[ Home ] [ ILCS ] [ Search ] [ Bottom ]
[ Other General Assemblies ]
Public Act 92-0566
HB2671 Enrolled LRB9202384EGmg
AN ACT in relation to public employee benefits.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The State Finance Act is amended by changing
Section 15a as follows:
(30 ILCS 105/15a) (from Ch. 127, par. 151a)
Sec. 15a. Contractual services. The item "contractual
services", when used in an appropriation act, means and
includes:
(a) Expenditures incident to the current conduct
and operation of an office, department, board,
commission, institution or agency for postage and postal
charges, surety bond premiums, publications,
subscriptions, office conveniences and services,
exclusive of commodities as herein defined;
(b) Expenditures for rental of property or
equipment, repair or maintenance of property or equipment
including related supplies, equipment, materials,
services, replacement fixtures and repair parts, utility
services, professional or technical services, moving
expenses incident to a new State employment, and
transportation charges exclusive of "travel" as herein
defined;
(c) Expenditures for the rental of lodgings in
Springfield, Illinois and for the payment of utilities
used in connection with such lodgings for all elected
State officials, who are required by Section 1, Article V
of the Constitution of the State of Illinois to reside at
the seat of government during their term of office;
(d) Expenditures pursuant to multi-year lease,
lease-purchase or installment purchase contracts for
duplicating equipment authorized by Section 5.1 of the
Illinois Purchasing Act;
(e) Expenditures of $5,000 or less per project for
improvements to real property which, except for the
operation of this Section, would be classified as
"permanent improvements" as defined in Section 21;
(f) Expenditures pursuant to multi-year lease,
lease-purchase or installment purchase contracts for
land, permanent improvements or fixtures.
The item "contractual services" does not, however,
include any expenditures included in "operation of automotive
equipment" as defined in Section 24.2.
The item "contractual services" does not include any
expenditures for professional, technical, or other services
performed for a State agency under a contract executed after
July 1, the effective date of this amendatory Act of 1992 by
a person who was formerly employed by that agency and has
received any early retirement incentive under Section
14-108.3 or 16-133.3 of the Illinois Pension Code based on
retirement before 1993, unless the official or employee
executing the contract on behalf of the agency has certified
that the person performing the services either (i) possesses
unique expertise, or (ii) is essential to the operation of
the agency. This certification must be filed with the Office
of the Auditor General prior to the execution of the
contract, and shall be made available by that Office for
public inspection and copying. The item "contractual
services" does not include any expenditures for professional,
technical, or other services performed for a State agency
under a contract executed after the effective date of this
amendatory Act of the 92nd General Assembly by a person who
has received any early retirement incentive under Section
14-108.3 or 16-133.3 of the Illinois Pension Code based on
retirement in 2002 or later. A contract not payable from the
contractual services item because of this paragraph shall not
be payable from any other item of appropriation. For the
purposes of this paragraph, the term "agency" includes all
offices, boards, commissions, departments, agencies, and
institutions of State government.
(Source: P.A. 91-357, eff. 7-29-99.)
Section 10. The Illinois Pension Code is amended by
changing Sections 14-105, 14-108.3 and 16-133.3 as follows:
(40 ILCS 5/14-105) (from Ch. 108 1/2, par. 14-105)
Sec. 14-105. Service credit for which contributions are
not required.
(a) Each employee in service on December 31, 1943, or
then on leave of absence not in conflict with Civil Service
rules, if such leave had not extended for more than one year
continuously, or who is otherwise entitled to prior service
credit, who becomes a member shall file with the board on a
form supplied by it, a detailed statement of all service
rendered prior to January 1, 1944, for which credit is
claimed.
Upon verification thereof, the board shall issue a prior
service certificate certifying length of prior service. A
prior service certificate shall be conclusive so long as
membership continues, provided, that a member may, within one
year from the date of original issuance of the certificate or
modification thereof, request the board to modify or correct
the certificate.
When membership ceases, a prior service certificate shall
become void, and shall be revived only under the conditions
specified in this Article.
In the computation of prior service, the following
schedule shall govern: 9 months of service or more during any
fiscal year constitutes a year of service; 6 to 9 months, 3/4
of a year; 3 to 6 months, 1/2 year; less than 3 months shall
not be considered. Credit shall not be allowed for any
period of absence without compensation or for less than 15
days service in any month, nor shall more than one year of
service be creditable for all service rendered in any one
fiscal year.
