[ Search ] [ Legislation ]
[ Home ] [ Back ] [ Bottom ]
91_SB1703
LRB9111559EGfg
1 AN ACT to amend the Illinois Pension Code.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The Illinois Pension Code is amended by
5 changing Sections 16-132 and 16-133 as follows:
6 (40 ILCS 5/16-132) (from Ch. 108 1/2, par. 16-132)
7 Sec. 16-132. Retirement annuity eligibility. A member
8 who has at least 34 years of creditable service is entitled
9 to a retirement annuity at any age. A member who has at
10 least 20 years of creditable service is entitled to a
11 retirement annuity upon or after attainment of age 55. A
12 member who has at least 10 but less than 20 years of
13 creditable service is entitled to a retirement annuity upon
14 or after attainment of age 60. A member who has at least 5
15 but less than 10 years of creditable service is entitled to a
16 retirement annuity upon or after attainment of age 62. A
17 member who is eligible to receive a retirement annuity of at
18 least 74.6% of final average salary and will attain age 55 on
19 or before December 31 during the year which commences on July
20 1 shall be deemed to attain age 55 on the preceding June 1.
21 A member meeting the above eligibility conditions is
22 entitled to a retirement annuity upon written application to
23 the board setting forth the date the member wishes the
24 retirement annuity to commence. However, the effective date
25 of the retirement annuity shall be no earlier than the day
26 following the last day of creditable service, regardless of
27 the date of official termination of employment. To be
28 eligible for a retirement annuity, a member shall not be
29 employed as a teacher in the schools included under this
30 System or under Article 17, unless the member is disabled (in
31 which event, eligibility for salary must cease), or unless
-2- LRB9111559EGfg
1 the System is required by federal law to commence payment due
2 to the member's age; the changes to this sentence made by
3 this amendatory Act of 1991 shall apply without regard to
4 whether the member terminated employment before or after its
5 effective date.
6 (Source: P.A. 90-582, eff. 5-27-98.)
7 (40 ILCS 5/16-133) (from Ch. 108 1/2, par. 16-133)
8 Sec. 16-133. Retirement annuity; amount.
9 (a) The amount of the retirement annuity shall be the
10 larger of the amounts determined under paragraphs (A) and (B)
11 below:
12 (A) An amount consisting of the sum of the
13 following:
14 (1) An amount that can be provided on an
15 actuarially equivalent basis by the member's
16 accumulated contributions at the time of retirement;
17 and
18 (2) The sum of (i) the amount that can be
19 provided on an actuarially equivalent basis by the
20 member's accumulated contributions representing
21 service prior to July 1, 1947, and (ii) the amount
22 that can be provided on an actuarially equivalent
23 basis by the amount obtained by multiplying 1.4
24 times the member's accumulated contributions
25 covering service subsequent to June 30, 1947; and
26 (3) If there is prior service, 2 times the
27 amount that would have been determined under
28 subparagraph (2) of paragraph (A) above on account
29 of contributions which would have been made during
30 the period of prior service creditable to the member
31 had the System been in operation and had the member
32 made contributions at the contribution rate in
33 effect prior to July 1, 1947.
-3- LRB9111559EGfg
1 (B) An amount consisting of the greater of the
2 following:
3 (1) For creditable service earned before July
4 1, 1998 that has not been augmented under Section
5 16-129.1: 1.67% of final average salary for each of
6 the first 10 years of creditable service, 1.90% of
7 final average salary for each year in excess of 10
8 but not exceeding 20, 2.10% of final average salary
9 for each year in excess of 20 but not exceeding 30,
10 and 2.30% of final average salary for each year in
11 excess of 30; and
12 For creditable service earned on or after July
13 1, 1998 by a member who has at least 24 years of
14 creditable service on July 1, 1998 and who does not
15 elect to augment service under Section 16-129.1:
16 2.2% of final average salary for each year of
17 creditable service earned on or after July 1, 1998
18 but before the member reaches a total of 30 years of
19 creditable service and 2.3% of final average salary
20 for each year of creditable service earned on or
21 after July 1, 1998 and after the member reaches a
22 total of 30 years of creditable service; and
23 For all other creditable service: 2.2% of
24 final average salary for each year of creditable
25 service; or
26 (2) 1.5% of final average salary for each year
27 of creditable service plus the sum $7.50 for each of
28 the first 20 years of creditable service.
29 The amount of the retirement annuity determined under
30 this paragraph (B) shall be reduced by 1/2 of 1% for each
31 month that the member is less than age 60 at the time the
32 retirement annuity begins. However, this reduction shall
33 not apply (i) if the member has at least 34 35 years of
34 creditable service, or (ii) if the member retires on
-4- LRB9111559EGfg
1 account of disability under Section 16-149.2 of this
2 Article with at least 20 years of creditable service.
3 (b) For purposes of this Section, final average salary
4 shall be the average salary for the highest 4 consecutive
5 years within the last 10 years of creditable service as
6 determined under rules of the board. The minimum final
7 average salary shall be considered to be $2,400 per year.
8 In the determination of final average salary for members
9 other than elected officials and their appointees when such
10 appointees are allowed by statute, that part of a member's
11 salary for any year beginning after June 30, 1979 which
12 exceeds the member's annual full-time salary rate with the
13 same employer for the preceding year by more than 20% shall
14 be excluded.
15 (c) In determining the amount of the retirement annuity
16 under paragraph (B) of this Section, a fractional year shall
17 be granted proportional credit.
18 (d) The retirement annuity determined under paragraph
19 (B) of this Section shall be available only to members who
20 render teaching service after July 1, 1947 for which member
21 contributions are required, and to annuitants who re-enter
22 under the provisions of Section 16-150.
23 (e) The maximum retirement annuity provided under
24 paragraph (B) of this Section shall be 75% of final average
25 salary.
26 (f) A member retiring after the effective date of this
27 amendatory Act of 1998 shall receive a pension equal to 75%
28 of final average salary if the member is qualified to receive
29 a retirement annuity equal to at least 74.6% of final average
30 salary under this Article or as proportional annuities under
31 Article 20 of this Code.
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
-5- LRB9111559EGfg
1 becoming law.