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92_HB2662eng HB2662 Engrossed LRB9202369EGmg 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 17-106, 17-116.3, 17-116.4, 17-119.1, 6 17-121, and 17-149 as follows: 7 (40 ILCS 5/17-106) (from Ch. 108 1/2, par. 17-106) 8 Sec. 17-106. Contributor, member or teacher. 9 "Contributor", "member" or "teacher": All members of the 10 teaching force of the city, including principals, assistant 11 principals, the general superintendent of schools, deputy 12 superintendents of schools, associate superintendents of 13 schools, assistant and district superintendents of schools, 14 members of the Board of Examiners, all other persons whose 15 employment requires a teaching certificate issued under the 16 laws governing the certification of teachers, any 17 educational, administrative, professional, or other staff 18 employed in a charter school operating in compliance with the 19 Charter Schools Law who is certified under the law governing 20 the certification of teachers, and employees of the Board, 21 but excluding persons contributing concurrently to any other 22 public employee pension system in Illinois for the same 23 employment or receiving retirement pensions under another 24 Article of this Code for that same employment, persons 25 employed on an hourly basis, and persons receiving pensions 26 from the Fund who are employed temporarily by an Employer for 27 150100days or less in any school year and not on an annual 28 basis. 29 In the case of a person who has been making contributions 30 and otherwise participating in this Fund prior to the 31 effective date of this amendatory Act of the 91st General HB2662 Engrossed -2- LRB9202369EGmg 1 Assembly, and whose right to participate in the Fund is 2 established or confirmed by this amendatory Act, such prior 3 participation in the Fund, including all contributions 4 previously made and service credits previously earned by the 5 person, are hereby validated. 6 The changes made to this Section and Section 17-149 by 7 this amendatory Act of the 92nd General Assembly apply 8 without regard to whether the person was in service on or 9 after the effective date of this amendatory Act, 10 notwithstanding Sections 1-103.1 and 17-157. 11 (Source: P.A. 90-32, eff. 6-27-97; 90-566, eff. 1-2-98; 12 91-887, eff. 7-6-00.) 13 (40 ILCS 5/17-116.3) 14 Sec. 17-116.3. Early retirement incentives. 15 (a) A teacher who is covered by a collective bargaining 16 agreement shall not be eligible for the early retirement 17 incentives provided under this Section unless the collective 18 bargaining agent and the Board of Education have entered into 19 an agreement under which the agent agrees that any payment 20 for accumulated unused sick days to which the employee is 21 entitled upon withdrawal from service may be paid by the 22 Board of Education in installments over a period of up to 5 23 years, and a copy of this agreement has been filed with the 24 Board of the Fund. 25 To be eligible for the benefits provided in this Section, 26 a person must: 27 (1) be a member of this Fund who, on or after May 28 1, 1993, is (i) in active payroll status as a teacher, or 29 (ii) on layoff status from such a position with a right 30 of re-employment or recall to service, or (iii) on leave 31 of absence from such a position, but only if the member 32 on leave has not been receiving a disability benefit 33 under this Article for a continuous period of 2 years or HB2662 Engrossed -3- LRB9202369EGmg 1 more as of the date of application; 2 (2) have not previously received a retirement 3 pension under this Article; 4 (3) file with the Board and the Board of Education, 5 before August 15, 1993, a written application requesting 6 the benefits provided in this Section and a notice of 7 resignation from employment, which resignation must take 8 effect before September 1, 1993 unless the applicant's 9 retirement is delayed under subsection (e), (f), or (f-5) 10 of this Section; 11 (4) be eligible to receive a retirement pension 12 under this Article (for which purpose any age enhancement 13 or creditable service received under this Section may be 14 used) and elect to receive the retirement pension 15 beginning no earlier than June 1, 1993 and no later than 16 September 1, 1993 or the date established under 17 subsection (e), (f), or (f-5) of this Section, if 18 applicable; 19 (5) have attained age 50 (without the use of any 20 age enhancement or creditable service received under this 21 Section) by the effective date of the retirement pension; 22 (6) have at least 5 years of creditable service 23 under this Fund or any of the participating systems under 24 the Retirement Systems Reciprocal Act (without the use of 25 any creditable service received under this Section) by 26 the effective date of the retirement pension. 