Bill Text: IL SB1366 | 2013-2014 | 98th General Assembly | Enrolled
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Amends the Cook County Article of the Illinois Pension Code. Defines the term "earned annuity". Effective immediately.
Spectrum: Moderate Partisan Bill (Democrat 5-1)
Status: (Passed) 2013-06-28 - Public Act . . . . . . . . . 98-0042 [SB1366 Detail]
Download: Illinois-2013-SB1366-Enrolled.html
Bill Title: Amends the Cook County Article of the Illinois Pension Code. Defines the term "earned annuity". Effective immediately.
Spectrum: Moderate Partisan Bill (Democrat 5-1)
Status: (Passed) 2013-06-28 - Public Act . . . . . . . . . 98-0042 [SB1366 Detail]
Download: Illinois-2013-SB1366-Enrolled.html
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1 | AN ACT concerning public employee benefits.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Illinois Pension Code is amended by changing | ||||||
5 | Sections 16-133.2, 16-152, and 16-176 as follows:
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6 | (40 ILCS 5/16-133.2) (from Ch. 108 1/2, par. 16-133.2)
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7 | Sec. 16-133.2. Early retirement without discount. | ||||||
8 | (a) A member
retiring after June 1, 1980 and on or before | ||||||
9 | June 30, 2005 (or as provided in subsection (b) of this | ||||||
10 | Section), and
applying for a retirement annuity within 6 months | ||||||
11 | of the last day of
teaching for which retirement contributions | ||||||
12 | were required,
may elect at the time of application for a | ||||||
13 | retirement annuity, to make
a one time member contribution to | ||||||
14 | the System and thereby
avoid the reduction in the retirement | ||||||
15 | annuity for retirement before age
60 specified in paragraph (B) | ||||||
16 | of Section 16-133. The exercise of the
election shall also | ||||||
17 | obligate the last employer to make a one time
non-refundable | ||||||
18 | contribution to the System. Substitute teachers wishing to
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19 | exercise this election must teach 85 or more days in one school | ||||||
20 | term with
one employer, who shall be deemed the last employer | ||||||
21 | for purposes of this
Section. The last day of teaching with | ||||||
22 | that employer must be within 6
months of the date of | ||||||
23 | application for retirement. All substitute
teaching credit |
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1 | applied toward the required 85 days must be earned after
June | ||||||
2 | 30, 1990.
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3 | The one time member and employer contributions shall be a | ||||||
4 | percentage of
the retiring member's highest annual salary rate | ||||||
5 | used in the determination
of the average salary for retirement | ||||||
6 | annuity purposes. However, when
determining the one-time | ||||||
7 | member and employer contributions, that part of a
member's | ||||||
8 | salary with the same employer which exceeds the annual salary | ||||||
9 | rate
for the preceding year by more than 20% shall be excluded. | ||||||
10 | The member
contribution shall be at the rate of 7% for the | ||||||
11 | lesser of the following 2
periods: (1) for each year that the | ||||||
12 | member is less than age 60; or (2) for
each year that the | ||||||
13 | member's creditable service is less than 35 years. If a
member | ||||||
14 | is at least age 55 and has at least 34 years of creditable | ||||||
15 | service, no
member or employer contribution for the early | ||||||
16 | retirement option shall be
required. The employer contribution | ||||||
17 | shall be at the rate of 20% for each year
the member is under | ||||||
18 | age 60.
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19 | Upon receipt of the application and election, the System | ||||||
20 | shall determine
the one time employee and employer | ||||||
21 | contributions required. The member
contribution shall be | ||||||
22 | credited to the individual account of the member and
the | ||||||
23 | employer contribution shall be credited to the Benefit Trust | ||||||
24 | Reserve. The
provisions of this subsection (a) providing for | ||||||
25 | the avoidance of the reduction in retirement annuity shall
not | ||||||
26 | be applicable until the member's contribution, if any, has been |
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1 | received
by the System; however, the date such contributions | ||||||
2 | are received shall not be
considered in determining the | ||||||
3 | effective date of retirement.
