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91_HB4195
LRB9110335EGfg
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 17-116.3, 17-116.4, 17-119.1, 17-142.1, and
6 17-150 as follows:
7 (40 ILCS 5/17-116.3)
8 Sec. 17-116.3. 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, 1993, 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,
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1 before August 15, 1993, a written application requesting
2 the benefits provided in this Section and a notice of
3 resignation from employment, which resignation must take
4 effect before September 1, 1993 unless the applicant's
5 retirement is delayed under subsection (e), (f), or (f-5)
6 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, 1993 and no later than
12 September 1, 1993 or the date established under
13 subsection (e), (f), or (f-5) of this Section, if
14 applicable;
15 (5) have attained age 50 (without the use of any
16 age enhancement or creditable service received under this
17 Section) by the effective date of the retirement pension;
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
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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
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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, 1994 and no later than September 1,
15 1994. The right to have the retirement pension begin before
16 June 1, 1994 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) For a member who is notified after July 30, 1993,
25 but before November 29, 1993, that he or she will become a
26 supernumerary or reserve teacher in the 1993-1994 school
27 year: (1) the August 15, 1993 application deadline in
28 subdivision (a)(3) of this Section is extended to December
29 14, 1993, (2) the September 1, 1993 deadline in subdivision
30 (a)(4) of this Section is extended to December 14, 1993, and
31 (3) the member shall not be included in the calculation of
32 the 30% under subsection (e) and is not subject to delay in
33 retirement under that subsection.
34 (f-5) For a member who is notified after January 1,
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1 1994, but before March 1, 1994, that he or she will become a
2 reserve teacher in the 1993-1994 school year: (1) the August
3 15, 1993 application deadline in subdivision (a)(3) of this
4 Section is extended to April 1, 1994; (2) the September 1,
5 1993 deadline in subdivision (a)(4) of this Section is
6 extended to April 1, 1994; and (3) the member shall not be
7 included in the calculation of the 30% under subsection (e)
8 and is not subject to delay in retirement under that
9 subsection.
10 (g) A member who receives any early retirement incentive
11 under Section 17-116.4, 17-116.5 or 17-116.6 may not receive
12 any early retirement incentive under this Section.
13 (h) The version of this Section included in Public Act
14 88-85 is intended to and shall control over the version of
15 this Section included in Public Act 88-89, notwithstanding
16 Section 6 of the Statute on Statutes. All persons qualifying
17 for early retirement incentives under this Section shall be
18 subject to the limitations and restrictions provided in the
19 version of this Section included in Public Act 88-85, as
20 amended by Public Act 88-511.
21 (i) In addition to the benefits provided under the other
22 provisions of this Section, every person who receives early
23 retirement benefits under this Section is entitled to one
24 additional year of creditable service and a corresponding
25 year of additional age enhancement, for which no additional
26 contribution is required. Every person who receives early
27 retirement benefits under this Section whose retirement
28 annuity has been calculated on the basis of a 4-year average
29 salary is also entitled to have the annuity recalculated on
30 the basis of the average salary for the 3 highest consecutive
31 years within the last 10 years of service.
32 The additional benefits provided by this subsection (i)
33 shall begin to accrue on the date the retirement annuity
34 began, notwithstanding Section 17-157. The Fund shall
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1 recalculate all annuities originally calculated under this
2 Section to reflect the additional benefits provided under
3 this subsection and shall pay to the annuitant in a lump sum
4 the difference between the annuity payments paid before the
5 date of the recalculation and the recalculated amount of
6 those payments.
7 (Source: P.A. 88-85; 88-89; 88-511; 88-670, eff. 12-2-94.)
