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90_HB0727
40 ILCS 5/14-108 from Ch. 108 1/2, par. 14-108
40 ILCS 5/15-136 from Ch. 108 1/2, par. 15-136
40 ILCS 5/16-133 from Ch. 108 1/2, par. 16-133
40 ILCS 5/17-116 from Ch. 108 1/2, par. 17-116
30 ILCS 805/8.21 new
Amends the State Employee, Universities, Downstate
Teacher, and Chicago Teacher Articles of the Pension Code to
provide for a new retirement formula of 1.67% per year of
service for regular coordinated members and 2.2% per year of
service for regular noncoordinated members. Amends the State
Mandates Act to require implementation without reimbursement.
Effective immediately.
LRB9000557EGfg
LRB9000557EGfg
1 AN ACT in relation to public employee pensions, amending
2 named Acts.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Illinois Pension Code is amended by
6 changing Sections 14-108, 15-136, 16-133, and 17-116 as
7 follows:
8 (40 ILCS 5/14-108) (from Ch. 108 1/2, par. 14-108)
9 (Text of Section before amendment by P.A. 89-507)
10 Sec. 14-108. Amount of retirement annuity. A member who
11 has contributed to the System for at least 12 months, shall
12 be entitled to a prior service annuity for each year of
13 certified prior service credited to him, except that a member
14 shall receive 1/3 of the prior service annuity for each year
15 of service for which contributions have been made and all of
16 such annuity shall be payable after the member has made
17 contributions for a period of 3 years. Proportionate amounts
18 shall be payable for service of less than a full year after
19 completion of at least 12 months.
20 The total period of service to be considered in
21 establishing the measure of prior service annuity shall
22 include service credited in the Teachers' Retirement System
23 of the State of Illinois and the State Universities
24 Retirement System for which contributions have been made by
25 the member to such systems; provided that at least 1 year of
26 the total period of 3 years prescribed for the allowance of a
27 full measure of prior service annuity shall consist of
28 membership service in this System for which credit has been
29 granted.
30 (a) In the case of a member who retires after December
31 31, 1997 and is a noncovered employee, the retirement annuity
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1 for membership service and prior service shall be 2.2% 1.67%
2 of final average compensation for each of the first 10 years
3 of service; 1.90% for each of the next 10 years of service;
4 2.10% for each year of service in excess of 20 but not
5 exceeding 30; and 2.30% for each year in excess of 30. Any
6 service credit established as a covered employee shall be
7 considered in determining the applicable percentages and
8 computed as stated in paragraph (b).
9 (b) In the case of a member who retires after December
10 31, 1997 and is a covered employee, the retirement annuity
11 for membership service and prior service shall be computed as
12 stated in paragraph (a) for all service credit established as
13 a noncovered employee; for service credit established as a
14 covered employee it shall be 1.67% of final average
15 compensation 1% for each of the first 10 years of service;
16 1.10% for each of the next 10 years of service; 1.30% for
17 each year of service in excess of 20 but not exceeding 30;
18 and 1.50% for each year of service in excess of 30. Any
19 service credit established as a noncovered employee shall be
20 considered in determining the applicable percentages.
21 (c) For a member with 30 but less than 35 years of
22 creditable service retiring after attaining age 55 but before
23 age 60, the retirement annuity shall be reduced by 1/2 of 1%
24 for each month that the member's age is under age 60 at the
25 time of retirement.
26 (d) A retirement annuity shall not exceed 75% of final
27 average compensation, subject to such extension as may result
28 from the application of Section 14-114 or Section 14-115.
29 (e) The retirement annuity payable to any covered
30 employee who is a member of the System and in service on
31 January 1, 1969, or in service thereafter in 1969 as a result
32 of legislation enacted by the Illinois General Assembly
33 transferring the member to State employment from county
34 employment in a county Department of Public Aid in counties
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1 of 3,000,000 or more population, under a plan of coordination
2 with the Old Age, Survivors and Disability provisions
3 thereof, if not fully insured for Old Age Insurance payments
4 under the Federal Old Age, Survivors and Disability Insurance
5 provisions at the date of acceptance of a retirement annuity,
6 shall not be less than the amount for which the member would
7 have been eligible if coordination were not applicable.
