[ Search ] [ Legislation ]
[ Home ] [ Back ] [ Bottom ]
91_HB2916
LRB9109080LDpr
1 AN ACT to amend the Illinois Pension Code by changing
2 Sections 16-132, 16-133, and 16-133.2.
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 16-132, 16-133, and 16-133.2 as follows:
7 (40 ILCS 5/16-132) (from Ch. 108 1/2, par. 16-132)
8 Sec. 16-132. Retirement annuity eligibility. A member
9 who has not begun receiving a retirement annuity before the
10 effective date of this amendatory Act of the 91st General
11 Assembly and who has at least 30 years of creditable service
12 is entitled to a retirement annuity at any age. A member who
13 has at least 20 years of creditable service is entitled to a
14 retirement annuity upon or after attainment of age 55. A
15 member who has at least 10 but less than 20 years of
16 creditable service is entitled to a retirement annuity upon
17 or after attainment of age 60. A member who has at least 5
18 but less than 10 years of creditable service is entitled to a
19 retirement annuity upon or after attainment of age 62. A
20 member who is eligible to receive a retirement annuity of at
21 least 74.6% of final average salary and will attain age 55 on
22 or before December 31 during the year which commences on July
23 1 shall be deemed to attain age 55 on the preceding June 1.
24 A member meeting the above eligibility conditions is
25 entitled to a retirement annuity upon written application to
26 the board setting forth the date the member wishes the
27 retirement annuity to commence. However, the effective date
28 of the retirement annuity shall be no earlier than the day
29 following the last day of creditable service, regardless of
30 the date of official termination of employment. To be
31 eligible for a retirement annuity, a member shall not be
-2- LRB9109080LDpr
1 employed as a teacher in the schools included under this
2 System or under Article 17, unless the member is disabled (in
3 which event, eligibility for salary must cease), or unless
4 the System is required by federal law to commence payment due
5 to the member's age; the changes to this sentence made by
6 this amendatory Act of 1991 shall apply without regard to
7 whether the member terminated employment before or after its
8 effective date.
9 (Source: P.A. 90-582, eff. 5-27-98.)
10 (40 ILCS 5/16-133) (from Ch. 108 1/2, par. 16-133)
11 Sec. 16-133. Retirement annuity; amount.
12 (a) The amount of the retirement annuity shall be the
13 larger of the amounts determined under paragraphs (A) and (B)
14 below:
15 (A) An amount consisting of the sum of the
16 following:
17 (1) An amount that can be provided on an
18 actuarially equivalent basis by the member's
19 accumulated contributions at the time of retirement;
20 and
21 (2) The sum of (i) the amount that can be
22 provided on an actuarially equivalent basis by the
23 member's accumulated contributions representing
24 service prior to July 1, 1947, and (ii) the amount
25 that can be provided on an actuarially equivalent
26 basis by the amount obtained by multiplying 1.4
27 times the member's accumulated contributions
28 covering service subsequent to June 30, 1947; and
29 (3) If there is prior service, 2 times the
30 amount that would have been determined under
31 subparagraph (2) of paragraph (A) above on account
32 of contributions which would have been made during
33 the period of prior service creditable to the member
-3- LRB9109080LDpr
1 had the System been in operation and had the member
2 made contributions at the contribution rate in
3 effect prior to July 1, 1947.
4 (B) An amount consisting of the greater of the
5 following:
6 (1) For creditable service earned before July
7 1, 1998 that has not been augmented under Section
8 16-129.1: 1.67% of final average salary for each of
9 the first 10 years of creditable service, 1.90% of
10 final average salary for each year in excess of 10
11 but not exceeding 20, 2.10% of final average salary
12 for each year in excess of 20 but not exceeding 30,
13 and 2.30% of final average salary for each year in
14 excess of 30; and
15 For creditable service earned on or after July
16 1, 1998 by a member who has at least 24 years of
17 creditable service on July 1, 1998 and who does not
18 elect to augment service under Section 16-129.1:
19 2.2% of final average salary for each year of
20 creditable service earned on or after July 1, 1998
21 but before the member reaches a total of 30 years of
22 creditable service and 2.3% of final average salary
23 for each year of creditable service earned on or
24 after July 1, 1998 and after the member reaches a
25 total of 30 years of creditable service; and
26 For all other creditable service: 2.2% of
27 final average salary for each year of creditable
28 service; or
29 (2) 1.5% of final average salary for each year
30 of creditable service plus the sum $7.50 for each of
31 the first 20 years of creditable service.