8 (40 ILCS 5/17-116.4)
9 Sec. 17-116.4. Early retirement incentives.
10 (a) A teacher who is covered by a collective bargaining
11 agreement shall not be eligible for the early retirement
12 incentives provided under this Section unless the collective
13 bargaining agent and the Board of Education have entered into
14 an agreement under which the agent agrees that any payment
15 for accumulated unused sick days to which the employee is
16 entitled upon withdrawal from service may be paid by the
17 Board of Education in installments over a period of up to 5
18 years, and a copy of this agreement has been filed with the
19 Board of the Fund.
20 To be eligible for the benefits provided in this Section,
21 a person must:
22 (1) be a member of this Fund who, on or after May
23 1, 1994, is (i) in active payroll status as a teacher, or
24 (ii) on layoff status from such a position with a right
25 of re-employment or recall to service, or (iii) on leave
26 of absence from such a position, but only if the member
27 on leave has not been receiving a disability benefit
28 under this Article for a continuous period of 2 years or
29 more as of the date of application;
30 (2) have not previously received a retirement
31 pension under this Article;
32 (3) file with the Board and the Board of Education,
33 before March 1, 1994, a written application requesting
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1 the benefits provided in this Section and a notice of
2 resignation from employment, which resignation must take
3 effect no earlier than June 1, 1994 and no later than
4 September 1, 1994 unless the applicant's retirement is
5 delayed under subsection (e) of this Section;
6 (4) be eligible to receive a retirement pension
7 under this Article (for which purpose any age enhancement
8 or creditable service received under this Section may be
9 used) and elect to receive the retirement pension
10 beginning no earlier than June 1, 1994 and no later than
11 September 1, 1994 or the date established under
12 subsection (e) of this Section, if applicable;
13 (5) have attained age 50 (without the use of any
14 age enhancement or creditable service received under this
15 Section) after September 1, 1993 and no later than
16 September 1, 1994;
17 (6) have at least 5 years of creditable service
18 under this Fund or any of the participating systems under
19 the Retirement Systems Reciprocal Act (without the use of
20 any creditable service received under this Section) by
21 the effective date of the retirement pension.
22 (b) An eligible person may establish up to 5 years of
23 creditable service under this Section. In addition, for each
24 period of creditable service established under this Section,
25 a person's age at retirement shall be deemed to be increased
26 by an equal period.
27 The creditable service established under this Section may
28 be used for all purposes under this Article and the
29 Retirement Systems Reciprocal Act, except for the purposes of
30 Section 17-116.1, and the determination of average salary or
31 compensation under this or any other Article of this Code.
32 The age enhancement established under this Section may be
33 used for all purposes under this Article (including
34 calculation of a proportionate pension payable by this Fund
-8- LRB9110335EGfg
1 under the Retirement Systems Reciprocal Act), except for
2 purposes of the reversionary pension under Section 17-120,
3 and distributions required by federal law on account of age.
4 However, age enhancement established under this Section shall
5 not be used in determining benefits payable under other
6 Articles of this Code under the Retirement Systems Reciprocal
7 Act.
8 (c) For all creditable service established under this
9 Section, the employer must pay to the Fund an employer
10 contribution consisting of 12% of the member's highest annual
11 full-time rate of compensation for each year of creditable
12 service granted under this Section.
13 The employer contribution shall be paid to the Fund in
14 one of the following ways: (i) in a single sum at the time
15 of the member's retirement, (ii) in equal quarterly
16 installments over a period of 5 years from the date of
17 retirement, or (iii) subject to the approval of the Board of
18 the Fund, in unequal installments over a period of no more
19 than 5 years from the date of retirement, as provided in a
20 payment plan designed by the Fund to accommodate the needs of
21 the employer. The employer's failure to make the required
22 contributions in a timely manner shall not affect the payment
23 of the retirement pension.
24 For all creditable service established under this
25 Section, the employee must pay to the Fund an employee
26 contribution consisting of 4% of the member's highest annual
27 salary rate used in the determination of the retirement
28 pension for each year of creditable service granted under
29 this Section. The employee contribution shall be deducted
30 from the retirement annuity in 24 monthly installments.
31 (d) An annuitant who has received any age enhancement or
32 creditable service under this Section and whose pension is
33 suspended or cancelled under Section 17-149 or 17-150 shall
34 thereby forfeit the age enhancement and creditable service.