8 (f) The retirement annuity payable to any covered
9 employee who is a member of the System and in service on
10 January 1, 1969, or in service thereafter in 1969 as a result
11 of the legislation designated in the immediately preceding
12 paragraph, if fully insured for Old Age Insurance payments
13 under the Federal Social Security Act at the date of
14 acceptance of a retirement annuity, shall not be less than an
15 amount which when added to the Primary Insurance Benefit
16 payable to the member upon attainment of age 65 under such
17 Federal Act, will equal the annuity which would otherwise be
18 payable if the coordinated plan of coverage were not
19 applicable.
20 (g) In the case of a member who retires after December
21 31, 1997 and is a noncovered employee, the retirement annuity
22 for membership service as a full-time security employee of
23 the Department of Corrections or security employee of the
24 Department of Mental Health and Developmental Disabilities
25 shall be 2.25% 1.9% of final average compensation for each of
26 the first 30 10 years of service; 2.1% for each of the next
27 10 years of service; 2.25% for each year of service in excess
28 of 20 but not exceeding 30; and 2.5% for each year in excess
29 of 30.
30 (h) In the case of a member who is a covered employee,
31 the retirement annuity for membership service as a full-time
32 security employee of the Department of Corrections or
33 security employee of the Department of Mental Health and
34 Developmental Disabilities shall be 1.67% of final average
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1 compensation for each of the first 10 years of service; 1.90%
2 for each of the next 10 years of service; 2.10% for each year
3 of service in excess of 20 but not exceeding 30; and 2.30%
4 for each year in excess of 30.
5 (i) For the purposes of this Section and Section 14-133
6 of this Act, the term "security employee of the Department of
7 Corrections" and the term "security employee of the
8 Department of Mental Health and Developmental Disabilities"
9 shall have the meanings ascribed to them in subsection (c) of
10 Section 14-110.
11 (j) The retirement annuity computed pursuant to
12 paragraphs (g) or (h) shall be applicable only to those
13 security employees of the Department of Corrections and
14 security employees of the Department of Mental Health and
15 Developmental Disabilities who have at least 20 years of
16 membership service and who are not eligible for the
17 alternative retirement annuity provided under Section 14-110.
18 However, persons transferring to this System under Section
19 14-108.2 who have service credit under Article 16 of this
20 Code may count such service toward establishing their
21 eligibility under the 20-year service requirement of this
22 subsection; but such service may be used only for
23 establishing such eligibility, and not for the purpose of
24 increasing or calculating any benefit.
25 (k) In the case of a member who has at least 10 years of
26 creditable service as a court reporter, the retirement
27 annuity for service as a court reporter shall be 2.2% of
28 final average compensation for each year of such service as a
29 noncovered employee, and 1.5% of final average compensation
30 for each year of such service as a covered employee.
31 (Source: P.A. 86-272; 86-273; 86-1028.)
32 (Text of Section after amendment by P.A. 89-507)
33 Sec. 14-108. Amount of retirement annuity. A member who
34 has contributed to the System for at least 12 months, shall
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1 be entitled to a prior service annuity for each year of
2 certified prior service credited to him, except that a member
3 shall receive 1/3 of the prior service annuity for each year
4 of service for which contributions have been made and all of
5 such annuity shall be payable after the member has made
6 contributions for a period of 3 years. Proportionate amounts
7 shall be payable for service of less than a full year after
8 completion of at least 12 months.
9 The total period of service to be considered in
10 establishing the measure of prior service annuity shall
11 include service credited in the Teachers' Retirement System
12 of the State of Illinois and the State Universities
13 Retirement System for which contributions have been made by
14 the member to such systems; provided that at least 1 year of
15 the total period of 3 years prescribed for the allowance of a
16 full measure of prior service annuity shall consist of
17 membership service in this system for which credit has been
18 granted.
19 (a) In the case of a member who retires after December
20 31, 1997 and is a noncovered employee, the retirement annuity
21 for membership service and prior service shall be 2.2% 1.67%
22 of final average compensation for each of the first 10 years
23 of service; 1.90% for each of the next 10 years of service;
24 2.10% for each year of service in excess of 20 but not
25 exceeding 30; and 2.30% for each year in excess of 30. Any
26 service credit established as a covered employee shall be
27 considered in determining the applicable percentages and
28 computed as stated in paragraph (b).