27 (b) An eligible person may establish up to 5 years of 28 creditable service under this Section. In addition, for each 29 period of creditable service established under this Section, 30 a person's age at retirement shall be deemed to be increased 31 by an equal period. 32 The creditable service established under this Section may 33 be used for all purposes under this Article and the 34 Retirement Systems Reciprocal Act, except for the purposes of HB2662 Engrossed -4- LRB9202369EGmg 1 Section 17-116.1, and the determination of average salary or 2 compensation under this or any other Article of this Code. 3 The age enhancement established under this Section may be 4 used for all purposes under this Article (including 5 calculation of a proportionate pension payable by this Fund 6 under the Retirement Systems Reciprocal Act), except for 7 purposes of the reversionary pension under Section 17-120, 8 and distributions required by federal law on account of age. 9 However, age enhancement established under this Section shall 10 not be used in determining benefits payable under other 11 Articles of this Code under the Retirement Systems Reciprocal 12 Act. 13 (c) For all creditable service established under this 14 Section, the employer must pay to the Fund an employer 15 contribution consisting of 12% of the member's highest annual 16 full-time rate of compensation for each year of creditable 17 service granted under this Section. 18 The employer contribution shall be paid to the Fund in 19 one of the following ways: (i) in a single sum at the time 20 of the member's retirement, (ii) in equal quarterly 21 installments over a period of 5 years from the date of 22 retirement, or (iii) subject to the approval of the Board of 23 the Fund, in unequal installments over a period of no more 24 than 5 years from the date of retirement, as provided in a 25 payment plan designed by the Fund to accommodate the needs of 26 the employer. The employer's failure to make the required 27 contributions in a timely manner shall not affect the payment 28 of the retirement pension. 29 For all creditable service established under this 30 Section, the employee must pay to the Fund an employee 31 contribution consisting of 4% of the member's highest annual 32 salary rate used in the determination of the retirement 33 pension for each year of creditable service granted under 34 this Section. The employee contribution shall be deducted HB2662 Engrossed -5- LRB9202369EGmg 1 from the retirement annuity in 24 monthly installments. 2 (d) An annuitant who has received any age enhancement or 3 creditable service under this Section and whose pension is 4 suspended or cancelled under Section 17-149 or 17-150 shall 5 thereby forfeit the age enhancement and creditable service. 6 The forfeiture of creditable service under this subsection 7 shall not entitle the employer to a refund of the employer 8 contribution paid under this Section, nor to forgiveness of 9 any part of that contribution that remains unpaid. The 10 forfeiture of creditable service under this subsection shall 11 not entitle the employee to a refund of the employee 12 contribution paid under this Section. 13 (e) If the number of employees of an employer that apply 14 for early retirement under this Section exceeds 30% of those 15 eligible, the employer may require that, for any or all of 16 the number of applicants in excess of that 30%, the starting 17 date of the retirement pension enhanced under this Section be 18 no earlier than June 1, 1994 and no later than September 1, 19 1994. The right to have the retirement pension begin before 20 June 1, 1994 shall be allocated among the applicants on the 21 basis of seniority in the service of that employer. 22 This delay applies only to persons who are applying for 23 early retirement incentives under this Section, and does not 24 prevent a person whose application for early retirement 25 incentives has been withdrawn from beginning to receive a 26 retirement pension on the earliest date upon which the person 27 is otherwise eligible under this Article. 28 (f) For a member who is notified after July 30, 1993, 29 but before November 29, 1993, that he or she will become a 30 supernumerary or reserve teacher in the 1993-1994 school 31 year: (1) the August 15, 1993 application deadline in 32 subdivision (a)(3) of this Section is extended to December 33 14, 1993, (2) the September 1, 1993 deadline in subdivision 34 (a)(4) of this Section is extended to December 14, 1993, and HB2662 Engrossed -6- LRB9202369EGmg 1 (3) the member shall not be included in the calculation of 2 the 30% under subsection (e) and is not subject to delay in 3 retirement under that subsection. 