(b) Any member shall receive credit for military service
provided all of the following conditions are met:
(1) the member was a State employee within 6 months
immediately prior to entry into military service;
(2) the member returns as a State employee within
15 months after his unconditional discharge other than by
dishonorable discharge; and
(3) the member establishes creditable service for
State employment immediately prior to and following the
military service.
The total amount of creditable military service for any
member during his entire term of service shall not exceed 5
years in the aggregate, except that any member who on July 1,
1963, had accrued more than 5 years of such credit shall be
entitled to the total amount of such accrued credit.
(c) Any active member of the System who (1) was earning
eligible creditable service under subdivision (b)(12) of
Section 14-110 on January 1, 1992, and (2) has at least 17
years of creditable service under Article 5, and (3) is
eligible to transfer that creditable service to this System
under subsection (c) of Section 5-236 of this Code, and (4)
applies in writing for transfer of that creditable service to
this System within 30 days after the effective date of this
amendatory Act of 1993, shall receive eligible creditable
service in this System for that creditable service upon
receipt by this System of the amounts transferred under
Section 5-236. No additional contributions shall be required
for the transferred service.
(d) Any active member of the system who (1) was earning
eligible creditable service under subdivision (b)(5) of
Section 14-110 on January 1, 1992, and (2) has no more than 7
years of creditable service as a municipal conservator of the
peace under Article 7, and (3) is eligible to transfer that
creditable service to this System under subsection (a) of
Section 7-139.7 of this Code, and (4) makes written
notification to this System by January 31, 1994, shall
receive eligible creditable service in this System for that
service upon receipt by this System of the amounts
transferred under Section 7-139.7. No additional
contributions shall be required for the transferred service.
(e) Any member may establish creditable service and
earnings credit for a period of voluntary or involuntary
furlough, not exceeding 5 days, beginning on or after
December 1, 2001 and ending before January 1, 2003, that is
utilized as a means of addressing a State fiscal emergency.
To receive this credit, the member must apply in writing to
the System or the member's employer before July 1, 2005. No
additional contribution is required for this credit.
(Source: P.A. 87-1265.)
(40 ILCS 5/14-108.3)
Sec. 14-108.3. Early retirement incentives.
(a) To be eligible for the benefits provided in this
Section, a person must:
(1) be a member of this System who, on any day
during June, 2002, is (i) in active payroll status in a
position of employment with a department and an active
contributor to this System with respect to that
employment, and terminates that employment before the
retirement annuity under this Article begins, or (ii) on
layoff status from such a position with a right of
re-employment or recall to service, or (iii) receiving
benefits under Section 14-123, 14-123.1 or 14-124, but
only if the member has not been receiving those benefits
for a continuous period of more than 2 years as of the
date of application;
(2) not have received any retirement annuity under
this Article beginning earlier than August 1, 2002;
(3) file with the Board on or before December 31,
2002 a written application requesting the benefits
provided in this Section;
(4) terminate employment under this Article no
later than December 31, 2002 (or the date established
under subsection (d), if applicable);
(5) by the date of termination of service, have at
least 8 years of creditable service under this Article,
without the use of any creditable service established
under this Section;
(6) by the date of termination of service, have at
least 5 years of membership service earned while an
employee under this Article, which may include military
service for which credit is established under Section
14-105(b), service during the qualifying period for which
credit is established under Section 14-104(a), and
service for which credit has been established by repaying
a refund under Section 14-130, but shall not include
service for which any other optional service credit has
been established; and
(7) not receive any early retirement benefit under
Section 16-133.3 of this Code.
(b) An eligible person may establish up to 5 years of
creditable service under this Article, in increments of one
month, by making the contributions specified in subsection
(c). In addition, for each month of creditable service
established under this Section, a person's age at retirement
shall be deemed to be one month older than it actually is.
The creditable service established under this Section may
be used for all purposes under this Article and the
Retirement Systems Reciprocal Act, except for the computation
of final average compensation under Section 14-103.12 or the
determination of compensation under this or any other Article
of this Code.
The age enhancement established under this Section may
not be used to enable any person to begin receiving a
retirement annuity calculated under Section 14-110 before
actually attaining age 50 (without any age enhancement under
this Section). The age enhancement established under this
Section may be used for all other purposes under this Article
(including calculation of a proportionate annuity payable by
this System under the Retirement Systems Reciprocal Act),
except for purposes of the level income option in Section
14-112, the reversionary annuity under Section 14-113, and
the required distributions under Section 14-121.1.
