Bill Text: IL SB3517 | 2013-2014 | 98th General Assembly | Engrossed

---

Bill Title: Amends the Downstate Teacher Article of the Illinois Pension Code. Provides that the effective date of a retirement annuity shall be no earlier than 2 years before the date of receipt by the System of the application for retirement. Contains a nonacceleration provision.

Sponsorship: Partisan Bill (Democrat 2)

Status: (Failed) 2015-01-13 - Session Sine Die [SB3517 Detail]

Download: Illinois-2013-SB3517-Engrossed.html

---

SB3517 Engrossed LRB098 16952 EFG 52030 b
AN ACT concerning 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 7-141 and 16-132 as follows:
(40 ILCS 5/7-141) (from Ch. 108 1/2, par. 7-141)
Sec. 7-141. Retirement annuities - Conditions. Retirement
annuities shall be payable as hereinafter set forth:
(a) A participating employee who, regardless of cause, is
separated from the service of all participating municipalities
and instrumentalities thereof and participating
instrumentalities shall be entitled to a retirement annuity
provided:
1. He is at least age 55, or in the case of a person who
is eligible to have his annuity calculated under Section
7-142.1, he is at least age 50;
2. He is not entitled to receive earnings for
employment in a position requiring him, or entitling him to
elect, to be a participating employee;
3. The amount of his annuity, before the application of
paragraph (b) of Section 7-142 is at least $10 per month;
4. If he first became a participating employee after
December 31, 1961, he has at least 8 years of service. This

SB3517 Engrossed - 2 - LRB098 16952 EFG 52030 b
service requirement shall not apply to any participating
employee, regardless of participation date, if the General
Assembly terminates the Fund.
(b) Retirement annuities shall be payable:
1. As provided in Section 7-119;
2. Except as provided in item 3, upon receipt by the
fund of a written application. The effective date may be
not more than 2 years one year prior to the date of the
receipt by the fund of the application;
3. Upon attainment of age 70 1/2 if the member (i) is
no longer in service, and (ii) is otherwise entitled to an
annuity under this Article;
4. To the beneficiary of the deceased annuitant for the
unpaid amount accrued to date of death, if any.
(Source: P.A. 97-328, eff. 8-12-11; 97-609, eff. 1-1-12.)
(40 ILCS 5/16-132) (from Ch. 108 1/2, par. 16-132)
(Text of Section before amendment by P.A. 98-599)
Sec. 16-132. Retirement annuity eligibility. A member who
has at least 20 years of creditable service is entitled to a
retirement annuity upon or after attainment of age 55. A member
who has at least 10 but less than 20 years of creditable
service is entitled to a retirement annuity upon or after
attainment of age 60. A member who has at least 5 but less than
10 years of creditable service is entitled to a retirement
annuity upon or after attainment of age 62. A member who (i)

SB3517 Engrossed - 3 - LRB098 16952 EFG 52030 b
has earned during the period immediately preceding the last day
of service at least one year of contributing creditable service
as an employee of a department as defined in Section 14-103.04,
(ii) has earned at least 5 years of contributing creditable
service as an employee of a department as defined in Section
14-103.04, and (iii) retires on or after January 1, 2001 is
entitled to a retirement annuity upon or after attainment of an
age which, when added to the number of years of his or her
total creditable service, equals at least 85. Portions of years
shall be counted as decimal equivalents.
A member who is eligible to receive a retirement annuity of
at least 74.6% of final 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.
A member meeting the above eligibility conditions is
entitled to a retirement annuity upon written application to
the board setting forth the date the member wishes the
retirement annuity to commence. However, the effective date of
the retirement annuity shall be no earlier than the day
following the last day of creditable service, regardless of the
date of official termination of employment.
To be eligible for a retirement annuity, a member shall not
be employed as a teacher in the schools included under this
System or under Article 17, except (i) as provided in Section
16-118 or 16-150.1, (ii) if the member is disabled (in which

SB3517 Engrossed - 4 - LRB098 16952 EFG 52030 b
event, eligibility for salary must cease), or (iii) if the
System is required by federal law to commence payment due to
the member's age; the changes to this sentence made by this
amendatory Act of the 93rd General Assembly apply without
regard to whether the member terminated employment before or
after its effective date.
(Source: P.A. 93-320, eff. 7-23-03.)
(Text of Section after amendment by P.A. 98-599)
Sec. 16-132. Retirement annuity eligibility.
(a) A member who has at least 20 years of creditable
service is entitled to a retirement annuity upon or after
attainment of age 55. A member who has at least 10 but less
than 20 years of creditable service is entitled to a retirement
annuity upon or after attainment of age 60. A member who has at
least 5 but less than 10 years of creditable service is
entitled to a retirement annuity upon or after attainment of
age 62. A member who (i) has earned during the period
immediately preceding the last day of service at least one year
of contributing creditable service as an employee of a
department as defined in Section 14-103.04, (ii) has earned at
least 5 years of contributing creditable service as an employee
of a department as defined in Section 14-103.04, and (iii)
retires on or after January 1, 2001 is entitled to a retirement
annuity upon or after attainment of an age which, when added to
the number of years of his or her total creditable service,

