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| Public Act 099-0702 | ||||
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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 | ||||
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 | ||
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 | ||
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 | ||
retirement pension equal to at least 74.6%
of average | ||
salary under this Article or as proportional annuities | ||
under
Article 20 of this Code.
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(Source: P.A. 90-566, eff. 1-2-98; 90-582, eff. 5-27-98.)
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Section 99. Effective date. This Act takes effect upon | ||
becoming law.
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