HB3372 EngrossedLRB098 07598 EFG 37669 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 changing
5Sections 7-109, 7-114, 7-116, 7-139, 9-219, 9-220, 14-104.3,
614-106, 15-106, 15-107, 15-112, 15-113.4, 16-106, 16-121,
716-127, 17-116, and 17-134 as follows:
 
8    (40 ILCS 5/7-109)  (from Ch. 108 1/2, par. 7-109)
9    Sec. 7-109. Employee.
10    (1) "Employee" means any person who:
11        (a) 1. Receives earnings as payment for the performance
12        of personal services or official duties out of the
13        general fund of a municipality, or out of any special
14        fund or funds controlled by a municipality, or by an
15        instrumentality thereof, or a participating
16        instrumentality, including, in counties, the fees or
17        earnings of any county fee office; and
18            2. Under the usual common law rules applicable in
19        determining the employer-employee relationship, has
20        the status of an employee with a municipality, or any
21        instrumentality thereof, or a participating
22        instrumentality, including aldermen, county
23        supervisors and other persons (excepting those

 

 

HB3372 Engrossed- 2 -LRB098 07598 EFG 37669 b

1        employed as independent contractors) who are paid
2        compensation, fees, allowances or other emolument for
3        official duties, and, in counties, the several county
4        fee offices.
5        (b) Serves as a township treasurer appointed under the
6    School Code, as heretofore or hereafter amended, and who
7    receives for such services regular compensation as
8    distinguished from per diem compensation, and any regular
9    employee in the office of any township treasurer whether or
10    not his earnings are paid from the income of the permanent
11    township fund or from funds subject to distribution to the
12    several school districts and parts of school districts as
13    provided in the School Code, or from both such sources; or
14    is the chief executive officer, chief educational officer,
15    chief fiscal officer, or other employee of a Financial
16    Oversight Panel established pursuant to Article 1H of the
17    School Code, other than a superintendent or certified
18    school business official, except that such person shall not
19    be treated as an employee under this Section if that person
20    has negotiated with the Financial Oversight Panel, in
21    conjunction with the school district, a contractual
22    agreement for exclusion from this Section.
23        (c) Holds an elective office in a municipality,
24    instrumentality thereof or participating instrumentality.
25    (2) "Employee" does not include persons who:
26        (a) Are eligible for inclusion under any of the

 

 

HB3372 Engrossed- 3 -LRB098 07598 EFG 37669 b

1    following laws:
2            1. "An Act in relation to an Illinois State
3        Teachers' Pension and Retirement Fund", approved May
4        27, 1915, as amended;
5            2. Articles 15 and 16 of this Code.
6        However, such persons shall be included as employees to
7    the extent of earnings that are not eligible for inclusion
8    under the foregoing laws for services not of an
9    instructional nature of any kind.
10        However, any member of the armed forces who is employed
11    as a teacher of subjects in the Reserve Officers Training
12    Corps of any school and who is not certified under the law
13    governing the certification of teachers shall be included
14    as an employee.
15        (b) Are designated by the governing body of a
16    municipality in which a pension fund is required by law to
17    be established for policemen or firemen, respectively, as
18    performing police or fire protection duties, except that
19    when such persons are the heads of the police or fire
20    department and are not eligible to be included within any
21    such pension fund, they shall be included within this
22    Article; provided, that such persons shall not be excluded
23    to the extent of concurrent service and earnings not
24    designated as being for police or fire protection duties.
25    However, (i) any head of a police department who was a
26    participant under this Article immediately before October

 

 

HB3372 Engrossed- 4 -LRB098 07598 EFG 37669 b

1    1, 1977 and did not elect, under Section 3-109 of this Act,
2    to participate in a police pension fund shall be an
3    "employee", and (ii) any chief of police who elects to
4    participate in this Fund under Section 3-109.1 of this
5    Code, regardless of whether such person continues to be
6    employed as chief of police or is employed in some other
7    rank or capacity within the police department, shall be an
8    employee under this Article for so long as such person is
9    employed to perform police duties by a participating
10    municipality and has not lawfully rescinded that election.
11        (c) After August 26, 2011 (the effective date of Public
12    Act 97-609), are contributors to or eligible to contribute
13    to a Taft-Hartley pension plan established on or before
14    June 1, 2011 and are employees of a theatre, arena, or
15    convention center that is located in a municipality located
16    in a county with a population greater than 5,000,000, and
17    to which the participating municipality is required to
18    contribute as the person's employer based on earnings from
19    the municipality. Nothing in this paragraph shall affect
20    service credit or creditable service for any period of
21    service prior to August 26, 2011, and this paragraph shall
22    not apply to individuals who are participating in the Fund
23    prior to August 26, 2011.
24        (d) Become an employee of any of the following
25    participating instrumentalities on or after the effective
26    date of this amendatory Act of the 98th General Assembly:

 

 

HB3372 Engrossed- 5 -LRB098 07598 EFG 37669 b

1    the Illinois Municipal League; the Illinois Association of
2    Park Districts; the Illinois Supervisors, County
3    Commissioners and Superintendents of Highways Association;
4    an association, or not-for-profit corporation, membership
5    in which is authorized under Section 85-15 of the Township
6    Code; the United Counties Council; or the Will County
7    Governmental League.
8    (3) All persons, including, without limitation, public
9defenders and probation officers, who receive earnings from
10general or special funds of a county for performance of
11personal services or official duties within the territorial
12limits of the county, are employees of the county (unless
13excluded by subsection (2) of this Section) notwithstanding
14that they may be appointed by and are subject to the direction
15of a person or persons other than a county board or a county
16officer. It is hereby established that an employer-employee
17relationship under the usual common law rules exists between
18such employees and the county paying their salaries by reason
19of the fact that the county boards fix their rates of
20compensation, appropriate funds for payment of their earnings
21and otherwise exercise control over them. This finding and this
22amendatory Act shall apply to all such employees from the date
23of appointment whether such date is prior to or after the
24effective date of this amendatory Act and is intended to
25clarify existing law pertaining to their status as
26participating employees in the Fund.

 

 

HB3372 Engrossed- 6 -LRB098 07598 EFG 37669 b

1(Source: P.A. 97-429, eff. 8-16-11; 97-609, eff. 8-26-11;
297-813, eff. 7-13-12.)
 
3    (40 ILCS 5/7-114)  (from Ch. 108 1/2, par. 7-114)
4    Sec. 7-114. Earnings. "Earnings":
5    (a) An amount to be determined by the board, equal to the
6sum of:
7        1. The total amount of money paid to an employee for
8    personal services or official duties as an employee (except
9    those employed as independent contractors) paid out of the
10    general fund, or out of any special funds controlled by the
11    municipality, or by any instrumentality thereof, or
12    participating instrumentality, including compensation,
13    fees, allowances, or other emolument paid for official
14    duties (but not including automobile maintenance, travel
15    expense, or reimbursements for expenditures incurred in
16    the performance of duties, or, in the case of a person who
17    first becomes a participant on or after the effective date
18    of this amendatory Act of the 98th General Assembly,
19    payments for unused sick or vacation time) and, for fee
20    offices, the fees or earnings of the offices to the extent
21    such fees are paid out of funds controlled by the
22    municipality, or instrumentality or participating
23    instrumentality; and
24        2. The money value, as determined by rules prescribed
25    by the governing body of the municipality, or

 

 

