[ Search ] [ Legislation ]
[ Home ] [ Back ] [ Bottom ]
91_HB4189
LRB9110334EGfg
1 AN ACT in relation to public employee benefits.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The Illinois Pension Code is amended by
5 changing Sections 16-133, 16-135, 16-136.4, 16-138, 16-140,
6 16-143, 16-149.4, 16-163, 16-165, and 16-184 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
-2- LRB9110334EGfg
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 24 years of
16 creditable service on July 1, 1998 and who does not
17 elect to augment service under Section 16-129.1:
18 2.2% of final average salary for each year of
19 creditable service earned on or after July 1, 1998
20 but before the member reaches a total of 30 years of
21 creditable service and 2.3% of final average salary
22 for each year of creditable service earned on or
23 after July 1, 1998 and after the member reaches a
24 total of 30 years of creditable service; and
25 For all other creditable service: 2.2% of
26 final average salary for each year of creditable
27 service; or
28 (2) 1.5% of final average salary for each year
29 of creditable service plus the sum $7.50 for each of
30 the first 20 years of creditable service.
31 The amount of the retirement annuity determined under
32 this paragraph (B) shall be reduced by 1/2 of 1% for each
33 month that the member is less than age 60 at the time the
34 retirement annuity begins. However, this reduction shall
-3- LRB9110334EGfg
1 not apply (i) if the member has at least 35 years of
2 creditable service, or (ii) if the member retires on
3 account of disability under Section 16-149.2 of this
4 Article with at least 20 years of creditable service.
5 (b) For purposes of this Section, final average salary
6 shall be the average salary for the highest 4 consecutive
7 years within the last 10 years of creditable service as
8 determined under rules of the board. The minimum final
9 average salary shall be considered to be $2,400 per year.
10 For regional superintendents and assistant regional
11 superintendents of schools, final average salary shall be the
12 average salary for the highest 4 consecutive years within the
13 last 10 years of creditable service, or for the highest 4
14 consecutive years in that office within the last 10 years of
15 creditable service, whichever is greater, as determined under
16 rules of the Board.
17 In the determination of final average salary for members
18 other than elected officials and their appointees when such
19 appointees are allowed by statute, that part of a member's
20 salary for any year beginning after June 30, 1979 which
21 exceeds the member's annual full-time salary rate with the
22 same employer for the preceding year by more than 20% shall
23 be excluded. The exclusion shall not apply in any year in
24 which the member's creditable earnings are less than 50% of
25 the preceding year's mean salary for downstate teachers as
26 determined by the survey of school district salaries provided
27 in Section 2-3.103 of the School Code.
28 (c) In determining the amount of the retirement annuity
29 under paragraph (B) of this Section, a fractional year shall
30 be granted proportional credit.
31 (d) The retirement annuity determined under paragraph
32 (B) of this Section shall be available only to members who
33 render teaching service after July 1, 1947 for which member
34 contributions are required, and to annuitants who re-enter
-4- LRB9110334EGfg
1 under the provisions of Section 16-150.
2 (e) The maximum retirement annuity provided under
3 paragraph (B) of this Section shall be 75% of final average
4 salary.
5 (f) A member retiring after the effective date of this
6 amendatory Act of 1998 shall receive a pension equal to 75%
7 of final average salary if the member is qualified to receive
8 a retirement annuity equal to at least 74.6% of final average
9 salary under this Article or as proportional annuities under
10 Article 20 of this Code.
11 (Source: P.A. 90-582, eff. 5-27-98; 91-17, eff. 6-4-99.)
12 (40 ILCS 5/16-135) (from Ch. 108 1/2, par. 16-135)
13 Sec. 16-135. Supplementary retirement annuity.
14 (a) An annuitant who is receiving a retirement
15 annuity on June 30, 1961 of less than $50 for each year of
16 creditable service forming the basis of the retirement
17 annuity shall have his or her retirement annuity increased to
18 $50 per year for each year of such creditable service, but
19 not exceeding a total annual retirement annuity of $2,250.
20 (b) In order to be entitled to the increase in
21 retirement annuity provided under this Section, an annuitant
22 is required to make an additional contribution of $5 for each
23 year of creditable service, not to exceed 45 years together
24 with interest at the rate of 3% per annum from August 25,
25 1961.
26 (c) The supplementary retirement annuity provided under
27 this Section shall begin to accrue on the first of the month
28 following receipt of the required contribution from the
29 annuitant and shall continue to be paid only to the extent
30 that funds are available in the Supplementary Annuity Reserve
31 established under Section 16-184.
32 (Source: P.A. 83-1440.)
