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92_HB2157enr HB2157 Enrolled LRB9205315LDcs 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 16-106, 16-118, 16-129.1, 17-106, 17-116.3, 6 17-116.4, 17-119.1, 17-121, and 17-149 as follows: 7 (40 ILCS 5/16-106) (from Ch. 108 1/2, par. 16-106) 8 Sec. 16-106. Teacher. "Teacher": The following 9 individuals, provided that, for employment prior to July 1, 10 1990, they are employed on a full-time basis, or if not 11 full-time, on a permanent and continuous basis in a position 12 in which services are expected to be rendered for at least 13 one school term: 14 (1) Any educational, administrative, professional 15 or other staff employed in the public common schools 16 included within this system in a position requiring 17 certification under the law governing the certification 18 of teachers; 19 (2) Any educational, administrative, professional 20 or other staff employed in any facility of the Department 21 of Children and Family Services or the Department of 22 Human Services, in a position requiring certification 23 under the law governing the certification of teachers, 24 and any person who (i) works in such a position for the 25 Department of Corrections, (ii) was a member of this 26 System on May 31, 1987, and (iii) did not elect to become 27 a member of the State Employees' Retirement System 28 pursuant to Section 14-108.2 of this Code; 29 (3) Any regional superintendent of schools, 30 assistant regional superintendent of schools, State 31 Superintendent of Education; any person employed by the HB2157 Enrolled -2- LRB9205315LDcs 1 State Board of Education as an executive; any executive 2 of the boards engaged in the service of public common 3 school education in school districts covered under this 4 system of which the State Superintendent of Education is 5 an ex-officio member; 6 (4) Any employee of a school board association 7 operating in compliance with Article 23 of the School 8 Code who is certificated under the law governing the 9 certification of teachers; 10 (5) Any person employed by the retirement system 11 who: 12 (i) was an employee of and a participant in 13 the system on the effective date of this amendatory 14 Act of the 92nd General Assembly, or 15 (ii) becomes an employee of the system on or 16 after the effective date of this amendatory Act of 17 the 92nd General Assembly;as an executive, and any18person employed by the retirement system who is19certificated under the law governing the20certification of teachers;21 (6) Any educational, administrative, professional 22 or other staff employed by and under the supervision and 23 control of a regional superintendent of schools, provided 24 such employment position requires the person to be 25 certificated under the law governing the certification of 26 teachers and is in an educational program serving 2 or 27 more districts in accordance with a joint agreement 28 authorized by the School Code or by federal legislation; 29 (7) Any educational, administrative, professional 30 or other staff employed in an educational program 31 serving 2 or more school districts in accordance with a 32 joint agreement authorized by the School Code or by 33 federal legislation and in a position requiring 34 certification under the laws governing the certification HB2157 Enrolled -3- LRB9205315LDcs 1 of teachers; 2 (8) Any officer or employee of a statewide teacher 3 organization or officer of a national teacher 4 organization who is certified under the law governing 5 certification of teachers, provided: (i) the individual 6 had previously established creditable service under this 7 Article, (ii) the individual files with the system an 8 irrevocable election to become a member, and (iii) the 9 individual does not receive credit for such service under 10 any other Article of this Code; 11 (9) Any educational, administrative, professional, 12 or other staff employed in a charter school operating in 13 compliance with the Charter Schools Law who is 14 certificated under the law governing the certification of 15 teachers. 16 An annuitant receiving a retirement annuity under this 17 Article or under Article 17 of this Code who is temporarily 18 employed by a board of education or other employer not 19 exceeding that permitted under Section 16-118 is not a 20 "teacher" for purposes of this Article. A person who has 21 received a single-sum retirement benefit under Section 22 16-136.4 of this Article is not a "teacher" for purposes of 23 this Article. 24 (Source: P.A. 89-450, eff. 4-10-96; 89-507, eff. 7-1-97; 25 90-14, eff. 7-1-97; 90-448, eff. 8-16-97.) 26 (40 ILCS 5/16-118) (from Ch. 108 1/2, par. 16-118) 27 Sec. 16-118. Retirement. "Retirement": Entry upon a 28 retirement annuity or receipt of a single-sum retirement 29 benefit granted under this Article after termination of 30 active service as a teacher. 