HB3372 Engrossed- 7 -LRB098 07598 EFG 37669 b

1    instrumentality thereof, of any board, lodging, fuel,
2    laundry, and other allowances provided an employee in lieu
3    of money.
4    (b) For purposes of determining benefits payable under this
5fund payments to a person who is engaged in an independently
6established trade, occupation, profession or business and who
7is paid for his service on a basis other than a monthly or
8other regular salary, are not earnings.
9    (c) If a disabled participating employee is eligible to
10receive Workers' Compensation for an accidental injury and the
11participating municipality or instrumentality which employed
12the participating employee when injured continues to pay the
13participating employee regular salary or other compensation or
14pays the employee an amount in excess of the Workers'
15Compensation amount, then earnings shall be deemed to be the
16total payments, including an amount equal to the Workers'
17Compensation payments. These payments shall be subject to
18employee contributions and allocated as if paid to the
19participating employee when the regular payroll amounts would
20have been paid if the participating employee had continued
21working, and creditable service shall be awarded for this
22period.
23    (d) If an elected official who is a participating employee
24becomes disabled but does not resign and is not removed from
25office, then earnings shall include all salary payments made
26for the remainder of that term of office and the official shall

 

 

HB3372 Engrossed- 8 -LRB098 07598 EFG 37669 b

1be awarded creditable service for the term of office.
2    (e) If a participating employee is paid pursuant to "An Act
3to provide for the continuation of compensation for law
4enforcement officers, correctional officers and firemen who
5suffer disabling injury in the line of duty", approved
6September 6, 1973, as amended, the payments shall be deemed
7earnings, and the participating employee shall be awarded
8creditable service for this period.
9    (f) Additional compensation received by a person while
10serving as a supervisor of assessments, assessor, deputy
11assessor or member of a board of review from the State of
12Illinois pursuant to Section 4-10 or 4-15 of the Property Tax
13Code shall not be earnings for purposes of this Article and
14shall not be included in the contribution formula or
15calculation of benefits for such person pursuant to this
16Article.
17(Source: P.A. 87-740; 88-670, eff. 12-2-94.)
 
18    (40 ILCS 5/7-116)  (from Ch. 108 1/2, par. 7-116)
19    Sec. 7-116. "Final rate of earnings":
20    (a) For retirement and survivor annuities, the monthly
21earnings obtained by dividing the total earnings received by
22the employee during the period of either (1) the 48 consecutive
23months of service within the last 120 months of service in
24which his total earnings were the highest or (2) the employee's
25total period of service, by the number of months of service in

 

 

HB3372 Engrossed- 9 -LRB098 07598 EFG 37669 b

1such period.
2    (b) For death benefits, the higher of the rate determined
3under paragraph (a) of this Section or total earnings received
4in the last 12 months of service divided by twelve. If the
5deceased employee has less than 12 months of service, the
6monthly final rate shall be the monthly rate of pay the
7employee was receiving when he began service.
8    (c) For disability benefits, the total earnings of a
9participating employee in the last 12 calendar months of
10service prior to the date he becomes disabled divided by 12.
11    (d) In computing the final rate of earnings: (1) the
12earnings rate for all periods of prior service shall be
13considered equal to the average earnings rate for the last 3
14calendar years of prior service for which creditable service is
15received under Section 7-139 or, if there is less than 3 years
16of creditable prior service, the average for the total prior
17service period for which creditable service is received under
18Section 7-139; (2) for out of state service and authorized
19leave, the earnings rate shall be the rate upon which service
20credits are granted; (3) periods of military leave shall not be
21considered; (4) the earnings rate for all periods of disability
22shall be considered equal to the rate of earnings upon which
23the employee's disability benefits are computed for such
24periods; (5) the earnings to be considered for each of the
25final three months of the final earnings period for persons who
26first became participants before January 1, 2012 and the

 

 

HB3372 Engrossed- 10 -LRB098 07598 EFG 37669 b

1earnings to be considered for each of the final 24 months for
2participants who first become participants on or after January
31, 2012 shall not exceed 125% of the highest earnings of any
4other month in the final earnings period; and (6) the annual
5amount of final rate of earnings shall be the monthly amount
6multiplied by the number of months of service normally required
7by the position in a year; and (7) in the case of a person who
8first becomes a participant on or after the effective date of
9this amendatory Act of the 98th General Assembly, payments for
10unused sick or vacation time shall not be considered.
11(Source: P.A. 97-609, eff. 1-1-12.)
 
12    (40 ILCS 5/7-139)  (from Ch. 108 1/2, par. 7-139)
13    Sec. 7-139. Credits and creditable service to employees.
14    (a) Each participating employee shall be granted credits
15and creditable service, for purposes of determining the amount
16of any annuity or benefit to which he or a beneficiary is
17entitled, as follows:
18        1. For prior service: Each participating employee who
19    is an employee of a participating municipality or
20    participating instrumentality on the effective date shall
21    be granted creditable service, but no credits under
22    paragraph 2 of this subsection (a), for periods of prior
23    service for which credit has not been received under any
24    other pension fund or retirement system established under
25    this Code, as follows:

 

 

HB3372 Engrossed- 11 -LRB098 07598 EFG 37669 b

1        If the effective date of participation for the
2    participating municipality or participating
3    instrumentality is on or before January 1, 1998, creditable
4    service shall be granted for the entire period of prior
5    service with that employer without any employee
6    contribution.
7        If the effective date of participation for the
8    participating municipality or participating
9    instrumentality is after January 1, 1998, creditable
10    service shall be granted for the last 20% of the period of
11    prior service with that employer, but no more than 5 years,
12    without any employee contribution. A participating
13    employee may establish creditable service for the
14    remainder of the period of prior service with that employer
15    by making an application in writing, accompanied by payment
16    of an employee contribution in an amount determined by the
17    Fund, based on the employee contribution rates in effect at
18    the time of application for the creditable service and the
19    employee's salary rate on the effective date of
20    participation for that employer, plus interest at the
21    effective rate from the date of the prior service to the
22    date of payment. Application for this creditable service
23    may be made at any time while the employee is still in
24    service.
25        A municipality that (i) has at least 35 employees; (ii)
26    is located in a county with at least 2,000,000 inhabitants;

 

 

HB3372 Engrossed- 12 -LRB098 07598 EFG 37669 b

1    and (iii) maintains an independent defined benefit pension
2    plan for the benefit of its eligible employees may restrict
3    creditable service in whole or in part for periods of prior
4    service with the employer if the governing body of the
5    municipality adopts an irrevocable resolution to restrict
6    that creditable service and files the resolution with the
7    board before the municipality's effective date of
8    participation.
9        Any person who has withdrawn from the service of a
10    participating municipality or participating
11    instrumentality prior to the effective date, who reenters
12    the service of the same municipality or participating
13    instrumentality after the effective date and becomes a
14    participating employee is entitled to creditable service
15    for prior service as otherwise provided in this subdivision
16    (a)(1) only if he or she renders 2 years of service as a
17    participating employee after the effective date.
18    Application for such service must be made while in a
19    participating status. The salary rate to be used in the
20    calculation of the required employee contribution, if any,
21    shall be the employee's salary rate at the time of first
22    reentering service with the employer after the employer's
23    effective date of participation.
24        2. For current service, each participating employee
25    shall be credited with:
26            a. Additional credits of amounts equal to each

 

 

HB3372 Engrossed- 13 -LRB098 07598 EFG 37669 b

1        payment of additional contributions received from him
2        under Section 7-173, as of the date the corresponding
3        payment of earnings is payable to him.
4            b. Normal credits of amounts equal to each payment
5        of normal contributions received from him, as of the
6        date the corresponding payment of earnings is payable
7        to him, and normal contributions made for the purpose
8        of establishing out-of-state service credits as
9        permitted under the conditions set forth in paragraph 6
10        of this subsection (a).
11            c. Municipality credits in an amount equal to 1.4
12        times the normal credits, except those established by
13        out-of-state service credits, as of the date of
14        computation of any benefit if these credits would
15        increase the benefit.
16            d. Survivor credits equal to each payment of
17        survivor contributions received from the participating
18        employee as of the date the corresponding payment of
19        earnings is payable, and survivor contributions made
20        for the purpose of establishing out-of-state service
21        credits.
22        3. For periods of temporary and total and permanent
23    disability benefits, each employee receiving disability
24    benefits shall be granted creditable service for the period
25    during which disability benefits are payable. Normal and
26    survivor credits, based upon the rate of earnings applied