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4 | The number of members working for a single employer who may
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5 | retire under this subsection or subsection (b) in any year may | ||||||
6 | be limited at the option
of the employer to a specified | ||||||
7 | percentage of those eligible, not less
than 30%, with the right | ||||||
8 | to participate to be allocated among those
applying on the | ||||||
9 | basis of seniority in the service of the employer.
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10 | (b) The provisions of subsection (a) of this Section shall | ||||||
11 | remain in effect for a member retiring after June 30, 2005 and | ||||||
12 | on or before July 1, 2007, provided that the member satisfies | ||||||
13 | both of the following requirements: | ||||||
14 | (1) the member notified his or her employer of intent | ||||||
15 | to retire under this Article on or before the effective | ||||||
16 | date of this amendatory Act of the 94th General Assembly | ||||||
17 | under the terms of a contract or collective bargaining | ||||||
18 | agreement entered into, amended, or renewed with the | ||||||
19 | employer on or before the effective date of this amendatory | ||||||
20 | Act of the 94th General Assembly; and
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21 | (2) the effective date of the member's retirement is on | ||||||
22 | or before July 1, 2007. | ||||||
23 | The member's employer must give evidence of the member's | ||||||
24 | notification by providing to the System:
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25 | (i) a copy of the member's notification to the employer | ||||||
26 | or the record of that notification;
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1 | (ii) an affidavit signed by the member and the | ||||||
2 | employer, verifying the notification; and
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3 | (iii) any additional documentation that the System may | ||||||
4 | require.
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5 | (c) Except as otherwise provided in subsection (b), and | ||||||
6 | subject to the provisions of Section 16-176, a member retiring | ||||||
7 | on or after July 1, 2005 and on or before June 30, 2013 (or | ||||||
8 | January 1, 2014 in the case of a member who has filed a notice | ||||||
9 | of intent to retire with his or her employer on or before June | ||||||
10 | 30, 2013 and attains age 55 during the period July 1, 2013 | ||||||
11 | through December 31, 2013) , and applying for a retirement | ||||||
12 | annuity within 6 months of the last day of teaching for which | ||||||
13 | retirement contributions were required, and whose last day of | ||||||
14 | teaching is on or before June 30, 2013, may elect at the time | ||||||
15 | of application for a retirement annuity, to make a one-time | ||||||
16 | member contribution to the System and thereby avoid the | ||||||
17 | reduction in the retirement annuity for retirement before age | ||||||
18 | 60 specified in paragraph (B) of Section 16-133. The exercise | ||||||
19 | of the election shall also obligate the last employer to make a | ||||||
20 | one-time nonrefundable contribution to the System. Substitute | ||||||
21 | teachers wishing to exercise this election must teach 85 or | ||||||
22 | more days in one school term with one employer, who shall be | ||||||
23 | deemed the last employer for purposes of this Section. The last | ||||||
24 | day of teaching with that employer must be within 6 months of | ||||||
25 | the date of application for retirement. All substitute teaching | ||||||
26 | credit applied toward the required 85 days must be earned after |
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1 | June 30, 1990. | ||||||
2 | The one-time member and employer contributions shall be a | ||||||
3 | percentage of the retiring member's highest annual salary rate | ||||||
4 | used in the determination of the average salary for retirement | ||||||
5 | annuity purposes. However, when determining the one-time | ||||||
6 | member and employer contributions, that part of a member's | ||||||
7 | salary with the same employer which exceeds the annual salary | ||||||
8 | rate for the preceding year by more than 20% shall be excluded. | ||||||
9 | The member contribution shall be at the rate of 11.5% for the | ||||||
10 | lesser of the following 2 periods: (1) for each year that the | ||||||
11 | member is less than age 60; or (2) for each year that the | ||||||
12 | member's creditable service is less than 35 years. The employer | ||||||
13 | contribution shall be at the rate of 23.5% for each year the | ||||||
14 | member is under age 60. | ||||||
15 | Upon receipt of the application and election, the System | ||||||
16 | shall determine the one-time employee and employer | ||||||
17 | contributions required. The member contribution shall be | ||||||
18 | credited to the individual account of the member and the | ||||||
19 | employer contribution shall be credited to the Benefit Trust | ||||||
20 | Reserve. The avoidance of the reduction in retirement annuity | ||||||
21 | provided under this subsection (c) is not applicable until the | ||||||
22 | member's contribution, if any, has been received by the System; | ||||||
23 | however, the date that contribution is received shall not be | ||||||
24 | considered in determining the effective date of retirement.
