Bill Text: IL HB0580 | 2009-2010 | 96th General Assembly | Introduced

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Bill Title: Amends the Chicago Teacher Article of the Illinois Pension Code. Establishes a minimum retirement pension of $1,500 per month for teachers with at least 20 years of service credit in the Fund. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2009-03-13 - Rule 19(a) / Re-referred to Rules Committee [HB0580 Detail]

Download: Illinois-2009-HB0580-Introduced.html

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96TH GENERAL ASSEMBLY State of Illinois 2009 and 2010 HB0580 Introduced 2/6/2009, by Rep. Angelo Saviano SYNOPSIS AS INTRODUCED:
40 ILCS 5/17-116 from Ch. 108 1/2, par. 17-116
40 ILCS 5/17-119 from Ch. 108 1/2, par. 17-119
30 ILCS 805/8.33 new
Amends the Chicago Teacher Article of the Illinois Pension Code. Establishes a minimum retirement pension of $1,500 per month for teachers with at least 20 years of service credit in the Fund. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.
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FISCAL NOTE ACT MAY APPLY PENSION IMPACT NOTE ACT MAY APPLY STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT
A BILL FOR
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AN ACT in relation to public employee benefits.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Pension Code is amended by changing
Sections 17-116 and 17-119 as follows:
(40 ILCS 5/17-116) (from Ch. 108 1/2, par. 17-116)
Sec. 17-116. Service retirement pension.
(a) Each teacher having 20 years of service upon attainment
of age 55, or who thereafter attains age 55 shall be entitled
to a service retirement pension upon or after attainment of age
55; and each teacher in service on or after July 1, 1971, with
5 or more but less than 20 years of service shall be entitled
to receive a service retirement pension upon or after
attainment of age 62.
(b) The service retirement pension for a teacher who
retires on or after June 25, 1971, at age 60 or over, shall be
calculated as follows:
(1) For creditable service earned before July 1, 1998
that has not been augmented under Section 17-119.1: 1.67%
for each of the first 10 years of service; 1.90% for each
of the next 10 years of service; 2.10% for each year of
service in excess of 20 but not exceeding 30; and 2.30% for
each year of service in excess of 30, based upon average

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salary as herein defined.
(2) For creditable service earned on or after July 1,
1998 by a member who has at least 30 years of creditable
service on July 1, 1998 and who does not elect to augment
service under Section 17-119.1: 2.3% of average salary for
each year of creditable service earned on or after July 1,
1998.
(3) For all other creditable service: 2.2% of average
salary for each year of creditable service.
(c) When computing such service retirement pensions, the
following conditions shall apply:
1. Average salary shall consist of the average annual
rate of salary for the 4 consecutive years of validated
service within the last 10 years of service when such
average annual rate was highest. In the determination of
average salary for retirement allowance purposes, for
members who commenced employment after August 31, 1979,
that part of the salary for any year shall be excluded
which exceeds the annual full-time salary rate for the
preceding year by more than 20%. In the case of a member
who commenced employment before August 31, 1979 and who
receives salary during any year after September 1, 1983
which exceeds the annual full time salary rate for the
preceding year by more than 20%, an Employer and other
employers of eligible contributors as defined in Section
17-106 shall pay to the Fund an amount equal to the present

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value of the additional service retirement pension
resulting from such excess salary. The present value of the
additional service retirement pension shall be computed by
the Board on the basis of actuarial tables adopted by the
Board. If a member elects to receive a pension from this
Fund provided by Section 20-121, his salary under the State
Universities Retirement System and the Teachers'
Retirement System of the State of Illinois shall be
considered in determining such average salary. Amounts
paid after the effective date of this amendatory Act of
1991 for unused vacation time earned after that effective
date shall not under any circumstances be included in the
calculation of average salary or the annual rate of salary
for the purposes of this Article.
2. Proportionate credit shall be given for validated
service of less than one year.
3. For retirement at age 60 or over the pension shall
be payable at the full rate.
4. For separation from service below age 60 to a
minimum age of 55, the pension shall be discounted at the
rate of 1/2 of one per cent for each month that the age of
the contributor is less than 60, but a teacher may elect to
defer the effective date of pension in order to eliminate
or reduce this discount. This discount shall not be
applicable to any participant who has at least 34 years of
service or a retirement pension of at least 74.6% of

