98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
HB3371

 

Introduced , by Rep. Thomas Morrison

 

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

    Amends the Downstate Teacher Article of the Illinois Pension Code. Provides that optional service credit shall not be granted after the effective date of this amendatory Act. Effective immediately.


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FISCAL NOTE ACT MAY APPLY
PENSION IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

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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 changing
5Section 16-127 as follows:
 
6    (40 ILCS 5/16-127)  (from Ch. 108 1/2, par. 16-127)
7    Sec. 16-127. Computation of creditable service.
8    (a) Each member shall receive regular credit for all
9service as a teacher from the date membership begins, for which
10satisfactory evidence is supplied and all contributions have
11been paid.
12    (b) The following periods of service shall earn optional
13credit and each member shall receive credit for all such
14service for which satisfactory evidence is supplied and all
15contributions have been paid as of the date specified, but no
16such credit shall be granted after the effective date of this
17amendatory Act of the 98th General Assembly:
18        (1) Prior service as a teacher.
19        (2) Service in a capacity essentially similar or
20    equivalent to that of a teacher, in the public common
21    schools in school districts in this State not included
22    within the provisions of this System, or of any other
23    State, territory, dependency or possession of the United

 

 

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1    States, or in schools operated by or under the auspices of
2    the United States, or under the auspices of any agency or
3    department of any other State, and service during any
4    period of professional speech correction or special
5    education experience for a public agency within this State
6    or any other State, territory, dependency or possession of
7    the United States, and service prior to February 1, 1951 as
8    a recreation worker for the Illinois Department of Public
9    Safety, for a period not exceeding the lesser of 2/5 of the
10    total creditable service of the member or 10 years. The
11    maximum service of 10 years which is allowable under this
12    paragraph shall be reduced by the service credit which is
13    validated by other retirement systems under paragraph (i)
14    of Section 15-113 and paragraph 1 of Section 17-133. Credit
15    granted under this paragraph may not be used in
16    determination of a retirement annuity or disability
17    benefits unless the member has at least 5 years of
18    creditable service earned subsequent to this employment
19    with one or more of the following systems: Teachers'
20    Retirement System of the State of Illinois, State
21    Universities Retirement System, and the Public School
22    Teachers' Pension and Retirement Fund of Chicago. Whenever
23    such service credit exceeds the maximum allowed for all
24    purposes of this Article, the first service rendered in
25    point of time shall be considered. The changes to this
26    subdivision (b)(2) made by Public Act 86-272 shall apply

 

 

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1    not only to persons who on or after its effective date
2    (August 23, 1989) are in service as a teacher under the
3    System, but also to persons whose status as such a teacher
4    terminated prior to such effective date, whether or not
5    such person is an annuitant on that date.
6        (3) Any periods immediately following teaching
7    service, under this System or under Article 17, (or
8    immediately following service prior to February 1, 1951 as
9    a recreation worker for the Illinois Department of Public
10    Safety) spent in active service with the military forces of
11    the United States; periods spent in educational programs
12    that prepare for return to teaching sponsored by the
13    federal government following such active military service;
14    if a teacher returns to teaching service within one
15    calendar year after discharge or after the completion of
16    the educational program, a further period, not exceeding
17    one calendar year, between time spent in military service
18    or in such educational programs and the return to
19    employment as a teacher under this System; and a period of
20    up to 2 years of active military service not immediately
21    following employment as a teacher.
22        The changes to this Section and Section 16-128 relating
23    to military service made by P.A. 87-794 shall apply not
24    only to persons who on or after its effective date are in
25    service as a teacher under the System, but also to persons
26    whose status as a teacher terminated prior to that date,

 

 