The age enhancement established under this Section may be
used in determining benefits payable under Article 16 of this
Code under the Retirement Systems Reciprocal Act, if the
person has at least 5 years of service credit in the Article
16 system that was earned while participating in that system
as a teacher (as defined in Section 16-106) employed by a
department (as defined in Section 14-103.04). Age
enhancement established under this Section shall not
otherwise be used in determining benefits payable under other
Articles of this Code under the Retirement Systems Reciprocal
Act.
(c) For all creditable service established under this
Section, a person must pay to the System an employee
contribution to be determined by the System, based on the
member's rate of compensation on June 1, 2002 (or the last
date before June 1, 2002 for which a rate can be determined)
and the retirement contribution rate in effect on June 1,
2002 for the member (or for members with the same social
security and alternative formula status as the member).
If the member receives a lump sum payment for accumulated
vacation, sick leave and personal leave upon withdrawal from
service, and the net amount of that lump sum payment is at
least as great as the amount of the contribution required
under this Section, the entire contribution must be paid by
the employee by payroll deduction. If there is no such lump
sum payment, or if it is less than the contribution required
under this Section, the member shall make an initial payment
by payroll deduction, equal to the net amount of the lump sum
payment for accumulated vacation, sick leave, and personal
leave, and have the remaining amount due treated as a
reduction from the retirement annuity in 24 equal monthly
installments beginning in the month in which the retirement
annuity takes effect. The required contribution may be paid
as a pre-tax deduction from earnings. For federal and
Illinois tax purposes, the monthly amount by which the
annuitant's benefit is reduced shall not be treated as a
contribution by the annuitant, but rather as a reduction of
the annuitant's monthly benefit.
(c-5) The reduction in retirement annuity provided in
subsection (c) of Section 14-108 does not apply to the
annuity of a person who retires under this Section. A person
who has received any age enhancement or creditable service
under this Section may begin to receive an unreduced
retirement annuity upon attainment of age 55 with at least 25
years of creditable service (including any age enhancement
and creditable service established under this Section).
(d) In order to ensure that the efficient operation of
State government is not jeopardized by the simultaneous
retirement of large numbers of key personnel, the director or
other head of a department may, for key employees of that
department, extend the December 31, 2002 deadline for
terminating employment under this Article established in
subdivision (a)(4) of this Section to a date not later than
April 30, 2003 by so notifying the System in writing by
December 31, 2002.
(e) Notwithstanding Section 14-111, a person who has
received any age enhancement or creditable service under this
Section and who reenters service under this Article (or as an
employee of a department under Article 16) other than as a
temporary employee thereby forfeits that age enhancement and
creditable service and is entitled to a refund of the
contributions made pursuant to this Section.
(f) The System shall determine the amount of the
increase in unfunded accrued liability resulting from the
granting of early retirement incentives under this Section
and shall report that amount to the Governor and the Pension
Laws Commission on or before November 15, 2003. The increase
in liability reported under this subsection (f) shall not be
included in the calculation of the required State
contribution under Section 14-131.
(g) The System shall determine the amount of the annual
State contribution necessary to amortize on a level
dollar-payment basis, over a period of 10 years at 8.5%
interest, compounded annually, an amount equal to the
increase in unfunded accrued liability determined under
subsection (f) minus $70,000,000. The System shall certify
the amount of this annual State contribution to the Governor,
the State Comptroller, the Bureau of the Budget, and the
Pension Laws Commission on or before November 15, 2003.
In addition to the contributions otherwise required under
this Article, the State shall appropriate and pay to the
System (1) an amount equal to $70,000,000 in State fiscal
year 2004 and (2) in each of State fiscal years 2005 through
2013, an amount equal to the annual State contribution
certified by the System under this subsection (g).
(h) The Pension Laws Commission shall determine and
report to the General Assembly, on or before January 1, 2004
and annually thereafter through the year 2013, its estimate
of (1) the annual amount of payroll savings likely to be
realized by the State as a result of the early retirement of
persons receiving early retirement incentives under this
Section and (2) the net annual savings or cost to the State
from the program of early retirement incentives created under
this Section.