31 An annuitant receiving a retirement annuity other than a 32 disability retirement annuity may accept employment as a 33 teacher from a school board or other employer specified in HB2157 Enrolled -4- LRB9205315LDcs 1 Section 16-106 without impairing retirement status if that 2 employment: (1) is not within the school year during which 3 service was terminated; and (2) does not exceed 100 paid days 4 or 500 paid hours in any school year (during the period 5 beginning July 1, 2001 through June 30, 2006, 120 paid days 6 or 600 paid hours in each school year). Where such permitted 7 employment is partly on a daily and partly on an hourly 8 basis, a day shall be considered as 5 hours. 9 (Source: P.A. 86-273; 87-11; 87-794; 87-895.) 10 (40 ILCS 5/16-129.1) 11 Sec. 16-129.1. Optional increase in retirement annuity. 12 (a) A member of the System may qualify for the augmented 13 rate under subdivision (a)(B)(1) of Section 16-133 for all 14 years of creditable service earned before July 1, 1998 by 15 making the optional contribution specified in subsection (b). 16 A member may not elect to qualify for the augmented rate for 17 only a portion of his or her creditable service earned before 18 July 1, 1998. 19 (b) The contribution shall be an amount equal to 1.0% of 20 the member's highest salary rate in the 4 consecutive school 21 years immediately prior to but not including the school year 22 in which the application occurs, multiplied by the number of 23 years of creditable service earned by the member before July 24 1, 1998 or 20, whichever is less. This contribution shall be 25 reduced by 1.0% of that salary rate for every 3 full years of 26 creditable service earned by the member after June 30, 1998. 27 The contribution shall be further reduced at the rate of 25% 28 of the contribution (as reduced for service after June 30, 29 1998) for each year of the member's total creditable service 30 in excess of 34 years. The contribution shall not in any 31 event exceed 20% of that salary rate. 32 The member shall pay to the System the amount of the 33 contribution as calculated at the time of application under HB2157 Enrolled -5- LRB9205315LDcs 1 this Section. The amount of the contribution determined 2 under this subsection shall be recalculated at the time of 3 retirement, and if the System determines that the amount paid 4 by the member exceeds the recalculated amount, the System 5 shall refund the difference to the member with regular 6 interest from the date of payment to the date of refund. 7 The contribution required by this subsection shall be 8 paid in one of the following ways or in a combination of the 9 following ways that does not extend over more than 5 years: 10 (i) in a lump sum on or before the date of 11 retirement; 12 (ii) in substantially equal installments over a 13 period of time not to exceed 5 years, as a deduction from 14 salary in accordance with subsection (b) of Section 15 16-154; 16 (iii) if the member becomes an annuitant before 17 June 30, 2003, in substantially equal monthly 18 installments over a 24-month period, by reducing the 19 annuitant's monthly benefit over a 24-month period by the 20 amount of the otherwise applicable contribution. For 21 federal and Illinois tax purposes, the monthly amount by 22 which the annuitant's benefit is reduced shall not be 23 treated as a contribution by the annuitant, but rather as 24 a reduction of the annuitant's monthly benefit. 25 (c) If the member fails to make the full contribution 26 under this Section in a timely fashion, the payments made 27 under this Section shall be refunded to the member, without 28 interest. If the member dies before making the full 29 contribution, the payments made under this Section, together 30 with regular interest thereon, shall be refunded to the 31 member's designated beneficiary for benefits under Section 32 16-138. 33 (d) For purposes of this Section and subdivision 34 (a)(B)(1) of Section 16-133, optional creditable service HB2157 Enrolled -6- LRB9205315LDcs 1 established by a member shall be deemed to have been earned 2 at the time of the employment or other qualifying event upon 3 which the service is based, rather than at the time the 4 credit was established in this System. 5 (e) The contributions required under this Section are 6 the responsibility of the teacher and not the teacher's 7 employer. However, an employer of teachers may, after the 8 effective date of this amendatory Act of 1998, specifically 9 agree, through collective bargaining or otherwise, to make 10 the contributions required by this Section on behalf of those 11 teachers. 12 (f) A person who, on or after July 1, 1998 and before 13 June 4, 1999, began receiving a retirement annuity calculated 14 at the augmented rate may apply in writing to have the 15 annuity recalculated to reflect the changes to this Section 16 and Section 16-133 that were enacted in Public Act 91-17. 