102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB2997

 

Introduced 2/19/2021, by Rep. Dave Severin

 

SYNOPSIS AS INTRODUCED:
 
40 ILCS 5/1-160
40 ILCS 5/16-127  from Ch. 108 1/2, par. 16-127
40 ILCS 5/16-133  from Ch. 108 1/2, par. 16-133
40 ILCS 5/16-203

    Amends the General Provisions and Downstate Teacher Articles of the Illinois Pension Code. Provides that a teacher may establish one additional day of service credit for each day of service credit that was earned between March 16, 2020 and June 30, 2021 in which the teacher provided in-person instruction if he or she pays certain contributions and supplies satisfactory evidence. For a Tier 1 member, provides that the System shall waive the reduction in retirement annuity for persons who retire before age 60 if the member has attained age 59 and earned service credit in the 2020-2021 school. For a Tier 2 member, provides that the reduction in retirement annuity for persons who retire before age 67 shall be waived if the member has attained age 66 and earned service credit in the 2020-2021 school year. For a Tier 1 member who earned service credit in the 2020-2021 school year and has not attained age 59 or a Tier 2 member who earned service credit in the 2020-2021 school year and has not attained age 66, provides that the member shall be deemed to be one year older than his or her actual age for purposes of provisions concerning a reduction in retirement annuity due to a member's age. Provides that any benefit increase that results from the amendatory Act is excluded from the definition of "new benefit increase". Effective immediately.


LRB102 14609 RPS 19962 b

FISCAL NOTE ACT MAY APPLY
PENSION IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB2997LRB102 14609 RPS 19962 b

1    AN ACT concerning public employee benefits.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Pension Code is amended by
5changing Sections 1-160, 16-127, 16-133, and 16-203 as
6follows:
 
7    (40 ILCS 5/1-160)
8    Sec. 1-160. Provisions applicable to new hires.
9    (a) The provisions of this Section apply to a person who,
10on or after January 1, 2011, first becomes a member or a
11participant under any reciprocal retirement system or pension
12fund established under this Code, other than a retirement
13system or pension fund established under Article 2, 3, 4, 5, 6,
1415 or 18 of this Code, notwithstanding any other provision of
15this Code to the contrary, but do not apply to any self-managed
16plan established under this Code, to any person with respect
17to service as a sheriff's law enforcement employee under
18Article 7, or to any participant of the retirement plan
19established under Section 22-101. Notwithstanding anything to
20the contrary in this Section, for purposes of this Section, a
21person who participated in a retirement system under Article
2215 prior to January 1, 2011 shall be deemed a person who first
23became a member or participant prior to January 1, 2011 under

 

 

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1any retirement system or pension fund subject to this Section.
2The changes made to this Section by Public Act 98-596 are a
3clarification of existing law and are intended to be
4retroactive to January 1, 2011 (the effective date of Public
5Act 96-889), notwithstanding the provisions of Section 1-103.1
6of this Code.
7    This Section does not apply to a person who first becomes a
8noncovered employee under Article 14 on or after the
9implementation date of the plan created under Section 1-161
10for that Article, unless that person elects under subsection
11(b) of Section 1-161 to instead receive the benefits provided
12under this Section and the applicable provisions of that
13Article.
14    This Section does not apply to a person who first becomes a
15member or participant under Article 16 on or after the
16implementation date of the plan created under Section 1-161
17for that Article, unless that person elects under subsection
18(b) of Section 1-161 to instead receive the benefits provided
19under this Section and the applicable provisions of that
20Article.
21    This Section does not apply to a person who elects under
22subsection (c-5) of Section 1-161 to receive the benefits
23under Section 1-161.
24    This Section does not apply to a person who first becomes a
25member or participant of an affected pension fund on or after 6
26months after the resolution or ordinance date, as defined in

 

 

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1Section 1-162, unless that person elects under subsection (c)
2of Section 1-162 to receive the benefits provided under this
3Section and the applicable provisions of the Article under
4which he or she is a member or participant.
5    (b) "Final average salary" means the average monthly (or
6annual) salary obtained by dividing the total salary or
7earnings calculated under the Article applicable to the member
8or participant during the 96 consecutive months (or 8
9consecutive years) of service within the last 120 months (or
1010 years) of service in which the total salary or earnings
11calculated under the applicable Article was the highest by the
12number of months (or years) of service in that period. For the
13purposes of a person who first becomes a member or participant
14of any retirement system or pension fund to which this Section
15applies on or after January 1, 2011, in this Code, "final
16average salary" shall be substituted for the following:
17        (1) In Article 7 (except for service as sheriff's law
18    enforcement employees), "final rate of earnings".
19        (2) In Articles 8, 9, 10, 11, and 12, "highest average
20    annual salary for any 4 consecutive years within the last
21    10 years of service immediately preceding the date of
22    withdrawal".
23        (3) In Article 13, "average final salary".
24        (4) In Article 14, "final average compensation".
25        (5) In Article 17, "average salary".
26        (6) In Section 22-207, "wages or salary received by

