Sen. Todd Sieben

Filed: 2/21/2007

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 153

2     AMENDMENT NO. ______. Amend Senate Bill 153 by replacing
3 everything after the enacting clause with the following:
 
4     "Section 5. The Illinois Pension Code is amended by
5 changing Sections 16-127 and 16-128 and by adding Section
6 16-203.1 as follows:
 
7     (40 ILCS 5/16-127)  (from Ch. 108 1/2, par. 16-127)
8     Sec. 16-127. Computation of creditable service.
9     (a) Each member shall receive regular credit for all
10 service as a teacher from the date membership begins, for which
11 satisfactory evidence is supplied and all contributions have
12 been paid.
13     (b) The following periods of service shall earn optional
14 credit and each member shall receive credit for all such
15 service for which satisfactory evidence is supplied and all
16 contributions have been paid as of the date specified:

 

 

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1         (1) Prior service as a teacher.
2         (2) Service in a capacity essentially similar or
3     equivalent to that of a teacher, in the public common
4     schools in school districts in this State not included
5     within the provisions of this System, or of any other
6     State, territory, dependency or possession of the United
7     States, or in schools operated by or under the auspices of
8     the United States, or under the auspices of any agency or
9     department of any other State, and service during any
10     period of professional speech correction or special
11     education experience for a public agency within this State
12     or any other State, territory, dependency or possession of
13     the United States, and service prior to February 1, 1951 as
14     a recreation worker for the Illinois Department of Public
15     Safety, for a period not exceeding the lesser of 2/5 of the
16     total creditable service of the member or 10 years. The
17     maximum service of 10 years which is allowable under this
18     paragraph shall be reduced by the service credit which is
19     validated by other retirement systems under paragraph (i)
20     of Section 15-113 and paragraph 1 of Section 17-133. Credit
21     granted under this paragraph may not be used in
22     determination of a retirement annuity or disability
23     benefits unless the member has at least 5 years of
24     creditable service earned subsequent to this employment
25     with one or more of the following systems: Teachers'
26     Retirement System of the State of Illinois, State

 

 

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

 

 

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1     following employment as a teacher.
2         The changes to this Section and Section 16-128 relating
3     to military service made by P.A. 87-794 shall apply not
4     only to persons who on or after its effective date are in
5     service as a teacher under the System, but also to persons
6     whose status as a teacher terminated prior to that date,
7     whether or not the person is an annuitant on that date. In
8     the case of an annuitant who applies for credit allowable
9     under this Section for a period of military service that
10     did not immediately follow employment, and who has made the
11     required contributions for such credit, the annuity shall
12     be recalculated to include the additional service credit,
13     with the increase taking effect on the date the System
14     received written notification of the annuitant's intent to
15     purchase the credit, if payment of all the required
16     contributions is made within 60 days of such notice, or
17     else on the first annuity payment date following the date
18     of payment of the required contributions. In calculating
19     the automatic annual increase for an annuity that has been
20     recalculated under this Section, the increase attributable
21     to the additional service allowable under P.A. 87-794 shall
22     be included in the calculation of automatic annual
23     increases accruing after the effective date of the
24     recalculation.
25         Credit for military service shall be determined as
26     follows: if entry occurs during the months of July, August,

 

 

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1     or September and the member was a teacher at the end of the
2     immediately preceding school term, credit shall be granted
3     from July 1 of the year in which he or she entered service;
4     if entry occurs during the school term and the teacher was
5     in teaching service at the beginning of the school term,
6     credit shall be granted from July 1 of such year. In all
7     other cases where credit for military service is allowed,
8     credit shall be granted from the date of entry into the
9     service.
10         The total period of military service for which credit
11     is granted shall not exceed 5 years for any member unless
12     the service: (A) is validated before July 1, 1964, and (B)
13     does not extend beyond July 1, 1963. Credit for military
14     service shall be granted under this Section only if not
15     more than 5 years of the military service for which credit
16     is granted under this Section is used by the member to
17     qualify for a military retirement allotment from any branch
18     of the armed forces of the United States. The changes to
19     this subdivision (b)(3) made by Public Act 86-272 shall
20     apply not only to persons who on or after its effective
21     date (August 23, 1989) are in service as a teacher under
22     the System, but also to persons whose status as such a
23     teacher terminated prior to such effective date, whether or
24     not such person is an annuitant on that date.
25         (4) Any periods served as a member of the General
26     Assembly.