17 The amount of any resulting decrease in the optional 18 contribution shall be refunded to the annuitant, without 19 interest. Any resulting increase in retirement annuity shall 20 take effect on the next annuity payment date following the 21 date of application under this subsection. 22 (Source: P.A. 90-582, eff. 5-27-98; 91-17, eff. 6-4-99.) 23 (40 ILCS 5/17-106) (from Ch. 108 1/2, par. 17-106) 24 Sec. 17-106. Contributor, member or teacher. 25 "Contributor", "member" or "teacher": All members of the 26 teaching force of the city, including principals, assistant 27 principals, the general superintendent of schools, deputy 28 superintendents of schools, associate superintendents of 29 schools, assistant and district superintendents of schools, 30 members of the Board of Examiners, all other persons whose 31 employment requires a teaching certificate issued under the 32 laws governing the certification of teachers, any 33 educational, administrative, professional, or other staff HB2157 Enrolled -7- LRB9205315LDcs 1 employed in a charter school operating in compliance with the 2 Charter Schools Law who is certified under the law governing 3 the certification of teachers, and employees of the Board, 4 but excluding persons contributing concurrently to any other 5 public employee pension system in Illinois for the same 6 employment or receiving retirement pensions under another 7 Article of this Code for that same employment, persons 8 employed on an hourly basis, and persons receiving pensions 9 from the Fund who are employed temporarily by an Employer for 10 150100days or less in any school year and not on an annual 11 basis. 12 In the case of a person who has been making contributions 13 and otherwise participating in this Fund prior to the 14 effective date of this amendatory Act of the 91st General 15 Assembly, and whose right to participate in the Fund is 16 established or confirmed by this amendatory Act, such prior 17 participation in the Fund, including all contributions 18 previously made and service credits previously earned by the 19 person, are hereby validated. 20 The changes made to this Section and Section 17-149 by 21 this amendatory Act of the 92nd General Assembly apply 22 without regard to whether the person was in service on or 23 after the effective date of this amendatory Act, 24 notwithstanding Sections 1-103.1 and 17-157. 25 (Source: P.A. 90-32, eff. 6-27-97; 90-566, eff. 1-2-98; 26 91-887, eff. 7-6-00.) 27 (40 ILCS 5/17-116.3) 28 Sec. 17-116.3. Early retirement incentives. 29 (a) A teacher who is covered by a collective bargaining 30 agreement shall not be eligible for the early retirement 31 incentives provided under this Section unless the collective 32 bargaining agent and the Board of Education have entered into 33 an agreement under which the agent agrees that any payment HB2157 Enrolled -8- LRB9205315LDcs 1 for accumulated unused sick days to which the employee is 2 entitled upon withdrawal from service may be paid by the 3 Board of Education in installments over a period of up to 5 4 years, and a copy of this agreement has been filed with the 5 Board of the Fund. 6 To be eligible for the benefits provided in this Section, 7 a person must: 8 (1) be a member of this Fund who, on or after May 9 1, 1993, is (i) in active payroll status as a teacher, or 10 (ii) on layoff status from such a position with a right 11 of re-employment or recall to service, or (iii) on leave 12 of absence from such a position, but only if the member 13 on leave has not been receiving a disability benefit 14 under this Article for a continuous period of 2 years or 15 more as of the date of application; 16 (2) have not previously received a retirement 17 pension under this Article; 18 (3) file with the Board and the Board of Education, 19 before August 15, 1993, a written application requesting 20 the benefits provided in this Section and a notice of 21 resignation from employment, which resignation must take 22 effect before September 1, 1993 unless the applicant's 23 retirement is delayed under subsection (e), (f), or (f-5) 24 of this Section; 25 (4) be eligible to receive a retirement pension 26 under this Article (for which purpose any age enhancement 27 or creditable service received under this Section may be 28 used) and elect to receive the retirement pension 29 beginning no earlier than June 1, 1993 and no later than 30 September 1, 1993 or the date established under 31 subsection (e), (f), or (f-5) of this Section, if 32 applicable; 33 (5) have attained age 50 (without the use of any 34 age enhancement or creditable service received under this HB2157 Enrolled -9- LRB9205315LDcs 1 Section) by the effective date of the retirement pension; 2 (6) have at least 5 years of creditable service 3 under this Fund or any of the participating systems under 4 the Retirement Systems Reciprocal Act (without the use of 5 any creditable service received under this Section) by 6 the effective date of the retirement pension. 