 

 

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1    him at the date of retirement or discharge".
2    (b-5) Beginning on January 1, 2011, for all purposes under
3this Code (including without limitation the calculation of
4benefits and employee contributions), the annual earnings,
5salary, or wages (based on the plan year) of a member or
6participant to whom this Section applies shall not exceed
7$106,800; however, that amount shall annually thereafter be
8increased by the lesser of (i) 3% of that amount, including all
9previous adjustments, or (ii) one-half the annual unadjusted
10percentage increase (but not less than zero) in the consumer
11price index-u for the 12 months ending with the September
12preceding each November 1, including all previous adjustments.
13    For the purposes of this Section, "consumer price index-u"
14means the index published by the Bureau of Labor Statistics of
15the United States Department of Labor that measures the
16average change in prices of goods and services purchased by
17all urban consumers, United States city average, all items,
181982-84 = 100. The new amount resulting from each annual
19adjustment shall be determined by the Public Pension Division
20of the Department of Insurance and made available to the
21boards of the retirement systems and pension funds by November
221 of each year.
23    (c) A member or participant is entitled to a retirement
24annuity upon written application if he or she has attained age
2567 (beginning January 1, 2015, age 65 with respect to service
26under Article 12 of this Code that is subject to this Section)

 

 

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1and has at least 10 years of service credit and is otherwise
2eligible under the requirements of the applicable Article.
3    A member or participant who has attained age 62 (beginning
4January 1, 2015, age 60 with respect to service under Article
512 of this Code that is subject to this Section) and has at
6least 10 years of service credit and is otherwise eligible
7under the requirements of the applicable Article may elect to
8receive the lower retirement annuity provided in subsection
9(d) of this Section.
10    (c-5) A person who first becomes a member or a participant
11subject to this Section on or after July 6, 2017 (the effective
12date of Public Act 100-23), notwithstanding any other
13provision of this Code to the contrary, is entitled to a
14retirement annuity under Article 8 or Article 11 upon written
15application if he or she has attained age 65 and has at least
1610 years of service credit and is otherwise eligible under the
17requirements of Article 8 or Article 11 of this Code,
18whichever is applicable.
19    (d) The retirement annuity of a member or participant who
20is retiring after attaining age 62 (beginning January 1, 2015,
21age 60 with respect to service under Article 12 of this Code
22that is subject to this Section) with at least 10 years of
23service credit shall be reduced by one-half of 1% for each full
24month that the member's age is under age 67 (beginning January
251, 2015, age 65 with respect to service under Article 12 of
26this Code that is subject to this Section). However, this

 

 

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1reduction shall be waived for any member under Article 16 who
2has attained age 66 and has earned service credit under
3Article 16 for the 2020-2021 school year. For the purposes of
4this subsection, any member under Article 16 who has not
5attained age 66 and has earned service credit under Article 16
6for the 2020-2021 school year shall be deemed to be one year
7older than his or her actual age.
8    (d-5) The retirement annuity payable under Article 8 or
9Article 11 to an eligible person subject to subsection (c-5)
10of this Section who is retiring at age 60 with at least 10
11years of service credit shall be reduced by one-half of 1% for
12each full month that the member's age is under age 65.
13    (d-10) Each person who first became a member or
14participant under Article 8 or Article 11 of this Code on or
15after January 1, 2011 and prior to the effective date of this
16amendatory Act of the 100th General Assembly shall make an
17irrevocable election either:
18        (i) to be eligible for the reduced retirement age
19    provided in subsections (c-5) and (d-5) of this Section,
20    the eligibility for which is conditioned upon the member
21    or participant agreeing to the increases in employee
22    contributions for age and service annuities provided in
23    subsection (a-5) of Section 8-174 of this Code (for
24    service under Article 8) or subsection (a-5) of Section
25    11-170 of this Code (for service under Article 11); or
26        (ii) to not agree to item (i) of this subsection

 

 