-9- LRB9110335EGfg
1 The forfeiture of creditable service under this subsection
2 shall not entitle the employer to a refund of the employer
3 contribution paid under this Section, nor to forgiveness of
4 any part of that contribution that remains unpaid. The
5 forfeiture of creditable service under this subsection shall
6 not entitle the employee to a refund of the employee
7 contribution paid under this Section.
8 (e) If the number of employees of an employer that apply
9 for early retirement under this Section exceeds 30% of those
10 eligible, the employer may require that, for any or all of
11 the number of applicants in excess of that 30%, the starting
12 date of the retirement pension enhanced under this Section be
13 no earlier than June 1, 1995 and no later than September 1,
14 1995. The right to have the retirement pension begin before
15 June 1, 1995 shall be allocated among the applicants on the
16 basis of seniority in the service of that employer.
17 This delay applies only to persons who are applying for
18 early retirement incentives under this Section, and does not
19 prevent a person whose application for early retirement
20 incentives has been withdrawn from beginning to receive a
21 retirement pension on the earliest date upon which the person
22 is otherwise eligible under this Article.
23 (f) A member who receives any early retirement incentive
24 under Section 17-116.3 may not receive any early retirement
25 incentive under this Section.
26 (g) Notwithstanding Section 17-157, a person who is
27 receiving early retirement benefits under this Section may
28 establish service credit for a period of up to 3 weeks during
29 the month of January, 1968, during which the person was
30 prevented from working due to civil unrest or a wildcat
31 strike. A person wishing to establish this credit must apply
32 in writing to the Board within 30 days after the effective
33 date of this amendatory Act of the 91st General Assembly and
34 pay to the Fund an employee contribution calculated at the
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1 rate and salary applicable to the employee at the time for
2 which credit is being established, without interest. When a
3 person establishes additional service credit under this
4 subsection, the Fund shall recalculate the annuity originally
5 granted under this Section to reflect the additional credit
6 and shall pay to the annuitant in a lump sum the difference
7 between the annuity payments paid before the date of the
8 recalculation and the recalculated amount of those payments.
9 (Source: P.A. 88-85.)
10 (40 ILCS 5/17-119.1)
11 Sec. 17-119.1. Optional increase in retirement annuity.
12 (a) A member of the Fund may qualify for the augmented
13 rate under subdivision (b)(3) of Section 17-116 for all years
14 of creditable service earned before July 1, 1998 by making
15 the optional contribution specified in subsection (b); except
16 that a member with at least 30 years of creditable service at
17 retirement qualifies for the augmented rate without making
18 any contribution under subsection (b). A member may not
19 elect to qualify for the augmented rate for only a portion of
20 his or her creditable service earned before July 1, 1998.
21 (b) The contribution shall be an amount equal to 1.0% of
22 the member's highest salary rate in the 4 consecutive school
23 years immediately prior to but not including the school year
24 in which the application occurs, multiplied by the number of
25 years of creditable service earned by the member before July
26 1, 1998 or 20, whichever is less. This contribution shall be
27 reduced by 1.0% of that salary rate for every 3 full years of
28 creditable service earned by the member after June 30, 1998.
29 The contribution shall be further reduced at the rate of 25%
30 of the contribution (as reduced for service after June 30,
31 1998) for each year of the member's total creditable service
32 in excess of 34 years. The contribution shall not in any
33 event exceed 20% of that salary rate.
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1 The member shall pay to the Fund the amount of the
2 contribution as calculated at the time of application under
3 this Section. The amount of the contribution determined
4 under this subsection shall be recalculated at the time of
5 retirement, and if the Fund determines that the amount paid
6 by the member exceeds the recalculated amount, the Fund shall
7 refund the difference to the member with regular interest
8 from the date of payment to the date of refund.
9 The contribution required by this subsection shall be
10 paid in one of the following ways or in a combination of the
11 following ways that does not extend over more than 5 years:
12 (i) in a lump sum on or before the date of
13 retirement;
14 (ii) in substantially equal installments over a
15 period of time not to exceed 5 years, as a deduction from
16 salary in accordance with Section 17-130.2;
17 (iii) if the member becomes an annuitant before
18 June 30, 2003, in substantially equal monthly
19 installments over a 24-month period, by a deduction from
20 the annuitant's monthly benefit.