7 (b) An eligible person may establish up to 5 years of 8 creditable service under this Section. In addition, for each 9 period of creditable service established under this Section, 10 a person's age at retirement shall be deemed to be increased 11 by an equal period. 12 The creditable service established under this Section may 13 be used for all purposes under this Article and the 14 Retirement Systems Reciprocal Act, except for the purposes of 15 Section 17-116.1, and the determination of average salary or 16 compensation under this or any other Article of this Code. 17 The age enhancement established under this Section may be 18 used for all purposes under this Article (including 19 calculation of a proportionate pension payable by this Fund 20 under the Retirement Systems Reciprocal Act), except for 21 purposes of the reversionary pension under Section 17-120, 22 and distributions required by federal law on account of age. 23 However, age enhancement established under this Section shall 24 not be used in determining benefits payable under other 25 Articles of this Code under the Retirement Systems Reciprocal 26 Act. 27 (c) For all creditable service established under this 28 Section, the employer must pay to the Fund an employer 29 contribution consisting of 12% of the member's highest annual 30 full-time rate of compensation for each year of creditable 31 service granted under this Section. 32 The employer contribution shall be paid to the Fund in 33 one of the following ways: (i) in a single sum at the time 34 of the member's retirement, (ii) in equal quarterly HB2157 Enrolled -10- LRB9205315LDcs 1 installments over a period of 5 years from the date of 2 retirement, or (iii) subject to the approval of the Board of 3 the Fund, in unequal installments over a period of no more 4 than 5 years from the date of retirement, as provided in a 5 payment plan designed by the Fund to accommodate the needs of 6 the employer. The employer's failure to make the required 7 contributions in a timely manner shall not affect the payment 8 of the retirement pension. 9 For all creditable service established under this 10 Section, the employee must pay to the Fund an employee 11 contribution consisting of 4% of the member's highest annual 12 salary rate used in the determination of the retirement 13 pension for each year of creditable service granted under 14 this Section. The employee contribution shall be deducted 15 from the retirement annuity in 24 monthly installments. 16 (d) An annuitant who has received any age enhancement or 17 creditable service under this Section and whose pension is 18 suspended or cancelled under Section 17-149 or 17-150 shall 19 thereby forfeit the age enhancement and creditable service. 20 The forfeiture of creditable service under this subsection 21 shall not entitle the employer to a refund of the employer 22 contribution paid under this Section, nor to forgiveness of 23 any part of that contribution that remains unpaid. The 24 forfeiture of creditable service under this subsection shall 25 not entitle the employee to a refund of the employee 26 contribution paid under this Section. 27 (e) If the number of employees of an employer that apply 28 for early retirement under this Section exceeds 30% of those 29 eligible, the employer may require that, for any or all of 30 the number of applicants in excess of that 30%, the starting 31 date of the retirement pension enhanced under this Section be 32 no earlier than June 1, 1994 and no later than September 1, 33 1994. The right to have the retirement pension begin before 34 June 1, 1994 shall be allocated among the applicants on the HB2157 Enrolled -11- LRB9205315LDcs 1 basis of seniority in the service of that employer. 2 This delay applies only to persons who are applying for 3 early retirement incentives under this Section, and does not 4 prevent a person whose application for early retirement 5 incentives has been withdrawn from beginning to receive a 6 retirement pension on the earliest date upon which the person 7 is otherwise eligible under this Article. 8 (f) For a member who is notified after July 30, 1993, 9 but before November 29, 1993, that he or she will become a 10 supernumerary or reserve teacher in the 1993-1994 school 11 year: (1) the August 15, 1993 application deadline in 12 subdivision (a)(3) of this Section is extended to December 13 14, 1993, (2) the September 1, 1993 deadline in subdivision 14 (a)(4) of this Section is extended to December 14, 1993, and 15 (3) the member shall not be included in the calculation of 16 the 30% under subsection (e) and is not subject to delay in 17 retirement under that subsection. 