State of Illinois
92nd General Assembly
Legislation

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92_SB0511

 
                                               LRB9207810EGfg

 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 16-132 and 16-133 as follows:

 6        (40 ILCS 5/16-132) (from Ch. 108 1/2, par. 16-132)
 7        Sec. 16-132.  Retirement annuity eligibility.   A  member
 8    who  has  at least 34 years of creditable service is entitled
 9    to a retirement annuity at any age.   A  member  who  has  at
10    least  20  years  of  creditable  service  is  entitled  to a
11    retirement annuity upon or after attainment of  age  55.    A
12    member  who  has  at  least  10  but  less  than  20 years of
13    creditable service is entitled to a retirement  annuity  upon
14    or  after  attainment of age 60.  A member who has at least 5
15    but less than 10 years of creditable service is entitled to a
16    retirement annuity upon or after attainment of  age  62.    A
17    member  who  (i)  has  earned  during  the period immediately
18    preceding the last day  of  service  at  least  one  year  of
19    contributing   creditable   service   as  an  employee  of  a
20    department as defined in Section 14-103.04, (ii)  has  earned
21    at  least  5  years  of contributing creditable service as an
22    employee of a department as defined in Section 14-103.04, and
23    (iii) retires on or after January 1, 2001 is  entitled  to  a
24    retirement  annuity upon or after attainment of an age which,
25    when added to the  number  of  years  of  his  or  her  total
26    creditable  service,  equals  at least 85.  Portions of years
27    shall be counted as decimal equivalents.
28        A member who is eligible to receive a retirement  annuity
29    of at least 74.6% of final average salary and will attain age
30    55  on  or before December 31 during the year which commences
31    on July 1 shall be deemed to attain age 55 on  the  preceding
 
                            -2-                LRB9207810EGfg
 1    June 1.
 2        A  member  meeting  the  above  eligibility conditions is
 3    entitled to a retirement annuity upon written application  to
 4    the  board  setting  forth  the  date  the  member wishes the
 5    retirement annuity to commence.  However, the effective  date
 6    of  the  retirement  annuity shall be no earlier than the day
 7    following the last day of creditable service,  regardless  of
 8    the  date  of  official  termination  of  employment.   To be
 9    eligible for a retirement annuity,  a  member  shall  not  be
10    employed  as  a  teacher  in  the schools included under this
11    System or under Article 17, unless the member is disabled (in
12    which event, eligibility for salary must  cease),  or  unless
13    the System is required by federal law to commence payment due
14    to  the  member's  age;  the changes to this sentence made by
15    this amendatory Act of 1991 shall  apply  without  regard  to
16    whether  the member terminated employment before or after its
17    effective date.
18    (Source: P.A. 90-582, eff. 5-27-98; 91-927, eff. 12-14-00.)

19        (40 ILCS 5/16-133) (from Ch. 108 1/2, par. 16-133)
20        Sec. 16-133.  Retirement annuity; amount.
21        (a)  The amount of the retirement annuity  shall  be  the
22    larger of the amounts determined under paragraphs (A) and (B)
23    below:
24             (A)  An   amount   consisting  of  the  sum  of  the
25        following:
26                  (1)  An amount  that  can  be  provided  on  an
27             actuarially   equivalent   basis   by  the  member's
28             accumulated contributions at the time of retirement;
29             and
30                  (2)  The sum of (i)  the  amount  that  can  be
31             provided  on  an actuarially equivalent basis by the
32             member's  accumulated   contributions   representing
33             service  prior  to July 1, 1947, and (ii) the amount
 