 

 

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

 

 

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1     under item (iii) or (iv) of this paragraph (5) without
2     regard to whether service was terminated before the
3     effective date of this amendatory Act of 1997. In the case
4     of an annuitant who establishes credit under item (iii) or
5     (iv), the annuity shall be recalculated to include the
6     additional service credit. The increase in annuity shall
7     take effect on the date the System receives written
8     notification of the annuitant's intent to purchase the
9     credit, if the required evidence is submitted and the
10     required contribution paid within 60 days of that
11     notification, otherwise on the first annuity payment date
12     following the System's receipt of the required evidence and
13     contribution. The increase in an annuity recalculated
14     under this provision shall be included in the calculation
15     of automatic annual increases in the annuity accruing after
16     the effective date of the recalculation.
17         Optional credit may be purchased under this subsection
18     (b)(5) for periods during which a teacher has been granted
19     a leave of absence pursuant to Section 24-13 of the School
20     Code. A teacher whose service under this Article terminated
21     prior to the effective date of P.A. 86-1488 shall be
22     eligible to purchase such optional credit. If a teacher who
23     purchases this optional credit is already receiving a
24     retirement annuity under this Article, the annuity shall be
25     recalculated as if the annuitant had applied for the leave
26     of absence credit at the time of retirement. The difference

 

 

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1     between the entitled annuity and the actual annuity shall
2     be credited to the purchase of the optional credit. The
3     remainder of the purchase cost of the optional credit shall
4     be paid on or before April 1, 1992.
5         The change in this paragraph made by Public Act 86-273
6     shall be applicable to teachers who retire after June 1,
7     1989, as well as to teachers who are in service on that
8     date.
9         (5.1) A leave of absence during which a teacher ceases
10     covered employment as defined in paragraph (2) of
11     subsection (b) due to pregnancy, returns to teaching
12     service as stated in paragraph (2) of subsection (b)
13     following the pregnancy, and submits evidence satisfactory
14     to the Board documenting that the leave of absence was due
15     to pregnancy. However, total credit under paragraph (5) and
16     this paragraph (5.1) may not exceed 3 years.
17         (6) Any days of unused and uncompensated accumulated
18     sick leave earned by a teacher. The service credit granted
19     under this paragraph shall be the ratio of the number of
20     unused and uncompensated accumulated sick leave days to 170
21     days, subject to a maximum of 2 years of service credit.
22     Prior to the member's retirement, each former employer
23     shall certify to the System the number of unused and
24     uncompensated accumulated sick leave days credited to the
25     member at the time of termination of service. The period of
26     unused sick leave shall not be considered in determining

 

 

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

 

 

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1 years of service as a teacher or administrator employed by a
2 private school recognized by the Illinois State Board of
3 Education, provided that the teacher (i) was certified under
4 the law governing the certification of teachers at the time the
5 service was rendered, (ii) applies in writing on or after June
6 1, 2002 and on or before June 1, 2005, (iii) supplies
7 satisfactory evidence of the employment, (iv) completes at
8 least 10 years of contributing service as a teacher as defined
9 in Section 16-106, and (v) pays the contribution required in
10 subsection (d-5) of Section 16-128. The member may apply for
11 credit under this subsection and pay the required contribution
12 before completing the 10 years of contributing service required
13 under item (iv), but the credit may not be used until the item
14 (iv) contributing service requirement has been met.
15     (c) The service credits specified in this Section shall be
16 granted only if: (1) such service credits are not used for
17 credit in any other statutory tax-supported public employee
18 retirement system other than the federal Social Security
19 program; and (2) the member makes the required contributions as
20 specified in Section 16-128. Except as provided in subsection
21 (b-1) of this Section, the service credit shall be effective as
22 of the date the required contributions are completed.
23     Any service credits granted under this Section shall
24 terminate upon cessation of membership for any cause.
25     Credit may not be granted under this Section covering any
26 period for which an age retirement or disability retirement

 

 

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1 allowance has been paid.
2 (Source: P.A. 92-867, eff. 1-3-03.)
 