The System, the Department of Central Management
Services, the Bureau of the Budget, and all other departments
shall provide to the Commission any assistance that the
Commission may request with respect to its reports under this
Section. The Commission may require departments to provide
it with any information that it deems necessary or useful
with respect to its reports under this Section, including
without limitation information about (1) the final earnings
of former department employees who elected to receive
benefits under this Section, (2) the earnings of current
department employees holding the positions vacated by persons
who elected to receive benefits under this Section, and (3)
positions vacated by persons who elected to receive benefits
under this Section that have not yet been refilled.
(i) The changes made to this Section by this amendatory
Act of the 92nd General Assembly do not apply to persons who
retired under this Section on or before May 1, 1992.
(a) To be eligible for the benefits provided in this
Section, a person must:
(1) be a member of this System who, on any day
during May, 1991, is (i) in active payroll status in a
position of employment with a department, or (ii) on
layoff status from such a position with a right of
re-employment or recall to service, or (iii) on leave of
absence from such a position, but only if the member on
leave has not been receiving benefits under Section
14-123, 14-123.1 or 14-124 for a continuous period of 2
years or more as of the date of application;
(2) have not retired under this Article;
(3) file with the Board before December 1, 1991, a
written application requesting the benefits provided in
this Section;
(4) establish eligibility to receive a retirement
annuity under this Article (for which purpose any age
enhancement or creditable service received under this
Section may be used) and elect to receive the retirement
annuity beginning not earlier than the first day of the
month following the month in which this amendatory Act of
1991 takes effect, and not later than January 1, 1992 (or
the date established under subsection (e) if applicable);
(5) have attained age 50 or accumulated 30 or more
years of creditable service (without the use of any age
enhancement or creditable service received under this
Section) by December 31, 1991.
(b) An eligible person may establish up to 5 years of
creditable service under this Article, in increments of one
month, by making the contributions specified in subsection
(c). In addition, for each month of creditable service
established under this Section, a person's age at retirement
shall be deemed to be one month older than it actually is.
The creditable service established under this Section may
be used for all purposes under this Article and the
Retirement Systems Reciprocal Act, except for the computation
of final average compensation under Section 14-103.12, or the
determination of compensation under this or any other Article
of this Code.
The age enhancement established under this Section may be
used for all purposes under this Article (including
calculation of a proportionate annuity payable by this System
under the Retirement Systems Reciprocal Act), except for
purposes of the level income option in Section 14-112, the
reversionary annuity under Section 14-113, and the required
distributions under Section 14-121.1. However, age
enhancement established under this Section shall not be used
in determining benefits payable under other Articles of this
Code under the Retirement Systems Reciprocal Act.
(c) For all creditable service established under this
Section, a person must pay to the System an employee
contribution to be determined by the System, based on the
member's final rate of compensation and one-half of the
retirement contribution rate in effect for the member on the
date of withdrawal.
If the member receives a lump sum payment for accumulated
vacation, sick leave and personal leave upon withdrawal from
service, and the net amount of that lump sum payment is at
least as great as the amount of the contribution required
under this Section, the entire contribution (or so much of it
as does not exceed the contribution limitations of Section
415 of the Internal Revenue Code of 1986) must be paid by the
employee before the retirement annuity may become payable.
If there is no such lump sum payment, or if it is less than
the contribution required under this Section the member may
either pay the entire contribution before the retirement
annuity becomes payable, or may instead make an initial
payment before the retirement annuity becomes payable, equal
to the net amount of the lump sum payment for accumulated
vacation, sick leave and personal leave (or so much of it as
does not exceed the contribution limitations of Section 415
of the Internal Revenue Code of 1986), and have the remaining
amount due deducted from the retirement annuity in 24 equal
monthly installments beginning in January of 1992 or in the
month in which the retirement annuity takes effect, whichever
is later.
However, if the net amount of the lump sum payment for
accumulated vacation, sick leave and personal leave equals or
exceeds the contribution required under this Section, but the
required contribution exceeds an applicable contribution
limitation contained in Section 415 of the Internal Revenue
Code of 1986, then the amount of the contribution in excess
of the Section 415 limitation shall instead be paid by the
annuitant in January of 1992 or in the month in which the
retirement annuity takes effect, whichever is later. If this
additional amount is not paid as required, the retirement
annuity shall be suspended until the required contribution is
received.
