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90_SB1720
40 ILCS 5/8-138.3
40 ILCS 5/8-230.1 from Ch. 108 1/2, par. 8-230.1
30 ILCS 805/8.22 new
Amends the Chicago Municipal Employee Article of the
Pension Code. Allows a member of that Fund to establish
credits for certain service with the Regional Transportation
Authority or the Commuter Rail Board. Requires payment of
the appropriate contributions and termination of any credits
received for that service under the RTA pension fund. For a
person who applies for these RTA credits within 30 days after
the effective date, extends the deadlines for early
retirement benefits to 90 days after that application is
acted upon. Amends the State Mandates Act to require
implementation without reimbursement. Effective immediately.
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1 AN ACT to amend the Illinois Pension Code by changing
2 Sections 8-138.3 and 8-230.1 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 8-138.3 and 8-230.1 as follows:
8 (40 ILCS 5/8-138.3)
9 Sec. 8-138.3. Early retirement incentive.
10 (a) To be eligible for the benefits provided in this
11 Section, an employee must:
12 (1) be a current contributor to the Fund who, on
13 November 1, 1997, is (i) in active payroll status as an
14 employee or (ii) receiving ordinary or duty disability
15 benefits under Section 8-160 or 8-161;
16 (2) have not previously retired under this Article;
17 (3) file with the Board before June 1, 1998, a
18 written application requesting the benefits provided in
19 this Section;
20 (4) withdraw from service on or after December 31,
21 1997 and on or before June 30, 1998; and
22 (5) by the date of withdrawal: (i) have attained
23 age 55 with at least 10 years of creditable service in
24 this Fund and a total of at least 15 years of creditable
25 service in one or more of the participating systems under
26 the Retirement Systems Reciprocal Act, without including
27 any creditable service established under this Section; or
28 (ii) have attained age 50 with at least 10 years of
29 creditable service in this Fund and a total of at least
30 30 years of creditable service in one or more of the
31 participating systems under the Retirement Systems
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1 Reciprocal Act, without including any creditable service
2 established under this Section.
3 A person is not eligible for the benefits provided in
4 this Section if the person (i) elects to receive the
5 alternative annuity for city officers under Section 8-243.2,
6 or (ii) elects to receive a retirement annuity calculated
7 under the alternative formula formerly set forth in Section
8 20-122.
9 (b) An eligible employee may establish up to 5 years of
10 creditable service under this Section, in increments of one
11 month, by making the contributions specified in subsection
12 (d). An eligible person must establish at least the amount
13 of creditable service necessary to bring his or her total
14 creditable service, including service in this Fund, service
15 established under this Section, and service in any of the
16 other participating systems under the Retirement Systems
17 Reciprocal Act, to a minimum of 20 years.
18 The creditable service under this Section may be used for
19 all purposes under this Article and the Retirement Systems
20 Reciprocal Act, except for the computation of average annual
21 salary and the determination of salary, earnings, or
22 compensation under this or any other Article of this Code.
23 (c) An eligible employee shall be entitled to have his
24 or her retirement annuity calculated in accordance with the
25 formula provided in Section 8-138, but with the following
26 exceptions:
27 (1) The annuity shall not be subject to reduction
28 because of withdrawal or commencement of the annuity
29 before attainment of age 60.
30 (2) The annuity shall be subject to a maximum of
31 80% of the employee's highest average annual salary for
32 any 4 consecutive years within the last 10 years of
33 service, rather than the 75% maximum otherwise provided
34 in Section 8-138.
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1 (d) For each month of creditable service established
2 under this Section, the employee must pay to the Fund an
3 employee contribution, to be calculated by the Fund, equal to
4 4.25% of the member's monthly salary rate on November 1,
5 1997. The employee may elect to pay the entire contribution
6 before the retirement annuity commences, or to have it
7 deducted from the annuity over a period not longer than 24
8 months. If the retired employee dies before the contribution
9 has been paid in full, the unpaid installments may be
10 deducted from any annuity or other benefit payable to the
11 employee's survivors.