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25 | The number of members working for a single employer who may | ||||||
26 | retire under this subsection (c) in any year may be limited at |
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1 | the option of the employer to a specified percentage of those | ||||||
2 | eligible, not less than 10%, with the right to participate to | ||||||
3 | be allocated among those applying on the basis of seniority in | ||||||
4 | the service of the employer. | ||||||
5 | For persons not qualifying for the early retirement without | ||||||
6 | discount option under this subsection (c), the option is | ||||||
7 | extended for 3 years under subsection (d), but subject to the | ||||||
8 | changes in eligibility, conditions, and required contributions | ||||||
9 | provided in that subsection. | ||||||
10 | (d) A member who is not eligible for the early retirement | ||||||
11 | without discount option under subsection (c) may qualify for | ||||||
12 | the early retirement without discount option under this | ||||||
13 | subsection (d) if the member (1) retires on or after July 1, | ||||||
14 | 2013 and before July 1, 2016, (2) applies for a retirement | ||||||
15 | annuity within 6 months of the last day of teaching for which | ||||||
16 | retirement contributions were required, and (3) receives a | ||||||
17 | certification of eligibility under this subsection from the | ||||||
18 | member's last employer. Substitute teachers wishing to | ||||||
19 | exercise this election must teach 85 or more days in one school | ||||||
20 | term with one employer, who shall be deemed the last employer | ||||||
21 | for purposes of this Section. The last day of teaching with | ||||||
22 | that employer must be within 6 months of the date of | ||||||
23 | application for retirement. All substitute teaching credit | ||||||
24 | applied toward the required 85 days must be earned after June | ||||||
25 | 30, 1990. | ||||||
26 | A qualifying member may elect at the time of application |
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1 | for a retirement annuity to make a one-time member contribution | ||||||
2 | to the System and thereby avoid the reduction in the retirement | ||||||
3 | annuity for retirement before age 60 specified in paragraph (B) | ||||||
4 | of Section 16-133. The exercise of this election shall also | ||||||
5 | obligate the last employer to make a one-time nonrefundable | ||||||
6 | contribution to the System. | ||||||
7 | The one-time member and employer contributions shall be a | ||||||
8 | percentage of the retiring member's highest annual salary rate | ||||||
9 | used in the determination of the average salary for retirement | ||||||
10 | annuity purposes. However, when determining the one-time | ||||||
11 | member and employer contributions, that part of a member's | ||||||
12 | salary with the same employer which exceeds the annual salary | ||||||
13 | rate for the preceding year by more than 20% shall be excluded. | ||||||
14 | The member contribution shall be at the rate of 14.4% for the | ||||||
15 | lesser of the following 2 periods: (1) for each year that the | ||||||
16 | member is less than age 60; or (2) for each year that the | ||||||
17 | member's creditable service is less than 35 years. The employer | ||||||
18 | contribution shall be at the rate of 29.3% for each year the | ||||||
19 | member is under age 60. | ||||||
20 | Upon receipt of the application, election, and | ||||||
21 | certification of eligibility, the System shall determine the | ||||||
22 | one-time employee and employer contributions required. The | ||||||
23 | member contribution shall be credited to the individual account | ||||||
24 | of the member and the employer contribution shall be credited | ||||||
25 | to the Benefit Trust Reserve. The avoidance of the reduction in | ||||||
26 | retirement annuity provided under this subsection (d) is not |