 

 

HB3372 Engrossed- 14 -LRB098 07598 EFG 37669 b

1    for disability benefits, shall also be granted if such
2    credits would result in a higher benefit to any such
3    employee or his beneficiary.
4        4. For authorized leave of absence without pay: A
5    participating employee shall be granted credits and
6    creditable service for periods of authorized leave of
7    absence without pay under the following conditions:
8            a. An application for credits and creditable
9        service is submitted to the board while the employee is
10        in a status of active employment.
11            b. Not more than 12 complete months of creditable
12        service for authorized leave of absence without pay
13        shall be counted for purposes of determining any
14        benefits payable under this Article.
15            c. Credits and creditable service shall be granted
16        for leave of absence only if such leave is approved by
17        the governing body of the municipality, including
18        approval of the estimated cost thereof to the
19        municipality as determined by the fund, and employee
20        contributions, plus interest at the effective rate
21        applicable for each year from the end of the period of
22        leave to date of payment, have been paid to the fund in
23        accordance with Section 7-173. The contributions shall
24        be computed upon the assumption earnings continued
25        during the period of leave at the rate in effect when
26        the leave began.

 

 

HB3372 Engrossed- 15 -LRB098 07598 EFG 37669 b

1            d. Benefits under the provisions of Sections
2        7-141, 7-146, 7-150 and 7-163 shall become payable to
3        employees on authorized leave of absence, or their
4        designated beneficiary, only if such leave of absence
5        is creditable hereunder, and if the employee has at
6        least one year of creditable service other than the
7        service granted for leave of absence. Any employee
8        contributions due may be deducted from any benefits
9        payable.
10            e. No credits or creditable service shall be
11        allowed for leave of absence without pay during any
12        period of prior service.
13        5. For military service: The governing body of a
14    municipality or participating instrumentality may elect to
15    allow creditable service to participating employees who
16    leave their employment to serve in the armed forces of the
17    United States for all periods of such service, provided
18    that the person returns to active employment within 90 days
19    after completion of full time active duty, but no
20    creditable service shall be allowed such person for any
21    period that can be used in the computation of a pension or
22    any other pay or benefit, other than pay for active duty,
23    for service in any branch of the armed forces of the United
24    States. If necessary to the computation of any benefit, the
25    board shall establish municipality credits for
26    participating employees under this paragraph on the

 

 

HB3372 Engrossed- 16 -LRB098 07598 EFG 37669 b

1    assumption that the employee received earnings at the rate
2    received at the time he left the employment to enter the
3    armed forces. A participating employee in the armed forces
4    shall not be considered an employee during such period of
5    service and no additional death and no disability benefits
6    are payable for death or disability during such period.
7        Any participating employee who left his employment
8    with a municipality or participating instrumentality to
9    serve in the armed forces of the United States and who
10    again became a participating employee within 90 days after
11    completion of full time active duty by entering the service
12    of a different municipality or participating
13    instrumentality, which has elected to allow creditable
14    service for periods of military service under the preceding
15    paragraph, shall also be allowed creditable service for his
16    period of military service on the same terms that would
17    apply if he had been employed, before entering military
18    service, by the municipality or instrumentality which
19    employed him after he left the military service and the
20    employer costs arising in relation to such grant of
21    creditable service shall be charged to and paid by that
22    municipality or instrumentality.
23        Notwithstanding the foregoing, any participating
24    employee shall be entitled to creditable service as
25    required by any federal law relating to re-employment
26    rights of persons who served in the United States Armed

 

 

HB3372 Engrossed- 17 -LRB098 07598 EFG 37669 b

1    Services. Such creditable service shall be granted upon
2    payment by the member of an amount equal to the employee
3    contributions which would have been required had the
4    employee continued in service at the same rate of earnings
5    during the military leave period, plus interest at the
6    effective rate.
7        5.1. In addition to any creditable service established
8    under paragraph 5 of this subsection (a), creditable
9    service may be granted for up to 48 months of service in
10    the armed forces of the United States.
11        In order to receive creditable service for military
12    service under this paragraph 5.1, a participating employee
13    must (1) apply to the Fund in writing and provide evidence
14    of the military service that is satisfactory to the Board;
15    (2) obtain the written approval of the current employer;
16    and (3) make contributions to the Fund equal to (i) the
17    employee contributions that would have been required had
18    the service been rendered as a member, plus (ii) an amount
19    determined by the board to be equal to the employer's
20    normal cost of the benefits accrued for that military
21    service, plus (iii) interest on items (i) and (ii) from the
22    date of first membership in the Fund to the date of
23    payment. The required interest shall be calculated at the
24    regular interest rate.
25        The changes made to this paragraph 5.1 by Public Acts
26    95-483 and 95-486 apply only to participating employees in

 

 

HB3372 Engrossed- 18 -LRB098 07598 EFG 37669 b

1    service on or after August 28, 2007 (the effective date of
2    those Public Acts).
3        6. For out-of-state service: Creditable service shall
4    be granted for service rendered to an out-of-state local
5    governmental body under the following conditions: The
6    employee had participated and has irrevocably forfeited
7    all rights to benefits in the out-of-state public employees
8    pension system; the governing body of his participating
9    municipality or instrumentality authorizes the employee to
10    establish such service; the employee has 2 years current
11    service with this municipality or participating
12    instrumentality; the employee makes a payment of
13    contributions, which shall be computed at 8% (normal) plus
14    2% (survivor) times length of service purchased times the
15    average rate of earnings for the first 2 years of service
16    with the municipality or participating instrumentality
17    whose governing body authorizes the service established
18    plus interest at the effective rate on the date such
19    credits are established, payable from the date the employee
20    completes the required 2 years of current service to date
21    of payment. In no case shall more than 120 months of
22    creditable service be granted under this provision.
23        7. For retroactive service: Any employee who could have
24    but did not elect to become a participating employee, or
25    who should have been a participant in the Municipal Public
26    Utilities Annuity and Benefit Fund before that fund was

 

 

HB3372 Engrossed- 19 -LRB098 07598 EFG 37669 b

1    superseded, may receive creditable service for the period
2    of service not to exceed 50 months; however, a current or
3    former elected or appointed official of a participating
4    municipality may establish credit under this paragraph 7
5    for more than 50 months of service as an official of that
6    municipality, if the excess over 50 months is approved by
7    resolution of the governing body of the affected
8    municipality filed with the Fund before January 1, 2002.
9        Any employee who is a participating employee on or
10    after September 24, 1981 and who was excluded from
11    participation by the age restrictions removed by Public Act
12    82-596 may receive creditable service for the period, on or
13    after January 1, 1979, excluded by the age restriction and,
14    in addition, if the governing body of the participating
15    municipality or participating instrumentality elects to
16    allow creditable service for all employees excluded by the
17    age restriction prior to January 1, 1979, for service
18    during the period prior to that date excluded by the age
19    restriction. Any employee who was excluded from
20    participation by the age restriction removed by Public Act
21    82-596 and who is not a participating employee on or after
22    September 24, 1981 may receive creditable service for
23    service after January 1, 1979. Creditable service under
24    this paragraph shall be granted upon payment of the
25    employee contributions which would have been required had
26    he participated, with interest at the effective rate for

 

 