29 (b) In the case of a member who retires after December
30 31, 1997 and is a covered employee, the retirement annuity
31 for membership service and prior service shall be computed as
32 stated in paragraph (a) for all service credit established as
33 a noncovered employee; for service credit established as a
34 covered employee it shall be 1.67% of final average
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1 compensation 1% for each of the first 10 years of service;
2 1.10% for each of the next 10 years of service; 1.30% for
3 each year of service in excess of 20 but not exceeding 30;
4 and 1.50% for each year of service in excess of 30. Any
5 service credit established as a noncovered employee shall be
6 considered in determining the applicable percentages.
7 (c) For a member with 30 but less than 35 years of
8 creditable service retiring after attaining age 55 but before
9 age 60, the retirement annuity shall be reduced by 1/2 of 1%
10 for each month that the member's age is under age 60 at the
11 time of retirement.
12 (d) A retirement annuity shall not exceed 75% of final
13 average compensation, subject to such extension as may result
14 from the application of Section 14-114 or Section 14-115.
15 (e) The retirement annuity payable to any covered
16 employee who is a member of the System and in service on
17 January 1, 1969, or in service thereafter in 1969 as a result
18 of legislation enacted by the Illinois General Assembly
19 transferring the member to State employment from county
20 employment in a county Department of Public Aid in counties
21 of 3,000,000 or more population, under a plan of coordination
22 with the Old Age, Survivors and Disability provisions
23 thereof, if not fully insured for Old Age Insurance payments
24 under the Federal Old Age, Survivors and Disability Insurance
25 provisions at the date of acceptance of a retirement annuity,
26 shall not be less than the amount for which the member would
27 have been eligible if coordination were not applicable.
28 (f) The retirement annuity payable to any covered
29 employee who is a member of the System and in service on
30 January 1, 1969, or in service thereafter in 1969 as a result
31 of the legislation designated in the immediately preceding
32 paragraph, if fully insured for Old Age Insurance payments
33 under the Federal Social Security Act at the date of
34 acceptance of a retirement annuity, shall not be less than an
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1 amount which when added to the Primary Insurance Benefit
2 payable to the member upon attainment of age 65 under such
3 Federal Act, will equal the annuity which would otherwise be
4 payable if the coordinated plan of coverage were not
5 applicable.
6 (g) In the case of a member who retires after December
7 31, 1997 and is a noncovered employee, the retirement annuity
8 for membership service as a full-time security employee of
9 the Department of Corrections or security employee of the
10 Department of Human Services shall be 2.25% 1.9% of final
11 average compensation for each of the first 30 10 years of
12 service; 2.1% for each of the next 10 years of service; 2.25%
13 for each year of service in excess of 20 but not exceeding
14 30; and 2.5% for each year in excess of 30.
15 (h) In the case of a member who is a covered employee,
16 the retirement annuity for membership service as a full-time
17 security employee of the Department of Corrections or
18 security employee of the Department of Human Services shall
19 be 1.67% of final average compensation for each of the first
20 10 years of service; 1.90% for each of the next 10 years of
21 service; 2.10% for each year of service in excess of 20 but
22 not exceeding 30; and 2.30% for each year in excess of 30.
23 (i) For the purposes of this Section and Section 14-133
24 of this Act, the term "security employee of the Department of
25 Corrections" and the term "security employee of the
26 Department of Human Services" shall have the meanings
27 ascribed to them in subsection (c) of Section 14-110.
28 (j) The retirement annuity computed pursuant to
29 paragraphs (g) or (h) shall be applicable only to those
30 security employees of the Department of Corrections and
31 security employees of the Department of Human Services who
32 have at least 20 years of membership service and who are not
33 eligible for the alternative retirement annuity provided
34 under Section 14-110. However, persons transferring to this
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1 System under Section 14-108.2 who have service credit under
2 Article 16 of this Code may count such service toward
3 establishing their eligibility under the 20-year service
4 requirement of this subsection; but such service may be used
5 only for establishing such eligibility, and not for the
6 purpose of increasing or calculating any benefit.
