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91_HB3452
LRB9110071EGfg
1 AN ACT to amend the Illinois Pension Code by changing
2 Sections 17-116 and 17-119 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 17-119 as follows:
8 (40 ILCS 5/17-116) (from Ch. 108 1/2, par. 17-116)
9 Sec. 17-116. Service retirement pension.
10 (a) Each teacher having 20 years of service upon
11 attainment of age 55, or who thereafter attains age 55 shall
12 be entitled to a service retirement pension upon or after
13 attainment of age 55; and each teacher in service on or after
14 July 1, 1971, with 5 or more but less than 20 years of
15 service shall be entitled to receive a service retirement
16 pension upon or after attainment of age 62.
17 (b) The service retirement pension for a teacher who
18 retires on or after June 25, 1971, at age 60 or over, shall
19 be calculated as follows:
20 (1) For creditable service earned before July 1,
21 1998 that has not been augmented under Section 17-119.1:
22 1.67% for each of the first 10 years of service; 1.90%
23 for each of the next 10 years of service; 2.10% for each
24 year of service in excess of 20 but not exceeding 30; and
25 2.30% for each year of service in excess of 30, based
26 upon average salary as herein defined.
27 (2) For creditable service earned on or after July
28 1, 1998 by a member who has at least 30 years of
29 creditable service on July 1, 1998 and who does not elect
30 to augment service under Section 17-119.1: 2.3% of
31 average salary for each year of creditable service earned
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1 on or after July 1, 1998.
2 (3) For all other creditable service: 2.2% of
3 average salary for each year of creditable service.
4 (c) When computing such service retirement pensions, the
5 following conditions shall apply:
6 1. Average salary shall consist of the average
7 annual rate of salary for the 4 consecutive years of
8 validated service within the last 10 years of service
9 when such average annual rate was highest. In the
10 determination of average salary for retirement allowance
11 purposes, for members who commenced employment after
12 August 31, 1979, that part of the salary for any year
13 shall be excluded which exceeds the annual full-time
14 salary rate for the preceding year by more than 20%. In
15 the case of a member who commenced employment before
16 August 31, 1979 and who receives salary during any year
17 after September 1, 1983 which exceeds the annual full
18 time salary rate for the preceding year by more than 20%,
19 an Employer and other employers of eligible contributors
20 as defined in Section 17-106 shall pay to the Fund an
21 amount equal to the present value of the additional
22 service retirement pension resulting from such excess
23 salary. The present value of the additional service
24 retirement pension shall be computed by the Board on the
25 basis of actuarial tables adopted by the Board. If a
26 member elects to receive a pension from this Fund
27 provided by Section 20-121, his salary under the State
28 Universities Retirement System and the Teachers'
29 Retirement System of the State of Illinois shall be
30 considered in determining such average salary. Amounts
31 paid after the effective date of this amendatory Act of
32 1991 for unused vacation time earned after that effective
33 date shall not under any circumstances be included in the
34 calculation of average salary or the annual rate of
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1 salary for the purposes of this Article.
2 2. Proportionate credit shall be given for
3 validated service of less than one year.
4 3. For retirement at age 60 or over the pension
5 shall be payable at the full rate.
6 4. For separation from service below age 60 to a
7 minimum age of 55, the pension shall be discounted at the
8 rate of 1/2 of one per cent for each month that the age
9 of the contributor is less than 60, but a teacher may
10 elect to defer the effective date of pension in order to
11 eliminate or reduce this discount. This discount shall
12 not be applicable to any participant who has at least 34
13 years of service or a retirement pension of at least
14 74.6% of average salary on the date the retirement
15 annuity begins.
16 5. No additional pension shall be granted for
17 service exceeding 45 years. Beginning June 26, 1971 no
18 pension shall exceed the greater of $1,500 per month or
19 75% of average salary as herein defined.
20 6. Service retirement pensions shall begin on the
21 effective date of resignation, retirement, the day
22 following the close of the payroll period for which
23 service credit was validated, or the time the person
24 resigning or retiring attains age 55, or on a date
25 elected by the teacher, whichever shall be latest.