HB3372 Engrossed- 20 -LRB098 07598 EFG 37669 b

1    each year from the end of the period of service established
2    to date of payment.
3        8. For accumulated unused sick leave: A participating
4    employee who first becomes a participating employee before
5    the effective date of this amendatory Act of the 98th
6    General Assembly and who is applying for a retirement
7    annuity shall be entitled to creditable service for that
8    portion of the employee's accumulated unused sick leave for
9    which payment is not received, as follows:
10            a. Sick leave days shall be limited to those
11        accumulated under a sick leave plan established by a
12        participating municipality or participating
13        instrumentality which is available to all employees or
14        a class of employees.
15            b. Except as provided in item b-1, only sick leave
16        days accumulated with a participating municipality or
17        participating instrumentality with which the employee
18        was in service within 60 days of the effective date of
19        his retirement annuity shall be credited; If the
20        employee was in service with more than one employer
21        during this period only the sick leave days with the
22        employer with which the employee has the greatest
23        number of unpaid sick leave days shall be considered.
24            b-1. If the employee was in the service of more
25        than one employer as defined in item (2) of paragraph
26        (a) of subsection (A) of Section 7-132, then the sick

 

 

HB3372 Engrossed- 21 -LRB098 07598 EFG 37669 b

1        leave days from all such employers shall be credited,
2        as long as the creditable service attributed to those
3        sick leave days does not exceed the limitation in item
4        f of this paragraph 8. In calculating the creditable
5        service under this item b-1, the sick leave days from
6        the last employer shall be considered first, then the
7        remaining sick leave days shall be considered until
8        there are no more days or the maximum creditable sick
9        leave threshold under item f of this paragraph 8 has
10        been reached.
11            c. The creditable service granted shall be
12        considered solely for the purpose of computing the
13        amount of the retirement annuity and shall not be used
14        to establish any minimum service period required by any
15        provision of the Illinois Pension Code, the effective
16        date of the retirement annuity, or the final rate of
17        earnings.
18            d. The creditable service shall be at the rate of
19        1/20 of a month for each full sick day, provided that
20        no more than 12 months may be credited under this
21        subdivision 8.
22            e. Employee contributions shall not be required
23        for creditable service under this subdivision 8.
24            f. Each participating municipality and
25        participating instrumentality with which an employee
26        has service within 60 days of the effective date of his

 

 

HB3372 Engrossed- 22 -LRB098 07598 EFG 37669 b

1        retirement annuity shall certify to the board the
2        number of accumulated unpaid sick leave days credited
3        to the employee at the time of termination of service.
4        9. For service transferred from another system:
5    Credits and creditable service shall be granted for service
6    under Article 3, 4, 5, 8, 14, or 16 of this Act, to any
7    active member of this Fund, and to any inactive member who
8    has been a county sheriff, upon transfer of such credits
9    pursuant to Section 3-110.3, 4-108.3, 5-235, 8-226.7,
10    14-105.6, or 16-131.4, and payment by the member of the
11    amount by which (1) the employer and employee contributions
12    that would have been required if he had participated in
13    this Fund as a sheriff's law enforcement employee during
14    the period for which credit is being transferred, plus
15    interest thereon at the effective rate for each year,
16    compounded annually, from the date of termination of the
17    service for which credit is being transferred to the date
18    of payment, exceeds (2) the amount actually transferred to
19    the Fund. Such transferred service shall be deemed to be
20    service as a sheriff's law enforcement employee for the
21    purposes of Section 7-142.1.
22        10. For service transferred from an Article 3 system
23    under Section 3-110.8: Credits and creditable service
24    shall be granted for service under Article 3 of this Act as
25    provided in Section 3-110.8, to any active member of this
26    Fund upon transfer of such credits pursuant to Section

 

 

HB3372 Engrossed- 23 -LRB098 07598 EFG 37669 b

1    3-110.8. If the amount by which (1) the employer and
2    employee contributions that would have been required if he
3    had participated in this Fund during the period for which
4    credit is being transferred, plus interest thereon at the
5    effective rate for each year, compounded annually, from the
6    date of termination of the service for which credit is
7    being transferred to the date of payment, exceeds (2) the
8    amount actually transferred to the Fund, then the amount of
9    creditable service established under this paragraph 10
10    shall be reduced by a corresponding amount in accordance
11    with the rules and procedures established under this
12    paragraph 10.
13        The board shall establish by rule the manner of making
14    the calculation required under this paragraph 10, taking
15    into account the appropriate actuarial assumptions; the
16    member's service, age, and salary history; the level of
17    funding of the employer; and any other factors that the
18    board determines to be relevant.
19        Until January 1, 2010, members who transferred service
20    from an Article 3 system under the provisions of Public Act
21    94-356 may establish additional credit in this Fund, but
22    only up to the amount of the service credit reduction in
23    that transfer, as calculated under the actuarial
24    assumptions. This credit may be established upon payment by
25    the member of an amount to be determined by the board,
26    equal to (1) the amount that would have been contributed as

 

 

HB3372 Engrossed- 24 -LRB098 07598 EFG 37669 b

1    employee and employer contributions had all the service
2    been as an employee under this Article, plus interest
3    thereon compounded annually from the date of service to the
4    date of transfer, less (2) the total amount transferred
5    from the Article 3 system, plus (3) interest on the
6    difference at the effective rate for each year, compounded
7    annually, from the date of the transfer to the date of
8    payment. The additional service credit is allowed under
9    this amendatory Act of the 95th General Assembly
10    notwithstanding the provisions of Article 3 terminating
11    all transferred credits on the date of transfer.
12    (b) Creditable service - amount:
13        1. One month of creditable service shall be allowed for
14    each month for which a participating employee made
15    contributions as required under Section 7-173, or for which
16    creditable service is otherwise granted hereunder. Not
17    more than 1 month of service shall be credited and counted
18    for 1 calendar month, and not more than 1 year of service
19    shall be credited and counted for any calendar year. A
20    calendar month means a nominal month beginning on the first
21    day thereof, and a calendar year means a year beginning
22    January 1 and ending December 31.
23        2. A seasonal employee shall be given 12 months of
24    creditable service if he renders the number of months of
25    service normally required by the position in a 12-month
26    period and he remains in service for the entire 12-month

 

 

HB3372 Engrossed- 25 -LRB098 07598 EFG 37669 b

1    period. Otherwise a fractional year of service in the
2    number of months of service rendered shall be credited.
3        3. An intermittent employee shall be given creditable
4    service for only those months in which a contribution is
5    made under Section 7-173.
6    (c) No application for correction of credits or creditable
7service shall be considered unless the board receives an
8application for correction while (1) the applicant is a
9participating employee and in active employment with a
10participating municipality or instrumentality, or (2) while
11the applicant is actively participating in a pension fund or
12retirement system which is a participating system under the
13Retirement Systems Reciprocal Act. A participating employee or
14other applicant shall not be entitled to credits or creditable
15service unless the required employee contributions are made in
16a lump sum or in installments made in accordance with board
17rule.
18    (d) Upon the granting of a retirement, surviving spouse or
19child annuity, a death benefit or a separation benefit, on
20account of any employee, all individual accumulated credits
21shall thereupon terminate. Upon the withdrawal of additional
22contributions, the credits applicable thereto shall thereupon
23terminate. Terminated credits shall not be applied to increase
24the benefits any remaining employee would otherwise receive
25under this Article.
26(Source: P.A. 96-299, eff. 8-11-09; 97-415, eff. 8-16-11.)
 