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1    (d-10), in which case the member or participant shall
2    continue to be subject to the retirement age provisions in
3    subsections (c) and (d) of this Section and the employee
4    contributions for age and service annuity as provided in
5    subsection (a) of Section 8-174 of this Code (for service
6    under Article 8) or subsection (a) of Section 11-170 of
7    this Code (for service under Article 11).
8    The election provided for in this subsection shall be made
9between October 1, 2017 and November 15, 2017. A person
10subject to this subsection who makes the required election
11shall remain bound by that election. A person subject to this
12subsection who fails for any reason to make the required
13election within the time specified in this subsection shall be
14deemed to have made the election under item (ii).
15    (e) Any retirement annuity or supplemental annuity shall
16be subject to annual increases on the January 1 occurring
17either on or after the attainment of age 67 (beginning January
181, 2015, age 65 with respect to service under Article 12 of
19this Code that is subject to this Section and beginning on the
20effective date of this amendatory Act of the 100th General
21Assembly, age 65 with respect to service under Article 8 or
22Article 11 for eligible persons who: (i) are subject to
23subsection (c-5) of this Section; or (ii) made the election
24under item (i) of subsection (d-10) of this Section) or the
25first anniversary of the annuity start date, whichever is
26later. Each annual increase shall be calculated at 3% or

 

 

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1one-half the annual unadjusted percentage increase (but not
2less than zero) in the consumer price index-u for the 12 months
3ending with the September preceding each November 1, whichever
4is less, of the originally granted retirement annuity. If the
5annual unadjusted percentage change in the consumer price
6index-u for the 12 months ending with the September preceding
7each November 1 is zero or there is a decrease, then the
8annuity shall not be increased.
9    For the purposes of Section 1-103.1 of this Code, the
10changes made to this Section by this amendatory Act of the
11100th General Assembly are applicable without regard to
12whether the employee was in active service on or after the
13effective date of this amendatory Act of the 100th General
14Assembly.
15    (f) The initial survivor's or widow's annuity of an
16otherwise eligible survivor or widow of a retired member or
17participant who first became a member or participant on or
18after January 1, 2011 shall be in the amount of 66 2/3% of the
19retired member's or participant's retirement annuity at the
20date of death. In the case of the death of a member or
21participant who has not retired and who first became a member
22or participant on or after January 1, 2011, eligibility for a
23survivor's or widow's annuity shall be determined by the
24applicable Article of this Code. The initial benefit shall be
2566 2/3% of the earned annuity without a reduction due to age. A
26child's annuity of an otherwise eligible child shall be in the

 

 

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1amount prescribed under each Article if applicable. Any
2survivor's or widow's annuity shall be increased (1) on each
3January 1 occurring on or after the commencement of the
4annuity if the deceased member died while receiving a
5retirement annuity or (2) in other cases, on each January 1
6occurring after the first anniversary of the commencement of
7the annuity. Each annual increase shall be calculated at 3% or
8one-half the annual unadjusted percentage increase (but not
9less than zero) in the consumer price index-u for the 12 months
10ending with the September preceding each November 1, whichever
11is less, of the originally granted survivor's annuity. If the
12annual unadjusted percentage change in the consumer price
13index-u for the 12 months ending with the September preceding
14each November 1 is zero or there is a decrease, then the
15annuity shall not be increased.
16    (g) The benefits in Section 14-110 apply only if the
17person is a State policeman, a fire fighter in the fire
18protection service of a department, a conservation police
19officer, an investigator for the Secretary of State, an arson
20investigator, a Commerce Commission police officer,
21investigator for the Department of Revenue or the Illinois
22Gaming Board, a security employee of the Department of
23Corrections or the Department of Juvenile Justice, or a
24security employee of the Department of Innovation and
25Technology, as those terms are defined in subsection (b) and
26subsection (c) of Section 14-110. A person who meets the

 

 

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1requirements of this Section is entitled to an annuity
2calculated under the provisions of Section 14-110, in lieu of
3the regular or minimum retirement annuity, only if the person
4has withdrawn from service with not less than 20 years of
5eligible creditable service and has attained age 60,
6regardless of whether the attainment of age 60 occurs while
7the person is still in service.
8    (h) If a person who first becomes a member or a participant
9of a retirement system or pension fund subject to this Section
10on or after January 1, 2011 is receiving a retirement annuity
11or retirement pension under that system or fund and becomes a
12member or participant under any other system or fund created
13by this Code and is employed on a full-time basis, except for
14those members or participants exempted from the provisions of
15this Section under subsection (a) of this Section, then the
16person's retirement annuity or retirement pension under that
17system or fund shall be suspended during that employment. Upon
18termination of that employment, the person's retirement
19annuity or retirement pension payments shall resume and be
20recalculated if recalculation is provided for under the
21applicable Article of this Code.
22    If a person who first becomes a member of a retirement
23system or pension fund subject to this Section on or after
24January 1, 2012 and is receiving a retirement annuity or
25retirement pension under that system or fund and accepts on a
26contractual basis a position to provide services to a