-5- LRB9110334EGfg
1 (40 ILCS 5/16-136.4) (from Ch. 108 1/2, par. 16-136.4)
2 Sec. 16-136.4. Single-sum retirement benefit.
3 (a) A member who has less than 5 years of creditable
4 service shall be entitled, upon written application to the
5 board, to receive a retirement benefit payable in a single
6 sum upon or after the member's attainment of age 65.
7 However, the benefit shall not be paid while the member is
8 employed as a teacher in the schools included under this
9 Article or Article 17, unless the System is required by
10 federal law to make payment due to the member's age.
11 (b) The retirement benefit shall consist of a single sum
12 that is the actuarial equivalent of a life annuity consisting
13 of 1.67% of the member's final average salary for each year
14 of creditable service. In determining the amount of the
15 benefit, a fractional year shall be granted proportional
16 credit.
17 For the purposes of this Section, final average salary
18 shall be the average salary of the member's highest 4
19 consecutive years of service as determined under rules of the
20 board. For a member with less than 4 consecutive years of
21 service, final average salary shall be the average salary
22 during the member's entire period of service. In the
23 determination of final average salary for members other than
24 elected officials and their appointees when such appointees
25 are allowed by statute, that part of a member's salary which
26 exceeds the member's annual full-time salary rate with the
27 same employer for the preceding year by more than 20% shall
28 be excluded. The exclusion shall not apply in any year in
29 which the member's creditable earnings are less than 50% of
30 the preceding year's mean salary for downstate teachers as
31 determined by the survey of school district salaries provided
32 in Section 2-3.103 of the School Code.
33 (c) The retirement benefit determined under this Section
34 shall be available to all members who render teaching service
-6- LRB9110334EGfg
1 after July 1, 1947 for which member contributions are
2 required.
3 (d) Upon acceptance of the retirement benefit, all of
4 the member's accrued rights and credits in the System are
5 forfeited. Receipt of a single-sum retirement benefit under
6 this Section does not make a person an "annuitant" for the
7 purposes of this Article, nor a "benefit recipient" for the
8 purposes of Sections 16-153.1 through 16-153.4.
9 (Source: P.A. 87-11.)
10 (40 ILCS 5/16-138) (from Ch. 108 1/2, par. 16-138)
11 Sec. 16-138. Refund of contributions upon death of
12 member or annuitant. Upon the death of a member or
13 annuitant, the following amount shall be payable (i) to a
14 beneficiary, nominated by written designation of the member
15 or annuitant filed with the system, or (ii) if no beneficiary
16 is nominated, to the surviving spouse, or (iii) if no
17 beneficiary is nominated and there is no surviving spouse, to
18 the decedent's estate, upon receipt of proper proof of death:
19 (1) Upon the death of a member, an amount consisting of
20 the sum of the following: (A) the member's accumulated
21 contributions; (B) the sum of the contributions made by the
22 member toward the cost of the automatic increase in annuity
23 under Section 16-152, without interest thereon; and (C)
24 contributions made by the member toward prior service,
25 without interest thereon.
26 (2) Upon the death of an annuitant, unless a
27 reversionary annuity is payable under Section 16-136, an
28 amount determined by subtracting the total amount of monthly
29 annuity payments received as a result of the deceased
30 annuitant's retirement from the sum of: (A) the accumulated
31 contributions at retirement; (B) the sum of the contributions
32 made by the deceased toward the cost of the automatic
33 increase in annuity under Section 16-151, without interest
-7- LRB9110334EGfg
1 thereon; and (C) any contributions made by the deceased for
2 prior service or other purposes, exclusive of contributions
3 toward the cost of the automatic increase in annuity, without
4 interest thereon.
5 (Source: P.A. 83-1440.)
6 (40 ILCS 5/16-140) (from Ch. 108 1/2, par. 16-140)
7 Sec. 16-140. Survivors' benefits - definitions.
8 (a) For the purpose of Sections 16-138 through 16-143.2,
9 the following terms shall have the following meanings, unless
10 the context otherwise requires:
11 (1) "Average salary": the average salary for the
12 highest 4 consecutive years within the last 10 years of
13 creditable service immediately preceding date of death or
14 retirement, whichever is applicable, or the average
15 salary for the total creditable service if service is
16 less than 4 years.
17 (2) "Member": any teacher included in the
18 membership of the system. However, a teacher who becomes
19 an annuitant of the system or a teacher whose services
20 terminate after 20 years of service from any cause other
21 than retirement is considered a member, subject to the
22 conditions and limitations stated in this Article.