 

 

HB3372 Engrossed- 26 -LRB098 07598 EFG 37669 b

1    (40 ILCS 5/9-219)  (from Ch. 108 1/2, par. 9-219)
2    Sec. 9-219. Computation of service.
3    (1) In computing the term of service of an employee prior
4to the effective date, the entire period beginning on the date
5he was first appointed and ending on the day before the
6effective date, except any intervening period during which he
7was separated by withdrawal from service, shall be counted for
8all purposes of this Article.
9    (2) In computing the term of service of any employee on or
10after the effective date, the following periods of time shall
11be counted as periods of service for age and service, widow's
12and child's annuity purposes:
13        (a) The time during which he performed the duties of
14    his position.
15        (b) Vacations, leaves of absence with whole or part
16    pay, and leaves of absence without pay not longer than 90
17    days.
18        (c) For an employee who is a member of a county police
19    department or a correctional officer with the county
20    department of corrections, approved leaves of absence
21    without pay during which the employee serves as a full-time
22    officer or employee of an employee association, the
23    membership of which consists of other participants in the
24    Fund, provided that the employee contributes to the Fund
25    (1) the amount that he would have contributed had he

 

 

HB3372 Engrossed- 27 -LRB098 07598 EFG 37669 b

1    remained an active employee in the position he occupied at
2    the time the leave of absence was granted, (2) an amount
3    calculated by the Board representing employer
4    contributions, and (3) regular interest thereon from the
5    date of service to the date of payment. However, if the
6    employee's application to establish credit under this
7    subsection is received by the Fund on or after July 1, 2002
8    and before July 1, 2003, the amount representing employer
9    contributions specified in item (2) shall be waived.
10        For a former member of a county police department who
11    has received a refund under Section 9-164, periods during
12    which the employee serves as head of an employee
13    association, the membership of which consists of other
14    police officers, provided that the employee contributes to
15    the Fund (1) the amount that he would have contributed had
16    he remained an active member of the county police
17    department in the position he occupied at the time he left
18    service, (2) an amount calculated by the Board representing
19    employer contributions, and (3) regular interest thereon
20    from the date of service to the date of payment. However,
21    if the former member of the county police department
22    retires on or after January 1, 1993 but no later than March
23    1, 1993, the amount representing employer contributions
24    specified in item (2) shall be waived.
25        For leaves of absence to which this item (c) applies
26    and for other periods to which this item (c) applies,

 

 

HB3372 Engrossed- 28 -LRB098 07598 EFG 37669 b

1    including those leaves of absence and other periods of
2    service beginning before January 5, 2012 (the effective
3    date of Public Act 97-651) this amendatory Act of the 97th
4    General Assembly, the employee or former member must
5    continue to remain in sworn status, subject to the
6    professional standards of the public employer or those
7    terms established in statute.
8        (d) Any period of disability for which he received
9    disability benefit or whole or part pay.
10        (e) For a person who first becomes an employee before
11    the effective date of this amendatory Act of the 98th
12    General Assembly, accumulated Accumulated vacation or
13    other time for which an employee who retires on or after
14    November 1, 1990 receives a lump sum payment at the time of
15    retirement, provided that contributions were made to the
16    fund at the time such lump sum payment was received. The
17    service granted for the lump sum payment shall not change
18    the employee's date of withdrawal for computing the
19    effective date of the annuity.
20        (f) An employee who first becomes an employee before
21    the effective date of this amendatory Act of the 98th
22    General Assembly may receive service credit for annuity
23    purposes for accumulated sick leave as of the date of the
24    employee's withdrawal from service, not to exceed a total
25    of 180 days, provided that the amount of such accumulated
26    sick leave is certified by the County Comptroller to the

 

 

HB3372 Engrossed- 29 -LRB098 07598 EFG 37669 b

1    Board and the employee pays an amount equal to 8.5% (9% for
2    members of the County Police Department who are eligible to
3    receive an annuity under Section 9-128.1) of the amount
4    that would have been paid had such accumulated sick leave
5    been paid at the employee's final rate of salary. Such
6    payment shall be made within 30 days after the date of
7    withdrawal and prior to receipt of the first annuity check.
8    The service credit granted for such accumulated sick leave
9    shall not change the employee's date of withdrawal for the
10    purpose of computing the effective date of the annuity.
11    (3) In computing the term of service of an employee on or
12after the effective date for ordinary disability benefit
13purposes, the following periods of time shall be counted as
14periods of service:
15        (a) Unless otherwise specified in Section 9-157, the
16    time during which he performed the duties of his position.
17        (b) Paid vacations and leaves of absence with whole or
18    part pay.
19        (c) Any period for which he received duty disability
20    benefit.
21        (d) Any period of disability for which he received
22    whole or part pay.
23    (4) For an employee who on January 1, 1958, was transferred
24by Act of the 70th General Assembly from his position in a
25department of welfare of any city located in the county in
26which this Article is in force and effect to a similar position

 

 

HB3372 Engrossed- 30 -LRB098 07598 EFG 37669 b

1in a department of such county, service shall also be credited
2for ordinary disability benefit and child's annuity for such
3period of department of welfare service during which period he
4was a contributor to a statutory annuity and benefit fund in
5such city and for which purposes service credit would otherwise
6not be credited by virtue of such involuntary transfer.
7    (5) An employee described in subsection (e) of Section
89-108 shall receive credit for child's annuity and ordinary
9disability benefit for the period of time for which he was
10credited with service in the fund from which he was
11involuntarily separated through class or group transfer;
12provided, that no such credit shall be allowed to the extent
13that it results in a duplication of credits or benefits, and
14neither shall such credit be allowed to the extent that it was
15or may be forfeited by the application for and acceptance of a
16refund from the fund from which the employee was transferred.
17    (6) Overtime or extra service shall not be included in
18computing service. Not more than 1 year of service shall be
19allowed for service rendered during any calendar year.
20    (7) Unused sick or vacation time shall not be used to
21compute the service of an employee who first becomes an
22employee on or after the effective date of this amendatory Act
23of the 98th General Assembly.
24(Source: P.A. 97-651, eff. 1-5-12.)
 
25    (40 ILCS 5/9-220)  (from Ch. 108 1/2, par. 9-220)

 

 

HB3372 Engrossed- 31 -LRB098 07598 EFG 37669 b

1    Sec. 9-220. Basis of service credit.
2    (a) In computing the period of service of any employee for
3annuity purposes under Section 9-134, the following provisions
4shall govern:
5        (1) All periods prior to the effective date shall be
6    computed in accordance with the provisions governing the
7    computation of such service.
8        (2) Service on or after the effective date shall
9    include:
10            (i) The actual period of time the employee
11        contributes or has contributed to the fund for service
12        rendered to age 65 plus the actual period of time after
13        age 65 for which the employee performs the duties of
14        his position or performs such duties and is given a
15        county contribution for age and service annuity or
16        minimum annuity purposes.
17            (ii) Leaves of absence from duty, or vacation, for
18        which an employee receives all or part of his salary.
19            (iii) For a person who first becomes an employee
20        before the effective date of this amendatory Act of the
21        98th General Assembly, accumulated Accumulated
22        vacation or other time for which an employee who
23        retires on or after November 1, 1990 receives a lump
24        sum payment at the time of retirement, provided that
25        contributions were made to the fund at the time such
26        lump sum payment was received. The service granted for

 

 

HB3372 Engrossed- 32 -LRB098 07598 EFG 37669 b

1        the lump sum payment shall not change the employee's
2        date of withdrawal for computing the effective date of
3        the annuity.
4            (iv) For a person who first becomes an employee
5        before the effective date of this amendatory Act of the
6        98th General Assembly, accumulated Accumulated sick
7        leave as of the date of the employee's withdrawal from
8        service, not to exceed a total of 180 days, provided
9        that the amount of such accumulated sick leave is
10        certified by the County Comptroller to the Board and
11        the employee pays an amount equal to 8.5% (9% for
12        members of the County Police Department who are
13        eligible to receive an annuity under Section 9-128.1)
14        of the amount that would have been paid had such
15        accumulated sick leave been paid at the employee's
16        final rate of salary. Such payment shall be made within
17        30 days after the date of withdrawal and prior to
18        receipt of the first annuity check. The service credit
19        granted for such accumulated sick leave shall not
20        change the employee's date of withdrawal for the
21        purpose of computing the effective date of the annuity.
22            (v) Periods during which the employee has had
23        contributions for annuity purposes made for him in
24        accordance with law while on military leave of absence
25        during World War II.
26            (vi) Periods during which the employee receives a

