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90_SB0288
40 ILCS 5/15-136.4 new
Amends the Pension Code to provide early retirement
incentives for members of the State Universities Retirement
System. Applies to certain persons applying for retirement
following the school years ending in 1998 and 1999. Grants
up to 5 years of additional creditable service and up to 5
years of age enhancement. Requires an employer contribution
and an employee contribution. Effective immediately.
LRB9000553EGfg
LRB9000553EGfg
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.
9 (a) To be eligible for the benefits provided in this
10 Section, a person must:
11 (1) be a member of this System who, on or after
12 November 1, 1997, is (i) in active payroll status in a
13 position of employment with an employer under this
14 Article, or (ii) on layoff status from such a position
15 with a right of re-employment or recall to service, or
16 (iii) on leave of absence from such a position, but only
17 if the member on leave has not been receiving a
18 disability benefit under this Article for a continuous
19 period of 2 years or more as of the date of application;
20 (2) have not retired under this Article;
21 (3) file with the Board before March 1, 1998 a
22 written application requesting the benefits provided in
23 this Section;
24 (4) establish eligibility to receive a retirement
25 annuity under this Article (for which purpose any age
26 enhancement or creditable service received under this
27 Section may be used) and elect to receive the retirement
28 annuity beginning not earlier than June 1, 1998 and not
29 later than September 1, 1999;
30 (5) have attained age 50 or accumulated 30 or more
31 years of creditable service (without the use of any age
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1 enhancement or creditable service received under this
2 Section) by the effective date of the retirement annuity.
3 (b) An eligible person may establish up to 5 years of
4 creditable service under this Article, in increments of one
5 month, by making the contributions specified in subsection
6 (c). In addition, for each month of creditable service
7 established under this Section, a person's age at retirement
8 shall be deemed to be one month older than it actually is.
9 The creditable service established under this Section may
10 be used for all purposes under this Article and the
11 Retirement Systems Reciprocal Act, except for the purposes of
12 Section 15-136.2, the computation of final rate of earnings
13 under Section 15-112, or the determination of earnings or
14 compensation under this or any other Article of this Code.
15 The age enhancement established under this Section may be
16 used for all purposes under this Article (including
17 calculation of a proportionate annuity payable by this System
18 under the Retirement Systems Reciprocal Act), except for the
19 purposes of Section 15-136.2, the earning limitation under
20 Section 15-139(b), the reversionary annuity under Section
21 15-140, and distributions required by federal law on account
22 of age. However, age enhancement established under this
23 Section shall not be used in determining benefits payable
24 under other Articles of this Code under the Retirement
25 Systems Reciprocal Act.
26 (c) For each year of creditable service established
27 under this Section, the employee must pay to the System an
28 employee contribution consisting of 4% of the highest annual
29 rate of earnings used in the determination of the member's
30 final rate of earnings. The employee may elect to pay the
31 contribution in a single sum at the time of retirement or or
32 to have the contribution deducted from his or her retirement
33 annuity in 24 equal monthly installments.
34 For each year of creditable service established under
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1 this Section, the employer must pay to the System an employer
2 contribution consisting of 9% of the highest annual rate of
3 earnings used in the determination of the member's final rate
4 of earnings. The employer contribution may be paid to the
5 System in a single sum at the time of the member's retirement
6 or in installments over a period not exceeding 5 years from
7 the date of retirement. The employer's failure to make the
8 required contribution in a timely manner does not affect the
9 payment of the retirement annuity.
10 (d) Notwithstanding Section 15-139, an annuitant who has
11 received any age enhancement or creditable service under this
12 Section and who reenters service under this Article and
13 exceeds the earnings limitation under Section 15-139, shall
14 thereby forfeit such age enhancement and creditable service
15 and become entitled to a refund of the employee contributions
16 made under this Section.
17 (e) If the number of employees of an employer that apply
18 for early retirement under this Section in 1998 exceeds 15%
19 of those eligible, the employer may require that, for the
20 number of applicants in excess of that 15%, the starting date
21 of the retirement annuity enhanced under this Section may not
22 be earlier than June 1, 1999. The right to have the
23 retirement annuity begin before that date shall be allocated
24 among the applicants on the basis of seniority in the service
25 of that employer.
26 This delay applies only to persons who are applying for
27 early retirement incentives under this Section, and does not
28 prevent a person whose application for early retirement
29 incentives has been withdrawn from receiving a retirement
30 annuity on the earliest date upon which the person is
31 otherwise eligible under this Article.
32 Section 99. Effective date. This Act takes effect upon
33 becoming law.