4 (f-5) For a member who is notified after January 1, 5 1994, but before March 1, 1994, that he or she will become a 6 reserve teacher in the 1993-1994 school year: (1) the August 7 15, 1993 application deadline in subdivision (a)(3) of this 8 Section is extended to April 1, 1994; (2) the September 1, 9 1993 deadline in subdivision (a)(4) of this Section is 10 extended to April 1, 1994; and (3) the member shall not be 11 included in the calculation of the 30% under subsection (e) 12 and is not subject to delay in retirement under that 13 subsection. 14 (g) A member who receives any early retirement incentive 15 under Section 17-116.4, 17-116.5 or 17-116.6 may not receive 16 any early retirement incentive under this Section. 17 (h) The version of this Section included in Public Act 18 88-85 is intended to and shall control over the version of 19 this Section included in Public Act 88-89, notwithstanding 20 Section 6 of the Statute on Statutes. All persons qualifying 21 for early retirement incentives under this Section shall be 22 subject to the limitations and restrictions provided in the 23 version of this Section included in Public Act 88-85, as 24 amended by Public Act 88-511. 25 (i) In addition to the benefits provided under the other 26 provisions of this Section, every person who receives early 27 retirement benefits under this Section is entitled to one 28 additional year of creditable service and a corresponding 29 year of additional age enhancement, for which no additional 30 contribution is required. Every person who receives early 31 retirement benefits under this Section whose retirement 32 annuity has been calculated on the basis of a 4-year average 33 salary is also entitled to have the annuity recalculated on 34 the basis of the average salary for the 3 highest consecutive HB2662 Engrossed -7- LRB9202369EGmg 1 years within the last 10 years of service. 2 The additional benefits provided by this subsection (i) 3 shall begin to accrue on the date the retirement annuity 4 began, notwithstanding Section 17-157. The Fund shall 5 recalculate all annuities originally calculated under this 6 Section to reflect the additional benefits provided under 7 this subsection and shall pay to the annuitant in a lump sum 8 the difference between the annuity payments paid before the 9 date of the recalculation and the recalculated amount of 10 those payments. 11 (Source: P.A. 88-85; 88-89; 88-511; 88-670, eff. 12-2-94.) 12 (40 ILCS 5/17-116.4) 13 Sec. 17-116.4. Early retirement incentives. 14 (a) A teacher who is covered by a collective bargaining 15 agreement shall not be eligible for the early retirement 16 incentives provided under this Section unless the collective 17 bargaining agent and the Board of Education have entered into 18 an agreement under which the agent agrees that any payment 19 for accumulated unused sick days to which the employee is 20 entitled upon withdrawal from service may be paid by the 21 Board of Education in installments over a period of up to 5 22 years, and a copy of this agreement has been filed with the 23 Board of the Fund. 24 To be eligible for the benefits provided in this Section, 25 a person must: 26 (1) be a member of this Fund who, on or after May 27 1, 1994, is (i) in active payroll status as a teacher, or 28 (ii) on layoff status from such a position with a right 29 of re-employment or recall to service, or (iii) on leave 30 of absence from such a position, but only if the member 31 on leave has not been receiving a disability benefit 32 under this Article for a continuous period of 2 years or 33 more as of the date of application; HB2662 Engrossed -8- LRB9202369EGmg 1 (2) have not previously received a retirement 2 pension under this Article; 3 (3) file with the Board and the Board of Education, 4 before March 1, 1994, a written application requesting 5 the benefits provided in this Section and a notice of 6 resignation from employment, which resignation must take 7 effect no earlier than June 1, 1994 and no later than 8 September 1, 1994 unless the applicant's retirement is 9 delayed under subsection (e) of this Section; 10 (4) be eligible to receive a retirement pension 11 under this Article (for which purpose any age enhancement 12 or creditable service received under this Section may be 13 used) and elect to receive the retirement pension 14 beginning no earlier than June 1, 1994 and no later than 15 September 1, 1994 or the date established under 16 subsection (e) of this Section, if applicable; 17 (5) have attained age 50 (without the use of any 18 age enhancement or creditable service received under this 19 Section) after September 1, 1993 and no later than 20 September 1, 1994; 21 (6) have at least 5 years of creditable service 22 under this Fund or any of the participating systems under 23 the Retirement Systems Reciprocal Act (without the use of 24 any creditable service received under this Section) by 25 the effective date of the retirement pension. 