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1    whether or not the person is an annuitant on that date. In
2    the case of an annuitant who applies for credit allowable
3    under this Section for a period of military service that
4    did not immediately follow employment, and who has made the
5    required contributions for such credit, the annuity shall
6    be recalculated to include the additional service credit,
7    with the increase taking effect on the date the System
8    received written notification of the annuitant's intent to
9    purchase the credit, if payment of all the required
10    contributions is made within 60 days of such notice, or
11    else on the first annuity payment date following the date
12    of payment of the required contributions. In calculating
13    the automatic annual increase for an annuity that has been
14    recalculated under this Section, the increase attributable
15    to the additional service allowable under P.A. 87-794 shall
16    be included in the calculation of automatic annual
17    increases accruing after the effective date of the
18    recalculation.
19        Credit for military service shall be determined as
20    follows: if entry occurs during the months of July, August,
21    or September and the member was a teacher at the end of the
22    immediately preceding school term, credit shall be granted
23    from July 1 of the year in which he or she entered service;
24    if entry occurs during the school term and the teacher was
25    in teaching service at the beginning of the school term,
26    credit shall be granted from July 1 of such year. In all

 

 

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1    other cases where credit for military service is allowed,
2    credit shall be granted from the date of entry into the
3    service.
4        The total period of military service for which credit
5    is granted shall not exceed 5 years for any member unless
6    the service: (A) is validated before July 1, 1964, and (B)
7    does not extend beyond July 1, 1963. Credit for military
8    service shall be granted under this Section only if not
9    more than 5 years of the military service for which credit
10    is granted under this Section is used by the member to
11    qualify for a military retirement allotment from any branch
12    of the armed forces of the United States. The changes to
13    this subdivision (b)(3) made by Public Act 86-272 shall
14    apply not only to persons who on or after its effective
15    date (August 23, 1989) are in service as a teacher under
16    the System, but also to persons whose status as such a
17    teacher terminated prior to such effective date, whether or
18    not such person is an annuitant on that date.
19        (4) Any periods served as a member of the General
20    Assembly.
21        (5)(i) Any periods for which a teacher, as defined in
22    Section 16-106, is granted a leave of absence, provided he
23    or she returns to teaching service creditable under this
24    System or the State Universities Retirement System
25    following the leave; (ii) periods during which a teacher is
26    involuntarily laid off from teaching, provided he or she

 

 

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1    returns to teaching following the lay-off; (iii) periods
2    prior to July 1, 1983 during which a teacher ceased covered
3    employment due to pregnancy, provided that the teacher
4    returned to teaching service creditable under this System
5    or the State Universities Retirement System following the
6    pregnancy and submits evidence satisfactory to the Board
7    documenting that the employment ceased due to pregnancy;
8    and (iv) periods prior to July 1, 1983 during which a
9    teacher ceased covered employment for the purpose of
10    adopting an infant under 3 years of age or caring for a
11    newly adopted infant under 3 years of age, provided that
12    the teacher returned to teaching service creditable under
13    this System or the State Universities Retirement System
14    following the adoption and submits evidence satisfactory
15    to the Board documenting that the employment ceased for the
16    purpose of adopting an infant under 3 years of age or
17    caring for a newly adopted infant under 3 years of age.
18    However, total credit under this paragraph (5) may not
19    exceed 3 years.
20        Any qualified member or annuitant may apply for credit
21    under item (iii) or (iv) of this paragraph (5) without
22    regard to whether service was terminated before the
23    effective date of this amendatory Act of 1997. In the case
24    of an annuitant who establishes credit under item (iii) or
25    (iv), the annuity shall be recalculated to include the
26    additional service credit. The increase in annuity shall

 

 