(d) In the event that the age enhancement or creditable
service received under this Section result in a retirement
benefit that exceeds any applicable benefit limitation
contained in Section 415 of the Internal Revenue Code of
1986, the amount of the retirement benefit that exceeds the
Section 415 limitation shall not be paid for any period to
which the limitation is applicable. If no contributions are
otherwise due in 1992 and 1993 under subsection (c) from an
annuitant whose retirement benefits are subject to limitation
under this subsection, then 10% of the contribution otherwise
required under subsection (c) to be paid before the
retirement annuity becomes payable shall instead be
contributed to the System by the annuitant in January of
1993.
(e) In order to ensure that the public health and safety
are not jeopardized by the simultaneous retirement of large
numbers of critical personnel, the Director of State Police
(for State police officers under the Department of State
Police) and the Director of Corrections (for security staff
at adult and juvenile institutions under the Department of
Corrections) may extend the January 1, 1992 deadline for the
effective date of a retirement annuity established in
subdivision (a)(4) of this Section to a date not later than
May 1, 1992, by so notifying the System in writing no later
than December 31, 1991.
In order to ensure that the efficient operation of the
courts of this State is not jeopardized by the simultaneous
retirement of large numbers of court reporters, the Chief
Justice of the Illinois Supreme Court may, for official court
reporters employed in the courts of this State, extend the
January 1, 1992 deadline for the effective date of a
retirement annuity established in subdivision (a)(4) of this
Section to a date not later than May 1, 1992, by so notifying
the System in writing no later than December 31, 1991.
(f) Notwithstanding Section 14-111, an annuitant who has
received any age enhancement or creditable service under this
Section and who reenters service under this Article other
than as a temporary employee shall thereby forfeit such age
enhancement and creditable service, and become entitled to a
refund of the contributions made pursuant to this Section.
(Source: P.A. 87-14.)
(40 ILCS 5/16-133.3) (from Ch. 108 1/2, par. 16-133.3)
Sec. 16-133.3. Early retirement incentives for State
employees.
(a) To be eligible for the benefits provided in this
Section, a person must:
(1) be a member of this System who, on any day
during June, 2002, is (i) in active payroll status as a
full-time teacher employed by a department and an active
contributor to this System with respect to that
employment, or (ii) on layoff status from such a position
with a right of re-employment or recall to service, or
(iii) receiving a disability benefit under Section 16-149
or 16-149.1, but only if the member has not been
receiving that benefit for a continuous period of more
than 2 years as of the date of application;
(2) not have received any retirement annuity under
this Article beginning earlier than August 1, 2002;
(3) file with the Board on or before December 31,
2002 a written application requesting the benefits
provided in this Section;
(4) terminate employment under this Article no
later than December 31, 2002 (or the date established
under subsection (d), if applicable);
(5) by the date of termination of service, have at
least 8 years of creditable service under this Article,
without the use of any creditable service established
under this Section;
(6) by the date of termination of service, have at
least 5 years of service credit earned while
participating in the System as a teacher employed by a
department; and
(7) not receive any early retirement benefit under
Section 14-108.3 of this Code.
For the purposes of this Section, "department" means a
department as defined in Section 14-103.04 that employs a
teacher as defined in this Article.
(b) An eligible person may establish up to 5 years of
creditable service under this Article by making the
contributions specified in subsection (c). In addition, for
each period of creditable service established under this
Section, a person's age at retirement shall be deemed to be
enhanced by an equivalent period.
The creditable service established under this Section may
be used for all purposes under this Article and the
Retirement Systems Reciprocal Act, except for the computation
of final average salary, the determination of salary or
compensation under this Article or any other Article of this
Code, or the determination of eligibility for or the
computation of benefits under Section 16-133.2.
The age enhancement established under this Section may be
used for all purposes under this Article (including
calculation of a proportionate annuity payable by this System
under the Retirement Systems Reciprocal Act), except for
purposes of a retirement annuity under Section 16-133(a)(A),
a reversionary annuity under Section 16-136, the required
distributions under Section 16-142.3, and the determination
of eligibility for or the computation of benefits under
Section 16-133.2. Age enhancement established under this
Section may be used in determining benefits payable under
Article 14 of this Code under the Retirement Systems
Reciprocal Act (subject to the limitations on the use of age
enhancement provided in Section 14-108.3); age enhancement
established under this Section shall not be used in
determining benefits payable under other Articles of this
Code under the Retirement Systems Reciprocal Act.
(c) For all creditable service established under this
Section, a person must pay to the System an employee
contribution to be determined by the System, equal to 9.0% of
the member's highest annual salary rate that would be used in
the determination of the average salary for retirement
annuity purposes if the member retired immediately after
withdrawal, for each year of creditable service established
under this Section.
