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92_SB0669
LRB9204104LDpr
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 14-103.12, 16-133, and 16-140 as follows:
6 (40 ILCS 5/14-103.12) (from Ch. 108 1/2, par. 14-103.12)
7 Sec. 14-103.12. Final average compensation.
8 (a) For retirement and survivor annuities, "final
9 average compensation" means the monthly compensation obtained
10 by dividing the total compensation of an employee during the
11 period of: (1) the 48 consecutive months of service within
12 the last 120 months of service in which the total
13 compensation was the highest, or (2) the total period of
14 service, if less than 48 months, by the number of months of
15 service in such period; provided that for purposes of a
16 retirement annuity the average compensation for the last 12
17 months of the 48-month period shall not exceed the final
18 average compensation by more than 25%.
19 (b) For death and disability benefits, in the case of a
20 full-time employee, "final average compensation" means the
21 greater of (1) the rate of compensation of the employee at
22 the date of death or disability multiplied by 1 in the case
23 of a salaried employee, by 174 in the case of an hourly
24 employee, and by 22 in the case of a per diem employee, or
25 (2) for benefits commencing on or after January 1, 1991,
26 final average compensation as determined under subsection
27 (a).
28 For purposes of this paragraph, full or part-time status
29 shall be certified by the employing agency. Final rate of
30 compensation for a part-time employee shall be the total
31 compensation earned during the last full calendar month prior
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1 to the date of death or disability.
2 (c) Notwithstanding the provisions of subsection (a),
3 for the purpose of calculating retirement and survivor
4 annuities of persons with at least 20 years of eligible
5 creditable service as defined in Section 14-110, "final
6 average compensation" means the monthly rate of compensation
7 received by the person on the last day of eligible creditable
8 service (but not to exceed 115% of the average monthly
9 compensation received by the person for the last 24 months of
10 service, unless the person was in service as a State
11 policeman before the effective date of this amendatory Act of
12 1997), or the average monthly compensation received by the
13 person for the last 48 months of service prior to retirement,
14 whichever is greater.
15 (d) Notwithstanding the provisions of subsection (a),
16 for a person who was receiving, on the date of retirement or
17 death, a disability benefit calculated under subdivision
18 (b)(2) of this Section, the final average compensation used
19 to calculate the disability benefit may be used for purposes
20 of calculating the retirement and survivor annuities.
21 (e) In computing the final average compensation, periods
22 of military leave shall not be considered.
23 (f) The changes to this Section made by this amendatory
24 Act of 1997 (redefining final average compensation for
25 members under the alternative formula) apply to members who
26 retire on or after January 1, 1998, without regard to whether
27 employment terminated before the effective date of this
28 amendatory Act of 1997.
29 (Source: P.A. 90-65, eff. 7-7-97.)
30 (40 ILCS 5/16-133) (from Ch. 108 1/2, par. 16-133)
31 Sec. 16-133. Retirement annuity; amount.
32 (a) The amount of the retirement annuity shall be the
33 larger of the amounts determined under paragraphs (A) and (B)
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1 below:
2 (A) An amount consisting of the sum of the
3 following:
4 (1) An amount that can be provided on an
5 actuarially equivalent basis by the member's
6 accumulated contributions at the time of retirement;
7 and
8 (2) The sum of (i) the amount that can be
9 provided on an actuarially equivalent basis by the
10 member's accumulated contributions representing
11 service prior to July 1, 1947, and (ii) the amount
12 that can be provided on an actuarially equivalent
13 basis by the amount obtained by multiplying 1.4
14 times the member's accumulated contributions
15 covering service subsequent to June 30, 1947; and
16 (3) If there is prior service, 2 times the
17 amount that would have been determined under
18 subparagraph (2) of paragraph (A) above on account
19 of contributions which would have been made during
20 the period of prior service creditable to the member
21 had the System been in operation and had the member
22 made contributions at the contribution rate in
23 effect prior to July 1, 1947.
