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91_SB0091
LRB9100688EGfg
1 AN ACT to amend the Illinois Pension Code by changing
2 Sections 17-116 and 17-122 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 17-122 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 3 the 4 consecutive years
8 of 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 0.5% 1/2 of one per cent for each month that the
9 age 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 (Source: P.A. 90-566, eff. 1-2-98; 90-582, eff. 5-27-98.)
4 (40 ILCS 5/17-122) (from Ch. 108 1/2, par. 17-122)
5 Sec. 17-122. Survivor's and children's pensions - Amount.
6 Upon the death of a teacher who has completed at least 1 1/2
7 years of contributing service with either this Fund or the
8 State Universities Retirement System or the Teachers'
9 Retirement System of the State of Illinois, provided his
10 death occurred while (a) in active service covered by the
11 Fund or during his first 18 months of continuous employment
12 without a break in service under any other participating
13 system as defined in the Illinois Retirement Systems
14 Reciprocal Act except the State Universities Retirement
15 System and the Teachers' Retirement System of the State of
16 Illinois, (b) on a creditable leave of absence, (c) on a
17 noncreditable leave of absence of no more than one year, or
18 (d) a pension was deferred or pending provided the teacher
19 had at least 10 years of validated service credit, or upon
20 the death of a pensioner otherwise qualified for such
21 benefit, the surviving spouse and unmarried minor children of
22 the deceased teacher under age 18 shall be entitled to
23 pensions, under the conditions stated hereinafter. Such
24 Survivor's and children's pensions shall be based on the
25 average of the 3 the 4 highest consecutive years of salary in
26 the last 10 years of service or on the average salary for
27 total service, if total service has been less than 3 than 4
28 years, according to the following percentages:
29 30% of average salary or 50% of the retirement pension
30 earned by the teacher, whichever is larger, subject to the
31 prescribed maximum monthly payment, for a surviving spouse
32 alone on attainment of age 50;
33 60% of average salary for a surviving spouse and
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1 eligible minor children of the deceased teacher.
2 If no eligible spouse survives, or the surviving spouse
3 remarries, or the parent of the children of the deceased
4 member is otherwise ineligible for a survivor's pension, a
5 children's pension for eligible minor children under age 18
6 shall be paid to their parent or legal guardian for their
7 benefit according to the following percentages:
8 30% of average salary for one child;
9 60% of average salary for 2 or more children.
10 On January 1, 1981, any survivor or child who was
11 receiving a survivor's or children's pension on or before
12 January 1, 1971, shall have his survivor's or children's
13 pension then being paid increased by 1% for each full year
14 which has elapsed from the date the pension began. On January
15 1, 1982, any survivor or child whose pension began after
16 January 1, 1971, but before January 1, 1981, shall have his
17 survivor's or children's pension then being paid increased 1%
18 for each full year which has elapsed from the date the
19 pension began. On January 1, 1987, any survivor or child
20 whose pension began on or before January 1, 1977, shall have
21 the monthly survivor's or children's pension increased by $1
22 for each full year which has elapsed since the pension began.
23 Beginning January 1, 1990, every survivor's and
24 children's pension shall be increased (1) on each January 1
25 occurring on or after the commencement of the pension if the
26 deceased teacher died while receiving a retirement pension,
27 or (2) in other cases, on each January 1 occurring on or
28 after the first anniversary of the commencement of the
29 pension, by an amount equal to 3% of the current amount of
30 the pension, including all increases previously granted under
31 this Article, notwithstanding Section 17-157. Such increases
32 shall apply without regard to whether the deceased teacher
33 was in service on or after the effective date of this
34 amendatory Act of 1991, but shall not accrue for any period
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1 prior to January 1, 1990.
2 Subject to the minimum established below, the maximum
3 amount of pension for a surviving spouse alone or one minor
4 child shall be $400 per month, and the maximum combined
5 pensions for a surviving spouse and children of the deceased
6 teacher shall be $600 per month, with individual pensions
7 adjusted for all beneficiaries pro rata to conform with this
8 limitation. If proration is unnecessary the minimum
9 survivor's and children's pensions shall be $40 per month.
10 The minimum total survivor's and children's pension payable
11 upon the death of a contributor or annuitant which occurs
12 after December 31, 1986, shall be 50% of the earned
13 retirement pension of such contributor or annuitant,
14 calculated without early retirement discount in the case of
15 death in service.
16 On death after retirement, the total survivor's and
17 children's pensions shall not exceed the monthly retirement
18 or disability pension paid to the deceased retirant.
19 Survivor's and children's benefits described in this Section
20 shall apply to all service and disability pensioners eligible
21 for a pension as of July 1, 1981.
22 (Source: P.A. 90-32, eff. 6-27-97; 90-566, eff. 1-2-98.)
23 Section 90. The State Mandates Act is amended by adding
24 Section 8.23 as follows:
25 (30 ILCS 805/8.23 new)
26 Sec. 8.23. 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.