If the member receives a lump sum payment for accumulated
vacation, sick leave, and personal leave upon withdrawal from
service, and the net amount of that lump sum payment is at
least as great as the amount of the contribution required
under this Section, the entire contribution must be paid by
the employee by payroll deduction. If there is no such lump
sum payment, or if it is less than the contribution required
under this Section, the member shall make an initial payment
by payroll deduction, equal to the net amount of the lump sum
payment for accumulated vacation, sick leave, and personal
leave, and have the remaining amount due treated as a
reduction from the retirement annuity in 24 equal monthly
installments beginning in the month in which the retirement
annuity takes effect. The required contribution may be paid
as a pre-tax deduction from earnings.
(d) In order to ensure that the efficient operation of
State government is not jeopardized by the simultaneous
retirement of large numbers of key personnel, the director or
other head of a department may, for key employees of that
department, extend the December 31, 2002 deadline for
terminating employment under this Article established in
subdivision (a)(4) of this Section to a date not later than
April 30, 2003 by so notifying the System in writing by
December 31, 2002.
(e) A person who has received any age enhancement or
creditable service under this Section and who reenters
contributing service under this Article or Article 14 shall
thereby forfeit that age enhancement and creditable service,
and become entitled to a refund of the contributions made
pursuant to this Section.
(f) The System shall determine the amount of the
increase in unfunded accrued liability resulting from the
granting of early retirement incentives under this Section
and shall report that amount to the Governor and the Pension
Laws Commission on or before November 15, 2003. The increase
in liability reported under this subsection (f) shall not be
included in the calculation of the required State
contribution under Section 16-158.
(g) The System shall determine the amount of the annual
State contribution necessary to amortize on a level
dollar-payment basis, over a period of 10 years at 8.5%
interest, compounded annually, an amount equal to the
increase in unfunded accrued liability determined under
subsection (f) minus $1,000,000. The System shall certify
the amount of this annual State contribution to the Governor,
the State Comptroller, the Bureau of the Budget, and the
Pension Laws Commission on or before November 15, 2003.
In addition to the contributions otherwise required under
this Article, the State shall appropriate and pay to the
System (1) an amount equal to $1,000,000 in State fiscal year
2004 and (2) in each of State fiscal years 2005 through 2013,
an amount equal to the annual State contribution certified by
the System under this subsection (g).
(h) The Pension Laws Commission shall determine and
report to the General Assembly, on or before January 1, 2004
and annually thereafter through the year 2013, its estimate
of (1) the annual amount of payroll savings likely to be
realized by the State as a result of the early retirement of
persons receiving early retirement incentives under this
Section and (2) the net annual savings or cost to the State
from the program of early retirement incentives created under
this Section.
The System, the Department of Central Management
Services, the Bureau of the Budget, and all other departments
shall provide to the Commission any assistance that the
Commission may request with respect to its reports under this
Section. The Commission may require departments to provide
it with any information that it deems necessary or useful
with respect to its reports under this Section, including
without limitation information about (1) the final earnings
of former department employees who elected to receive
benefits under this Section, (2) the earnings of current
department employees holding the positions vacated by persons
who elected to receive benefits under this Section, and (3)
positions vacated by persons who elected to receive benefits
under this Section that have not yet been refilled.
(i) The changes made to this Section by this amendatory
Act of the 92nd General Assembly do not apply to persons who
retired under this Section on or before May 1, 1992.
(a) To be eligible for the benefits provided in this
Section, a member must:
(1) be a member of this System who, on any day
during May, 1991, is (i) in active payroll status as a
full-time teacher employed by the Department of
Rehabilitation Services, the Department of Corrections,
the Department of Mental Health and Developmental
Disabilities, the Teachers' Retirement System of the
State of Illinois, the State Board of Education, or the
Illinois Purchased Care Review Board, or (ii) on layoff
status from such a position with a right of re-employment
or recall to service, or (iii) on a leave of absence from
such a position, but only if the member on leave has not
been receiving benefits under Section 16-149 or 16-149.1
for a continuous period of 2 years or more as of the date
of application;
(2) have never previously received a retirement
annuity under this Article or Article 14, 15 or 17;
(3) file with the Board before December 1, 1991, a
written application requesting the benefits provided in
this Section;
(4) be eligible no later than January 1, 1992, to
receive a retirement annuity under this Article (for
which purpose any age enhancement or creditable service
received under this Section may be used) and elect to
receive the retirement annuity beginning not earlier than
the first day of the month following the month in which
this amendatory Act of 1991 takes effect, and not later
than January 1, 1992;
(5) have attained age 50 (without the use of any
age enhancement received under this Section) by December
31, 1991;
(6) have at least 5 years of creditable service
under this System or any of the participating systems
under the Retirement Systems Reciprocal Act (without the
use of any creditable service received under this
Section) by the effective date of the retirement annuity;
and
(7) have paid all applicable contributions as
required by this Section; however, the date such
contributions are received by the System shall not be
considered in determining the effective date of
retirement.