3     (40 ILCS 5/16-128)  (from Ch. 108 1/2, par. 16-128)
4     Sec. 16-128. Creditable service - required contributions.
5     (a) In order to receive the creditable service specified
6 under subsection (b) of Section 16-127, a member is required to
7 make the following contributions: (i) an amount equal to the
8 contributions which would have been required had such service
9 been rendered as a member under this System; (ii) for a leave
10 of absence due to pregnancy during creditable service
11 established under subdivision (b) (5.1) of Section 16-127 and
12 (iii) for military service not immediately following
13 employment and for service established under subdivision
14 (b)(10) of Section 16-127, an amount determined by the Board to
15 be equal to the employer's normal cost of the benefits accrued
16 for such service; and (iii) interest from the date the
17 contributions would have been due (or, in the case of a person
18 establishing credit for military service under subdivision
19 (b)(3) of Section 16-127, the date of first membership in the
20 System, if that date is later) to the date of payment, at the
21 following rate of interest, compounded annually: for periods
22 prior to July 1, 1965, regular interest; from July 1, 1965 to
23 June 30, 1977, 4% per year; on and after July 1, 1977, regular
24 interest.
25     (b) In order to receive creditable service under paragraph

 

 

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1 (2) of subsection (b) of Section 16-127 for those who were not
2 members on June 30, 1963, the minimum required contribution
3 shall be $420 per year of service together with interest at 4%
4 per year compounded annually from July 1, preceding the date of
5 membership until June 30, 1977 and at regular interest
6 compounded annually thereafter to the date of payment.
7     (c) In determining the contribution required in order to
8 receive creditable service under paragraph (3) of subsection
9 (b) of Section 16-127, the salary rate for the remainder of the
10 school term in which a member enters military service shall be
11 assumed to be equal to the member's salary rate at the time of
12 entering military service. However, for military service not
13 immediately following employment, the salary rate on the last
14 date as a participating teacher prior to such military service,
15 or on the first date as a participating teacher after such
16 military service, whichever is greater, shall be assumed to be
17 equal to the member's salary rate at the time of entering
18 military service. For each school term thereafter, the member's
19 salary rate shall be assumed to be 5% higher than the salary
20 rate in the previous school term.
21     (d) In determining the contribution required in order to
22 receive creditable service under paragraph (5) and (5.1) of
23 subsection (b) of Section 16-127, a member's salary rate during
24 the period for which credit is being established shall be
25 assumed to be equal to the member's last salary rate
26 immediately preceding that period.

 

 

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1     (d-5) For each year of service credit to be established
2 under subsection (b-1) of Section 16-127, a member is required
3 to contribute to the System (i) 16.5% of the annual salary rate
4 during the first year of full-time employment as a teacher
5 under this Article following the private school service, plus
6 (ii) interest thereon from the date of first full-time
7 employment as a teacher under this Article following the
8 private school service to the date of payment, compounded
9 annually, at the rate of 8.5% per year for periods before the
10 effective date of this amendatory Act of the 92nd General
11 Assembly, and for subsequent periods at a rate equal to the
12 System's actuarially assumed rate of return on investments.
13     (d-10) For service credit established under paragraph (6)
14 of subsection (b) of Section 16-127 for days granted by an
15 employer in excess of the member's normal annual sick leave
16 allotment, the employer is required to pay the normal cost of
17 benefits based upon such service credit. This subsection (d-10)
18 does not apply to sick leave granted to teachers under
19 contracts or collective bargaining agreements entered into,
20 amended, or renewed before June 1, 2005 (the effective date of
21 Public Act 94-4). The employer contributions required under
22 this subsection (d-10) shall be paid in the form of a lump sum
23 within 30 days after receipt of the bill after the teacher
24 begins receiving benefits under this Article.
25     (e) Except for contributions under subsection (d-10), the
26 contributions required under this Section may be made from the

 

 

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1 date the statement for such creditable service is issued until
2 retirement date. All such required contributions must be made
3 before any retirement annuity is granted.
4 (Source: P.A. 94-4, eff. 6-1-05; 94-1057, eff. 7-31-06.)
 
5     (40 ILCS 5/16-203.1 new)
6     Sec. 16-203.1. New benefit increases. The General Assembly
7 finds and declares that the amendment to Sections 16-127 made
8 by this amendatory Act of the 95th General Assembly that allows
9 a teacher to establish credit for a leave of absence due to a
10 pregnancy constitutes a new benefit increase within the meaning
11 of Section 16-203. This new benefit increase will expire 5
12 years after the effective date of this amendatory Act. The
13 additional funding required under Section 16-203 for this new
14 benefit increase shall be provided by the contributions from
15 the employee required under Section 16-128.
 
16     Section 99. Effective date. This Act takes effect upon
17 becoming law.".