18 (f-5) For a member who is notified after January 1, 19 1994, but before March 1, 1994, that he or she will become a 20 reserve teacher in the 1993-1994 school year: (1) the August 21 15, 1993 application deadline in subdivision (a)(3) of this 22 Section is extended to April 1, 1994; (2) the September 1, 23 1993 deadline in subdivision (a)(4) of this Section is 24 extended to April 1, 1994; and (3) the member shall not be 25 included in the calculation of the 30% under subsection (e) 26 and is not subject to delay in retirement under that 27 subsection. 28 (g) A member who receives any early retirement incentive 29 under Section 17-116.4, 17-116.5 or 17-116.6 may not receive 30 any early retirement incentive under this Section. 31 (h) The version of this Section included in Public Act 32 88-85 is intended to and shall control over the version of 33 this Section included in Public Act 88-89, notwithstanding 34 Section 6 of the Statute on Statutes. All persons qualifying HB2157 Enrolled -12- LRB9205315LDcs 1 for early retirement incentives under this Section shall be 2 subject to the limitations and restrictions provided in the 3 version of this Section included in Public Act 88-85, as 4 amended by Public Act 88-511. 5 (i) In addition to the benefits provided under the other 6 provisions of this Section, every person who receives early 7 retirement benefits under this Section is entitled to one 8 additional year of creditable service and a corresponding 9 year of additional age enhancement, for which no additional 10 contribution is required. Every person who receives early 11 retirement benefits under this Section whose retirement 12 annuity has been calculated on the basis of a 4-year average 13 salary is also entitled to have the annuity recalculated on 14 the basis of the average salary for the 3 highest consecutive 15 years within the last 10 years of service. 16 The additional benefits provided by this subsection (i) 17 shall begin to accrue on the date the retirement annuity 18 began, notwithstanding Section 17-157. The Fund shall 19 recalculate all annuities originally calculated under this 20 Section to reflect the additional benefits provided under 21 this subsection and shall pay to the annuitant in a lump sum 22 the difference between the annuity payments paid before the 23 date of the recalculation and the recalculated amount of 24 those payments. 25 (Source: P.A. 88-85; 88-89; 88-511; 88-670, eff. 12-2-94.) 26 (40 ILCS 5/17-116.4) 27 Sec. 17-116.4. Early retirement incentives. 28 (a) A teacher who is covered by a collective bargaining 29 agreement shall not be eligible for the early retirement 30 incentives provided under this Section unless the collective 31 bargaining agent and the Board of Education have entered into 32 an agreement under which the agent agrees that any payment 33 for accumulated unused sick days to which the employee is HB2157 Enrolled -13- LRB9205315LDcs 1 entitled upon withdrawal from service may be paid by the 2 Board of Education in installments over a period of up to 5 3 years, and a copy of this agreement has been filed with the 4 Board of the Fund. 5 To be eligible for the benefits provided in this Section, 6 a person must: 7 (1) be a member of this Fund who, on or after May 8 1, 1994, is (i) in active payroll status as a teacher, or 9 (ii) on layoff status from such a position with a right 10 of re-employment or recall to service, or (iii) on leave 11 of absence from such a position, but only if the member 12 on leave has not been receiving a disability benefit 13 under this Article for a continuous period of 2 years or 14 more as of the date of application; 15 (2) have not previously received a retirement 16 pension under this Article; 17 (3) file with the Board and the Board of Education, 18 before March 1, 1994, a written application requesting 19 the benefits provided in this Section and a notice of 20 resignation from employment, which resignation must take 21 effect no earlier than June 1, 1994 and no later than 22 September 1, 1994 unless the applicant's retirement is 23 delayed under subsection (e) of this Section; 24 (4) be eligible to receive a retirement pension 25 under this Article (for which purpose any age enhancement 26 or creditable service received under this Section may be 27 used) and elect to receive the retirement pension 28 beginning no earlier than June 1, 1994 and no later than 29 September 1, 1994 or the date established under 30 subsection (e) of this Section, if applicable; 31 (5) have attained age 50 (without the use of any 32 age enhancement or creditable service received under this 33 Section) after September 1, 1993 and no later than 34 September 1, 1994; HB2157 Enrolled -14- LRB9205315LDcs 1 (6) have at least 5 years of creditable service 2 under this Fund or any of the participating systems under 3 the Retirement Systems Reciprocal Act (without the use of 4 any creditable service received under this Section) by 5 the effective date of the retirement pension. 