23 (3) "Dependent beneficiary": (A) a surviving spouse
24 of a member or annuitant who was married to the member or
25 annuitant for the 12 month period immediately preceding
26 and on the date of death of such member or annuitant,
27 except where a child is born of such marriage, in which
28 case the qualifying period shall not be applicable; (A-1)
29 a surviving spouse of a member or annuitant who (i) was
30 married to the member or annuitant on the date of the
31 member or annuitant's death, (ii) was married to the
32 member or annuitant for a period of at least 12 months
33 (but not necessarily the 12 months immediately preceding
-8- LRB9110334EGfg
1 the member or annuitant's death), and (iii) first applied
2 for a survivor's benefit before April 1, 1997, and (iv)
3 has not received a benefit under subsection (a) of
4 Section 16-141 or paragraph (1) of Section 16-142; (B) an
5 eligible child of a member or annuitant; and (C) a
6 dependent parent.
7 Unless otherwise designated by the member,
8 eligibility for benefits shall be in the order named,
9 except that a dependent parent shall be eligible only if
10 there is no other dependent beneficiary. Any benefit to
11 be received by or paid to a dependent beneficiary to be
12 determined under this paragraph as provided in Sections
13 16-141 and 16-142 may be received by or paid to a trust
14 established for such dependent beneficiary if such
15 dependent beneficiary is living at the time such benefit
16 would be received by or paid to such trust.
17 (4) "Eligible child": an unmarried natural or
18 adopted child of the member or annuitant under age 18
19 (age 22 if a full-time student). An unmarried natural or
20 adopted child, regardless of age, who is dependent by
21 reason of a physical or mental disability, except any
22 such child receiving benefits under Article III of the
23 Illinois Public Aid Code, is eligible for so long as such
24 physical or mental disability continues. An adopted
25 child, however, is eligible only if the proceedings for
26 adoption were finalized while the child was a minor.
27 For purposes of this subsection, "disability" means
28 an inability to engage in any substantial gainful
29 activity by reason of any medically determinable physical
30 or mental impairment which can be expected to result in
31 death or which has lasted or can be expected to last for
32 a continuous period of not less than 12 months.
33 The changes made to this Section by Public Act
34 90-448, relating to benefits for certain unmarried
-9- LRB9110334EGfg
1 children who are full-time students under age 22, apply
2 without regard to whether the deceased member was in
3 service on or after the effective date of that Act.
4 These changes do not authorize the repayment of a refund
5 or a re-election of benefits, and any benefit or increase
6 in benefits resulting from these changes is not payable
7 retroactively for any period before the effective date of
8 that Act.
9 (5) "Dependent parent": a parent who was receiving
10 at least 1/2 of his or her support from a member or
11 annuitant for the 12-month period immediately preceding
12 and on the date of such member's or annuitant's death,
13 provided however, that such dependent status terminates
14 upon a member's acceptance of a refund for survivor
15 benefit contributions as provided under Section 16-142.
16 (6) "Non-dependent beneficiary": any person,
17 organization or other entity designated by the member who
18 does not qualify as a dependent beneficiary.
19 (7) "In service": the condition of a member being
20 in receipt of salary as a teacher at any time within 12
21 months immediately before his or her death, being on
22 leave of absence for which the member, upon return to
23 teaching, would be eligible to purchase service credit
24 under subsection (b)(5) of Section 16-127, or being in
25 receipt of a disability or occupational disability
26 benefit. This term does not include any annuitant or
27 member who previously accepted a refund of survivor
28 benefit contributions under paragraph (1) of Section
29 16-142 unless the conditions specified in subsection (b)
30 of Section 16-143.2 are met.
31 (b) The change to this Section made by Public Act 90-511
32 applies without regard to whether the deceased member or
33 annuitant was in service on or after the effective date of
34 that Act.
-10- LRB9110334EGfg
1 The change to this Section made by this amendatory Act of
2 the 91st General Assembly applies without regard to whether
3 the deceased member or annuitant was in service on or after
4 the effective date of this amendatory Act.
5 (Source: P.A. 89-430, eff. 12-15-95; 90-448, eff. 8-16-97;
6 90-511, eff. 8-22-97; 90-655, eff. 7-30-98.)
7 (40 ILCS 5/16-143) (from Ch. 108 1/2, par. 16-143)
8 Sec. 16-143. Survivors' benefits - other conditions and
9 limitations. The benefits provided under Sections 16-141 and
10 16-142, shall be subject to the following further conditions
11 and limitations:
12 (1) The period during which a member was in receipt of a
13 disability or occupational disability benefit shall be
14 considered as creditable service at the annual salary rate on
15 which the member last made contributions.
16 (2) All service prior to July 24, 1959, for which
17 creditable service is granted towards a retirement annuity
18 shall be considered as creditable service.