                            -3-                LRB9207810EGfg
 1             that can be provided on  an  actuarially  equivalent
 2             basis  by  the  amount  obtained  by multiplying 1.4
 3             times   the   member's   accumulated   contributions
 4             covering service subsequent to June 30, 1947; and
 5                  (3)  If there is prior  service,  2  times  the
 6             amount   that   would  have  been  determined  under
 7             subparagraph (2) of paragraph (A) above  on  account
 8             of  contributions  which would have been made during
 9             the period of prior service creditable to the member
10             had the System been in operation and had the  member
11             made  contributions  at  the  contribution  rate  in
12             effect prior to July 1, 1947.
13             (B)  An  amount  consisting  of  the  greater of the
14        following:
15                  (1)  For creditable service earned before  July
16             1,  1998  that  has not been augmented under Section
17             16-129.1:  1.67% of final average salary for each of
18             the first 10 years of creditable service,  1.90%  of
19             final  average  salary for each year in excess of 10
20             but not exceeding 20, 2.10% of final average  salary
21             for  each year in excess of 20 but not exceeding 30,
22             and 2.30% of final average salary for each  year  in
23             excess of 30; and
24                  For  creditable service earned on or after July
25             1, 1998 by a member who has at  least  24  years  of
26             creditable  service on July 1, 1998 and who does not
27             elect to augment  service  under  Section  16-129.1:
28             2.2%  of  final  average  salary  for  each  year of
29             creditable service earned on or after July  1,  1998
30             but before the member reaches a total of 30 years of
31             creditable  service and 2.3% of final average salary
32             for each year of creditable  service  earned  on  or
33             after  July  1,  1998 and after the member reaches a
34             total of 30 years of creditable service; and
 
                            -4-                LRB9207810EGfg
 1                  For all  other  creditable  service:   2.2%  of
 2             final  average  salary  for  each year of creditable
 3             service; or
 4                  (2)  1.5% of final average salary for each year
 5             of creditable service plus the sum $7.50 for each of
 6             the first 20 years of creditable service.
 7        The amount of the  retirement  annuity  determined  under
 8        this paragraph (B) shall be reduced by 1/2 of 1% for each
 9        month that the member is less than age 60 at the time the
10        retirement annuity begins.  However, this reduction shall
11        not  apply  (i) if the member has at least 34 35 years of
12        creditable service, or (ii)  if  the  member  retires  on
13        account  of  disability  under  Section  16-149.2 of this
14        Article with at least 20 years of creditable service,  or
15        (iii)  if  the  member  (1)  has earned during the period
16        immediately preceding the last day of  service  at  least
17        one   year  of  contributing  creditable  service  as  an
18        employee of a department as defined in Section 14-103.04,
19        (2)  has  earned  at  least  5  years   of   contributing
20        creditable  service  as  an  employee  of a department as
21        defined in Section 14-103.04, (3)  retires  on  or  after
22        January  1,  2001, and (4) retires having attained an age
23        which, when added to the number of years of  his  or  her
24        total  creditable  service, equals at least 85.  Portions
25        of years shall be counted as decimal equivalents.
26        (b)  For purposes of this Section, final  average  salary
27    shall  be  the  average  salary for the highest 4 consecutive
28    years within the last  10  years  of  creditable  service  as
29    determined  under  rules  of  the  board.   The minimum final
30    average salary shall be considered to be $2,400 per year.
31        In the determination of final average salary for  members
32    other  than  elected officials and their appointees when such
33    appointees are allowed by statute, that part  of  a  member's
34    salary  for  any  year  beginning  after  June 30, 1979 which
 
                            -5-                LRB9207810EGfg
 1    exceeds the member's annual full-time salary  rate  with  the
 2    same  employer  for the preceding year by more than 20% shall
 3    be excluded.  The exclusion shall not apply in  any  year  in
 4    which  the  member's creditable earnings are less than 50% of
 5    the preceding year's mean salary for  downstate  teachers  as
 6    determined by the survey of school district salaries provided
 7    in Section 2-3.103 of the School Code.
 8        (c)  In  determining the amount of the retirement annuity
 9    under paragraph (B) of this Section, a fractional year  shall
10    be granted proportional credit.
11        (d)  The  retirement  annuity  determined under paragraph
12    (B) of this Section shall be available only  to  members  who
13    render  teaching  service after July 1, 1947 for which member
14    contributions are required, and to  annuitants  who  re-enter
15    under the provisions of Section 16-150.
16        (e)  The   maximum   retirement  annuity  provided  under
17    paragraph (B) of this Section shall be 75% of  final  average
18    salary.
19        (f)  A  member  retiring after the effective date of this
20    amendatory Act of 1998 shall receive a pension equal  to  75%
21    of final average salary if the member is qualified to receive
22    a retirement annuity equal to at least 74.6% of final average
23    salary  under this Article or as proportional annuities under
24    Article 20 of this Code.
25    (Source: P.A.  90-582,  eff.  5-27-98;  91-17,  eff.  6-4-99;
26    91-887, eff. 7-6-00; 91-927, eff. 12-14-00.)

27        Section 99. Effective date.  This Act takes  effect  upon
28    becoming law.

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