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1 | applicable until the member's contribution has been received by | ||||||
2 | the System; however, the date that contribution is received | ||||||
3 | shall not be considered in determining the effective date of | ||||||
4 | retirement. | ||||||
5 | Eligibility to retire under this subsection (d) shall | ||||||
6 | require the approval of the member's last employer under this | ||||||
7 | Article, granted in accordance with criteria adopted by that | ||||||
8 | employer with the mutual consent of the bargaining agent of a | ||||||
9 | majority of the members employed by that employer. If the | ||||||
10 | employer grants its approval for a member to retire under this | ||||||
11 | subsection (d), the employer shall submit a certification of | ||||||
12 | eligibility for the member in a manner prescribed by the | ||||||
13 | System. | ||||||
14 | The early retirement without discount option under this | ||||||
15 | subsection (d) terminates on July 1, 2016. | ||||||
16 | (Source: P.A. 93-469, eff. 8-8-03; 94-4, eff. 6-1-05.)
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17 | (40 ILCS 5/16-152) (from Ch. 108 1/2, par. 16-152)
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18 | Sec. 16-152. Contributions by members.
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19 | (a) Each member shall make contributions for membership | ||||||
20 | service to this
System as follows:
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21 | (1) Effective July 1, 1998, contributions of 7.50% of | ||||||
22 | salary towards the
cost of the retirement annuity. Such | ||||||
23 | contributions shall be deemed "normal
contributions".
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24 | (2) Effective July 1, 1969, contributions of 1/2 of 1% | ||||||
25 | of salary toward
the cost of the automatic annual increase |
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1 | in retirement annuity provided
under Section 16-133.1.
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2 | (3) Effective July 24, 1959, contributions of 1% of | ||||||
3 | salary towards the
cost of survivor benefits. Such | ||||||
4 | contributions shall not be credited to
the individual | ||||||
5 | account of the member and shall not be subject to refund
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6 | except as provided under Section 16-143.2.
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7 | (4) Effective July 1, 2005, contributions of 0.40% of | ||||||
8 | salary toward the cost of the early retirement without | ||||||
9 | discount option provided under Section 16-133.2. This | ||||||
10 | contribution shall cease upon termination of the early | ||||||
11 | retirement without discount option as provided in Section | ||||||
12 | 16-133.2 16-176 .
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13 | (b) The minimum required contribution for any year of | ||||||
14 | full-time
teaching service shall be $192.
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15 | (c) Contributions shall not be required of any annuitant | ||||||
16 | receiving
a retirement annuity who is given employment as | ||||||
17 | permitted under Section 16-118 or 16-150.1.
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18 | (d) A person who (i) was a member before July 1, 1998, (ii) | ||||||
19 | retires with
more than 34 years of creditable service, and | ||||||
20 | (iii) does not elect to qualify
for the augmented rate under | ||||||
21 | Section 16-129.1 shall be entitled, at the time
of retirement, | ||||||
22 | to receive a partial refund of contributions made under this
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23 | Section for service occurring after the later of June 30, 1998 | ||||||
24 | or attainment
of 34 years of creditable service, in an amount | ||||||
25 | equal to 1.00% of the salary
upon which those contributions | ||||||
26 | were based.
