40 ILCS 5/16-133.5
2021 Illinois Compiled Statutes|Chapter 40 - PENSIONS|40 ILCS 5/ - Illinois Pension Code.|Article 16 - Teachers' Retirement System Of The State Of Illinois

 (from Ch. 108 1/2, par. 16-133.5)Sec. 16-133.5.     Early retirement incentives for teachers.(a) To be eligible for the benefits provided in this Section, a member must:(1) be a member of this System who, on or after May     1, 1994, is (i) in active payroll status as a full-time teacher employed by an employer under this Article, or (ii) on layoff status from such a position with a right of re-employment or recall to service, or (iii) on disability or a leave of absence from such a position, but only if the member has not been receiving benefits under Section 16-149 or 16-149.1 for a continuous period of 2 years or more as of the date of application;(2) have never previously received a retirement     annuity under this Article, except that receipt of a disability retirement annuity does not disqualify a member if the annuity has been terminated and the member has returned to full-time employment under this Article before the effective date of this Section;(3) file with the Board before March 1, 1994, an     application requesting the benefits provided in this Section;(4) be eligible to receive a retirement annuity under     this Article (for which purpose any age enhancement or creditable service received under this Section may be used), and elect to receive the retirement annuity beginning not earlier than June 1, 1994 and not later than September 1, 1994 (September 1, 1995 if retirement is delayed under subsection (e) of this Section);(5) have attained age 50 (without the use of any age     enhancement received under this Section) by the effective date of the retirement annuity;(6) have at least 5 years of creditable service under     this System or any of the participating systems under the Retirement Systems Reciprocal Act (without the use of any creditable service received under this Section) by the effective date of the retirement annuity.(b) An eligible person may establish up to 5 years of creditable service  under this Section.  In addition, for each period of creditable service  established under this Section, a person shall have his or her age at  retirement deemed enhanced by an equivalent period.The creditable service established under this Section may be used for all  purposes under this Article and the Retirement Systems Reciprocal Act,  except for the computation of final average salary, the determination of  salary or compensation under this or any other Article of the Code, or the  determination of eligibility for and the computation of benefits under  Section 16-133.2 of this Article.The age enhancement established under this Section may be used for all  purposes under this Article (including calculation of a proportionate  annuity payable by this System under the Retirement Systems Reciprocal  Act), except for purposes of a reversionary annuity under Section 16-136,  the retirement annuity under Section 16-133(a)(A), the required  distributions under Section 16-142.3, and the determination of eligibility  for and the computation of benefits under Section 16-133.2 of this Article.  However, age enhancement established under this Section shall not be used  in determining benefits payable under other Articles of this Code under the  Retirement Systems Reciprocal Act.(c) For all creditable service established under this Section, the  employer must pay to the System an employer contribution consisting of  20% of the member's highest annual salary rate used in the determination of  the average salary for retirement annuity purposes for each year of creditable  service granted under this Section.The employer contribution shall be paid to the System in one of the  following ways:  (i) in a single sum at the time of the member's  retirement, (ii) in equal quarterly installments over a period of 5 years  from the date of retirement, or (iii) subject to the approval of the Board  of the System, in unequal installments over a period of no more than 5  years from the date of retirement, as provided in a payment plan designed  by the System to accommodate the needs of the employer.  The employer's  failure to make the required contributions in a timely manner shall not  affect the payment of the retirement annuity.For all creditable service established under this Section, the  employee must pay to the System an employee contribution consisting of  4% of the member's highest annual salary rate used in the determination of  the retirement annuity for each year of creditable service granted under  this Section.  The employee may elect either to pay the employee contribution in full  before the retirement annuity commences, or to have it deducted from  the retirement annuity in 24 monthly installments.(d) An annuitant who has received any age enhancement or creditable  service under this Section and who re-enters contributing service under  this Article shall thereby forfeit the age enhancement and creditable service,  and upon re-retirement the annuity shall be recomputed.  The forfeiture of  creditable service under this subsection shall not entitle the employer to a  refund of the employer contribution paid under this Section, nor to forgiveness  of any part of that contribution that remains unpaid. The forfeiture of  creditable service under this subsection shall not entitle the employee to a  refund of the employee contribution paid under this Section.(e) If the number of employees of an employer that actually apply for  early retirement under this Section exceeds 30% of those eligible, the  employer may require that, for the number of applicants in excess of that  30%, the starting date of the retirement annuity enhanced under this  Section may not be earlier than June 1, 1995.  The right to have the  retirement annuity begin before that date shall be allocated among the  applicants on the basis of seniority in the service of that employer.This delay applies only to persons who are applying for early  retirement incentives under this Section, and does not prevent a person  whose application for early retirement incentives has been withdrawn from  receiving a retirement annuity on the earliest date upon which  the person is otherwise eligible under this Article.(f) A member who receives any early retirement incentive under Section  16-133.4 may not receive any early retirement incentive under  this Section.    (Source: P.A. 87-1265.)