 

 

HB3372 Engrossed- 33 -LRB098 07598 EFG 37669 b

1        disability benefit under this Article.
2            (vii) For any person who first becomes a member on
3        or after January 1, 2011, the actual period of time the
4        employee contributes or has contributed to the fund for
5        service rendered up to the limitation on salary in
6        subsection (b-5) of Section 1-160 plus the actual
7        period of time thereafter for which the employee
8        performs the duties of his position and ceased
9        contributing due to the salary limitation in
10        subsection (b-5) of Section 1-160.
11        (3) The right to have certain periods of time
12    considered as service as stated in paragraph (2) of Section
13    9-164 shall not apply for annuity purposes unless the
14    refunds shall have been repaid in accordance with this
15    Article.
16        (4) All service shall be computed in whole calendar
17    months, and at least 15 days of service in any one calendar
18    month shall constitute one calendar month of service, and 1
19    year of service shall be equal to the number of months,
20    days or hours for which an appropriation was made in the
21    annual appropriation ordinance for the position held by the
22    employee.
23        (5) Unused sick or vacation time shall not be used to
24    compute the service of an employee who first becomes an
25    employee on or after the effective date of this amendatory
26    Act of the 98th General Assembly.

 

 

HB3372 Engrossed- 34 -LRB098 07598 EFG 37669 b

1    (b) For all other annuity purposes of this Article the
2following schedule shall govern the computation of a year of
3service of an employee whose salary or wages is on the basis
4stated, and any fractional part of a year of service shall be
5determined according to said schedule:
6    Annual or Monthly Basis: Service during 4 months in any 1
7calendar year;
8    Weekly Basis: Service during any 17 weeks of any 1 calendar
9year, and service during any week shall constitute a week of
10service;
11    Daily Basis: Service during 100 days in any 1 calendar
12year, and service during any day shall constitute a day of
13service;
14    Hourly Basis: Service during 800 hours in any 1 calendar
15year, and service during any hour shall constitute an hour of
16service.
17(Source: P.A. 96-1490, eff. 1-1-11.)
 
18    (40 ILCS 5/14-104.3)  (from Ch. 108 1/2, par. 14-104.3)
19    Sec. 14-104.3. Notwithstanding provisions contained in
20Section 14-103.10, any person who first becomes a member before
21the effective date of this amendatory Act of the 98th General
22Assembly and who at the time of retirement and after December
236, 1983 receives compensation in a lump sum for accumulated
24vacation, sickness, or personal business may receive service
25credit for such periods by making contributions within 90 days

 

 

HB3372 Engrossed- 35 -LRB098 07598 EFG 37669 b

1of withdrawal, based on the rate of compensation in effect
2immediately prior to retirement and the contribution rate then
3in effect. Any person who first becomes a member on or after
4the effective date of this amendatory Act of the 98th General
5Assembly and who receives compensation in a lump sum for
6accumulated vacation, sickness, or personal business may not
7receive service credit for such periods. Exercising the option
8provided in this Section shall not change a member's date of
9withdrawal or final average compensation for purposes of
10computing the amount or effective date of a retirement annuity.
11Any annuitant who establishes service credit as herein provided
12shall have his retirement annuity adjusted retroactively to the
13date of retirement.
14(Source: P.A. 83-1362.)
 
15    (40 ILCS 5/14-106)  (from Ch. 108 1/2, par. 14-106)
16    Sec. 14-106. Membership service credit.
17    (a) After January 1, 1944, all service of a member since he
18last became a member with respect to which contributions are
19made shall count as membership service; provided, that for
20service on and after July 1, 1950, 12 months of service shall
21constitute a year of membership service, the completion of 15
22days or more of service during any month shall constitute 1
23month of membership service, 8 to 15 days shall constitute 1/2
24month of membership service and less than 8 days shall
25constitute 1/4 month of membership service. The payroll record

 

 

HB3372 Engrossed- 36 -LRB098 07598 EFG 37669 b

1of each department shall constitute conclusive evidence of the
2record of service rendered by a member.
3    (b) For a member who is employed and paid on an
4academic-year basis rather than on a 12-month annual basis,
5employment for a full academic year shall constitute a full
6year of membership service, except that the member shall not
7receive more than one year of membership service credit (plus
8any additional service credit granted for unused sick leave)
9for service during any 12-month period. This subsection (b)
10applies to all such service for which the member has not begun
11to receive a retirement annuity before January 1, 2001.
12    (c) A person who first becomes a member before the
13effective date of this amendatory Act of the 98th General
14Assembly shall be entitled to additional service credit, under
15rules prescribed by the Board, for accumulated unused sick
16leave credited to his account in the last Department on the
17date of withdrawal from service or for any period for which he
18would have been eligible to receive benefits under a sick pay
19plan authorized by law, if he had suffered a sickness or
20accident on the date of withdrawal from service. It shall be
21the responsibility of the last Department to certify to the
22Board the length of time salary or benefits would have been
23paid to the member based upon the accumulated unused sick leave
24or the applicable sick pay plan if he had become entitled
25thereto because of sickness on the date that his status as an
26employee terminated. This period of service credit granted

 

 

HB3372 Engrossed- 37 -LRB098 07598 EFG 37669 b

1under this paragraph shall not be considered in determining the
2date the retirement annuity is to begin, or final average
3compensation.
4    (d) A person who first becomes a member on or after the
5effective date of this amendatory Act of the 98th General
6Assembly shall not be entitled to additional service credit for
7accumulated unused sick leave.
8(Source: P.A. 92-14, eff. 6-28-01.)
 
9    (40 ILCS 5/15-106)  (from Ch. 108 1/2, par. 15-106)
10    Sec. 15-106. Employer. "Employer": The University of
11Illinois, Southern Illinois University, Chicago State
12University, Eastern Illinois University, Governors State
13University, Illinois State University, Northeastern Illinois
14University, Northern Illinois University, Western Illinois
15University, the State Board of Higher Education, the Illinois
16Mathematics and Science Academy, the University Civil Service
17Merit Board, the Board of Trustees of the State Universities
18Retirement System, the Illinois Community College Board,
19community college boards, any association of community college
20boards organized under Section 3-55 of the Public Community
21College Act, the Board of Examiners established under the
22Illinois Public Accounting Act, and, only during the period for
23which employer contributions required under Section 15-155 are
24paid, the following organizations: the alumni associations,
25the foundations and the athletic associations which are

 

 

HB3372 Engrossed- 38 -LRB098 07598 EFG 37669 b

1affiliated with the universities and colleges included in this
2Section as employers. An individual that begins employment
3after the effective date of this amendatory Act of the 98th
4General Assembly with an entity not defined as an employer in
5this Section shall not be deemed an employee for the purposes
6of this Article with respect to that employment and shall not
7be eligible to participate in the System with respect to that
8employment; provided, however, that those individuals who are
9both employed and already participants in the System on the
10effective date of this amendatory Act of the 98th General
11Assembly shall be allowed to continue as participants in the
12System for the duration of that employment.
13    Notwithstanding any provision of law to the contrary, an
14individual who begins employment with any of the following
15employers on or after the effective date of this amendatory Act
16of the 98th General Assembly shall not be deemed an employee
17and shall not be eligible to participate in the System with
18respect to that employment: any association of community
19college boards organized under Section 3-55 of the Public
20Community College Act, the Association of Illinois
21Middle-Grade Schools, the Illinois Association of School
22Administrators, the Illinois Association for Supervision and
23Curriculum Development, the Illinois Principals Association,
24the Illinois Association of School Business Officials, or the
25Illinois Special Olympics; provided, however, that those
26individuals who are both employed and already participants in