 

 

HB2997- 11 -LRB102 14609 RPS 19962 b

1governmental entity from which he or she has retired, then
2that person's annuity or retirement pension earned as an
3active employee of the employer shall be suspended during that
4contractual service. A person receiving an annuity or
5retirement pension under this Code shall notify the pension
6fund or retirement system from which he or she is receiving an
7annuity or retirement pension, as well as his or her
8contractual employer, of his or her retirement status before
9accepting contractual employment. A person who fails to submit
10such notification shall be guilty of a Class A misdemeanor and
11required to pay a fine of $1,000. Upon termination of that
12contractual employment, the person's retirement annuity or
13retirement pension payments shall resume and, if appropriate,
14be recalculated under the applicable provisions of this Code.
15    (i) (Blank).
16    (j) In the case of a conflict between the provisions of
17this Section and any other provision of this Code, the
18provisions of this Section shall control.
19(Source: P.A. 100-23, eff. 7-6-17; 100-201, eff. 8-18-17;
20100-563, eff. 12-8-17; 100-611, eff. 7-20-18; 100-1166, eff.
211-4-19; 101-610, eff. 1-1-20.)
 
22    (40 ILCS 5/16-127)  (from Ch. 108 1/2, par. 16-127)
23    Sec. 16-127. Computation of creditable service.
24    (a) Each member shall receive regular credit for all
25service as a teacher from the date membership begins, for

 

 

HB2997- 12 -LRB102 14609 RPS 19962 b

1which satisfactory evidence is supplied and all contributions
2have been paid.
3    (b) The following periods of service shall earn optional
4credit and each member shall receive credit for all such
5service for which satisfactory evidence is supplied and all
6contributions have been paid as of the date specified:
7        (1) Prior service as a teacher.
8        (2) Service in a capacity essentially similar or
9    equivalent to that of a teacher, in the public common
10    schools in school districts in this State not included
11    within the provisions of this System, or of any other
12    State, territory, dependency or possession of the United
13    States, or in schools operated by or under the auspices of
14    the United States, or under the auspices of any agency or
15    department of any other State, and service during any
16    period of professional speech correction or special
17    education experience for a public agency within this State
18    or any other State, territory, dependency or possession of
19    the United States, and service prior to February 1, 1951
20    as a recreation worker for the Illinois Department of
21    Public Safety, for a period not exceeding the lesser of
22    2/5 of the total creditable service of the member or 10
23    years. The maximum service of 10 years which is allowable
24    under this paragraph shall be reduced by the service
25    credit which is validated by other retirement systems
26    under paragraph (i) of Section 15-113 and paragraph 1 of

 

 

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1    Section 17-133. Credit granted under this paragraph may
2    not be used in determination of a retirement annuity or
3    disability benefits unless the member has at least 5 years
4    of creditable service earned subsequent to this employment
5    with one or more of the following systems: Teachers'
6    Retirement System of the State of Illinois, State
7    Universities Retirement System, and the Public School
8    Teachers' Pension and Retirement Fund of Chicago. Whenever
9    such service credit exceeds the maximum allowed for all
10    purposes of this Article, the first service rendered in
11    point of time shall be considered. The changes to this
12    subdivision (b)(2) made by Public Act 86-272 shall apply
13    not only to persons who on or after its effective date
14    (August 23, 1989) are in service as a teacher under the
15    System, but also to persons whose status as such a teacher
16    terminated prior to such effective date, whether or not
17    such person is an annuitant on that date.
18        (3) Any periods immediately following teaching
19    service, under this System or under Article 17, (or
20    immediately following service prior to February 1, 1951 as
21    a recreation worker for the Illinois Department of Public
22    Safety) spent in active service with the military forces
23    of the United States; periods spent in educational
24    programs that prepare for return to teaching sponsored by
25    the federal government following such active military
26    service; if a teacher returns to teaching service within

 

 

