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92_HB2157eng HB2157 Engrossed LRB9205315LDcs 1 AN ACT in relation to public employee benefits. 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 Section 17-116.3 as follows: 6 (40 ILCS 5/17-116.3) 7 Sec. 17-116.3. Early retirement incentives. 8 (a) A teacher who is covered by a collective bargaining 9 agreement shall not be eligible for the early retirement 10 incentives provided under this Section unless the collective 11 bargaining agent and the Board of Education have entered into 12 an agreement under which the agent agrees that any payment 13 for accumulated unused sick days to which the employee is 14 entitled upon withdrawal from service may be paid by the 15 Board of Education in installments over a period of up to 5 16 years, and a copy of this agreement has been filed with the 17 Board of the Fund. 18 To be eligible for the benefits provided in this Section, 19 a person must: 20 (1) be a member of this Fund who, on or after May 21 1, 1993, is (i) in active payroll status as a teacher, or 22 (ii) on layoff status from such a position with a right 23 of re-employment or recall to service, or (iii) on leave 24 of absence from such a position, but only if the member 25 on leave has not been receiving a disability benefit 26 under this Article for a continuous period of 2 years or 27 more as of the date of application; 28 (2) have not previously received a retirement 29 pension under this Article; 30 (3) file with the Board and the Board of Education, 31 before August 15, 1993, a written application requesting HB2157 Engrossed -2- LRB9205315LDcs 1 the benefits provided in this Section and a notice of 2 resignation from employment, which resignation must take 3 effect before September 1, 1993 unless the applicant's 4 retirement is delayed under subsection (e), (f), or (f-5) 5 of this Section; 6 (4) be eligible to receive a retirement pension 7 under this Article (for which purpose any age enhancement 8 or creditable service received under this Section may be 9 used) and elect to receive the retirement pension 10 beginning no earlier than June 1, 1993 and no later than 11 September 1, 1993 or the date established under 12 subsection (e), (f), or (f-5) of this Section, if 13 applicable; 14 (5) have attained age 50 (without the use of any 15 age enhancement or creditable service received under this 16 Section) by the effective date of the retirement pension; 17 (6) have at least 5 years of creditable service 18 under this Fund or any of the participating systems under 19 the Retirement Systems Reciprocal Act (without the use of 20 any creditable service received under this Section) by 21 the effective date of the retirement pension. 22 (b) An eligible person may establish up to 5 years of 23 creditable service under this Section. In addition, for each 24 period of creditable service established under this Section, 25 a person's age at retirement shall be deemed to be increased 26 by an equal period. 27 The creditable service established under this Section may 28 be used for all purposes under this Article and the 29 Retirement Systems Reciprocal Act, except for the purposes of 30 Section 17-116.1, and the determination of average salary or 31 compensation under this or any other Article of this Code. 32 The age enhancement established under this Section may be 33 used for all purposes under this Article (including 34 calculation of a proportionate pension payable by this Fund HB2157 Engrossed -3- LRB9205315LDcs 1 under the Retirement Systems Reciprocal Act), except for 2 purposes of the reversionary pension under Section 17-120, 3 and distributions required by federal law on account of age. 4 However, age enhancement established under this Section shall 5 not be used in determining benefits payable under other 6 Articles of this Code under the Retirement Systems Reciprocal 7 Act. 8 (c) For all creditable service established under this 9 Section, the employer must pay to the Fund an employer 10 contribution consisting of 12% of the member's highest annual 11 full-time rate of compensation for each year of creditable 12 service granted under this Section. 13 The employer contribution shall be paid to the Fund in 14 one of the following ways: (i) in a single sum at the time 15 of the member's retirement, (ii) in equal quarterly 16 installments over a period of 5 years from the date of 17 retirement, or (iii) subject to the approval of the Board of 18 the Fund, in unequal installments over a period of no more 19 than 5 years from the date of retirement, as provided in a 20 payment plan designed by the Fund to accommodate the needs of 21 the employer. The employer's failure to make the required 22 contributions in a timely manner shall not affect the payment 23 of the retirement pension. 24 For all creditable service established under this 25 Section, the employee must pay to the Fund an employee 26 contribution consisting of 4% of the member's highest annual 27 salary rate used in the determination of the retirement 28 pension for each year of creditable service granted under 29 this Section. The employee contribution shall be deducted 30 from the retirement annuity in 24 monthly installments. 