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average salary on the date the retirement annuity begins.
5. No additional pension shall be granted for service
exceeding 45 years. Beginning June 26, 1971 no pension
shall exceed the greater of $1,500 per month or 75% of
average salary as herein defined.
6. Service retirement pensions shall begin on the
effective date of resignation, retirement, the day
following the close of the payroll period for which service
credit was validated, or the time the person resigning or
retiring attains age 55, or on a date elected by the
teacher, whichever shall be latest.
7. A member who is eligible to receive a retirement
pension of at least 74.6% of average salary and will attain
age 55 on or before December 31 during the year which
commences on July 1 shall be deemed to attain age 55 on the
preceding June 1.
8. A member retiring after the effective date of this
amendatory Act of 1998 shall receive a pension equal to 75%
of average salary if the member is qualified to receive a
retirement pension equal to at least 74.6% of average
salary under this Article or as proportional annuities
under Article 20 of this Code.
(d) Notwithstanding the other provisions of this Section,
the minimum retirement pension payable to a person with at
least 20 years of service credit under this Article who begins
receiving a retirement pension (other than a reversionary

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pension) on or after January 1, 2010 shall be $1,500 per month.
(Source: P.A. 90-566, eff. 1-2-98; 90-582, eff. 5-27-98.)
(40 ILCS 5/17-119) (from Ch. 108 1/2, par. 17-119)
Sec. 17-119. Automatic annual increase in pension.
(a) Each teacher retiring on or after September 1, 1959, is
entitled to the annual increase in pension, defined herein,
while he is receiving a pension from the Fund.
1. The term "base pension" means a service retirement
or disability retirement pension in the amount fixed and
payable at the date of retirement of a teacher.
2. The annual increase in pension shall be at the rate
of 1 1/2% of base pension. This increase shall first occur
in January of the year next following the first anniversary
of retirement. At such time the Fund shall pay the pro rata
part of the increase for the period from the first
anniversary date to the date of the first increase in
pension. Beginning January 1, 1972, the rate of annual
increase in pension shall be 2% of the base pension.
Beginning January 1, 1979, the rate of annual increase in
pension shall be 3% of the base pension. Beginning January
1, 1990, all automatic annual increases payable under this
Section shall be calculated as a percentage of the total
pension payable at the time of the increase, including all
increases previously granted under this Article,
notwithstanding Section 17-157.

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3. An increase in pension shall be granted only if the
retired teacher is age 60 or over. If the teacher attains
age 60 after retirement, the increase in pension shall
begin in January of the year following the 61st birthday.
At such time the Fund also shall pay the pro rata part of
the increase from the 61st birthday to the date of first
increase in pension.
(b) In addition to other increases which may be provided by
this Section, on January 1, 1981 any teacher who was receiving
a retirement pension on or before January 1, 1971 shall have
his retirement pension then being paid increased $1 per month
for each year of creditable service. On January 1, 1982, any
teacher whose retirement pension began on or before January 1,
1977, shall have his retirement pension then being paid
increased $1 per month for each year of creditable service.
(c) On January 1, 1987, any teacher whose retirement
pension began on or before January 1, 1977, shall have the
monthly retirement pension increased by an amount equal to 8¢
per year of creditable service times the number of years that
have elapsed since the retirement pension began.
(d) On January 1, 2010, every pensioner with at least 20
years of service credit under this Article who is receiving a
retirement pension (other than a reversionary pension) of less
than $1,500 per month shall have the retirement pension
increased to $1,500 on that date, notwithstanding Section
17-157. The increase under this subsection shall be included in

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the calculation of the increases granted on that date or
thereafter under subsection (a) of this Section.
(Source: P.A. 90-566, eff. 1-2-98.)
Section 90. The State Mandates Act is amended by adding
Section 8.33 as follows:
(30 ILCS 805/8.33 new)
Sec. 8.33. Exempt mandate. Notwithstanding Sections 6 and 8
of this Act, no reimbursement by the State is required for the
implementation of any mandate created by this amendatory Act of
the 96th General Assembly.
Section 99. Effective date. This Act takes effect upon