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1    one calendar year after discharge or after the completion
2    of the educational program, a further period, not
3    exceeding one calendar year, between time spent in
4    military service or in such educational programs and the
5    return to employment as a teacher under this System; and a
6    period of up to 2 years of active military service not
7    immediately following employment as a teacher.
8        The changes to this Section and Section 16-128
9    relating to military service made by P.A. 87-794 shall
10    apply not only to persons who on or after its effective
11    date are in service as a teacher under the System, but also
12    to persons whose status as a teacher terminated prior to
13    that date, whether or not the person is an annuitant on
14    that date. In the case of an annuitant who applies for
15    credit allowable under this Section for a period of
16    military service that did not immediately follow
17    employment, and who has made the required contributions
18    for such credit, the annuity shall be recalculated to
19    include the additional service credit, with the increase
20    taking effect on the date the System received written
21    notification of the annuitant's intent to purchase the
22    credit, if payment of all the required contributions is
23    made within 60 days of such notice, or else on the first
24    annuity payment date following the date of payment of the
25    required contributions. In calculating the automatic
26    annual increase for an annuity that has been recalculated

 

 

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1    under this Section, the increase attributable to the
2    additional service allowable under P.A. 87-794 shall be
3    included in the calculation of automatic annual increases
4    accruing after the effective date of the recalculation.
5        Credit for military service shall be determined as
6    follows: if entry occurs during the months of July,
7    August, or September and the member was a teacher at the
8    end of the immediately preceding school term, credit shall
9    be granted from July 1 of the year in which he or she
10    entered service; if entry occurs during the school term
11    and the teacher was in teaching service at the beginning
12    of the school term, credit shall be granted from July 1 of
13    such year. In all other cases where credit for military
14    service is allowed, credit shall be granted from the date
15    of entry into the service.
16        The total period of military service for which credit
17    is granted shall not exceed 5 years for any member unless
18    the service: (A) is validated before July 1, 1964, and (B)
19    does not extend beyond July 1, 1963. Credit for military
20    service shall be granted under this Section only if not
21    more than 5 years of the military service for which credit
22    is granted under this Section is used by the member to
23    qualify for a military retirement allotment from any
24    branch of the armed forces of the United States. The
25    changes to this subdivision (b)(3) made by Public Act
26    86-272 shall apply not only to persons who on or after its

 

 

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1    effective date (August 23, 1989) are in service as a
2    teacher under the System, but also to persons whose status
3    as such a teacher terminated prior to such effective date,
4    whether or not such person is an annuitant on that date.
5        (4) Any periods served as a member of the General
6    Assembly.
7        (5)(i) Any periods for which a teacher, as defined in
8    Section 16-106, is granted a leave of absence, provided he
9    or she returns to teaching service creditable under this
10    System or the State Universities Retirement System
11    following the leave; (ii) periods during which a teacher
12    is involuntarily laid off from teaching, provided he or
13    she returns to teaching following the lay-off; (iii)
14    periods prior to July 1, 1983 during which a teacher
15    ceased covered employment due to pregnancy, provided that
16    the teacher returned to teaching service creditable under
17    this System or the State Universities Retirement System
18    following the pregnancy and submits evidence satisfactory
19    to the Board documenting that the employment ceased due to
20    pregnancy; and (iv) periods prior to July 1, 1983 during
21    which a teacher ceased covered employment for the purpose
22    of adopting an infant under 3 years of age or caring for a
23    newly adopted infant under 3 years of age, provided that
24    the teacher returned to teaching service creditable under
25    this System or the State Universities Retirement System
26    following the adoption and submits evidence satisfactory

 

 

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1    to the Board documenting that the employment ceased for
2    the purpose of adopting an infant under 3 years of age or
3    caring for a newly adopted infant under 3 years of age.
4    However, total credit under this paragraph (5) may not
5    exceed 3 years.
6        Any qualified member or annuitant may apply for credit
7    under item (iii) or (iv) of this paragraph (5) without
8    regard to whether service was terminated before the
9    effective date of this amendatory Act of 1997. In the case
10    of an annuitant who establishes credit under item (iii) or
11    (iv), the annuity shall be recalculated to include the
12    additional service credit. The increase in annuity shall
13    take effect on the date the System receives written
14    notification of the annuitant's intent to purchase the
15    credit, if the required evidence is submitted and the
16    required contribution paid within 60 days of that
17    notification, otherwise on the first annuity payment date
18    following the System's receipt of the required evidence
19    and contribution. The increase in an annuity recalculated
20    under this provision shall be included in the calculation
21    of automatic annual increases in the annuity accruing
22    after the effective date of the recalculation.
23        Optional credit may be purchased under this subsection
24    (b)(5) for periods during which a teacher has been granted
25    a leave of absence pursuant to Section 24-13 of the School
26    Code. A teacher whose service under this Article

