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| [ Senate Amendment 001 ] |
92_HB2157ham001
LRB9205315EGfgam01
1 AMENDMENT TO HOUSE BILL 2157
2 AMENDMENT NO. . Amend House Bill 2157 by replacing
3 everything after the enacting clause with the following:
4 "Section 5. The Illinois Pension Code is amended by
5 changing Section 17-116.3 as follows:
6 (40 ILCS 5/17-116.3)
7 Sec. 17-116.3. Early retirement incentives.
8 (a) A teacher who is covered by a collective bargaining
9 agreement shall not be eligible for the early retirement
10 incentives provided under this Section unless the collective
11 bargaining agent and the Board of Education have entered into
12 an agreement under which the agent agrees that any payment
13 for accumulated unused sick days to which the employee is
14 entitled upon withdrawal from service may be paid by the
15 Board of Education in installments over a period of up to 5
16 years, and a copy of this agreement has been filed with the
17 Board of the Fund.
18 To be eligible for the benefits provided in this Section,
19 a person must:
20 (1) be a member of this Fund who, on or after May
21 1, 1993, is (i) in active payroll status as a teacher, or
22 (ii) on layoff status from such a position with a right
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1 of re-employment or recall to service, or (iii) on leave
2 of absence from such a position, but only if the member
3 on leave has not been receiving a disability benefit
4 under this Article for a continuous period of 2 years or
5 more as of the date of application;
6 (2) have not previously received a retirement
7 pension under this Article;
8 (3) file with the Board and the Board of Education,
9 before August 15, 1993, a written application requesting
10 the benefits provided in this Section and a notice of
11 resignation from employment, which resignation must take
12 effect before September 1, 1993 unless the applicant's
13 retirement is delayed under subsection (e), (f), or (f-5)
14 of this Section;
15 (4) be eligible to receive a retirement pension
16 under this Article (for which purpose any age enhancement
17 or creditable service received under this Section may be
18 used) and elect to receive the retirement pension
19 beginning no earlier than June 1, 1993 and no later than
20 September 1, 1993 or the date established under
21 subsection (e), (f), or (f-5) of this Section, if
22 applicable;
23 (5) have attained age 50 (without the use of any
24 age enhancement or creditable service received under this
25 Section) by the effective date of the retirement pension;
26 (6) have at least 5 years of creditable service
27 under this Fund or any of the participating systems under
28 the Retirement Systems Reciprocal Act (without the use of
29 any creditable service received under this Section) by
30 the effective date of the retirement pension.
31 (b) An eligible person may establish up to 5 years of
32 creditable service under this Section. In addition, for each
33 period of creditable service established under this Section,
34 a person's age at retirement shall be deemed to be increased
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1 by an equal period.
2 The creditable service established under this Section may
3 be used for all purposes under this Article and the
4 Retirement Systems Reciprocal Act, except for the purposes of
5 Section 17-116.1, and the determination of average salary or
6 compensation under this or any other Article of this Code.
7 The age enhancement established under this Section may be
8 used for all purposes under this Article (including
9 calculation of a proportionate pension payable by this Fund
10 under the Retirement Systems Reciprocal Act), except for
11 purposes of the reversionary pension under Section 17-120,
12 and distributions required by federal law on account of age.
13 However, age enhancement established under this Section shall
14 not be used in determining benefits payable under other
15 Articles of this Code under the Retirement Systems Reciprocal
16 Act.
17 (c) For all creditable service established under this
18 Section, the employer must pay to the Fund an employer
19 contribution consisting of 12% of the member's highest annual
20 full-time rate of compensation for each year of creditable
21 service granted under this Section.
22 The employer contribution shall be paid to the Fund in
23 one of the following ways: (i) in a single sum at the time
24 of the member's retirement, (ii) in equal quarterly
25 installments over a period of 5 years from the date of
26 retirement, or (iii) subject to the approval of the Board of
27 the Fund, in unequal installments over a period of no more
28 than 5 years from the date of retirement, as provided in a
29 payment plan designed by the Fund to accommodate the needs of
30 the employer. The employer's failure to make the required
31 contributions in a timely manner shall not affect the payment
32 of the retirement pension.
33 For all creditable service established under this
34 Section, the employee must pay to the Fund an employee
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1 contribution consisting of 4% of the member's highest annual
2 salary rate used in the determination of the retirement
3 pension for each year of creditable service granted under
4 this Section. The employee contribution shall be deducted
5 from the retirement annuity in 24 monthly installments.