6 (b) An eligible person may establish up to 5 years of 7 creditable service under this Section. In addition, for each 8 period of creditable service established under this Section, 9 a person's age at retirement shall be deemed to be increased 10 by an equal period. 11 The creditable service established under this Section may 12 be used for all purposes under this Article and the 13 Retirement Systems Reciprocal Act, except for the purposes of 14 Section 17-116.1, and the determination of average salary or 15 compensation under this or any other Article of this Code. 16 The age enhancement established under this Section may be 17 used for all purposes under this Article (including 18 calculation of a proportionate pension payable by this Fund 19 under the Retirement Systems Reciprocal Act), except for 20 purposes of the reversionary pension under Section 17-120, 21 and distributions required by federal law on account of age. 22 However, age enhancement established under this Section shall 23 not be used in determining benefits payable under other 24 Articles of this Code under the Retirement Systems Reciprocal 25 Act. 26 (c) For all creditable service established under this 27 Section, the employer must pay to the Fund an employer 28 contribution consisting of 12% of the member's highest annual 29 full-time rate of compensation for each year of creditable 30 service granted under this Section. 31 The employer contribution shall be paid to the Fund in 32 one of the following ways: (i) in a single sum at the time 33 of the member's retirement, (ii) in equal quarterly 34 installments over a period of 5 years from the date of HB2157 Enrolled -15- LRB9205315LDcs 1 retirement, or (iii) subject to the approval of the Board of 2 the Fund, in unequal installments over a period of no more 3 than 5 years from the date of retirement, as provided in a 4 payment plan designed by the Fund to accommodate the needs of 5 the employer. The employer's failure to make the required 6 contributions in a timely manner shall not affect the payment 7 of the retirement pension. 8 For all creditable service established under this 9 Section, the employee must pay to the Fund an employee 10 contribution consisting of 4% of the member's highest annual 11 salary rate used in the determination of the retirement 12 pension for each year of creditable service granted under 13 this Section. The employee contribution shall be deducted 14 from the retirement annuity in 24 monthly installments. 15 (d) An annuitant who has received any age enhancement or 16 creditable service under this Section and whose pension is 17 suspended or cancelled under Section 17-149 or 17-150 shall 18 thereby forfeit the age enhancement and creditable service. 19 The forfeiture of creditable service under this subsection 20 shall not entitle the employer to a refund of the employer 21 contribution paid under this Section, nor to forgiveness of 22 any part of that contribution that remains unpaid. The 23 forfeiture of creditable service under this subsection shall 24 not entitle the employee to a refund of the employee 25 contribution paid under this Section. 26 (e) If the number of employees of an employer that apply 27 for early retirement under this Section exceeds 30% of those 28 eligible, the employer may require that, for any or all of 29 the number of applicants in excess of that 30%, the starting 30 date of the retirement pension enhanced under this Section be 31 no earlier than June 1, 1995 and no later than September 1, 32 1995. The right to have the retirement pension begin before 33 June 1, 1995 shall be allocated among the applicants on the 34 basis of seniority in the service of that employer. HB2157 Enrolled -16- LRB9205315LDcs 1 This delay applies only to persons who are applying for 2 early retirement incentives under this Section, and does not 3 prevent a person whose application for early retirement 4 incentives has been withdrawn from beginning to receive a 5 retirement pension on the earliest date upon which the person 6 is otherwise eligible under this Article. 7 (f) A member who receives any early retirement incentive 8 under Section 17-116.3 may not receive any early retirement 9 incentive under this Section. 