19 (3) No benefits shall be payable unless a member, or a
20 disabled member, returning to service, has made contributions
21 to the system for at least one month after July 24, 1959,
22 except that an annuitant must have contributed to the system
23 for at least 1 year of creditable service after July 24,
24 1959.
25 (4) Creditable service under the State Employees'
26 Retirement System of Illinois, the State Universities
27 Retirement System and the Public School Teachers' Pension and
28 Retirement Fund of Chicago shall be considered in determining
29 whether the member has met the creditable service
30 requirement.
31 (5) If an eligible beneficiary qualifies for a
32 survivors' benefit because of pension credits established by
33 the participant or annuitant in another system covered by
-11- LRB9110334EGfg
1 Article 20, and the combined survivors' benefits exceed the
2 highest survivors' benefit payable by either system based
3 upon the combined pension credits, the survivors' benefit
4 payable by this system shall be reduced to that amount which
5 when added to the survivors' benefit payable by the other
6 system would equal this highest survivors' benefit. If the
7 other system has a similar provision for adjustment of the
8 survivors' benefit, the respective proportional survivors'
9 benefits shall be reduced proportionately according to the
10 ratio which the amount of each proportional survivors'
11 benefit bears to the aggregate of all proportional survivors'
12 benefits. If a survivors' benefit is payable by another
13 system covered by Article 20, and the survivor elects to
14 waive the monthly survivors' benefit and accept a lump sum
15 payment or death benefit in lieu of the monthly survivors'
16 benefit, this system shall, for the purpose of adjusting the
17 monthly survivors' benefit under this paragraph, assume that
18 the survivor had been entitled to a monthly survivors'
19 benefit which, in accordance with actuarial tables of this
20 system, is the actuarial equivalent of the amount of the lump
21 sum payment or death benefit.
22 (6) Remarriage of a surviving spouse prior to attainment
23 of age 55 that occurs before the effective date of this
24 amendatory Act of the 91st General Assembly shall terminate
25 his or her survivors' benefits.
26 The change made to this item (6) by this amendatory Act
27 of the 91st General Assembly applies without regard to
28 whether the deceased member or annuitant was in service on or
29 after the effective date of this amendatory Act of the 91st
30 General Assembly.
31 (7) The benefits payable to an eligible child shall
32 terminate when the eligible child marries, dies, or attains
33 age 18 (age 22 if a full-time student); except that benefits
34 payable to a dependent disabled eligible child shall
-12- LRB9110334EGfg
1 terminate only when the eligible child dies or ceases to be
2 disabled.
3 (Source: P.A. 90-448, eff. 8-16-97.)
4 (40 ILCS 5/16-149.4) (from Ch. 108 1/2, par. 16-149.4)
5 Sec. 16-149.4. Supplementary disability retirement
6 annuity.
7 (a) An annuitant receiving a disability retirement
8 annuity on June 30, 1961 of less than $50 for each year of
9 creditable service forming the basis of the disability
10 retirement annuity shall have his or her disability
11 retirement annuity increased to $50 per year for each year of
12 such creditable service, with a minimum annuity of $1,000 per
13 year.
14 (b) In order to be entitled to the increase in
15 disability retirement annuity provided under this Section, an
16 annuitant is required to make an additional contribution of
17 $5 for each year of creditable service, together with
18 interest at the rate of 3% per annum from August 25, 1961.
19 (c) The supplementary retirement annuity provided under
20 this Section shall begin to accrue on the first of the month
21 following receipt of the required contributions from the
22 annuitant and shall continue to be paid only to the extent
23 that funds are available in the Supplementary Annuity Reserve
24 established under Section 16-184.
25 (Source: P.A. 83-1440.)
26 (40 ILCS 5/16-163) (from Ch. 108 1/2, par. 16-163)
27 Sec. 16-163. Board created. A board of 11 10 members
28 constitutes a board of trustees authorized to carry out the
29 provisions of this Article and is responsible for the general
30 administration of the System. The board is known as the
31 Board of Trustees of the Teachers' Retirement System of the
32 State of Illinois. The board is composed of the
-13- LRB9110334EGfg
1 Superintendent of Education, ex officio ex-officio, who shall
2 be the president of the board; 4 persons, not members of the
3 System, to be appointed by the Governor, who shall hold no
4 elected State office; 4 teachers, as defined in Section
5 16-106, elected by the contributing members; and 2 one
6 annuitant members member elected by the annuitants of the
7 System, as provided in Section 16-165.
8 (Source: P.A. 90-511, eff. 8-22-97.)