6 (d) An annuitant who has received any age enhancement or
7 creditable service under this Section and whose pension is
8 suspended or cancelled under Section 17-149 or 17-150 shall
9 thereby forfeit the age enhancement and creditable service.
10 The forfeiture of creditable service under this subsection
11 shall not entitle the employer to a refund of the employer
12 contribution paid under this Section, nor to forgiveness of
13 any part of that contribution that remains unpaid. The
14 forfeiture of creditable service under this subsection shall
15 not entitle the employee to a refund of the employee
16 contribution paid under this Section.
17 (e) If the number of employees of an employer that apply
18 for early retirement under this Section exceeds 30% of those
19 eligible, the employer may require that, for any or all of
20 the number of applicants in excess of that 30%, the starting
21 date of the retirement pension enhanced under this Section be
22 no earlier than June 1, 1994 and no later than September 1,
23 1994. The right to have the retirement pension begin before
24 June 1, 1994 shall be allocated among the applicants on the
25 basis of seniority in the service of that employer.
26 This delay applies only to persons who are applying for
27 early retirement incentives under this Section, and does not
28 prevent a person whose application for early retirement
29 incentives has been withdrawn from beginning to receive a
30 retirement pension on the earliest date upon which the person
31 is otherwise eligible under this Article.
32 (f) For a member who is notified after July 30, 1993,
33 but before November 29, 1993, that he or she will become a
34 supernumerary or reserve teacher in the 1993-1994 school
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1 year: (1) the August 15, 1993 application deadline in
2 subdivision (a)(3) of this Section is extended to December
3 14, 1993, (2) the September 1, 1993 deadline in subdivision
4 (a)(4) of this Section is extended to December 14, 1993, and
5 (3) the member shall not be included in the calculation of
6 the 30% under subsection (e) and is not subject to delay in
7 retirement under that subsection.
8 (f-5) For a member who is notified after January 1,
9 1994, but before March 1, 1994, that he or she will become a
10 reserve teacher in the 1993-1994 school year: (1) the August
11 15, 1993 application deadline in subdivision (a)(3) of this
12 Section is extended to April 1, 1994; (2) the September 1,
13 1993 deadline in subdivision (a)(4) of this Section is
14 extended to April 1, 1994; and (3) the member shall not be
15 included in the calculation of the 30% under subsection (e)
16 and is not subject to delay in retirement under that
17 subsection.
18 (g) A member who receives any early retirement incentive
19 under Section 17-116.4, 17-116.5 or 17-116.6 may not receive
20 any early retirement incentive under this Section.
21 (h) The version of this Section included in Public Act
22 88-85 is intended to and shall control over the version of
23 this Section included in Public Act 88-89, notwithstanding
24 Section 6 of the Statute on Statutes. All persons qualifying
25 for early retirement incentives under this Section shall be
26 subject to the limitations and restrictions provided in the
27 version of this Section included in Public Act 88-85, as
28 amended by Public Act 88-511.
29 (i) In addition to the benefits provided under the other
30 provisions of this Section, every person who receives early
31 retirement benefits under this Section is entitled to one
32 additional year of creditable service and a corresponding
33 year of additional age enhancement, for which no additional
34 contribution is required. Every person who receives early
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1 retirement benefits under this Section whose retirement
2 annuity has been calculated on the basis of a 4-year average
3 salary is also entitled to have the annuity recalculated on
4 the basis of the average salary for the 3 highest consecutive
5 years within the last 10 years of service.
6 The additional benefits provided by this subsection (i)
7 shall begin to accrue on the date the retirement annuity
8 began, notwithstanding Section 17-157. The Fund shall
9 recalculate all annuities originally calculated under this
10 Section to reflect the additional benefits provided under
11 this subsection and shall pay to the annuitant in a lump sum
12 the difference between the annuity payments paid before the
13 date of the recalculation and the recalculated amount of
14 those payments.
15 (Source: P.A. 88-85; 88-89; 88-511; 88-670, eff. 12-2-94.)
16 Section 10. The State Mandates Act is amended by adding
17 Section 8.25 as follows:
18 (30 ILCS 805/8.25 new)
19 Sec. 8.25. Exempt mandate. Notwithstanding Sections 6
20 and 8 of this Act, no reimbursement by the State is required
21 for the implementation of any mandate created by this
22 amendatory Act of the 92nd General Assembly.
23 Section 99. Effective date. This Act takes effect upon
24 becoming law.".