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1    take effect on the date the System receives written
2    notification of the annuitant's intent to purchase the
3    credit, if the required evidence is submitted and the
4    required contribution paid within 60 days of that
5    notification, otherwise on the first annuity payment date
6    following the System's receipt of the required evidence and
7    contribution. The increase in an annuity recalculated
8    under this provision shall be included in the calculation
9    of automatic annual increases in the annuity accruing after
10    the effective date of the recalculation.
11        Optional credit may be purchased under this subsection
12    (b)(5) for periods during which a teacher has been granted
13    a leave of absence pursuant to Section 24-13 of the School
14    Code. A teacher whose service under this Article terminated
15    prior to the effective date of P.A. 86-1488 shall be
16    eligible to purchase such optional credit. If a teacher who
17    purchases this optional credit is already receiving a
18    retirement annuity under this Article, the annuity shall be
19    recalculated as if the annuitant had applied for the leave
20    of absence credit at the time of retirement. The difference
21    between the entitled annuity and the actual annuity shall
22    be credited to the purchase of the optional credit. The
23    remainder of the purchase cost of the optional credit shall
24    be paid on or before April 1, 1992.
25        The change in this paragraph made by Public Act 86-273
26    shall be applicable to teachers who retire after June 1,

 

 

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1    1989, as well as to teachers who are in service on that
2    date.
3        (6) Any days of unused and uncompensated accumulated
4    sick leave earned by a teacher. The service credit granted
5    under this paragraph shall be the ratio of the number of
6    unused and uncompensated accumulated sick leave days to 170
7    days, subject to a maximum of 2 years of service credit.
8    Prior to the member's retirement, each former employer
9    shall certify to the System the number of unused and
10    uncompensated accumulated sick leave days credited to the
11    member at the time of termination of service. The period of
12    unused sick leave shall not be considered in determining
13    the effective date of retirement. A member is not required
14    to make contributions in order to obtain service credit for
15    unused sick leave.
16        Credit for sick leave shall, at retirement, be granted
17    by the System for any retiring regional or assistant
18    regional superintendent of schools at the rate of 6 days
19    per year of creditable service or portion thereof
20    established while serving as such superintendent or
21    assistant superintendent.
22        (7) Periods prior to February 1, 1987 served as an
23    employee of the Illinois Mathematics and Science Academy
24    for which credit has not been terminated under Section
25    15-113.9 of this Code.
26        (8) Service as a substitute teacher for work performed

 

 

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1    prior to July 1, 1990.
2        (9) Service as a part-time teacher for work performed
3    prior to July 1, 1990.
4        (10) Up to 2 years of employment with Southern Illinois
5    University - Carbondale from September 1, 1959 to August
6    31, 1961, or with Governors State University from September
7    1, 1972 to August 31, 1974, for which the teacher has no
8    credit under Article 15. To receive credit under this item
9    (10), a teacher must apply in writing to the Board and pay
10    the required contributions before May 1, 1993 and have at
11    least 12 years of service credit under this Article.
12    (b-1) A member may establish optional credit for up to 2
13years of service as a teacher or administrator employed by a
14private school recognized by the Illinois State Board of
15Education, provided that the teacher (i) was certified under
16the law governing the certification of teachers at the time the
17service was rendered, (ii) applies in writing on or after
18August 1, 2009 and on or before August 1, 2012, (iii) supplies
19satisfactory evidence of the employment, (iv) completes at
20least 10 years of contributing service as a teacher as defined
21in Section 16-106, and (v) pays the contribution required in
22subsection (d-5) of Section 16-128. The member may apply for
23credit under this subsection and pay the required contribution
24before completing the 10 years of contributing service required
25under item (iv), but the credit may not be used until the item
26(iv) contributing service requirement has been met.

 

 

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1    (c) The service credits specified in this Section shall be
2granted only if: (1) such service credits are not used for
3credit in any other statutory tax-supported public employee
4retirement system other than the federal Social Security
5program; and (2) the member makes the required contributions as
6specified in Section 16-128. Except as provided in subsection
7(b-1) of this Section, the service credit shall be effective as
8of the date the required contributions are completed.
9    Any service credits granted under this Section shall
10terminate upon cessation of membership for any cause.
11    Credit may not be granted under this Section covering any
12period for which an age retirement or disability retirement
13allowance has been paid.
14(Source: P.A. 96-546, eff. 8-17-09.)
 
15    Section 99. Effective date. This Act takes effect upon
16becoming law.