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1 | (e) A member's contributions toward the cost of early | ||||||
2 | retirement without discount made under item (a)(4) of this | ||||||
3 | Section shall not be refunded if the member has elected early | ||||||
4 | retirement without discount under Section 16-133.2 and has | ||||||
5 | begun to receive a retirement annuity under this Article | ||||||
6 | calculated in accordance with that election. Otherwise, a | ||||||
7 | member's contributions toward the cost of early retirement | ||||||
8 | without discount made under item (a)(4) of this Section shall | ||||||
9 | be refunded according to whichever one of the following | ||||||
10 | circumstances occurs first: | ||||||
11 | (1) The contributions shall be refunded to the member, | ||||||
12 | without interest, within 120 days after the member's | ||||||
13 | retirement annuity commences, if the member does not elect | ||||||
14 | early retirement without discount under Section 16-133.2. | ||||||
15 | (2) The contributions shall be included, without | ||||||
16 | interest, in any refund claimed by the member under Section | ||||||
17 | 16-151. | ||||||
18 | (3) The contributions shall be refunded to the member's | ||||||
19 | designated beneficiary (or if there is no beneficiary, to | ||||||
20 | the member's estate), without interest, if the member dies | ||||||
21 | without having begun to receive a retirement annuity under | ||||||
22 | this Article. | ||||||
23 | (4) The contributions shall be refunded to the member, | ||||||
24 | without interest, if within 120 days after the early | ||||||
25 | retirement without discount option provided under | ||||||
26 | subsection (d) of Section 16-133.2 is terminated under |
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1 | Section 16-176 .
The System shall provide to the member, | ||||||
2 | within 120 days after the option is terminated, an | ||||||
3 | application for a refund of those contributions. | ||||||
4 | (Source: P.A. 93-320, eff. 7-23-03; 94-4, eff. 6-1-05.)
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5 | (40 ILCS 5/16-176) (from Ch. 108 1/2, par. 16-176)
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6 | Sec. 16-176. To adopt actuarial assumptions. For the 5-year | ||||||
7 | period ending
June 30, 1997 and every 5 years thereafter, the | ||||||
8 | actuary, as technical advisor,
shall make an actuarial
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9 | investigation into the mortality, service and compensation | ||||||
10 | experience of the
members, annuitants, and beneficiaries of the | ||||||
11 | retirement system. Based upon
the result of that investigation, | ||||||
12 | the board shall adopt such
actuarial assumptions as it deems | ||||||
13 | appropriate.
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14 | Beginning with the 5-year period ending June 30, 2012 and | ||||||
15 | every 5 years thereafter through June 30, 2012 , the actuarial | ||||||
16 | investigation required under this Section shall include the | ||||||
17 | System's experience under the early retirement without | ||||||
18 | discount option established in Section 16-133.2, including | ||||||
19 | consideration of the sufficiency of the member and employer | ||||||
20 | contributions under Section 16-133.2 and the active member | ||||||
21 | contribution under Section 16-152 to adequately fund the early | ||||||
22 | retirement without discount option. The Board shall promptly | ||||||
23 | communicate the results of the actuarial investigation to the | ||||||
24 | Commission on Government Forecasting and Accountability. Based | ||||||
25 | on the actuarial investigation, the Commission on Government |
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1 | Forecasting and Accountability shall, no later than February 1 | ||||||
2 | of the next year, recommend to the General Assembly any | ||||||
3 | proportional adjustment in the amounts of the member and | ||||||
4 | employer contributions under Section 16-133.2 that it deems | ||||||
5 | necessary. | ||||||
6 | The If the General Assembly fails to adjust the member and | ||||||
7 | employer contributions under Section 16-133.2 in response to | ||||||
8 | the Commission's recommendations, then the early retirement | ||||||
9 | without discount option under subsection (c) of Section | ||||||
10 | 16-133.2 is extended as provided in subsection (d) of that | ||||||
11 | Section. The early retirement without discount option under | ||||||
12 | subsection (d) of Section 16-133.2 terminates on July 1, 2016 | ||||||
13 | terminated and shall cease to be available at the end of the | ||||||
14 | fiscal year in which the Commission made its recommendation to | ||||||
15 | the General Assembly . | ||||||
16 | (Source: P.A. 94-4, eff. 6-1-05.)
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17 | Section 99. Effective date. This Act takes effect upon | ||||||
18 | becoming law.
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