9 (40 ILCS 5/16-165) (from Ch. 108 1/2, par. 16-165)
10 Sec. 16-165. Board - elected members - vacancies. In
11 each odd-numbered year, there shall be elected 2 teachers who
12 shall hold office for a term of 4 years beginning July 15
13 next following their election, in the manner provided under
14 this Section. One The elected annuitant trustee shall first
15 be elected in 1987, and in every fourth year thereafter, as
16 hereinafter provided, for a term of 4 years beginning July 15
17 next following his or her election. The other elected
18 annuitant trustee shall first be elected at a special
19 election held by the board for this purpose, for an initial
20 term beginning 15 days after the winner of the election is
21 determined and ending July 15, 2003. Thereafter, both
22 elected annuitant trustees shall be elected at the same
23 elections for terms of 4 years.
24 Elections shall be held on May 1, unless May 1 falls on a
25 Saturday or Sunday, in which event the such election shall be
26 conducted on the following Monday. Candidates shall be
27 nominated by petitions in writing, signed by not less than
28 500 teachers or annuitants, as the case may be, with their
29 addresses shown opposite their names. The petitions shall be
30 filed with the board's Secretary not less than 90 nor more
31 than 120 days prior to May 1. The Secretary shall determine
32 their validity not less than 75 days before the election.
33 If there are more than 2 qualified teacher nominees or
-14- LRB9110334EGfg
1 more than 2 one qualified annuitant nominees nominee, the
2 system shall prepare an appropriate ballot with the names of
3 the candidates in alphabetical order and shall mail one copy
4 thereof, at least 10 days prior to the election day, to each
5 teacher or annuitant of this system as of the latest date
6 practicable, at the latest known address, together with a
7 return envelope addressed to the board and also a smaller
8 envelope marked "For Ballot Only", and a slip for signature.
9 Each voter, upon marking his ballot with a cross mark in the
10 square before the name of the person voted for, shall place
11 the ballot in the envelope marked "For Ballot Only", seal the
12 envelope, write on the slip provided therefor his signature
13 and address, enclose both the slip and sealed envelope
14 containing the marked ballot in the return envelope addressed
15 to the board, and mail it. Whether a person is eligible to
16 vote for the teacher nominees or the annuitant nominees
17 nominee shall be determined from system payroll records as of
18 March 1.
19 Upon receipt of the return envelopes, the system shall
20 open them and set aside unopened the envelopes marked "For
21 Ballot Only". On election day ballots shall be publicly
22 opened and counted by the trustees or canvassers appointed
23 therefor. Each vote cast for a candidate represents one vote
24 only. No ballot arriving after 10 o'clock a.m. on election
25 day shall be counted. The 2 teacher candidates and the 2
26 annuitant candidates candidate receiving the highest number
27 of votes shall be elected. The board shall declare the
28 results of the election, keep a record thereof, and notify
29 the candidates of the results thereof within 30 days after
30 the election.
31 If there are only 2 qualified teachers or only 2 one
32 qualified annuitants annuitant nominated by petition, the
33 balloting as described in this Section will not be conducted
34 for those such nominees, and the board shall declare them
-15- LRB9110334EGfg
1 such nominees duly elected.
2 A vacancy occurring in the elective membership on the
3 board shall be filled for the unexpired term by the board
4 with a person qualified for the vacant position.
5 (Source: P.A. 85-1008.)
6 (40 ILCS 5/16-184) (from Ch. 108 1/2, par. 16-184)
7 Sec. 16-184. Supplementary Annuity Reserve.
8 (a) Except as provided in subsection (b), a reserve to
9 be known as the Supplementary Annuity Reserve is established
10 for the purpose of crediting funds received and charging
11 disbursements made for supplementary annuities under Section
12 16-135 and Section 16-149.4.
13 This Reserve shall be credited with:
14 (1) The total of all contributions made by
15 annuitants to qualify for supplementary annuities.
16 (2) Amounts contributed to the System by the State
17 of Illinois that are sufficient to assure payment of the
18 supplementary annuities.
19 (3) Regular interest computed annually on the
20 average balance in this reserve.
21 This Reserve shall be charged with all supplemental
22 annuity payments under Section 16-135 and Section 16-149.4.
23 (b) On the July 1 next occurring after the effective
24 date of this amendatory Act of the 91st General Assembly, the
25 Supplemental Annuity Reserve is abolished and any remaining
26 balance After all supplementary annuity payments have been
27 completed, any remaining funds shall be transferred from that
28 this Reserve to the Employer's Contribution Reserve.
29 (Source: P.A. 88-593, eff. 8-22-94.)
30 Section 99. Effective date. This Act takes effect upon
31 becoming law.