payable at the full rate.
27 4. For separation from service below age 60 to a minimum
28 age of 55, the pension shall be discounted at the rate of
29 0.5% 1/2 of one per cent for each month that the age of the
30 contributor is less than 60, but a teacher may elect to defer
31 the effective date of pension in order to eliminate or reduce
32 this discount. This discount shall not be applicable to any
33 participant who has at least 35 years of service on the date
34 the retirement annuity begins.
-3- LRB9011536EGfg
1 5. No additional pension shall be granted for service
2 exceeding 45 years. Beginning June 26, 1971 no pension shall
3 exceed the greater of $1,500 per month or 75% of average
4 salary as herein defined.
5 6. Service retirement pensions shall begin on the
6 effective date of resignation, retirement, the day following
7 the close of the payroll period for which service credit was
8 validated, or the time the person resigning or retiring
9 attains age 55, or on a date elected by the teacher,
10 whichever shall be latest.
11 (Source: P.A. 90-566, eff. 1-2-98.)
12 (40 ILCS 5/17-122) (from Ch. 108 1/2, par. 17-122)
13 Sec. 17-122. Survivor's and children's pensions - Amount.
14 Upon the death of a teacher who has completed at least 1 1/2
15 years of contributing service with either this Fund or the
16 State Universities Retirement System or the Teachers'
17 Retirement System of the State of Illinois, provided his
18 death occurred while (a) in active service covered by the
19 Fund or during his first 18 months of continuous employment
20 without a break in service under any other participating
21 system as defined in the Illinois Retirement Systems
22 Reciprocal Act except the State Universities Retirement
23 System and the Teachers' Retirement System of the State of
24 Illinois, (b) on a creditable leave of absence, (c) on a
25 noncreditable leave of absence of no more than one year, or
26 (d) a pension was deferred or pending provided the teacher
27 had at least 10 years of validated service credit, or upon
28 the death of a pensioner otherwise qualified for such
29 benefit, the surviving spouse and unmarried minor children of
30 the deceased teacher under age 18 shall be entitled to
31 pensions, under the conditions stated hereinafter. Such
32 Survivor's and children's pensions shall be based on the
33 average of the 3 the 4 highest consecutive years of salary in
-4- LRB9011536EGfg
1 the last 10 years of service or on the average salary for
2 total service, if total service has been less than 3 than 4
3 years, according to the following percentages:
4 30% of average salary or 50% of the retirement pension
5 earned by the teacher, whichever is larger, subject to the
6 prescribed maximum monthly payment, for a surviving spouse
7 alone on attainment of age 50;
8 60% of average salary for a surviving spouse and
9 eligible minor children of the deceased teacher.
10 If no eligible spouse survives, or the surviving spouse
11 remarries, or the parent of the children of the deceased
12 member is otherwise ineligible for a survivor's pension, a
13 children's pension for eligible minor children under age 18
14 shall be paid to their parent or legal guardian for their
15 benefit according to the following percentages:
16 30% of average salary for one child;
17 60% of average salary for 2 or more children.
18 On January 1, 1981, any survivor or child who was
19 receiving a survivor's or children's pension on or before
20 January 1, 1971, shall have his survivor's or children's
21 pension then being paid increased by 1% for each full year
22 which has elapsed from the date the pension began. On January
23 1, 1982, any survivor or child whose pension began after
24 January 1, 1971, but before January 1, 1981, shall have his
25 survivor's or children's pension then being paid increased 1%
26 for each full year which has elapsed from the date the
27 pension began. On January 1, 1987, any survivor or child
28 whose pension began on or before January 1, 1977, shall have
29 the monthly survivor's or children's pension increased by $1
30 for each full year which has elapsed since the pension began.
31 Beginning January 1, 1990, every survivor's and
32 children's pension shall be increased (1) on each January 1
33 occurring on or after the commencement of the pension if the
34 deceased teacher died while receiving a retirement pension,
-5- LRB9011536EGfg
1 or (2) in other cases, on each January 1 occurring on or
2 after the first anniversary of the commencement of the
3 pension, by an amount equal to 3% of the current amount of
4 the pension, including all increases previously granted under
5 this Article, notwithstanding Section 17-157. Such increases
6 shall apply without regard to whether the deceased teacher
7 was in service on or after the effective date of this
8 amendatory Act of 1991, but shall not accrue for any period
9 prior to January 1, 1990.
10 Subject to the minimum established below, the maximum
11 amount of pension for a surviving spouse alone or one minor
12 child shall be $400 per month, and the maximum combined
13 pensions for a surviving spouse and children of the deceased
14 teacher shall be $600 per month, with individual pensions
15 adjusted for all beneficiaries pro rata to conform with this
16 limitation. If proration is unnecessary the minimum
17 survivor's and children's pensions shall be $40 per month.
18 The minimum total survivor's and children's pension payable
19 upon the death of a contributor or annuitant which occurs
20 after December 31, 1986, shall be 50% of the earned
21 retirement pension of such contributor or annuitant,
22 calculated without early retirement discount in the case of
23 death in service.
24 On death after retirement, the total survivor's and
25 children's pensions shall not exceed the monthly retirement
26 or disability pension paid to the deceased retirant.
27 Survivor's and children's benefits described in this Section
28 shall apply to all service and disability pensioners eligible
29 for a pension as of July 1, 1981.
30 (Source: P.A. 90-32, eff. 6-27-97; 90-566, eff. 1-2-98.)
31 Section 90. The State Mandates Act is amended by adding
32 Section 8.22 as follows:
-6- LRB9011536EGfg
1 (30 ILCS 805/8.22 new)
2 Sec. 8.22. Exempt mandate. Notwithstanding Sections 6
3 and 8 of this Act, no reimbursement by the State is required
4 for the implementation of any mandate created by this
5 amendatory Act of 1998.
6 Section 99. Effective date. This Act takes effect upon
7 becoming law.