10 (g) Notwithstanding Section 17-157, a person who is 11 receiving early retirement benefits under this Section may 12 establish service credit for a period of up to 3 weeks during 13 the month of January, 1968, during which the person was 14 prevented from working due to civil unrest or a wildcat 15 strike. A person wishing to establish this credit must apply 16 in writing to the Board within 30 days after the effective 17 date of this amendatory Act of the 92nd General Assembly and 18 pay to the Fund an employee contribution calculated at the 19 rate and salary applicable to the employee at the time for 20 which credit is being established, without interest. When a 21 person establishes additional service credit under this 22 subsection, the Fund shall recalculate the annuity originally 23 granted under this Section to reflect the additional credit 24 and shall pay to the annuitant in a lump sum the difference 25 between the annuity payments paid before the date of the 26 recalculation and the recalculated amount of those payments. 27 (Source: P.A. 88-85.) 28 (40 ILCS 5/17-119.1) 29 Sec. 17-119.1. Optional increase in retirement annuity. 30 (a) A member of the Fund may qualify for the augmented 31 rate under subdivision (b)(3) of Section 17-116 for all years 32 of creditable service earned before July 1, 1998 by making 33 the optional contribution specified in subsection (b); except HB2157 Enrolled -17- LRB9205315LDcs 1 that a member who retires on or after July 1, 1998 with at 2 least 30 years of creditable service at retirement qualifies 3 for the augmented rate without making any contribution under 4 subsection (b). Any member who retires on or after July 1, 5 1998 and before the effective date of this amendatory Act of 6 the 92nd General Assembly with at least 30 years of 7 creditable service shall be paid a lump sum equal to the 8 amount he or she would have received under the augmented rate 9 minus the amount he or she actually received. A member may 10 not elect to qualify for the augmented rate for only a 11 portion of his or her creditable service earned before July 12 1, 1998. 13 (b) The contribution shall be an amount equal to 1.0% of 14 the member's highest salary rate in the 4 consecutive school 15 years immediately prior to but not including the school year 16 in which the application occurs, multiplied by the number of 17 years of creditable service earned by the member before July 18 1, 1998 or 20, whichever is less. This contribution shall be 19 reduced by 1.0% of that salary rate for every 3 full years of 20 creditable service earned by the member after June 30, 1998. 21 The contribution shall be further reduced at the rate of 25% 22 of the contribution (as reduced for service after June 30, 23 1998) for each year of the member's total creditable service 24 in excess of 34 years. The contribution shall not in any 25 event exceed 20% of that salary rate. 26 The member shall pay to the Fund the amount of the 27 contribution as calculated at the time of application under 28 this Section. The amount of the contribution determined 29 under this subsection shall be recalculated at the time of 30 retirement, and if the Fund determines that the amount paid 31 by the member exceeds the recalculated amount, the Fund shall 32 refund the difference to the member with regular interest 33 from the date of payment to the date of refund. 34 The contribution required by this subsection shall be HB2157 Enrolled -18- LRB9205315LDcs 1 paid in one of the following ways or in a combination of the 2 following ways that does not extend over more than 5 years: 3 (i) in a lump sum on or before the date of 4 retirement; 5 (ii) in substantially equal installments over a 6 period of time not to exceed 5 years, as a deduction from 7 salary in accordance with Section 17-130.2; 8 (iii) if the member becomes an annuitant before 9 June 30, 2003, in substantially equal monthly 10 installments over a 24-month period, by a deduction from 11 the annuitant's monthly benefit. 12 (c) If the member fails to make the full contribution 13 under this Section in a timely fashion, the payments made 14 under this Section shall be refunded to the member, without 15 interest. If the member dies before making the full 16 contribution, the payments made under this Section shall be 17 refunded to the member's designated beneficiary. 18 (d) For purposes of this Section and subsection (b) of 19 Section 17-116, optional creditable service established by a 20 member shall be deemed to have been earned at the time of the 21 employment or other qualifying event upon which the service 22 is based, rather than at the time the credit was established 23 in this Fund. 24 (e) The contributions required under this Section are 25 the responsibility of the teacher and not the teacher's 26 employer. However, an employer of teachers 3ay, after the 27 effective date of this amendatory Act of 1998, specifically 28 agree, through collective bargaining or otherwise, to make 29 the contributions required by this Section on behalf of those 30 teachers. 31 (Source: P.A. 90-582, eff. 5-27-98; 91-17, eff. 6-4-99.) 