24 (B) An amount consisting of the greater of the
25 following:
26 (1) For creditable service earned before July
27 1, 1998 that has not been augmented under Section
28 16-129.1: 1.67% of final average salary for each of
29 the first 10 years of creditable service, 1.90% of
30 final average salary for each year in excess of 10
31 but not exceeding 20, 2.10% of final average salary
32 for each year in excess of 20 but not exceeding 30,
33 and 2.30% of final average salary for each year in
34 excess of 30; and
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1 For creditable service earned on or after July
2 1, 1998 by a member who has at least 24 years of
3 creditable service on July 1, 1998 and who does not
4 elect to augment service under Section 16-129.1:
5 2.2% of final average salary for each year of
6 creditable service earned on or after July 1, 1998
7 but before the member reaches a total of 30 years of
8 creditable service and 2.3% of final average salary
9 for each year of creditable service earned on or
10 after July 1, 1998 and after the member reaches a
11 total of 30 years of creditable service; and
12 For all other creditable service: 2.2% of
13 final average salary for each year of creditable
14 service; or
15 (2) 1.5% of final average salary for each year
16 of creditable service plus the sum $7.50 for each of
17 the first 20 years of creditable service.
18 The amount of the retirement annuity determined under
19 this paragraph (B) shall be reduced by 1/2 of 1% for each
20 month that the member is less than age 60 at the time the
21 retirement annuity begins. However, this reduction shall
22 not apply (i) if the member has at least 35 years of
23 creditable service, or (ii) if the member retires on
24 account of disability under Section 16-149.2 of this
25 Article with at least 20 years of creditable service, or
26 (iii) if the member (1) has earned during the period
27 immediately preceding the last day of service at least
28 one year of contributing creditable service as an
29 employee of a department as defined in Section 14-103.04,
30 (2) has earned at least 5 years of contributing
31 creditable service as an employee of a department as
32 defined in Section 14-103.04, (3) retires on or after
33 January 1, 2001, and (4) retires having attained an age
34 which, when added to the number of years of his or her
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1 total creditable service, equals at least 85. Portions
2 of years shall be counted as decimal equivalents.
3 (b) For purposes of this Section, "final average salary"
4 means shall be the average salary for the 48 consecutive
5 months of service in which the total salary was the highest,
6 4 consecutive years within the last 10 years of creditable
7 service as determined under rules of the board. The minimum
8 final average salary shall be considered to be $2,400 per
9 year.
10 In the determination of final average salary for members
11 other than elected officials and their appointees when such
12 appointees are allowed by statute, that part of a member's
13 salary for any year beginning after June 30, 1979 which
14 exceeds the member's annual full-time salary rate with the
15 same employer for the preceding year by more than 20% shall
16 be excluded. The exclusion shall not apply in any year in
17 which the member's creditable earnings are less than 50% of
18 the preceding year's mean salary for downstate teachers as
19 determined by the survey of school district salaries provided
20 in Section 2-3.103 of the School Code.
21 (c) In determining the amount of the retirement annuity
22 under paragraph (B) of this Section, a fractional year shall
23 be granted proportional credit.
24 (d) The retirement annuity determined under paragraph
25 (B) of this Section shall be available only to members who
26 render teaching service after July 1, 1947 for which member
27 contributions are required, and to annuitants who re-enter
28 under the provisions of Section 16-150.
29 (e) The maximum retirement annuity provided under
30 paragraph (B) of this Section shall be 75% of final average
31 salary.
32 (f) A member retiring after the effective date of this
33 amendatory Act of 1998 shall receive a pension equal to 75%
34 of final average salary if the member is qualified to receive
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1 a retirement annuity equal to at least 74.6% of final average
2 salary under this Article or as proportional annuities under
3 Article 20 of this Code.
4 (Source: P.A. 90-582, eff. 5-27-98; 91-17, eff. 6-4-99;
5 91-887, eff. 7-6-00; 91-927, eff. 12-14-00.)
6 (40 ILCS 5/16-140) (from Ch. 108 1/2, par. 16-140)
7 Sec. 16-140. Survivors' benefits - definitions.
8 (a) For the purpose of Sections 16-138 through 16-143.2,
9 the following terms shall have the following meanings, unless
10 the context otherwise requires:
11 (1) "Average salary": the average salary for the 48
12 consecutive months of service in which the total salary
13 was the highest 4 consecutive years within the last 10
14 years of creditable service immediately preceding date of
15 death or retirement, whichever is applicable, or the
16 average salary for the total period of creditable service
17 if service is less than 4 years.