26 (b) An eligible person may establish up to 5 years of 27 creditable service under this Section. In addition, for each 28 period of creditable service established under this Section, 29 a person's age at retirement shall be deemed to be increased 30 by an equal period. 31 The creditable service established under this Section may 32 be used for all purposes under this Article and the 33 Retirement Systems Reciprocal Act, except for the purposes of 34 Section 17-116.1, and the determination of average salary or HB2662 Engrossed -9- LRB9202369EGmg 1 compensation under this or any other Article of this Code. 2 The age enhancement established under this Section may be 3 used for all purposes under this Article (including 4 calculation of a proportionate pension payable by this Fund 5 under the Retirement Systems Reciprocal Act), except for 6 purposes of the reversionary pension under Section 17-120, 7 and distributions required by federal law on account of age. 8 However, age enhancement established under this Section shall 9 not be used in determining benefits payable under other 10 Articles of this Code under the Retirement Systems Reciprocal 11 Act. 12 (c) For all creditable service established under this 13 Section, the employer must pay to the Fund an employer 14 contribution consisting of 12% of the member's highest annual 15 full-time rate of compensation for each year of creditable 16 service granted under this Section. 17 The employer contribution shall be paid to the Fund in 18 one of the following ways: (i) in a single sum at the time 19 of the member's retirement, (ii) in equal quarterly 20 installments over a period of 5 years from the date of 21 retirement, or (iii) subject to the approval of the Board of 22 the Fund, in unequal installments over a period of no more 23 than 5 years from the date of retirement, as provided in a 24 payment plan designed by the Fund to accommodate the needs of 25 the employer. The employer's failure to make the required 26 contributions in a timely manner shall not affect the payment 27 of the retirement pension. 28 For all creditable service established under this 29 Section, the employee must pay to the Fund an employee 30 contribution consisting of 4% of the member's highest annual 31 salary rate used in the determination of the retirement 32 pension for each year of creditable service granted under 33 this Section. The employee contribution shall be deducted 34 from the retirement annuity in 24 monthly installments. HB2662 Engrossed -10- LRB9202369EGmg 1 (d) An annuitant who has received any age enhancement or 2 creditable service under this Section and whose pension is 3 suspended or cancelled under Section 17-149 or 17-150 shall 4 thereby forfeit the age enhancement and creditable service. 5 The forfeiture of creditable service under this subsection 6 shall not entitle the employer to a refund of the employer 7 contribution paid under this Section, nor to forgiveness of 8 any part of that contribution that remains unpaid. The 9 forfeiture of creditable service under this subsection shall 10 not entitle the employee to a refund of the employee 11 contribution paid under this Section. 12 (e) If the number of employees of an employer that apply 13 for early retirement under this Section exceeds 30% of those 14 eligible, the employer may require that, for any or all of 15 the number of applicants in excess of that 30%, the starting 16 date of the retirement pension enhanced under this Section be 17 no earlier than June 1, 1995 and no later than September 1, 18 1995. The right to have the retirement pension begin before 19 June 1, 1995 shall be allocated among the applicants on the 20 basis of seniority in the service of that employer. 21 This delay applies only to persons who are applying for 22 early retirement incentives under this Section, and does not 23 prevent a person whose application for early retirement 24 incentives has been withdrawn from beginning to receive a 25 retirement pension on the earliest date upon which the person 26 is otherwise eligible under this Article. 27 (f) A member who receives any early retirement incentive 28 under Section 17-116.3 may not receive any early retirement 29 incentive under this Section. 