32 (40 ILCS 5/17-121) (from Ch. 108 1/2, par. 17-121) 33 Sec. 17-121. Survivor's and Children's pensions - HB2157 Enrolled -19- LRB9205315LDcs 1 Eligibility. A surviving spouse of a teacher shall be 2 entitled to a survivor's pension only if he was married to 3 the contributor for at least 1 1/2 years immediately prior to 4 his death or retirement, whichever first occurs, and also on 5 the date of the last termination of his service. 6 If the surviving spouse is under age 50 and there are no 7 eligible minor children born to or legally adopted by the 8 contributor and his surviving spouse, payment of the 9 survivor's pension shall begin when the surviving spouse 10 attains age 50. 11 Remarriage of the surviving spouse prior to September 1, 12 1983 while in receipt of a survivor's pension shall 13 permanently terminate payment thereof, regardless of any 14 subsequent change in marital status; however, beginning 15 September 1, 1983, remarriage of a surviving spouse after 16 attainment of age 55 shall not terminate the survivor's 17 pension. 18 A surviving spouse whose pension was terminated on or 19 after September 1, 1983 due to remarriage after attainment of 20 age 55, and who applies for reinstatement of that pension 21 before January 1, 1990, shall be entitled to have the pension 22 reinstated effective January 1, 1990. 23 A surviving spouse of a member or annuitant under this 24 Fund who is also a dependent beneficiary under the provisions 25 of Section 16-140 is eligible for a reciprocal survivor's 26 pension, provided that any refund of survivor's pension 27 contributions is repaid to the Fund and application is made 28 within 30 days after the effective date of this amendatory 29 Act of the 92nd General Assembly. 30 (Source: P.A. 86-273.) 31 (40 ILCS 5/17-149) (from Ch. 108 1/2, par. 17-149) 32 Sec. 17-149. Cancellation of pensions. If any person 33 receiving a service or disability retirement pension from the HB2157 Enrolled -20- LRB9205315LDcs 1 Fund is re-employed as a teacher by an Employer, the pension 2 shall be cancelled on the date the re-employment begins, or 3 on the first day of a payroll period for which service credit 4 was validated, whichever is earlier. However,beginning5August 23, 1989,the pension shall not be cancelled in case 6 of a service retirement pensioner who is temporarily 7 re-employed for not more than 150100days during any school 8 year or on an hourly basis, provided the pensioner does not 9 receive salary in any school year of an amount more than that 10 payable to a substitute teacher for 150100days' employment. 11 A service retirement pensioner who is temporarily re-employed 12 for not more than 150100days during any school year or on 13 an hourly basis shall be entitled, at the end of the school 14 year, to a refund of any contributions made to the Fund 15 during that school year. 16 If the pensioner does receive salary from an Employer in 17 any school year for more than 150100days' employment, the 18 pensioner shall be deemed to have returned to service on the 19 first day of employment as a pensioner-substitute. The 20 pensioner shall reimburse the Fund for pension payments 21 received after the return to service and shall pay to the 22 Fund the participant's contributions prescribed in Section 23 17-130 of this Article. 24 If the date of re-employment occurs within 5 school 25 months after the date of previous retirement, exclusive of 26 any vacation period, the member shall be deemed to have been 27 out of service only temporarily and not permanently retired. 28 Such person shall be entitled to pension payments for the 29 time he could have been employed as a teacher and received 30 salary, but shall not be entitled to pension for or during 31 the summer vacation prior to his return to service. 32 When the member again retires on pension, the time of 33 service and the money contributed by him during re-employment 34 shall be added to the time and money previously credited. HB2157 Enrolled -21- LRB9205315LDcs 1 Such person must acquire 3 consecutive years of additional 2 contributing service before he may retire again on a pension 3 at a rate and under conditions other than those in force or 4 attained at the time of his previous retirement. 5 Notwithstanding Sections 1-103.1 and 17-157, the changes 6 to this Section made by this amendatory Act of 1997 shall 7 apply without regard to whether termination of service 8 occurred before the effective date of this amendatory Act and 9 shall apply retroactively to August 23, 1989. 10 (Source: P.A. 90-32, eff. 6-27-97; 90-566, eff. 1-2-98.) 11 Section 90. The State Mandates Act is amended by adding 12 Section 8.25 as follows: 13 (30 ILCS 805/8.25 new) 14 Sec. 8.25. Exempt mandate. Notwithstanding Sections 6 15 and 8 of this Act, no reimbursement by the State is required 16 for the implementation of any mandate created by this 17 amendatory Act of the 92nd General Assembly. 18 Section 99. Effective date. This Act takes effect upon 19 becoming law.