12 All employee contributions paid under this Section shall
13 be deemed contributions made by employees for annuity
14 purposes under Section 8-173, and shall be made and credited
15 to a special reserve, without interest. Employee
16 contributions paid under this Section may be refunded under
17 the same terms and conditions as are applicable to other
18 employee contributions for retirement annuity.
19 (e) Notwithstanding Section 8-165, an annuitant who
20 reenters service under this Article after receiving a
21 retirement annuity based on benefits provided under this
22 Section thereby forfeits the right to continue to receive
23 those benefits, and shall have his or her retirement annuity
24 recalculated at the appropriate time without the benefits
25 provided in this Section.
26 (f) In the case of a person who makes application to
27 establish credits under subsection (b) of Section 8-230.1
28 within 30 days after the effective date of this amendatory
29 Act of 1998, the filing deadline under subdivision (a)(3) of
30 this Section and the withdrawal deadline under subdivision
31 (a)(4) of this Section are extended to 90 days following the
32 date upon which the Fund notifies the person of its final
33 action on that application.
34 (Source: P.A. 90-511, eff. 8-22-97.)
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1 (40 ILCS 5/8-230.1) (from Ch. 108 1/2, par. 8-230.1)
2 Sec. 8-230.1. Right of employees to contribute for
3 certain RTA and CTA other service.
4 (a) Any employee in the service, after having made
5 contributions covering a period of 10 or more years to the
6 annuity and benefit fund herein provided for, may elect to
7 pay for and receive credit for all annuity purposes for
8 service theretofore rendered by the employee him to the
9 Chicago Transit Authority created by the "Metropolitan
10 Transit Authority Act", approved April 12, 1945, as amended,
11 or its predecessor public utilities; provided, that the last
12 5 years of service prior to retirement on annuity shall have
13 been as an employee of the City and a contributor to this
14 Fund. Such service credit may be paid for and granted on the
15 same basis and conditions as are applicable in the case of
16 employees who make payment for past service under the
17 provisions of Section the immediately preceding Sec. 8-230,
18 but on the assumption that the such employee's salary
19 throughout all of his or her service with the such Authority
20 or its predecessor public utilities was at the rate of the
21 employee's his salary at the date of his or her entrance into
22 the service as a municipal employee. In no event, however,
23 shall such service be credited if the such employee has not
24 forfeited and relinquished pension credit for service
25 covering such period under any pension or retirement plan
26 applicable to the such Authority or its predecessor public
27 utilities, and instituted and maintained by the such
28 Authority or its predecessor public utilities for the benefit
29 of its employees.
30 (b) Any employee in the service, after having made
31 contributions covering a period of 10 or more years to the
32 annuity and benefit fund herein provided for, may elect to
33 pay for and receive credit for all annuity purposes for
34 service theretofore rendered by the employee to the Regional
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1 Transportation Authority or the Commuter Rail Board created
2 by the Regional Transportation Authority Act; provided that
3 the last 5 years of service prior to retirement on annuity
4 shall have been as an employee of the City and a contributor
5 to this Fund. Such service credit may be paid for and
6 granted on the same basis and conditions as are applicable in
7 the case of employees who make payment for past service under
8 the provisions of Section 8-230, based on the employee's
9 actual salary received for his or her service with the
10 Regional Transportation Authority or the Commuter Rail Board.
11 In no event, however, shall such service be credited if the
12 employee has not forfeited and relinquished any credit for
13 that service under the retirement plan applicable to
14 employees of the Regional Transportation Authority or the
15 Commuter Rail Board.
16 (Source: P.A. 82-971; revised 8-8-97.)
17 Section 90. The State Mandates Act is amended by adding
18 Section 8.22 as follows:
19 (30 ILCS 805/8.22 new)
20 Sec. 8.22. Exempt mandate. Notwithstanding Sections 6
21 and 8 of this Act, no reimbursement by the State is required
22 for the implementation of any mandate created by this
23 amendatory Act of 1998.
24 Section 99. Effective date. This Act takes effect upon
25 becoming law.