30 (g) Notwithstanding Section 17-157, a person who is 31 receiving early retirement benefits under this Section may 32 establish service credit for a period of up to 3 weeks during 33 the month of January, 1968, during which the person was 34 prevented from working due to civil unrest or a wildcat HB2662 Engrossed -11- LRB9202369EGmg 1 strike. A person wishing to establish this credit must apply 2 in writing to the Board within 30 days after the effective 3 date of this amendatory Act of the 92nd General Assembly and 4 pay to the Fund an employee contribution calculated at the 5 rate and salary applicable to the employee at the time for 6 which credit is being established, without interest. When a 7 person establishes additional service credit under this 8 subsection, the Fund shall recalculate the annuity originally 9 granted under this Section to reflect the additional credit 10 and shall pay to the annuitant in a lump sum the difference 11 between the annuity payments paid before the date of the 12 recalculation and the recalculated amount of those payments. 13 (Source: P.A. 88-85.) 14 (40 ILCS 5/17-119.1) 15 Sec. 17-119.1. Optional increase in retirement annuity. 16 (a) A member of the Fund may qualify for the augmented 17 rate under subdivision (b)(3) of Section 17-116 for all years 18 of creditable service earned before July 1, 1998 by making 19 the optional contribution specified in subsection (b); except 20 that a member who retires on or after July 1, 1998 with at 21 least 30 years of creditable service at retirement qualifies 22 for the augmented rate without making any contribution under 23 subsection (b). Any member who retires on or after July 1, 24 1998 and before the effective date of this amendatory Act of 25 the 92nd General Assembly with at least 30 years of 26 creditable service shall be paid a lump sum equal to the 27 amount he or she would have received under the augmented rate 28 minus the amount he or she actually received. A member may 29 not elect to qualify for the augmented rate for only a 30 portion of his or her creditable service earned before July 31 1, 1998. 32 (b) The contribution shall be an amount equal to 1.0% of 33 the member's highest salary rate in the 4 consecutive school HB2662 Engrossed -12- LRB9202369EGmg 1 years immediately prior to but not including the school year 2 in which the application occurs, multiplied by the number of 3 years of creditable service earned by the member before July 4 1, 1998 or 20, whichever is less. This contribution shall be 5 reduced by 1.0% of that salary rate for every 3 full years of 6 creditable service earned by the member after June 30, 1998. 7 The contribution shall be further reduced at the rate of 25% 8 of the contribution (as reduced for service after June 30, 9 1998) for each year of the member's total creditable service 10 in excess of 34 years. The contribution shall not in any 11 event exceed 20% of that salary rate. 12 The member shall pay to the Fund the amount of the 13 contribution as calculated at the time of application under 14 this Section. The amount of the contribution determined 15 under this subsection shall be recalculated at the time of 16 retirement, and if the Fund determines that the amount paid 17 by the member exceeds the recalculated amount, the Fund shall 18 refund the difference to the member with regular interest 19 from the date of payment to the date of refund. 20 The contribution required by this subsection shall be 21 paid in one of the following ways or in a combination of the 22 following ways that does not extend over more than 5 years: 23 (i) in a lump sum on or before the date of 24 retirement; 25 (ii) in substantially equal installments over a 26 period of time not to exceed 5 years, as a deduction from 27 salary in accordance with Section 17-130.2; 28 (iii) if the member becomes an annuitant before 29 June 30, 2003, in substantially equal monthly 30 installments over a 24-month period, by a deduction from 31 the annuitant's monthly benefit. 32 (c) If the member fails to make the full contribution 33 under this Section in a timely fashion, the payments made 34 under this Section shall be refunded to the member, without HB2662 Engrossed -13- LRB9202369EGmg 1 interest. If the member dies before making the full 2 contribution, the payments made under this Section shall be 3 refunded to the member's designated beneficiary. 4 (d) For purposes of this Section and subsection (b) of 5 Section 17-116, optional creditable service established by a 6 member shall be deemed to have been earned at the time of the 7 employment or other qualifying event upon which the service 8 is based, rather than at the time the credit was established 9 in this Fund. 10 (e) The contributions required under this Section are 11 the responsibility of the teacher and not the teacher's 12 employer. However, an employer of teachers 3ay, after the 13 effective date of this amendatory Act of 1998, specifically 14 agree, through collective bargaining or otherwise, to make 15 the contributions required by this Section on behalf of those 16 teachers. 17 (Source: P.A. 90-582, eff. 5-27-98; 91-17, eff. 6-4-99.) 