 

 

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1    terminated prior to the effective date of P.A. 86-1488
2    shall be eligible to purchase such optional credit. If a
3    teacher who purchases this optional credit is already
4    receiving a retirement annuity under this Article, the
5    annuity shall be recalculated as if the annuitant had
6    applied for the leave of absence credit at the time of
7    retirement. The difference between the entitled annuity
8    and the actual annuity shall be credited to the purchase
9    of the optional credit. The remainder of the purchase cost
10    of the optional credit shall be paid on or before April 1,
11    1992.
12        The change in this paragraph made by Public Act 86-273
13    shall be applicable to teachers who retire after June 1,
14    1989, as well as to teachers who are in service on that
15    date.
16        (6) Any days of unused and uncompensated accumulated
17    sick leave earned by a teacher. The service credit granted
18    under this paragraph shall be the ratio of the number of
19    unused and uncompensated accumulated sick leave days to
20    170 days, subject to a maximum of 2 years of service
21    credit. Prior to the member's retirement, each former
22    employer shall certify to the System the number of unused
23    and uncompensated accumulated sick leave days credited to
24    the member at the time of termination of service. The
25    period of unused sick leave shall not be considered in
26    determining the effective date of retirement. A member is

 

 

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1    not required to make contributions in order to obtain
2    service credit for unused sick leave.
3        Credit for sick leave shall, at retirement, be granted
4    by the System for any retiring regional or assistant
5    regional superintendent of schools at the rate of 6 days
6    per year of creditable service or portion thereof
7    established while serving as such superintendent or
8    assistant superintendent.
9        (7) Periods prior to February 1, 1987 served as an
10    employee of the Illinois Mathematics and Science Academy
11    for which credit has not been terminated under Section
12    15-113.9 of this Code.
13        (8) Service as a substitute teacher for work performed
14    prior to July 1, 1990.
15        (9) Service as a part-time teacher for work performed
16    prior to July 1, 1990.
17        (10) Up to 2 years of employment with Southern
18    Illinois University - Carbondale from September 1, 1959 to
19    August 31, 1961, or with Governors State University from
20    September 1, 1972 to August 31, 1974, for which the
21    teacher has no credit under Article 15. To receive credit
22    under this item (10), a teacher must apply in writing to
23    the Board and pay the required contributions before May 1,
24    1993 and have at least 12 years of service credit under
25    this Article.
26        (11) One additional day of service credit for each day

 

 

HB2997- 20 -LRB102 14609 RPS 19962 b

1    of service credit that was earned between March 16, 2020
2    and June 30, 2021 for any day in which the teacher provided
3    in-person instruction during that period.
4    (b-1) A member may establish optional credit for up to 2
5years of service as a teacher or administrator employed by a
6private school recognized by the Illinois State Board of
7Education, provided that the teacher (i) was certified under
8the law governing the certification of teachers at the time
9the service was rendered, (ii) applies in writing on or after
10August 1, 2009 and on or before August 1, 2012, (iii) supplies
11satisfactory evidence of the employment, (iv) completes at
12least 10 years of contributing service as a teacher as defined
13in Section 16-106, and (v) pays the contribution required in
14subsection (d-5) of Section 16-128. The member may apply for
15credit under this subsection and pay the required contribution
16before completing the 10 years of contributing service
17required under item (iv), but the credit may not be used until
18the item (iv) contributing service requirement has been met.
19    (c) The service credits specified in this Section shall be
20granted only if: (1) such service credits are not used for
21credit in any other statutory tax-supported public employee
22retirement system other than the federal Social Security
23program; and (2) the member makes the required contributions
24as specified in Section 16-128. Except as provided in
25subsection (b-1) of this Section, the service credit shall be
26effective as of the date the required contributions are

 

 

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1completed.
2    Any service credits granted under this Section shall
3terminate upon cessation of membership for any cause.
4    Credit may not be granted under this Section covering any
5period for which an age retirement or disability retirement
6allowance has been paid.
7    Credit may not be granted under this Section for service
8as an employee of an entity that provides substitute teaching
9services under Section 2-3.173 of the School Code and is not a
10school district.
11(Source: P.A. 100-813, eff. 8-13-18.)
 
