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Public Act 099-0702
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| SB2584 Enrolled | LRB099 17112 EFG 41470 b |
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AN ACT concerning public employee benefits.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 5. The Illinois Pension Code is amended by changing |
Section 17-116 as follows:
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(40 ILCS 5/17-116) (from Ch. 108 1/2, par. 17-116)
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(Text of Section WITHOUT the changes made by P.A. 98-599, |
which has been held unconstitutional)
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Sec. 17-116. Service retirement pension.
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(a) Each teacher having 20 years of service upon attainment |
of age 55,
or who thereafter attains age 55 shall be entitled |
to a service retirement
pension upon or after attainment of age |
55; and each teacher in service on or
after July 1, 1971, with |
5 or more but less than 20 years of service shall be
entitled |
to receive a service retirement pension upon or after |
attainment of
age 62.
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(b) The service retirement pension
for a teacher who |
retires on or after June 25, 1971, at age
60 or over, shall be |
calculated as follows:
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(1) For creditable service earned before July 1, 1998 |
that has not been
augmented under Section 17-119.1: 1.67% |
for each of the first 10 years
of service; 1.90% for each |
of the next 10 years of service; 2.10% for
each year of |
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service in excess of 20 but not exceeding 30; and 2.30% for
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each year of service in excess of 30, based upon average |
salary as
herein defined.
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(2) For creditable service earned on or after July 1, |
1998 by a member
who has at least 30 years of creditable |
service on July 1, 1998 and who does
not elect to augment |
service under Section 17-119.1: 2.3% of average salary
for |
each year of creditable service earned on or after July 1, |
1998.
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(3) For all other creditable service: 2.2% of average |
salary
for each year of creditable service.
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(c) When computing such service retirement pensions, the
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following conditions shall apply:
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1. Average salary shall consist of the average annual |
rate of salary
for the 4 consecutive years of validated |
service within the last 10 years
of service when such |
average annual rate was highest. In the determination
of |
average salary for retirement allowance purposes, for |
members who
commenced employment after August 31, 1979, |
that part of the salary for any
year shall be excluded |
which exceeds the annual full-time salary rate for
the |
preceding year by more than 20%. In the case of a member |
who commenced
employment before August 31, 1979 and who |
receives salary during any year
after September 1, 1983 |
which exceeds the annual full time salary rate for
the |
preceding year by more than 20%,
an Employer and other |
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employers of
eligible contributors as defined in Section |
17-106
shall pay to the Fund an amount equal to the present |
value of the
additional service retirement pension |
resulting from such excess salary.
The present value of the |
additional service retirement pension shall be
computed by |
the Board on the basis of actuarial tables adopted by the
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Board. If a member elects to receive a pension from this |
Fund
provided by
Section 20-121, his salary under the State |
Universities Retirement System
and the Teachers' |
Retirement System of the State of Illinois shall be
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considered in determining such average salary. Amounts |
paid after the
effective date of this amendatory Act of |
1991 for unused vacation time
earned after that effective |
date shall not under any circumstances be
included in the |
calculation of average salary or the annual rate of salary
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for the purposes of this Article.
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2. Proportionate credit shall be given for validated |
service of less
than one year.
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3. For retirement at age 60 or over the pension shall |
be payable at
the full rate.
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4. For separation from service below age 60 to a |
minimum age of 55,
the pension shall be discounted at the |
rate of 1/2 of one per cent for
each month that the age of |
the contributor is less than 60, but a
teacher may elect to |
defer the effective date of pension in order to
eliminate |
or reduce this discount. This discount shall not be |
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applicable
to any participant who has at least 34 years of |
service or a
retirement pension of at least 74.6% of |
average salary on the date the
retirement annuity begins.
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5. No additional pension shall be granted for service |
exceeding 45
years. Beginning June 26, 1971 no pension |
shall exceed the greater of
$1,500 per month or 75% of |
average salary as herein defined.
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6. Service retirement pensions shall begin on the |
effective date of
resignation, retirement, the day |
following the close of the payroll
period for which service |
credit was validated, or the time the person
resigning or |
retiring attains age 55, or on a date elected by the
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teacher, whichever shall be latest; provided that, for a |
person who first becomes a member after the effective date |
of this amendatory Act of the 99th General Assembly, the |
benefit shall not commence more than one year prior to the |
date of the Fund's receipt of an application for the |
benefit.
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7. A member who is eligible to receive a retirement |
pension of at least
74.6% of average salary and will attain |
age 55 on or before December 31
during the year which |
commences on July 1 shall be deemed to attain age 55 on
the |
preceding June 1.
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8. A member retiring after the effective date of this |
amendatory Act
of 1998 shall receive a pension equal to 75% |
of average salary if the
member is qualified to receive a |