SB3517 Engrossed - 5 - LRB098 16952 EFG 52030 b
equals at least 85. Portions of years shall be counted as
decimal equivalents.
A member who is eligible to receive a retirement annuity of
at least 74.6% of final 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.
(b) Notwithstanding subsection (a) of this Section, for a
Tier 1 member who begins receiving a retirement annuity under
this Section on or after July 1, 2014, the required retirement
age under subsection (a) is increased as follows, based on the
Tier 1 member's age on June 1, 2014:
(1) If he or she is at least age 46 on June 1, 2014,
then the required retirement ages under subsection (a)
remain unchanged.
(2) If he or she is at least age 45 but less than age 46
on June 1, 2014, then the required retirement ages under
subsection (a) are increased by 4 months.
(3) If he or she is at least age 44 but less than age 45
on June 1, 2014, then the required retirement ages under
subsection (a) are increased by 8 months.
(4) If he or she is at least age 43 but less than age 44
on June 1, 2014, then the required retirement ages under
subsection (a) are increased by 12 months.
(5) If he or she is at least age 42 but less than age 43
on June 1, 2014, then the required retirement ages under

SB3517 Engrossed - 6 - LRB098 16952 EFG 52030 b
subsection (a) are increased by 16 months.
(6) If he or she is at least age 41 but less than age 42
on June 1, 2014, then the required retirement ages under
subsection (a) are increased by 20 months.
(7) If he or she is at least age 40 but less than age 41
on June 1, 2014, then the required retirement ages under
subsection (a) are increased by 24 months.
(8) If he or she is at least age 39 but less than age 40
on June 1, 2014, then the required retirement ages under
subsection (a) are increased by 28 months.
(9) If he or she is at least age 38 but less than age 39
on June 1, 2014, then the required retirement ages under
subsection (a) are increased by 32 months.
(10) If he or she is at least age 37 but less than age
38 on June 1, 2014, then the required retirement ages under
subsection (a) are increased by 36 months.
(11) If he or she is at least age 36 but less than age
37 on June 1, 2014, then the required retirement ages under
subsection (a) are increased by 40 months.
(12) If he or she is at least age 35 but less than age
36 on June 1, 2014, then the required retirement ages under
subsection (a) are increased by 44 months.
(13) If he or she is at least age 34 but less than age
35 on June 1, 2014, then the required retirement ages under
subsection (a) are increased by 48 months.
(14) If he or she is at least age 33 but less than age

SB3517 Engrossed - 7 - LRB098 16952 EFG 52030 b
34 on June 1, 2014, then the required retirement ages under
subsection (a) are increased by 52 months.
(15) If he or she is at least age 32 but less than age
33 on June 1, 2014, then the required retirement ages under
subsection (a) are increased by 56 months.
(16) If he or she is less than age 32 on June 1, 2014,
then the required retirement ages under subsection (a) are
increased by 60 months.
Notwithstanding Section 1-103.1, this subsection (b)
applies without regard to whether or not the Tier 1 member is
in active service under this Article on or after the effective
date of this amendatory Act of the 98th General Assembly.
(c) A member meeting the above eligibility conditions is
entitled to a retirement annuity upon written application to
the board setting forth the date the member wishes the
retirement annuity to commence. However, the effective date of
the retirement annuity shall be (i) no earlier than the day
following the last day of creditable service, regardless of the
date of official termination of employment, and (ii) in the
case of a member who is not eligible to retire on the effective
date of this amendatory Act of the 98th General Assembly, no
more than 2 years before the date of receipt by the System of
the application for retirement.
For the purpose of Section 1-103.1, the change to this
subsection made by this amendatory Act of the 98th General
Assembly is limited to annuities granted on or after the

SB3517 Engrossed - 8 - LRB098 16952 EFG 52030 b
effective date of this amendatory Act, without regard to
whether the member is in service on or after that effective
date.
(d) To be eligible for a retirement annuity, a member shall
not be employed as a teacher in the schools included under this
System or under Article 17, except (i) as provided in Section
16-118 or 16-150.1, (ii) if the member is disabled (in which
event, eligibility for salary must cease), or (iii) if the
System is required by federal law to commence payment due to
the member's age; the changes to this sentence made by Public
Act 93-320 apply without regard to whether the member
terminated employment before or after its effective date.
(Source: P.A. 98-599, eff. 6-1-14.)
Section 95. No acceleration or delay. Where this Act makes
changes in a statute that is represented in this Act by text
that is not yet or no longer in effect (for example, a Section
represented by multiple versions), the use of that text does
not accelerate or delay the taking effect of (i) the changes
made by this Act or (ii) provisions derived from any other
Public Act.