(b) An eligible person may establish up to 5 years of
creditable service under this Article by making the
contributions specified in subsection (c). In addition, for
each period of creditable service established under this
Section a person shall have his or her age at retirement
deemed enhanced by an equivalent period.
The creditable service established under this Section may
be used for all purposes under this Article and the
Retirement Systems Reciprocal Act, except for the computation
of final average salary, the determination of salary or
compensation under this or any other Article of the Code, or
the determination of eligibility for and the computation of
benefits under Section 16-133.2 of this Article.
The age enhancement established under this Section may be
used for all purposes under this Article (including
calculation of a proportionate annuity payable by this System
under the Retirement Systems Reciprocal Act), except for
purposes of a reversionary annuity under Section 16-136, the
retirement annuity under Section 16-133(a)(A), the required
distributions under Section 16-142.3, and the determination
of eligibility for and the computation of benefits under
Section 16-133.2 of this Article. However, age enhancement
established under this Section shall not be used in
determining benefits payable under other Articles of this
Code under the Retirement Systems Reciprocal Act.
(c) For all creditable service established under this
Section, a member must pay to the System an employee
contribution consisting of 4% of the member's highest annual
salary rate used in the determination of the average salary
for retirement annuity purposes for each year creditable
service has been increased under this Section.
If the member receives a lump sum payment for accumulated
vacation, sick leave and personal leave upon withdrawal from
service, and the net amount of that lump sum payment is at
least as great as the amount of the contribution required
under this Section, the entire contribution must be paid by
the employee before the retirement annuity may become
payable. If there is no such lump sum payment, or if it is
less than the contribution required under this Section, the
member may either pay the entire contribution before the
retirement annuity becomes payable, or may instead make an
initial payment before the retirement annuity becomes
payable, equal to the net amount of the lump sum payment for
accumulated vacation, sick leave and personal leave, and have
the remaining amount due deducted from the retirement annuity
in 24 equal monthly installments beginning in January of
1992.
(d) An annuitant who has received any age enhancement or
creditable service under this Section and who re-enters
contributing service under this Article or Article 14, 15 or
17, shall thereby forfeit such age enhancement and creditable
service, and upon re-retirement the annuity shall be
recomputed. Upon forfeiting creditable service under this
subsection, a person shall be entitled to a refund of the
contribution paid under this Section.
(Source: P.A. 89-21, eff. 7-1-95.)
Section 15. The State Pension Funds Continuing
Appropriation Act is amended by adding Section 1.6 as
follows:
(40 ILCS 15/1.6 new)
Sec. 1.6. Appropriations for early retirement programs.
(a) There is hereby appropriated from the General
Revenue Fund to the State Employees' Retirement System of
Illinois, on a continuing annual basis in each of State
fiscal years 2004 through 2013, the amount, if any, by which
the total available amount of all other appropriations to
that retirement system for the payment of State contributions
under subsection (g) of Section 14-108.3 of the Illinois
Pension Code in that fiscal year is less than the total
amount of State contributions required for that fiscal year
under that subsection (g).
(b) There is hereby appropriated from the General
Revenue Fund to the Teachers' Retirement System of the State
of Illinois, on a continuing annual basis in each of State
fiscal years 2004 through 2013, the amount, if any, by which
the total available amount of all other appropriations to
that retirement system for the payment of State contributions
under subsection (g) of Section 16-133.3 of the Illinois
Pension Code in that fiscal year is less than the total
amount of State contributions required for that fiscal year
under that subsection (g).
Section 99. Effective date. This Act takes effect upon
becoming law.
Passed in the General Assembly June 02, 2002.
Approved June 25, 2002.
Effective June 25, 2002.
[ Top ]