12    (40 ILCS 5/16-133)  (from Ch. 108 1/2, par. 16-133)
13    (Text of Section WITHOUT the changes made by P.A. 98-599,
14which has been held unconstitutional)
15    Sec. 16-133. Retirement annuity; amount.
16    (a) The amount of the retirement annuity shall be (i) in
17the case of a person who first became a teacher under this
18Article before July 1, 2005, the larger of the amounts
19determined under paragraphs (A) and (B) below, or (ii) in the
20case of a person who first becomes a teacher under this Article
21on or after July 1, 2005, the amount determined under the
22applicable provisions of paragraph (B):
23        (A) An amount consisting of the sum of the following:
24            (1) An amount that can be provided on an
25        actuarially equivalent basis by the member's

 

 

HB2997- 22 -LRB102 14609 RPS 19962 b

1        accumulated contributions at the time of retirement;
2        and
3            (2) The sum of (i) the amount that can be provided
4        on an actuarially equivalent basis by the member's
5        accumulated contributions representing service prior
6        to July 1, 1947, and (ii) the amount that can be
7        provided on an actuarially equivalent basis by the
8        amount obtained by multiplying 1.4 times the member's
9        accumulated contributions covering service subsequent
10        to June 30, 1947; and
11            (3) If there is prior service, 2 times the amount
12        that would have been determined under subparagraph (2)
13        of paragraph (A) above on account of contributions
14        which would have been made during the period of prior
15        service creditable to the member had the System been
16        in operation and had the member made contributions at
17        the contribution rate in effect prior to July 1, 1947.
18        This paragraph (A) does not apply to a person who
19    first becomes a teacher under this Article on or after
20    July 1, 2005.
21        (B) An amount consisting of the greater of the
22    following:
23            (1) For creditable service earned before July 1,
24        1998 that has not been augmented under Section
25        16-129.1: 1.67% of final average salary for each of
26        the first 10 years of creditable service, 1.90% of

 

 

HB2997- 23 -LRB102 14609 RPS 19962 b

1        final average salary for each year in excess of 10 but
2        not exceeding 20, 2.10% of final average salary for
3        each year in excess of 20 but not exceeding 30, and
4        2.30% of final average salary for each year in excess
5        of 30; and
6            For creditable service earned on or after July 1,
7        1998 by a member who has at least 24 years of
8        creditable service on July 1, 1998 and who does not
9        elect to augment service under Section 16-129.1: 2.2%
10        of final average salary for each year of creditable
11        service earned on or after July 1, 1998 but before the
12        member reaches a total of 30 years of creditable
13        service and 2.3% of final average salary for each year
14        of creditable service earned on or after July 1, 1998
15        and after the member reaches a total of 30 years of
16        creditable service; and
17            For all other creditable service: 2.2% of final
18        average salary for each year of creditable service; or
19            (2) 1.5% of final average salary for each year of
20        creditable service plus the sum $7.50 for each of the
21        first 20 years of creditable service.
22    The amount of the retirement annuity determined under this
23    paragraph (B) shall be reduced by 1/2 of 1% for each month
24    that the member is less than age 60 at the time the
25    retirement annuity begins. However, this reduction shall
26    not apply (i) if the member has at least 35 years of

 

 

HB2997- 24 -LRB102 14609 RPS 19962 b

1    creditable service, or (ii) if the member retires on
2    account of disability under Section 16-149.2 of this
3    Article with at least 20 years of creditable service, or
4    (iii) if the member (1) has earned during the period
5    immediately preceding the last day of service at least one
6    year of contributing creditable service as an employee of
7    a department as defined in Section 14-103.04, (2) has
8    earned at least 5 years of contributing creditable service
9    as an employee of a department as defined in Section
10    14-103.04, (3) retires on or after January 1, 2001, and
11    (4) retires having attained an age which, when added to
12    the number of years of his or her total creditable
13    service, equals at least 85. Portions of years shall be
14    counted as decimal equivalents. The System shall waive
15    this reduction for any member who has attained age 59 and
16    has earned service credit for the 2020-2021 school year.
17    For the purposes of this paragraph, any member who has not
18    attained age 59 and has earned service credit for the
19    2020-2021 school year shall be deemed to be one year older
20    than his or her actual age.
21    (b) For purposes of this Section, final average salary
22shall be the average salary for the highest 4 consecutive
23years within the last 10 years of creditable service as
24determined under rules of the board. The minimum final average
25salary shall be considered to be $2,400 per year.
26    In the determination of final average salary for members

 

 