 

 

HB3372 Engrossed- 39 -LRB098 07598 EFG 37669 b

1the System on the effective date of this amendatory Act of the
298th General Assembly shall be allowed to continue as
3participants in the System for the duration of that employment.
4    A department as defined in Section 14-103.04 is an employer
5for any person appointed by the Governor under the Civil
6Administrative Code of Illinois who is a participating employee
7as defined in Section 15-109. The Department of Central
8Management Services is an employer with respect to persons
9employed by the State Board of Higher Education in positions
10with the Illinois Century Network as of June 30, 2004 who
11remain continuously employed after that date by the Department
12of Central Management Services in positions with the Illinois
13Century Network, the Bureau of Communication and Computer
14Services, or, if applicable, any successor bureau.
15    The cities of Champaign and Urbana shall be considered
16employers, but only during the period for which contributions
17are required to be made under subsection (b-1) of Section
1815-155 and only with respect to individuals described in
19subsection (h) of Section 15-107.
20(Source: P.A. 95-369, eff. 8-23-07; 95-728, eff. 7-1-08 - See
21Sec. 999.)
 
22    (40 ILCS 5/15-107)  (from Ch. 108 1/2, par. 15-107)
23    Sec. 15-107. Employee.
24    (a) "Employee" means any member of the educational,
25administrative, secretarial, clerical, mechanical, labor or

 

 

HB3372 Engrossed- 40 -LRB098 07598 EFG 37669 b

1other staff of an employer whose employment is permanent and
2continuous or who is employed in a position in which services
3are expected to be rendered on a continuous basis for at least
44 months or one academic term, whichever is less, who (A)
5receives payment for personal services on a warrant issued
6pursuant to a payroll voucher certified by an employer and
7drawn by the State Comptroller upon the State Treasurer or by
8an employer upon trust, federal or other funds, or (B) is on a
9leave of absence without pay. Employment which is irregular,
10intermittent or temporary shall not be considered continuous
11for purposes of this paragraph.
12    However, a person is not an "employee" if he or she:
13        (1) is a student enrolled in and regularly attending
14    classes in a college or university which is an employer,
15    and is employed on a temporary basis at less than full
16    time;
17        (2) is currently receiving a retirement annuity or a
18    disability retirement annuity under Section 15-153.2 from
19    this System;
20        (3) is on a military leave of absence;
21        (4) is eligible to participate in the Federal Civil
22    Service Retirement System and is currently making
23    contributions to that system based upon earnings paid by an
24    employer;
25        (5) is on leave of absence without pay for more than 60
26    days immediately following termination of disability

 

 

HB3372 Engrossed- 41 -LRB098 07598 EFG 37669 b

1    benefits under this Article;
2        (6) is hired after June 30, 1979 as a public service
3    employment program participant under the Federal
4    Comprehensive Employment and Training Act and receives
5    earnings in whole or in part from funds provided under that
6    Act; or
7        (7) is employed on or after July 1, 1991 to perform
8    services that are excluded by subdivision (a)(7)(f) or
9    (a)(19) of Section 210 of the federal Social Security Act
10    from the definition of employment given in that Section (42
11    U.S.C. 410).
12    (b) Any employer may, by filing a written notice with the
13board, exclude from the definition of "employee" all persons
14employed pursuant to a federally funded contract entered into
15after July 1, 1982 with a federal military department in a
16program providing training in military courses to federal
17military personnel on a military site owned by the United
18States Government, if this exclusion is not prohibited by the
19federally funded contract or federal laws or rules governing
20the administration of the contract.
21    (c) Any person appointed by the Governor under the Civil
22Administrative Code of the State is an employee, if he or she
23is a participant in this system on the effective date of the
24appointment.
25    (d) A participant on lay-off status under civil service
26rules is considered an employee for not more than 120 days from

 

 

HB3372 Engrossed- 42 -LRB098 07598 EFG 37669 b

1the date of the lay-off.
2    (e) A participant is considered an employee during (1) the
3first 60 days of disability leave, (2) the period, not to
4exceed one year, in which his or her eligibility for disability
5benefits is being considered by the board or reviewed by the
6courts, and (3) the period he or she receives disability
7benefits under the provisions of Section 15-152, workers'
8compensation or occupational disease benefits, or disability
9income under an insurance contract financed wholly or partially
10by the employer.
11    (f) Absences without pay, other than formal leaves of
12absence, of less than 30 calendar days, are not considered as
13an interruption of a person's status as an employee. If such
14absences during any period of 12 months exceed 30 work days,
15the employee status of the person is considered as interrupted
16as of the 31st work day.
17    (g) A staff member whose employment contract requires
18services during an academic term is to be considered an
19employee during the summer and other vacation periods, unless
20he or she declines an employment contract for the succeeding
21academic term or his or her employment status is otherwise
22terminated, and he or she receives no earnings during these
23periods.
24    (h) An individual who was a participating employee employed
25in the fire department of the University of Illinois's
26Champaign-Urbana campus immediately prior to the elimination

 

 

HB3372 Engrossed- 43 -LRB098 07598 EFG 37669 b

1of that fire department and who immediately after the
2elimination of that fire department became employed by the fire
3department of the City of Urbana or the City of Champaign shall
4continue to be considered as an employee for purposes of this
5Article for so long as the individual remains employed as a
6firefighter by the City of Urbana or the City of Champaign. The
7individual shall cease to be considered an employee under this
8subsection (h) upon the first termination of the individual's
9employment as a firefighter by the City of Urbana or the City
10of Champaign.
11    (i) An individual who is employed on a full-time basis as
12an officer or employee of a statewide teacher organization that
13serves System participants or an officer of a national teacher
14organization that serves System participants may participate
15in the System and shall be deemed an employee, provided that
16(1) the individual has previously earned creditable service
17under this Article, (2) the individual files with the System an
18irrevocable election to become a participant before the
19effective date of this amendatory Act of the 97th General
20Assembly, (3) the individual does not receive credit for that
21employment under any other Article of this Code, and (4) the
22individual first became a full-time employee of the teacher
23organization and becomes a participant before the effective
24date of this amendatory Act of the 97th General Assembly. An
25employee under this subsection (i) is responsible for paying to
26the System both (A) employee contributions based on the actual

 

 

HB3372 Engrossed- 44 -LRB098 07598 EFG 37669 b

1compensation received for service with the teacher
2organization and (B) employer contributions equal to the normal
3costs (as defined in Section 15-155) resulting from that
4service; all or any part of these contributions may be paid on
5the employee's behalf or picked up for tax purposes (if
6authorized under federal law) by the teacher organization.
7    A person who is an employee as defined in this subsection
8(i) may establish service credit for similar employment prior
9to becoming an employee under this subsection by paying to the
10System for that employment the contributions specified in this
11subsection, plus interest at the effective rate from the date
12of service to the date of payment. However, credit shall not be
13granted under this subsection for any such prior employment for
14which the applicant received credit under any other provision
15of this Code, or during which the applicant was on a leave of
16absence under Section 15-113.2.
17    (j) A person employed by the State Board of Higher
18Education in a position with the Illinois Century Network as of
19June 30, 2004 shall be considered to be an employee for so long
20as he or she remains continuously employed after that date by
21the Department of Central Management Services in a position
22with the Illinois Century Network, the Bureau of Communication
23and Computer Services, or, if applicable, any successor bureau
24and meets the requirements of subsection (a).
25    (k) In the case of doubt as to whether any person is an
26employee within the meaning of this Section, the decision of

 

 

HB3372 Engrossed- 45 -LRB098 07598 EFG 37669 b

1the Board shall be final.
2(Source: P.A. 97-651, eff. 1-5-12.)
 