18 (2) "Member": any teacher included in the
19 membership of the system. However, a teacher who becomes
20 an annuitant of the system or a teacher whose services
21 terminate after 20 years of service from any cause other
22 than retirement is considered a member, subject to the
23 conditions and limitations stated in this Article.
24 (3) "Dependent beneficiary": (A) a surviving spouse
25 of a member or annuitant who was married to the member or
26 annuitant for the 12 month period immediately preceding
27 and on the date of death of such member or annuitant,
28 except where a child is born of such marriage, in which
29 case the qualifying period shall not be applicable; (A-1)
30 a surviving spouse of a member or annuitant who (i) was
31 married to the member or annuitant on the date of the
32 member or annuitant's death, (ii) was married to the
33 member or annuitant for a period of at least 12 months
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1 (but not necessarily the 12 months immediately preceding
2 the member or annuitant's death), and (iii) has not
3 received a benefit under subsection (a) of Section 16-141
4 or paragraph (1) of Section 16-142; (B) an eligible child
5 of a member or annuitant; and (C) a dependent parent.
6 Unless otherwise designated by the member,
7 eligibility for benefits shall be in the order named,
8 except that a dependent parent shall be eligible only if
9 there is no other dependent beneficiary. Any benefit to
10 be received by or paid to a dependent beneficiary to be
11 determined under this paragraph as provided in Sections
12 16-141 and 16-142 may be received by or paid to a trust
13 established for such dependent beneficiary if such
14 dependent beneficiary is living at the time such benefit
15 would be received by or paid to such trust.
16 (4) "Eligible child": an unmarried natural or
17 adopted child of the member or annuitant under age 18
18 (age 22 if a full-time student). An unmarried natural or
19 adopted child, regardless of age, who is dependent by
20 reason of a physical or mental disability, except any
21 such child receiving benefits under Article III of the
22 Illinois Public Aid Code, is eligible for so long as such
23 physical or mental disability continues. An adopted
24 child, however, is eligible only if the proceedings for
25 adoption were finalized while the child was a minor.
26 For purposes of this subsection, "disability" means
27 an inability to engage in any substantial gainful
28 activity by reason of any medically determinable physical
29 or mental impairment which can be expected to result in
30 death or which has lasted or can be expected to last for
31 a continuous period of not less than 12 months.
32 The changes made to this Section by Public Act
33 90-448, relating to benefits for certain unmarried
34 children who are full-time students under age 22, apply
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1 without regard to whether the deceased member was in
2 service on or after the effective date of that Act.
3 These changes do not authorize the repayment of a refund
4 or a re-election of benefits, and any benefit or increase
5 in benefits resulting from these changes is not payable
6 retroactively for any period before the effective date of
7 that Act.
8 (5) "Dependent parent": a parent who was receiving
9 at least 1/2 of his or her support from a member or
10 annuitant for the 12-month period immediately preceding
11 and on the date of such member's or annuitant's death,
12 provided however, that such dependent status terminates
13 upon a member's acceptance of a refund for survivor
14 benefit contributions as provided under Section 16-142.
15 (6) "Non-dependent beneficiary": any person,
16 organization or other entity designated by the member who
17 does not qualify as a dependent beneficiary.
18 (7) "In service": the condition of a member being
19 in receipt of salary as a teacher at any time within 12
20 months immediately before his or her death, being on
21 leave of absence for which the member, upon return to
22 teaching, would be eligible to purchase service credit
23 under subsection (b)(5) of Section 16-127, or being in
24 receipt of a disability or occupational disability
25 benefit. This term does not include any annuitant or
26 member who previously accepted a refund of survivor
27 benefit contributions under paragraph (1) of Section
28 16-142 unless the conditions specified in subsection (b)
29 of Section 16-143.2 are met.
30 (b) The change to this Section made by Public Act 90-511
31 applies without regard to whether the deceased member or
32 annuitant was in service on or after the effective date of
33 that Act.
34 The change to this Section made by this amendatory Act of
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1 the 91st General Assembly applies without regard to whether
2 the deceased member or annuitant was in service on or after
3 the effective date of this amendatory Act.
4 (Source: P.A. 90-448, eff. 8-16-97; 90-511, eff. 8-22-97;
5 90-655, eff. 7-30-98; 91-887, eff. 7-6-00.)
6 Section 99. Effective date. This Act takes effect upon
7 becoming law.