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91_HB1827
LRB9104851EGfg
1 AN ACT to amend the Illinois Pension Code by changing
2 Section 16-133.
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
6 changing Section 16-133 as follows:
7 (40 ILCS 5/16-133) (from Ch. 108 1/2, par. 16-133)
8 Sec. 16-133. Retirement annuity; amount.
9 (a) The amount of the retirement annuity shall be the
10 larger of the amounts determined under paragraphs (A) and (B)
11 below:
12 (A) An amount consisting of the sum of the
13 following:
14 (1) An amount that can be provided on an
15 actuarially equivalent basis by the member's
16 accumulated contributions at the time of retirement;
17 and
18 (2) The sum of (i) the amount that can be
19 provided on an actuarially equivalent basis by the
20 member's accumulated contributions representing
21 service prior to July 1, 1947, and (ii) the amount
22 that can be provided on an actuarially equivalent
23 basis by the amount obtained by multiplying 1.4
24 times the member's accumulated contributions
25 covering service subsequent to June 30, 1947; and
26 (3) If there is prior service, 2 times the
27 amount that would have been determined under
28 subparagraph (2) of paragraph (A) above on account
29 of contributions which would have been made during
30 the period of prior service creditable to the member
31 had the System been in operation and had the member
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1 made contributions at the contribution rate in
2 effect prior to July 1, 1947.
3 (B) An amount consisting of the greater of the
4 following:
5 (1) For creditable service earned before July
6 1, 1998 that has not been augmented under Section
7 16-129.1: 1.67% of final average salary for each of
8 the first 10 years of creditable service, 1.90% of
9 final average salary for each year in excess of 10
10 but not exceeding 20, 2.10% of final average salary
11 for each year in excess of 20 but not exceeding 30,
12 and 2.30% of final average salary for each year in
13 excess of 30; and
14 For creditable service earned on or after July
15 1, 1998 by a member who has at least 30 years of
16 creditable service on July 1, 1998 and who does not
17 elect to augment service under Section 16-129.1:
18 2.3% of final average salary for each year of
19 creditable service earned on or after July 1, 1998;
20 and
21 For all other creditable service: 2.2% of
22 final average salary for each year of creditable
23 service; or
24 (2) 1.5% of final average salary for each year
25 of creditable service plus the sum $7.50 for each of
26 the first 20 years of creditable service.
27 The amount of the retirement annuity determined under
28 this paragraph (B) shall be reduced by 1/2 of 1% for each
29 month that the member is less than age 60 at the time the
30 retirement annuity begins. However, this reduction shall
31 not apply (i) if the member has at least 35 years of
32 creditable service, or (ii) if the member retires on
33 account of disability under Section 16-149.2 of this
34 Article with at least 20 years of creditable service.
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1 (b) For purposes of this Section, final average salary
2 shall be the average salary for the highest 4 consecutive
3 years within the last 10 years of creditable service as
4 determined under rules of the Board. The minimum final
5 average salary shall be considered to be $2,400 per year.
6 For regional superintendents and assistant regional
7 superintendents of schools, final average salary shall be the
8 average salary for the highest 4 consecutive years within the
9 last 10 years of creditable service, or for the highest 4
10 consecutive years in that office within the last 10 years of
11 creditable service, whichever is greater, as determined under
12 rules of the Board.
13 In the determination of final average salary for members
14 other than elected officials and their appointees when such
15 appointees are allowed by statute, that part of a member's
16 salary for any year beginning after June 30, 1979 which
17 exceeds the member's annual full-time salary rate with the
18 same employer for the preceding year by more than 20% shall
19 be excluded.
20 (c) In determining the amount of the retirement annuity
21 under paragraph (B) of this Section, a fractional year shall
22 be granted proportional credit.
23 (d) The retirement annuity determined under paragraph
24 (B) of this Section shall be available only to members who
25 render teaching service after July 1, 1947 for which member
26 contributions are required, and to annuitants who re-enter
27 under the provisions of Section 16-150.
28 (e) The maximum retirement annuity provided under
29 paragraph (B) of this Section shall be 75% of final average
30 salary.
31 (f) A member retiring after the effective date of this
32 amendatory Act of 1998 shall receive a pension equal to 75%
33 of final average salary if the member is qualified to receive
34 a retirement annuity equal to at least 74.6% of final average
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1 salary under this Article or as proportional annuities under
2 Article 20 of this Code.
3 (Source: P.A. 90-582, eff. 5-27-98.)
4 Section 99. Effective date. This Act takes effect upon
5 becoming law.