7 (k) In the case of a member who has at least 10 years of
8 creditable service as a court reporter, the retirement
9 annuity for service as a court reporter shall be 2.2% of
10 final average compensation for each year of such service as a
11 noncovered employee, and 1.5% of final average compensation
12 for each year of such service as a covered employee.
13 (Source: P.A. 89-507, eff. 7-1-97.)
14 (40 ILCS 5/15-136) (from Ch. 108 1/2, par. 15-136)
15 Sec. 15-136. Retirement annuities - Amount.
16 (a) The amount of the retirement annuity shall be
17 determined by whichever of the following rules is applicable
18 and provides the largest annuity:
19 Rule 1: The retirement annuity shall be 1.67% of final
20 rate of earnings for each of the first 10 years of service,
21 1.90% for each of the next 10 years of service, 2.10% for
22 each year of service in excess of 20 but not exceeding 30,
23 and 2.30% for each year in excess of 30; or for persons who
24 retire after December 31, 1997, 2.2% of the final rate of
25 earnings for each year of service.
26 Rule 2: The retirement annuity shall be the sum of the
27 following, determined from amounts credited to the
28 participant in accordance with the actuarial tables and the
29 prescribed rate of interest in effect at the time the
30 retirement annuity begins:
31 (i) The normal annuity which can be provided on an
32 actuarial equivalent basis, by the accumulated normal
33 contributions as of the date the annuity begins; and
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1 (ii) an annuity from employer contributions of an
2 amount which can be provided on an actuarially equivalent
3 basis from the accumulated normal contributions made by
4 the participant under Section 15-113.6 and Section
5 15-113.7 plus 1.4 times all other accumulated normal
6 contributions made by the participant.
7 Rule 3: The retirement annuity of a participant who is
8 employed at least one-half time during the period on which
9 his or her final rate of earnings is based, shall be equal to
10 the participant's years of service not to exceed 30,
11 multiplied by (1) $96 if the participant's final rate of
12 earnings is less than $3,500, (2) $108 if the final rate of
13 earnings is at least $3,500 but less than $4,500, (3) $120 if
14 the final rate of earnings is at least $4,500 but less than
15 $5,500, (4) $132 if the final rate of earnings is at least
16 $5,500 but less than $6,500, (5) $144 if the final rate of
17 earnings is at least $6,500 but less than $7,500, (6) $156 if
18 the final rate of earnings is at least $7,500 but less than
19 $8,500, (7) $168 if the final rate of earnings is at least
20 $8,500 but less than $9,500, and (8) $180 if the final rate
21 of earnings is $9,500 or more.
22 Rule 4: A participant who is at least age 50 and has 25
23 or more years of service as a police officer or firefighter,
24 and a participant who is age 55 or over and has at least 20
25 but less than 25 years of service as a police officer or
26 firefighter, shall be entitled to a retirement annuity of 2
27 1/4% of the final rate of earnings for each of the first 10
28 years of service as a police officer or firefighter, 2 1/2%
29 for each of the next 10 years of service as a police officer
30 or firefighter, and 2 3/4% for each year of service as a
31 police officer or firefighter in excess of 20. The
32 retirement annuity for all other service shall be computed
33 under Rule 1.
34 (b) The retirement annuity provided under Rules 1 and 3
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1 above shall be reduced by 1/2 of 1% for each month the
2 participant is under age 60 at the time of retirement.
3 However, this reduction shall not apply in the following
4 cases:
5 (1) For a disabled participant whose disability
6 benefits have been discontinued because he or she has
7 exhausted eligibility for disability benefits under
8 clause (6) (5) of Section 15-152;
9 (2) For a participant who has at least 35 years of
10 service; or
11 (3) For that portion of a retirement annuity which
12 has been provided on account of service of the
13 participant during periods when he or she performed the
14 duties of a police officer or firefighter, if these
15 duties were performed for at least 5 years immediately
16 preceding the date the retirement annuity is to begin.
