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91_SB0055ham001
LRB9100709EGfgam02
1 AMENDMENT TO SENATE BILL 55
2 AMENDMENT NO. . Amend Senate Bill 55 on page 1, in
3 line 2, by changing "and 16-133.2" to "16-133.2, 17-116.1,
4 and 17-119.1 and to amend the State Mandates Act"; and
5 on page 1, in line 6, by changing "and 16-133.2" to
6 "16-133.2, 17-116.1, and 17-119.1"; and
7 on page 7, below line 24, by inserting the following:
8 "(40 ILCS 5/17-116.1) (from Ch. 108 1/2, par. 17-116.1)
9 Sec. 17-116.1. Early retirement without discount.
10 (a) A member retiring after June 1, 1980 and before June
11 30, 1995 and within 6 months of the last day of teaching for
12 which retirement contributions were required, may elect at
13 the time of application to make a one time employee
14 contribution to the system and thereby avoid the early
15 retirement reduction in allowance specified in paragraph (4)
16 of Section 17-116 of this Article. The exercise of the
17 election shall obligate the last Employer to also make a one
18 time non-refundable contribution to the Fund.
19 (b) Subject to authorization by the Employer as provided
20 in subsection (c), a member retiring on or after June 30,
21 1995 and on or before June 30, 2005 2000 and within 6 months
22 of the last day of teaching for which retirement
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1 contributions were required may elect at the time of
2 application to make a one-time employee contribution to the
3 Fund and thereby avoid the early retirement reduction in
4 allowance specified in paragraph (4) of Section 17-116. The
5 exercise of the election shall obligate the last Employer to
6 also make a one-time nonrefundable contribution to the Fund.
7 (c) The benefits provided in subsection (b) are
8 available only to members who retire, during a specified
9 period, from employment with an Employer that has adopted and
10 filed with the Board a resolution expressly providing for the
11 creation of an early retirement without discount program
12 under this Section for that period.
13 The Employer has the full discretion and authority to
14 determine whether an early retirement without discount
15 program is in its best interest and to provide such a program
16 to its eligible employees in accordance with this Section.
17 The Employer may decide to authorize such a program for one
18 or more of the following periods: for the period beginning
19 July 1, 1997 and ending June 30, 1998, in which case the
20 resolution must be adopted by January 1, 1998; for the period
21 beginning July 1, 1998 and ending June 30, 1999, in which
22 case the resolution must be adopted by March 31, 1998; and
23 for the period beginning July 1, 1999 and ending June 30,
24 2000, in which case the resolution must be adopted by March
25 31, 1999; for the period beginning July 1, 2000 and ending
26 June 30, 2001, in which case the resolution must be adopted
27 by March 31, 2000; for the period beginning July 1, 2001 and
28 ending June 30, 2002, in which case the resolution must be
29 adopted by March 31, 2001; for the period beginning July 1,
30 2002 and ending June 30, 2003, in which case the resolution
31 must be adopted by March 31, 2002; for the period beginning
32 July 1, 2003 and ending June 30, 2004, in which case the
33 resolution must be adopted by March 31, 2003; and for the
34 period beginning July 1, 2004 and ending June 30, 2005, in
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1 which case the resolution must be adopted by March 31, 2004.
2 The resolution must be filed with the Board within 10 days
3 after it is adopted. A single resolution may authorize an
4 early retirement without discount program as provided in this
5 Section for more than one period.
6 Notwithstanding Section 17-157, the Employer shall also
7 have full discretion and authority to determine whether to
8 allow its employees who withdrew from service on or after
9 June 30, 1995 and before June 27, 1997 to participate in an
10 early retirement without discount program under subsection
11 (b). An early retirement without discount program for those
12 who withdrew from service on or after June 30, 1995 and
13 before June 27, 1997 may be authorized only by a resolution
14 of the Employer that is adopted by January 1, 1998 and filed
15 with the Board within 10 days after its adoption. If such a
16 resolution is duly adopted and filed, a person who (i)
17 withdrew from service with the Employer on or after June 30,
18 1995 and before June 27, 1997, (ii) qualifies for early
19 retirement without discount under subsection (b), (iii)
20 applies to the Fund within 90 days after the authorizing
21 resolution is adopted, and (iv) pays the required employee
22 contribution shall have his or her retirement pension
23 recalculated in accordance with subsection (b). The
24 resulting increase shall be effective retroactively to the
25 starting date of the retirement pension.