18 (40 ILCS 5/17-121) (from Ch. 108 1/2, par. 17-121) 19 Sec. 17-121. Survivor's and Children's pensions - 20 Eligibility. A surviving spouse of a teacher shall be 21 entitled to a survivor's pension only if he was married to 22 the contributor for at least 1 1/2 years immediately prior to 23 his death or retirement, whichever first occurs, and also on 24 the date of the last termination of his service. 25 If the surviving spouse is under age 50 and there are no 26 eligible minor children born to or legally adopted by the 27 contributor and his surviving spouse, payment of the 28 survivor's pension shall begin when the surviving spouse 29 attains age 50. 30 Remarriage of the surviving spouse prior to September 1, 31 1983 while in receipt of a survivor's pension shall 32 permanently terminate payment thereof, regardless of any 33 subsequent change in marital status; however, beginning HB2662 Engrossed -14- LRB9202369EGmg 1 September 1, 1983, remarriage of a surviving spouse after 2 attainment of age 55 shall not terminate the survivor's 3 pension. 4 A surviving spouse whose pension was terminated on or 5 after September 1, 1983 due to remarriage after attainment of 6 age 55, and who applies for reinstatement of that pension 7 before January 1, 1990, shall be entitled to have the pension 8 reinstated effective January 1, 1990. 9 A surviving spouse of a member or annuitant under this 10 Fund who is also a dependent beneficiary under the provisions 11 of Section 16-140 is eligible for a reciprocal survivor's 12 pension, provided that any refund of survivor's pension 13 contributions is repaid to the Fund and application is made 14 within 30 days after the effective date of this amendatory 15 Act of the 92nd General Assembly. 16 (Source: P.A. 86-273.) 17 (40 ILCS 5/17-149) (from Ch. 108 1/2, par. 17-149) 18 Sec. 17-149. Cancellation of pensions. If any person 19 receiving a service or disability retirement pension from the 20 Fund is re-employed as a teacher by an Employer, the pension 21 shall be cancelled on the date the re-employment begins, or 22 on the first day of a payroll period for which service credit 23 was validated, whichever is earlier. However,beginning24August 23, 1989,the pension shall not be cancelled in case 25 of a service retirement pensioner who is temporarily 26 re-employed for not more than 150100days during any school 27 year or on an hourly basis, provided the pensioner does not 28 receive salary in any school year of an amount more than that 29 payable to a substitute teacher for 150100days' employment. 30 A service retirement pensioner who is temporarily re-employed 31 for not more than 150100days during any school year or on 32 an hourly basis shall be entitled, at the end of the school 33 year, to a refund of any contributions made to the Fund HB2662 Engrossed -15- LRB9202369EGmg 1 during that school year. 2 If the pensioner does receive salary from an Employer in 3 any school year for more than 150100days' employment, the 4 pensioner shall be deemed to have returned to service on the 5 first day of employment as a pensioner-substitute. The 6 pensioner shall reimburse the Fund for pension payments 7 received after the return to service and shall pay to the 8 Fund the participant's contributions prescribed in Section 9 17-130 of this Article. 10 If the date of re-employment occurs within 5 school 11 months after the date of previous retirement, exclusive of 12 any vacation period, the member shall be deemed to have been 13 out of service only temporarily and not permanently retired. 14 Such person shall be entitled to pension payments for the 15 time he could have been employed as a teacher and received 16 salary, but shall not be entitled to pension for or during 17 the summer vacation prior to his return to service. 18 When the member again retires on pension, the time of 19 service and the money contributed by him during re-employment 20 shall be added to the time and money previously credited. 21 Such person must acquire 3 consecutive years of additional 22 contributing service before he may retire again on a pension 23 at a rate and under conditions other than those in force or 24 attained at the time of his previous retirement. 25 Notwithstanding Sections 1-103.1 and 17-157, the changes 26 to this Section made by this amendatory Act of 1997 shall 27 apply without regard to whether termination of service 28 occurred before the effective date of this amendatory Act and 29 shall apply retroactively to August 23, 1989. 30 (Source: P.A. 90-32, eff. 6-27-97; 90-566, eff. 1-2-98.) 31 Section 90. The State Mandates Act is amended by adding 32 Section 8.25 as follows: HB2662 Engrossed -16- LRB9202369EGmg 1 (30 ILCS 805/8.25 new) 2 Sec. 8.25. Exempt mandate. Notwithstanding Sections 6 3 and 8 of this Act, no reimbursement by the State is required 4 for the implementation of any mandate created by this 5 amendatory Act of the 92nd General Assembly. 6 Section 99. Effective date. This Act takes effect upon 7 becoming law.