26 7. A member who is eligible to receive a retirement
27 pension of at least 74.6% of average salary and will
28 attain age 55 on or before December 31 during the year
29 which commences on July 1 shall be deemed to attain age
30 55 on the preceding June 1.
31 8. A member retiring after the effective date of
32 this amendatory Act of 1998 shall receive a pension equal
33 to 75% of average salary if the member is qualified to
34 receive a retirement pension equal to at least 74.6% of
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1 average salary under this Article or as proportional
2 annuities under Article 20 of this Code.
3 (d) Notwithstanding the other provisions of this
4 Section, the minimum retirement pension payable to a person
5 with at least 20 years of service credit under this Article
6 who begins receiving a retirement pension (other than a
7 reversionary pension) on or after January 1, 2001 shall be
8 $1,333.34 per month.
9 (Source: P.A. 90-566, eff. 1-2-98; 90-582, eff. 5-27-98.)
10 (40 ILCS 5/17-119) (from Ch. 108 1/2, par. 17-119)
11 Sec. 17-119. Automatic annual increase in pension.
12 (a) Each teacher retiring on or after September 1, 1959,
13 is entitled to the annual increase in pension, defined
14 herein, while he is receiving a pension from the Fund.
15 1. The term "base pension" means a service
16 retirement or disability retirement pension in the amount
17 fixed and payable at the date of retirement of a teacher.
18 2. The annual increase in pension shall be at the
19 rate of 1 1/2% of base pension. This increase shall
20 first occur in January of the year next following the
21 first anniversary of retirement. At such time the Fund
22 shall pay the pro rata part of the increase for the
23 period from the first anniversary date to the date of the
24 first increase in pension. Beginning January 1, 1972,
25 the rate of annual increase in pension shall be 2% of the
26 base pension. Beginning January 1, 1979, the rate of
27 annual increase in pension shall be 3% of the base
28 pension. Beginning January 1, 1990, all automatic annual
29 increases payable under this Section shall be calculated
30 as a percentage of the total pension payable at the time
31 of the increase, including all increases previously
32 granted under this Article, notwithstanding Section
33 17-157.
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1 3. An increase in pension shall be granted only if the
2 retired teacher is age 60 or over. If the teacher attains
3 age 60 after retirement, the increase in pension shall begin
4 in January of the year following the 61st birthday. At such
5 time the Fund also shall pay the pro rata part of the
6 increase from the 61st birthday to the date of first increase
7 in pension.
8 (b) In addition to other increases which may be provided
9 by this Section, on January 1, 1981 any teacher who was
10 receiving a retirement pension on or before January 1, 1971
11 shall have his retirement pension then being paid increased
12 $1 per month for each year of creditable service. On January
13 1, 1982, any teacher whose retirement pension began on or
14 before January 1, 1977, shall have his retirement pension
15 then being paid increased $1 per month for each year of
16 creditable service.
17 (c) On January 1, 1987, any teacher whose retirement
18 pension began on or before January 1, 1977, shall have the
19 monthly retirement pension increased by an amount equal to 8¢
20 per year of creditable service times the number of years that
21 have elapsed since the retirement pension began.
22 (d) On January 1, 2001, every pensioner with at least 20
23 years of service credit under this Article who is receiving a
24 retirement pension (other than a reversionary pension) of
25 less than $1,333.34 per month shall have the retirement
26 pension increased to $1,333.34 on that date, notwithstanding
27 Section 17-157. The increase under this subsection shall be
28 included in the calculation of the increases granted on that
29 date or thereafter under subsection (a) of this Section.
30 (Source: P.A. 90-566, eff. 1-2-98.)
31 Section 90. The State Mandates Act is amended by adding
32 Section 8.24 as follows:
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1 (30 ILCS 805/8.24 new)
2 Sec. 8.24. 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 the 91st General Assembly.
6 Section 99. Effective date. This Act takes effect upon
7 becoming law.