21 (c) If the member fails to make the full contribution
22 under this Section in a timely fashion, the payments made
23 under this Section shall be refunded to the member, without
24 interest. If the member dies before making the full
25 contribution, the payments made under this Section shall be
26 refunded to the member's designated beneficiary.
27 (d) For purposes of this Section and subsection (b) of
28 Section 17-116, optional creditable service established by a
29 member shall be deemed to have been earned at the time of the
30 employment or other qualifying event upon which the service
31 is based, rather than at the time the credit was established
32 in this Fund.
33 (e) The contributions required under this Section are
34 the responsibility of the teacher and not the teacher's
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1 employer. However, an employer of teachers may, after the
2 effective date of this amendatory Act of 1998, specifically
3 agree, through collective bargaining or otherwise, to make
4 the contributions required by this Section on behalf of those
5 teachers.
6 (Source: P.A. 90-582, eff. 5-27-98; 91-17, eff. 6-4-99.)
7 (40 ILCS 5/17-142.1) (from Ch. 108 1/2, par. 17-142.1)
8 Sec. 17-142.1. To defray health insurance costs. To
9 provide for the partial reimbursement of health insurance
10 costs.
11 (1) On the first day of September of each year,
12 beginning in 1988, the Board may, by separate warrant, pay to
13 each recipient of a service retirement, disability retirement
14 or survivor's pension an amount to be determined by the
15 Board, which shall represent partial reimbursement for the
16 cost of the recipient's health insurance coverage.
17 (2) In lieu of the annual payment authorized in
18 subdivision (1), for pensioners enrolled in the Fund's
19 regular health care deduction plans, the Fund may pay the
20 health insurance premium reimbursement on a monthly rather
21 than annual basis, at the percentage rate established from
22 time to time by the Board. If the Board so directs, these
23 monthly payments may be made in the form of a direct payment
24 of premium and a reduction in the amount deducted from the
25 annuity, rather than in the form of reimbursement by separate
26 warrant.
27 (3) Total payments under this Section in any year may
28 not exceed $40,000,000 $25,000,000 plus any amount that was
29 authorized to be paid under this Section in the preceding
30 year but was not actually paid by the Board.
31 (Source: P.A. 90-566, eff. 1-2-98.)
32 (40 ILCS 5/17-150) (from Ch. 108 1/2, par. 17-150)
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1 Sec. 17-150. Suspension of pensions. Until July 1,
2 2000, pension payments, exclusive of those made to the
3 survivors of persons who were contributors, shall be
4 suspended while the recipient is employed in a teaching
5 capacity, outside the City in which the Fund exists, by any
6 public school or charter school in this State, unless the
7 recipient is so employed temporarily as a substitute teacher
8 for 100 days or less in a school year or on an hourly basis
9 with earnings not in excess of the sum payable for 100 days'
10 substitute service.
11 Beginning July 1, 2000, pension payments shall no longer
12 be suspended while the recipient is employed in a teaching
13 capacity, outside the City in which the Fund exists, by any
14 public school or charter school in this State, and any
15 pension that is in a state of suspension under this Section
16 on July 1, 2000 shall be reinstated on that date.
17 Notwithstanding Section 17-157, the change to this Section
18 made by this amendatory Act of the 91st General Assembly
19 applies without regard to whether or not the pensioner was in
20 service on or after the effective date of this amendatory
21 Act.
22 (Source: P.A. 90-566, eff. 1-2-98.)
23 Section 98. The State Mandates Act is amended by adding
24 Section 8.24 as follows:
25 (30 ILCS 805/8.24 new)
26 Sec. 8.24. Exempt mandate. Notwithstanding Sections 6
27 and 8 of this Act, no reimbursement by the State is required
28 for the implementation of any mandate created by this
29 amendatory Act of the 91st General Assembly.
30 Section 99. Effective date. This Act takes effect upon
31 becoming law.