17 (c) The maximum retirement annuity provided under Rules
18 1, 2, and 4 shall be the lesser of (1) the annual limit of
19 benefits as specified in Section 415 of the Internal Revenue
20 Code of 1986, as such Section may be amended from time to
21 time and as such benefit limits shall be adjusted by the
22 Commissioner of Internal Revenue, and (2) 75% of final rate
23 of earnings; however, this limitation of 75% of final rate of
24 earnings shall not apply to a person who is a participant or
25 annuitant on September 15, 1977 if it results in a retirement
26 annuity less than that which is payable to the annuitant or
27 which would have been payable to the participant under the
28 provisions of this Article in effect on June 30, 1977.
29 (d) An annuitant whose status as an employee terminates
30 after August 14, 1969 shall receive automatic increases in
31 his or her retirement annuity as follows:
32 Effective January 1 immediately following the date the
33 retirement annuity begins, the annuitant shall receive an
34 increase in his or her monthly retirement annuity of 0.125%
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1 of the monthly retirement annuity provided under Rule 1, Rule
2 2, Rule 3, or Rule 4, contained in this Section, multiplied
3 by the number of full months which elapsed from the date the
4 retirement annuity payments began to January 1, 1972, plus
5 0.1667% of such annuity, multiplied by the number of full
6 months which elapsed from January 1, 1972, or the date the
7 retirement annuity payments began, whichever is later, to
8 January 1, 1978, plus 0.25% of such annuity multiplied by the
9 number of full months which elapsed from January 1, 1978, or
10 the date the retirement annuity payments began, whichever is
11 later, to the effective date of the increase.
12 The annuitant shall receive an increase in his or her
13 monthly retirement annuity on each January 1 thereafter
14 during the annuitant's life of 3% of the monthly annuity
15 provided under Rule 1, Rule 2, Rule 3, or Rule 4 contained in
16 this Section. The change made under this subsection by P.A.
17 81-970 is effective January 1, 1980 and applies to each
18 annuitant whose status as an employee terminates before or
19 after that date.
20 Beginning January 1, 1990, all automatic annual increases
21 payable under this Section shall be calculated as a
22 percentage of the total annuity payable at the time of the
23 increase, including all increases previously granted under
24 this Article. The change made in this subsection by P.A.
25 85-1008 is effective January 26, 1988, and is applicable
26 without regard to whether status as an employee terminated
27 before that date.
28 (e) If, on January 1, 1987, or the date the retirement
29 annuity payment period begins, whichever is later, the sum of
30 the retirement annuity provided under Rule 1 or Rule 2 of
31 this Section and the automatic annual increases provided
32 under the preceding subsection or Section 15-136.1, amounts
33 to less than the retirement annuity which would be provided
34 by Rule 3, the retirement annuity shall be increased as of
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1 January 1, 1987, or the date the retirement annuity payment
2 period begins, whichever is later, to the amount which would
3 be provided by Rule 3 of this Section. Such increased amount
4 shall be considered as the retirement annuity in determining
5 benefits provided under other Sections of this Article. This
6 paragraph applies without regard to whether status as an
7 employee terminated before the effective date of this
8 amendatory Act of 1987, provided that the annuitant was
9 employed at least one-half time during the period on which
10 the final rate of earnings was based.
11 (f) A participant is entitled to such additional annuity
12 as may be provided on an actuarial equivalent basis, by any
13 accumulated additional contributions to his or her credit.
14 However, the additional contributions made by the participant
15 toward the automatic increases in annuity provided under this
16 Section shall not be taken into account in determining the
17 amount of such additional annuity.
18 (g) If, (1) by law, a function of a governmental unit,
19 as defined by Section 20-107 of this Code, is transferred in
20 whole or in part to an employer, and (2) a participant
21 transfers employment from such governmental unit to such
22 employer within 6 months after the transfer of the function,
23 and (3) the sum of (A) the annuity payable to the participant
24 under Rule 1, 2, or 3 of this Section (B) all proportional
25 annuities payable to the participant by all other retirement
26 systems covered by Article 20, and (C) the initial primary
27 insurance amount to which the participant is entitled under
28 the Social Security Act, is less than the retirement annuity
29 which would have been payable if all of the participant's
30 pension credits validated under Section 20-109 had been
31 validated under this system, a supplemental annuity equal to
32 the difference in such amounts shall be payable to the
33 participant.