HB2997- 25 -LRB102 14609 RPS 19962 b

1other than elected officials and their appointees when such
2appointees are allowed by statute, that part of a member's
3salary for any year beginning after June 30, 1979 which
4exceeds the member's annual full-time salary rate with the
5same employer for the preceding year by more than 20% shall be
6excluded. The exclusion shall not apply in any year in which
7the member's creditable earnings are less than 50% of the
8preceding year's mean salary for downstate teachers as
9determined by the survey of school district salaries provided
10in Section 2-3.103 of the School Code.
11    (c) In determining the amount of the retirement annuity
12under paragraph (B) of this Section, a fractional year shall
13be granted proportional credit.
14    (d) The retirement annuity determined under paragraph (B)
15of this Section shall be available only to members who render
16teaching service after July 1, 1947 for which member
17contributions are required, and to annuitants who re-enter
18under the provisions of Section 16-150.
19    (e) The maximum retirement annuity provided under
20paragraph (B) of this Section shall be 75% of final average
21salary.
22    (f) A member retiring after the effective date of this
23amendatory Act of 1998 shall receive a pension equal to 75% of
24final average salary if the member is qualified to receive a
25retirement annuity equal to at least 74.6% of final average
26salary under this Article or as proportional annuities under

 

 

HB2997- 26 -LRB102 14609 RPS 19962 b

1Article 20 of this Code.
2(Source: P.A. 94-4, eff. 6-1-05.)
 
3    (40 ILCS 5/16-203)
4    Sec. 16-203. Application and expiration of new benefit
5increases.
6    (a) As used in this Section, "new benefit increase" means
7an increase in the amount of any benefit provided under this
8Article, or an expansion of the conditions of eligibility for
9any benefit under this Article, that results from an amendment
10to this Code that takes effect after June 1, 2005 (the
11effective date of Public Act 94-4). "New benefit increase",
12however, does not include any benefit increase resulting from
13the changes made to Article 1 or this Article by Public Act
1495-910, Public Act 100-23, Public Act 100-587, Public Act
15100-743, or Public Act 100-769, Public Act 101-10, Public Act
16101-49, or this amendatory Act of the 102nd General Assembly
17or this amendatory Act of the 101st General Assembly.
18    (b) Notwithstanding any other provision of this Code or
19any subsequent amendment to this Code, every new benefit
20increase is subject to this Section and shall be deemed to be
21granted only in conformance with and contingent upon
22compliance with the provisions of this Section.
23    (c) The Public Act enacting a new benefit increase must
24identify and provide for payment to the System of additional
25funding at least sufficient to fund the resulting annual

 

 

HB2997- 27 -LRB102 14609 RPS 19962 b

1increase in cost to the System as it accrues.
2    Every new benefit increase is contingent upon the General
3Assembly providing the additional funding required under this
4subsection. The Commission on Government Forecasting and
5Accountability shall analyze whether adequate additional
6funding has been provided for the new benefit increase and
7shall report its analysis to the Public Pension Division of
8the Department of Insurance. A new benefit increase created by
9a Public Act that does not include the additional funding
10required under this subsection is null and void. If the Public
11Pension Division determines that the additional funding
12provided for a new benefit increase under this subsection is
13or has become inadequate, it may so certify to the Governor and
14the State Comptroller and, in the absence of corrective action
15by the General Assembly, the new benefit increase shall expire
16at the end of the fiscal year in which the certification is
17made.
18    (d) Every new benefit increase shall expire 5 years after
19its effective date or on such earlier date as may be specified
20in the language enacting the new benefit increase or provided
21under subsection (c). This does not prevent the General
22Assembly from extending or re-creating a new benefit increase
23by law.
24    (e) Except as otherwise provided in the language creating
25the new benefit increase, a new benefit increase that expires
26under this Section continues to apply to persons who applied

 

 

HB2997- 28 -LRB102 14609 RPS 19962 b

1and qualified for the affected benefit while the new benefit
2increase was in effect and to the affected beneficiaries and
3alternate payees of such persons, but does not apply to any
4other person, including, without limitation, a person who
5continues in service after the expiration date and did not
6apply and qualify for the affected benefit while the new
7benefit increase was in effect.
8(Source: P.A. 100-23, eff. 7-6-17; 100-587, eff. 6-4-18;
9100-743, eff. 8-10-18; 100-769, eff. 8-10-18; 101-10, eff.
106-5-19; 101-49, eff. 7-12-19; 101-81, eff. 7-12-19; revised
118-13-19.)
 
12    Section 99. Effective date. This Act takes effect upon
13becoming law.