26 (d) The one-time employee contribution shall be equal to
27 7% of the retiring member's highest full-time annual salary
28 rate used in the determination of the average salary rate for
29 retirement pension, or if not full-time then the full-time
30 equivalent, multiplied by (1) the number of years the teacher
31 is under age 60, or (2) the number of years the employee's
32 creditable service is less than 34 35 years, whichever is
33 less.
34 The Employer contribution shall be 20% of such salary
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1 multiplied by such number of years.
2 (e) Upon receipt of the application and election, the
3 Board shall determine the one time employee and Employer
4 contributions. The provisions of this Section shall not be
5 applicable until the employee contribution, if any, has all
6 the above outlined contributions have been received by the
7 Fund; however, the date that contribution is such
8 contributions are received shall not be considered in
9 determining the effective date of retirement.
10 (f) The number of employees who may retire under this
11 Section in any year may be limited at the option of the
12 Employer to a specified percentage of those eligible, not
13 lower than 30%, with the right to participate to be allocated
14 among those applying on the basis of seniority in the service
15 of the Employer.
16 (Source: P.A. 90-32, eff. 6-27-97; 90-448, eff. 8-16-97;
17 90-566, eff. 1-2-98.)
18 (40 ILCS 5/17-119.1)
19 Sec. 17-119.1. Optional increase in retirement annuity.
20 (a) A member of the Fund may qualify for the augmented
21 rate under subdivision (b)(3) of Section 17-116 for all years
22 of creditable service earned before July 1, 1998 by making
23 the optional contribution specified in subsection (b). A
24 member may not elect to qualify for the augmented rate for
25 only a portion of his or her creditable service earned before
26 July 1, 1998.
27 (b) The contribution shall be an amount equal to 1.0% of
28 the member's highest salary rate in the 4 consecutive school
29 years immediately prior to but not including the school year
30 in which the application occurs, multiplied by the number of
31 years of creditable service earned by the member before July
32 1, 1998 or 20, whichever is less. This contribution shall be
33 reduced by 1.0% of that salary rate for every 3 full years of
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1 creditable service earned by the member after June 30, 1998.
2 The contribution shall be further reduced at the rate of 25%
3 of the contribution (as reduced for service after June 30,
4 1998) for each year of the member's total creditable service
5 in excess of 34 years. The contribution shall not in any
6 event exceed 20% of that salary rate.
7 The member shall pay to the Fund the amount of the
8 contribution as calculated at the time of application under
9 this Section. The amount of the contribution determined
10 under this subsection shall be recalculated at the time of
11 retirement, and if the Fund determines that the amount paid
12 by the member exceeds the recalculated amount, the Fund shall
13 refund the difference to the member with regular interest
14 from the date of payment to the date of refund.
15 The contribution required by this subsection shall be
16 paid in one of the following ways or in a combination of the
17 following ways that does not extend over more than 5 years:
18 (i) in a lump sum on or before the date of
19 retirement;
20 (ii) in substantially equal installments over a
21 period of time not to exceed 5 years, as a deduction from
22 salary in accordance with Section 17-130.2;
23 (iii) if the member becomes an annuitant before
24 June 30, 2003, in substantially equal monthly
25 installments over a 24-month period, by a deduction from
26 the annuitant's monthly benefit.
27 (c) If the member fails to make the full contribution
28 under this Section in a timely fashion, the payments made
29 under this Section shall be refunded to the member, without
30 interest. If the member dies before making the full
31 contribution, the payments made under this Section shall be
32 refunded to the member's designated beneficiary.
33 (d) For purposes of this Section and subsection (b) of
34 Section 17-116, optional creditable service established by a
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1 member shall be deemed to have been earned at the time of the
2 employment or other qualifying event upon which the service
3 is based, rather than at the time the credit was established
4 in this Fund.
5 (e) The contributions required under this Section are
6 the responsibility of the teacher and not the teacher's
7 employer. However, an employer of teachers may, after the
8 effective date of this amendatory Act of 1998, specifically
9 agree, through collective bargaining or otherwise, to make
10 the contributions required by this Section on behalf of those
11 teachers.
12 (Source: P.A. 90-582, eff. 5-27-98.)
13 Section 90. The State Mandates Act is amended by adding
14 Section 8.23 as follows:
15 (30 ILCS 805/8.23 new)
16 Sec. 8.23. Exempt mandate. Notwithstanding Sections 6
17 and 8 of this Act, no reimbursement by the State is required
18 for the implementation of any mandate created by this
19 amendatory Act of the 91st General Assembly.".