34 (h) On January 1, 1981, an annuitant who was receiving a
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1 retirement annuity on or before January 1, 1971 shall have
2 his or her retirement annuity then being paid increased $1
3 per month for each year of creditable service. On January 1,
4 1982, an annuitant whose retirement annuity began on or
5 before January 1, 1977, shall have his or her retirement
6 annuity then being paid increased $1 per month for each year
7 of creditable service.
8 (i) On January 1, 1987, any annuitant whose retirement
9 annuity began on or before January 1, 1977, shall have the
10 monthly retirement annuity increased by an amount equal to 8¢
11 per year of creditable service times the number of years that
12 have elapsed since the annuity began.
13 (Source: P.A. 86-272; 86-273; 86-1028; revised 5-17-96.)
14 (40 ILCS 5/16-133) (from Ch. 108 1/2, par. 16-133)
15 Sec. 16-133. Retirement annuity; amount.
16 (a) The amount of the retirement annuity shall be the
17 larger of the amounts determined under paragraphs (A) and (B)
18 below:
19 (A) An amount consisting of the sum of the
20 following:
21 (1) An amount that can be provided on an
22 actuarially equivalent basis by the member's
23 accumulated contributions at the time of retirement;
24 and
25 (2) The sum of (i) the amount that can be
26 provided on an actuarially equivalent basis by the
27 member's accumulated contributions representing
28 service prior to July 1, 1947, and (ii) the amount
29 that can be provided on an actuarially equivalent
30 basis by the amount obtained by multiplying 1.4
31 times the member's accumulated contributions
32 covering service subsequent to June 30, 1947; and
33 (3) If there is prior service, 2 times the
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1 amount that would have been determined under
2 subparagraph (2) of paragraph (A) above on account
3 of contributions which would have been made during
4 the period of prior service creditable to the member
5 had the System been in operation and had the member
6 made contributions at the contribution rate in
7 effect prior to July 1, 1947.
8 (B) An amount consisting of the greatest greater of
9 the following:
10 (1) 1.67% of final average salary for each of
11 the first 10 years of creditable service, l.90% of
12 final average salary for each year in excess of 10
13 but not exceeding 20, 2.10% of final average salary
14 for each year in excess of 20 but not exceeding 30,
15 and 2.30% of final average salary for each year in
16 excess of 30; and
17 (2) for persons who retire after December 31,
18 1997, 2.2% of final average salary for each year of
19 service;
20 (3) 1 1/2% of final average salary for each
21 year of creditable service plus the sum $7.50 for
22 each of the first 20 years of creditable service.
23 The amount of the retirement annuity determined
24 under this paragraph (B) shall be reduced by 1/2 of 1%
25 for each month that the member is less than age 60 at the
26 time the retirement annuity begins. However, this
27 reduction shall not apply (i) if the member has at least
28 35 years of creditable service, or (ii) if the member
29 retires on account of disability under Section 16-149.2
30 of this Article with at least 20 years of creditable
31 service.
32 (b) For purposes of this Section, final average salary
33 shall be the average salary for the highest 4 consecutive
34 years within the last 10 years of creditable service as
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1 determined under rules of the board. The minimum final
2 average salary shall be considered to be $2,400 per year.
3 In the determination of final average salary for members
4 other than elected officials and their appointees when such
5 appointees are allowed by statute, that part of a member's
6 salary for any year beginning after June 30, 1979 which
7 exceeds the member's annual full-time salary rate with the
8 same employer for the preceding year by more than 20% shall
9 be excluded.
10 (c) In determining the amount of the retirement annuity
11 under paragraph (B) of this Section, a fractional year shall
12 be granted proportional credit.
13 (d) The retirement annuity determined under paragraph
14 (B) of this Section shall be available only to members who
15 render teaching service after July 1, 1947 for which member
16 contributions are required, and to annuitants who re-enter
17 under the provisions of Section 16-150.
18 (e) The maximum retirement annuity provided under
19 paragraph (B) of this Section shall be 75% of final average
20 salary.
21 (Source: P.A. 86-273; 87-794; 87-1265.)