32 The amount of the retirement annuity determined under
33 this paragraph (B) shall be reduced by 1/2 of 1% for each
34 month that the member is less than age 60 at the time the
-4- LRB9109080LDpr
1 retirement annuity begins. However, this reduction shall
2 not apply (i) if the member has at least 35 years of
3 creditable service if the member began receiving a
4 retirement annuity before the effective date of this
5 amendatory Act of the 91st General Assembly or at least
6 30 years of creditable service if the member began
7 receiving a retirement annuity on or after the effective
8 date of this amendatory Act of the 91st General Assembly,
9 or (ii) if the member retires on account of disability
10 under Section 16-149.2 of this Article with at least 20
11 years of creditable service.
12 (b) For purposes of this Section, final average salary
13 shall be the average salary for the highest 4 consecutive
14 years within the last 10 years of creditable service as
15 determined under rules of the board. The minimum final
16 average salary shall be considered to be $2,400 per year.
17 In the determination of final average salary for members
18 other than elected officials and their appointees when such
19 appointees are allowed by statute, that part of a member's
20 salary for any year beginning after June 30, 1979 which
21 exceeds the member's annual full-time salary rate with the
22 same employer for the preceding year by more than 20% shall
23 be excluded.
24 (c) In determining the amount of the retirement annuity
25 under paragraph (B) of this Section, a fractional year shall
26 be granted proportional credit.
27 (d) The retirement annuity determined under paragraph
28 (B) of this Section shall be available only to members who
29 render teaching service after July 1, 1947 for which member
30 contributions are required, and to annuitants who re-enter
31 under the provisions of Section 16-150.
32 (e) The maximum retirement annuity provided under
33 paragraph (B) of this Section shall be 75% of final average
34 salary.
-5- LRB9109080LDpr
1 (f) A member retiring after the effective date of this
2 amendatory Act of 1998 shall receive a pension equal to 75%
3 of final average salary if the member is qualified to receive
4 a retirement annuity equal to at least 74.6% of final average
5 salary under this Article or as proportional annuities under
6 Article 20 of this Code.
7 (Source: P.A. 90-582, eff. 5-27-98; 91-17, eff. 6-4-99.)
8 (40 ILCS 5/16-133.2) (from Ch. 108 1/2, par. 16-133.2)
9 Sec. 16-133.2. Early retirement without discount. A
10 member retiring after June 1, 1980 and on or before June 30,
11 2005, and applying for a retirement annuity within 6 months
12 of the last day of teaching for which retirement
13 contributions were required, may elect at the time of
14 application for a retirement annuity, to make a one time
15 member contribution to the System and thereby avoid the
16 reduction in the retirement annuity for retirement before age
17 60 specified in paragraph (B) of Section 16-133. The
18 exercise of the election shall also obligate the last
19 employer to make a one time non-refundable contribution to
20 the System. Substitute teachers wishing to exercise this
21 election must teach 85 or more days in one school term with
22 one employer, who shall be deemed the last employer for
23 purposes of this Section. The last day of teaching with that
24 employer must be within 6 months of the date of application
25 for retirement. All substitute teaching credit applied
26 toward the required 85 days must be earned after June 30,
27 1990.
28 The one time member and employer contributions shall be a
29 percentage of the retiring member's highest annual salary
30 rate used in the determination of the average salary for
31 retirement annuity purposes. However, when determining the
32 one-time member and employer contributions, that part of a
33 member's salary with the same employer which exceeds the
-6- LRB9109080LDpr
1 annual salary rate for the preceding year by more than 20%
2 shall be excluded. The member contribution shall be at the
3 rate of 7% for the lesser of the following 2 periods: (1)
4 for each year that the member is less than age 60; or (2) for
5 each year that the member's creditable service is less than
6 35 years for a member who began receiving a retirement
7 annuity before the effective date of this amendatory Act of
8 the 91st General Assembly or 30 years for a member who began
9 receiving a retirement annuity on or after the effective date
10 of this amendatory Act of the 91st General Assembly. If a
11 member is at least age 55 and has at least 34 years of
12 creditable service, no member or employer contribution for
13 the early retirement option shall be required. The employer
14 contribution shall be at the rate of 20% for each year the
15 member is under age 60.
16 Upon receipt of the application and election, the System
17 shall determine the one time employee and employer
18 contributions required. The member contribution shall be
19 credited to the individual account of the member and the
20 employer contribution shall be credited to the Employer's
21 Contribution Reserve. The provisions of this Section shall
22 not be applicable until the member's contribution, if any,
23 has been received by the System; however, the date such
24 contributions are received shall not be considered in
25 determining the effective date of retirement.
26 The number of members working for a single employer who
27 may retire under this Section in any year may be limited at
28 the option of the employer to a specified percentage of those
29 eligible, not less than 30%, with the right to participate to
30 be allocated among those applying on the basis of seniority
31 in the service of the employer.
32 (Source: P.A. 90-582, eff. 5-27-98; 91-17, eff. 6-4-99.)
33 Section 99. Effective date. This Act takes effect upon
-7- LRB9109080LDpr
1 becoming law.