State of Illinois
90th General Assembly
Legislation

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90_SB0635

      40 ILCS 5/17-116.7 new
      30 ILCS 805/8.21 new
          Amends the Chicago Teacher Article of the Pension Code to
      extend the early retirement program for persons who retire at
      the end of the  1996-1997  school  year.   Amends  the  State
      Mandates Act to require implementation without reimbursement.
      Effective immediately.
                                                     LRB9000482EGfg
                                               LRB9000482EGfg
 1        AN  ACT  to  amend  the  Illinois  Pension Code by adding
 2    Section 17-116.7 and to amend the State Mandates Act.
 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 17-116.7 as follows:
 7        (40 ILCS 5/17-116.7 new)
 8        Sec. 17-116.7. Early retirement incentives.
 9        (a)  A  teacher who is covered by a collective bargaining
10    agreement shall not be  eligible  for  the  early  retirement
11    incentives  provided under this Section unless the collective
12    bargaining agent and the Board of Education have entered into
13    an agreement under which the agent agrees  that  any  payment
14    for  accumulated  unused  sick  days to which the employee is
15    entitled upon withdrawal from service  may  be  paid  by  the
16    Board  of  Education in installments over a period of up to 5
17    years, and a copy of this agreement has been filed  with  the
18    Board of the Fund.
19        To be eligible for the benefits provided in this Section,
20    a person must:
21             (1)  be  a  member of this Fund who, on or after May
22        1, 1997, is (i) in active payroll status as a teacher, or
23        (ii) on layoff status from such a position with  a  right
24        of  re-employment or recall to service, or (iii) on leave
25        of absence from such a position, but only if  the  member
26        on  leave  has  not  been  receiving a disability benefit
27        under this Article for a continuous period of 2 years  or
28        more as of the date of application;
29             (2)  have   not  previously  received  a  retirement
30        pension under this Article;
31             (3)  file with the Board and the Board of Education,
                            -2-                LRB9000482EGfg
 1        before June 1, 1997, a written application requesting the
 2        benefits  provided  in  this  Section  and  a  notice  of
 3        resignation from employment, which resignation must  take
 4        effect  no  earlier  than  June 1, 1997 and no later than
 5        September 1, 1997 unless the  applicant's  retirement  is
 6        delayed under subsection (e) of this Section;
 7             (4)  be  eligible  to  receive  a retirement pension
 8        under this Article (for which purpose any age enhancement
 9        or creditable service received under this Section may  be
10        used)   and  elect  to  receive  the  retirement  pension
11        beginning no earlier than June 1, 1997 and no later  than
12        September   1,   1997   or  the  date  established  under
13        subsection (e) of this Section, if applicable;
14             (5)  have attained age 50 (without the  use  of  any
15        age enhancement or creditable service received under this
16        Section)  after  September  1,  1996  and  no  later than
17        September 1, 1997;
18             (6)  have at least 5  years  of  creditable  service
19        under this Fund or any of the participating systems under
20        the Retirement Systems Reciprocal Act (without the use of
21        any  creditable  service  received under this Section) by
22        the effective date of the retirement pension.
23        (b)  An eligible person may establish up to  5  years  of
24    creditable service under this Section.  In addition, for each
25    period  of creditable service established under this Section,
26    a person's age at retirement shall be deemed to be  increased
27    by an equal period.
28        The creditable service established under this Section may
29    be   used  for  all  purposes  under  this  Article  and  the
30    Retirement Systems Reciprocal Act, except for the purposes of
31    Section 17-116.1, and the determination of average salary  or
32    compensation under this or any other Article of this Code.
33        The age enhancement established under this Section may be
34    used   for   all   purposes  under  this  Article  (including
                            -3-                LRB9000482EGfg
 1    calculation of a proportionate pension payable by  this  Fund
 2    under  the  Retirement  Systems  Reciprocal  Act), except for
 3    purposes of the reversionary pension  under  Section  17-120,
 4    and  distributions required by federal law on account of age.
 5    However, age enhancement established under this Section shall
 6    not be used  in  determining  benefits  payable  under  other
 7    Articles of this Code under the Retirement Systems Reciprocal
 8    Act.
 9        (c)  For  all  creditable  service established under this
10    Section, the employer  must  pay  to  the  Fund  an  employer
11    contribution consisting of 12% of the member's highest annual
12    full-time  rate  of  compensation for each year of creditable
13    service granted under this Section.
14        The employer contribution shall be paid to  the  Fund  in
15    one  of  the following ways:  (i) in a single sum at the time
16    of  the  member's  retirement,  (ii)   in   equal   quarterly
17    installments  over  a  period  of  5  years  from the date of
18    retirement, or (iii) subject to the approval of the Board  of
19    the  Fund,  in  unequal installments over a period of no more
20    than 5 years from the date of retirement, as  provided  in  a
21    payment plan designed by the Fund to accommodate the needs of
22    the  employer.   The  employer's failure to make the required
23    contributions in a timely manner shall not affect the payment
24    of the retirement pension.
25        For  all  creditable  service  established   under   this
26    Section,  the  employee  must  pay  to  the  Fund an employee
27    contribution consisting of 4% of the member's highest  annual
28    salary  rate  used  in  the  determination  of the retirement
29    pension for each year of  creditable  service  granted  under
30    this  Section.   The  employee contribution shall be deducted
31    from the retirement annuity in 24 monthly installments.
32        (d)  An annuitant who has received any age enhancement or
33    creditable service under this Section and  whose  pension  is
34    suspended  or  cancelled under Section 17-149 or 17-150 shall
                            -4-                LRB9000482EGfg
 1    thereby forfeit the age enhancement and  creditable  service.
 2    The  forfeiture  of  creditable service under this subsection
 3    shall not entitle the employer to a refund  of  the  employer
 4    contribution  paid  under this Section, nor to forgiveness of
 5    any part  of  that  contribution  that  remains  unpaid.  The
 6    forfeiture  of creditable service under this subsection shall
 7    not  entitle  the  employee  to  a  refund  of  the  employee
 8    contribution paid under this Section.
 9        (e)  If the number of employees of an employer that apply
10    for early retirement under this Section exceeds 30% of  those
11    eligible,  the  employer  may require that, for any or all of
12    the number of applicants in excess of that 30%, the  starting
13    date of the retirement pension enhanced under this Section be
14    no  earlier  than June 1, 1998 and no later than September 1,
15    1998.  The right to have the retirement pension begin  before
16    June  1,  1998 shall be allocated among the applicants on the
17    basis of seniority in the service of that employer.
18        This delay applies only to persons who are  applying  for
19    early  retirement incentives under this Section, and does not
20    prevent a  person  whose  application  for  early  retirement
21    incentives  has  been  withdrawn  from beginning to receive a
22    retirement pension on the earliest date upon which the person
23    is otherwise eligible under this Article.
24        (f)  A member who receives any early retirement incentive
25    under Section 17-116.3, 17-116.4, 17-116.5, or  17-116.6  may
26    not   receive  any  early  retirement  incentive  under  this
27    Section.
28        Section 10.  The State Mandates Act is amended by  adding
29    Section 8.21 as follows:
30        (30 ILCS 805/8.21 new)
31        Sec.  8.21.  Exempt  mandate.  Notwithstanding Sections 6
32    and 8 of this Act, no reimbursement by the State is  required
                            -5-                LRB9000482EGfg
 1    for  the  implementation  of  any  mandate  created  by  this
 2    amendatory Act of 1997.
 3        Section  99.  Effective date.  This Act takes effect upon
 4    becoming law.

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