22 (40 ILCS 5/17-116) (from Ch. 108 1/2, par. 17-116)
23 Sec. 17-116. Service retirement pension. Each teacher
24 having 20 years of service upon attainment of age 55, or who
25 thereafter attains age 55 shall be entitled to a service
26 retirement pension upon or after attainment of age 55; and
27 each teacher in service on or after July 1, 1971, with 5 or
28 more but less than 20 years of service shall be entitled to
29 receive a service retirement pension upon or after attainment
30 of age 62. Such pension is to be calculated as follows:
31 Beginning as of June 25, 1971, the service retirement
32 pension for a teacher who retires on or after such date but
33 before January 1, 1998, at age 60 or over, shall be 1.67% for
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1 each of the first 10 years of service; 1.90% for each of the
2 next 10 years of service; 2.10% for each year of service in
3 excess of 20 but not exceeding 30; and 2.30% for each year of
4 service in excess of 30, based upon average salary as herein
5 defined. The service retirement pension for a teacher who
6 retires after December 31, 1997 at age 60 or over shall be
7 2.2% of average salary for each year of service.
8 When computing such service retirement pensions, the
9 following conditions shall apply:
10 1. Average salary shall consist of the average annual
11 rate of salary for the 4 consecutive years of validated
12 service within the last 10 years of service when such average
13 annual rate was highest. In the determination of average
14 salary for retirement allowance purposes, for members who
15 commenced employment after August 31, 1979, that part of the
16 salary for any year shall be excluded which exceeds the
17 annual full-time salary rate for the preceding year by more
18 than 20%. In the case of a member who commenced employment
19 before August 31, 1979 and who receives salary during any
20 year after September 1, 1983 which exceeds the annual full
21 time salary rate for the preceding year by more than 20%, the
22 Board of Education or employer shall pay to the Fund an
23 amount equal to the present value of the additional service
24 retirement pension resulting from such excess salary. The
25 present value of the additional service retirement pension
26 shall be computed by the Board on the basis of actuarial
27 tables adopted by the Board. If a member elects to receive a
28 pension from this fund provided by Section 20-121, his salary
29 under the State Universities Retirement System and the
30 Teachers' Retirement System of the State of Illinois shall be
31 considered in determining such average salary. Amounts paid
32 after the effective date of this amendatory Act of 1991 for
33 unused vacation time earned after that effective date shall
34 not under any circumstances be included in the calculation of
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1 average salary or the annual rate of salary for the purposes
2 of this Article.
3 2. Proportionate credit shall be given for validated
4 service of less than one year.
5 3. For retirement at age 60 or over the pension shall be
6 payable at the full rate.
7 4. For separation from service below age 60 to a minimum
8 age of 55, the pension shall be discounted at the rate of
9 1/2 of one per cent for each month that the age of the
10 contributor is less than 60, but a teacher may elect to defer
11 the effective date of pension in order to eliminate or reduce
12 this discount. This discount shall not be applicable to any
13 participant who has at least 35 years of service on the date
14 the retirement annuity begins.
15 5. No additional pension shall be granted for service
16 exceeding 45 years. Beginning June 26, 1971 no pension shall
17 exceed the greater of $1,500 per month or 75% of average
18 salary as herein defined.
19 6. Service retirement pensions shall begin on the
20 effective date of resignation, retirement, the day following
21 the close of the payroll period for which service credit was
22 validated, or the time the person resigning or retiring
23 attains age 55, or on a date elected by the teacher,
24 whichever shall be latest.
25 (Source: P.A. 86-1488.)
26 Section 90. The State Mandates Act is amended by adding
27 Section 8.21 as follows:
28 (30 ILCS 805/8.21 new)
29 Sec. 8.21. Exempt mandate. Notwithstanding Sections 6
30 and 8 of this Act, no reimbursement by the State is required
31 for the implementation of any mandate created by this
32 amendatory Act of 1997.
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1 Section 95. No acceleration or delay. Where this Act
2 makes changes in a statute that is represented in this Act by
3 text that is not yet or no longer in effect (for example, a
4 Section represented by multiple versions), the use of that
5 text does not accelerate or delay the taking effect of (i)
6 the changes made by this Act or (ii) provisions derived from
7 any other Public Act.
8 Section 99. Effective date. This Act takes effect upon
9 becoming law.