31 (d) An annuitant who has received any age enhancement or 32 creditable service under this Section and whose pension is 33 suspended or cancelled under Section 17-149 or 17-150 shall 34 thereby forfeit the age enhancement and creditable service. HB2157 Engrossed -4- LRB9205315LDcs 1 The forfeiture of creditable service under this subsection 2 shall not entitle the employer to a refund of the employer 3 contribution paid under this Section, nor to forgiveness of 4 any part of that contribution that remains unpaid. The 5 forfeiture of creditable service under this subsection shall 6 not entitle the employee to a refund of the employee 7 contribution paid under this Section. 8 (e) If the number of employees of an employer that apply 9 for early retirement under this Section exceeds 30% of those 10 eligible, the employer may require that, for any or all of 11 the number of applicants in excess of that 30%, the starting 12 date of the retirement pension enhanced under this Section be 13 no earlier than June 1, 1994 and no later than September 1, 14 1994. The right to have the retirement pension begin before 15 June 1, 1994 shall be allocated among the applicants on the 16 basis of seniority in the service of that employer. 17 This delay applies only to persons who are applying for 18 early retirement incentives under this Section, and does not 19 prevent a person whose application for early retirement 20 incentives has been withdrawn from beginning to receive a 21 retirement pension on the earliest date upon which the person 22 is otherwise eligible under this Article. 23 (f) For a member who is notified after July 30, 1993, 24 but before November 29, 1993, that he or she will become a 25 supernumerary or reserve teacher in the 1993-1994 school 26 year: (1) the August 15, 1993 application deadline in 27 subdivision (a)(3) of this Section is extended to December 28 14, 1993, (2) the September 1, 1993 deadline in subdivision 29 (a)(4) of this Section is extended to December 14, 1993, and 30 (3) the member shall not be included in the calculation of 31 the 30% under subsection (e) and is not subject to delay in 32 retirement under that subsection. 33 (f-5) For a member who is notified after January 1, 34 1994, but before March 1, 1994, that he or she will become a HB2157 Engrossed -5- LRB9205315LDcs 1 reserve teacher in the 1993-1994 school year: (1) the August 2 15, 1993 application deadline in subdivision (a)(3) of this 3 Section is extended to April 1, 1994; (2) the September 1, 4 1993 deadline in subdivision (a)(4) of this Section is 5 extended to April 1, 1994; and (3) the member shall not be 6 included in the calculation of the 30% under subsection (e) 7 and is not subject to delay in retirement under that 8 subsection. 9 (g) A member who receives any early retirement incentive 10 under Section 17-116.4, 17-116.5 or 17-116.6 may not receive 11 any early retirement incentive under this Section. 12 (h) The version of this Section included in Public Act 13 88-85 is intended to and shall control over the version of 14 this Section included in Public Act 88-89, notwithstanding 15 Section 6 of the Statute on Statutes. All persons qualifying 16 for early retirement incentives under this Section shall be 17 subject to the limitations and restrictions provided in the 18 version of this Section included in Public Act 88-85, as 19 amended by Public Act 88-511. 20 (i) In addition to the benefits provided under the other 21 provisions of this Section, every person who receives early 22 retirement benefits under this Section is entitled to one 23 additional year of creditable service and a corresponding 24 year of additional age enhancement, for which no additional 25 contribution is required. Every person who receives early 26 retirement benefits under this Section whose retirement 27 annuity has been calculated on the basis of a 4-year average 28 salary is also entitled to have the annuity recalculated on 29 the basis of the average salary for the 3 highest consecutive 30 years within the last 10 years of service. 31 The additional benefits provided by this subsection (i) 32 shall begin to accrue on the date the retirement annuity 33 began, notwithstanding Section 17-157. The Fund shall 34 recalculate all annuities originally calculated under this HB2157 Engrossed -6- LRB9205315LDcs 1 Section to reflect the additional benefits provided under 2 this subsection and shall pay to the annuitant in a lump sum 3 the difference between the annuity payments paid before the 4 date of the recalculation and the recalculated amount of 5 those payments. 6 (Source: P.A. 88-85; 88-89; 88-511; 88-670, eff. 12-2-94.) 7 Section 10. The State Mandates Act is amended by adding 8 Section 8.25 as follows: 9 (30 ILCS 805/8.25 new) 10 Sec. 8.25. Exempt mandate. Notwithstanding Sections 6 11 and 8 of this Act, no reimbursement by the State is required 12 for the implementation of any mandate created by this 13 amendatory Act of the 92nd General Assembly. 14 Section 99. Effective date. This Act takes effect upon 15 becoming law.