3    (40 ILCS 5/15-112)  (from Ch. 108 1/2, par. 15-112)
4    Sec. 15-112. Final rate of earnings.
5    "Final rate of earnings":
6    (a) This subsection (a) applies only to a person who first
7becomes a participant of any system before January 1, 2011.
8     For an employee who is paid on an hourly basis or who
9receives an annual salary in installments during 12 months of
10each academic year, the average annual earnings during the 48
11consecutive calendar month period ending with the last day of
12final termination of employment or the 4 consecutive academic
13years of service in which the employee's earnings were the
14highest, whichever is greater. For any other employee, the
15average annual earnings during the 4 consecutive academic years
16of service in which his or her earnings were the highest. For
17an employee with less than 48 months or 4 consecutive academic
18years of service, the average earnings during his or her entire
19period of service. The earnings of an employee with more than
2036 months of service prior to the date of becoming a
21participant are, for such period, considered equal to the
22average earnings during the last 36 months of such service.
23    (b) This subsection (b) applies to a person to whom
24subsection (a) does not apply.
25    For an employee who is paid on an hourly basis or who

 

 

HB3372 Engrossed- 46 -LRB098 07598 EFG 37669 b

1receives an annual salary in installments during 12 months of
2each academic year, the average annual earnings obtained by
3dividing by 8 the total earnings of the employee during the 96
4consecutive months in which the total earnings were the highest
5within the last 120 months prior to termination.
6    For any other employee, the average annual earnings during
7the 8 consecutive academic years within the 10 years prior to
8termination in which the employee's earnings were the highest.
9For an employee with less than 96 consecutive months or 8
10consecutive academic years of service, whichever is necessary,
11the average earnings during his or her entire period of
12service.
13    (c) For an employee on leave of absence with pay, or on
14leave of absence without pay who makes contributions during
15such leave, earnings are assumed to be equal to the basic
16compensation on the date the leave began.
17    (d) For an employee on disability leave, earnings are
18assumed to be equal to the basic compensation on the date
19disability occurs or the average earnings during the 24 months
20immediately preceding the month in which disability occurs,
21whichever is greater.
22    (e) For a participant who retires on or after the effective
23date of this amendatory Act of 1997 with at least 20 years of
24service as a firefighter or police officer under this Article,
25the final rate of earnings shall be the annual rate of earnings
26received by the participant on his or her last day as a

 

 

HB3372 Engrossed- 47 -LRB098 07598 EFG 37669 b

1firefighter or police officer under this Article, if that is
2greater than the final rate of earnings as calculated under the
3other provisions of this Section.
4    (f) If a participant to whom subsection (a) of this Section
5applies is an employee for at least 6 months during the
6academic year in which his or her employment is terminated, the
7annual final rate of earnings shall be 25% of the sum of (1)
8the annual basic compensation for that year, and (2) the amount
9earned during the 36 months immediately preceding that year, if
10this is greater than the final rate of earnings as calculated
11under the other provisions of this Section.
12    (g) In the determination of the final rate of earnings for
13an employee, that part of an employee's earnings for any
14academic year beginning after June 30, 1997, which exceeds the
15employee's earnings with that employer for the preceding year
16by more than 20 percent shall be excluded; in the event that an
17employee has more than one employer this limitation shall be
18calculated separately for the earnings with each employer. In
19making such calculation, only the basic compensation of
20employees shall be considered, without regard to vacation or
21overtime or to contracts for summer employment.
22    (h) The following are not considered as earnings in
23determining final rate of earnings: (1) severance or separation
24pay, (2) retirement pay, (3) payment for unused sick leave, and
25(4) payments from an employer for the period used in
26determining final rate of earnings for any purpose other than

 

 

HB3372 Engrossed- 48 -LRB098 07598 EFG 37669 b

1(i) services rendered, (ii) leave of absence or vacation
2granted during that period, and (iii) vacation of up to 56 work
3days allowed upon termination of employment; except that, if
4the benefit has been collectively bargained between the
5employer and the recognized collective bargaining agent
6pursuant to the Illinois Educational Labor Relations Act,
7payment received during a period of up to 2 academic years for
8unused sick leave may be considered as earnings in accordance
9with the applicable collective bargaining agreement, subject
10to the 20% increase limitation of this Section, and if the
11person first becomes a participant on or after the effective
12date of this amendatory Act of the 98th General Assembly,
13payments for unused sick or vacation time shall not be
14considered as earnings. Any unused sick leave considered as
15earnings under this Section shall not be taken into account in
16calculating service credit under Section 15-113.4.
17    (i) Intermittent periods of service shall be considered as
18consecutive in determining final rate of earnings.
19(Source: P.A. 96-1490, eff. 1-1-11.)
 
20    (40 ILCS 5/15-113.4)  (from Ch. 108 1/2, par. 15-113.4)
21    Sec. 15-113.4. Service for unused sick leave. "Service for
22unused sick leave": A person who first becomes a participant
23before the effective date of this amendatory Act of the 98th
24General Assembly and who is an employee under this System or
25one of the other systems subject to Article 20 of this Code

 

 

HB3372 Engrossed- 49 -LRB098 07598 EFG 37669 b

1within 60 days immediately preceding the date on which his or
2her retirement annuity begins, is entitled to credit for
3service for that portion of unused sick leave earned in the
4course of employment with an employer and credited on the date
5of termination of employment by an employer for which payment
6is not received, in accordance with the following schedule: 30
7through 90 full calendar days and 20 through 59 full work days
8of unused sick leave, 1/4 of a year of service; 91 through 180
9full calendar days and 60 through 119 full work days, 1/2 of a
10year of service; 181 through 270 full calendar days and 120
11through 179 full work days, 3/4 of a year of service; 271
12through 360 full calendar days and 180 through 240 full work
13days, one year of service. Only uncompensated, unused sick
14leave earned in accordance with an employer's sick leave
15accrual policy generally applicable to employees or a class of
16employees shall be taken into account in calculating service
17credit under this Section. Any uncompensated, unused sick leave
18granted by an employer to facilitate the hiring, retirement,
19termination, or other special circumstances of an employee
20shall not be taken into account in calculating service credit
21under this Section. If a participant transfers from one
22employer to another, the unused sick leave credited by the
23previous employer shall be considered in determining service to
24be credited under this Section, even if the participant
25terminated service prior to the effective date of P.A. 86-272
26(August 23, 1989); if necessary, the retirement annuity shall

 

 

HB3372 Engrossed- 50 -LRB098 07598 EFG 37669 b

1be recalculated to reflect such sick leave credit. Each
2employer shall certify to the board the number of days of
3unused sick leave accrued to the participant's credit on the
4date that the participant's status as an employee terminated.
5This period of unused sick leave shall not be considered in
6determining the date the retirement annuity begins. A person
7who first becomes a participant on or after the effective date
8of this amendatory Act of the 98th General Assembly shall not
9receive service credit for unused sick leave.
10(Source: P.A. 90-65, eff. 7-7-97; 90-511, eff. 8-22-97.)
 
11    (40 ILCS 5/16-106)  (from Ch. 108 1/2, par. 16-106)
12    Sec. 16-106. Teacher. "Teacher": The following
13individuals, provided that, for employment prior to July 1,
141990, they are employed on a full-time basis, or if not
15full-time, on a permanent and continuous basis in a position in
16which services are expected to be rendered for at least one
17school term:
18        (1) Any educational, administrative, professional or
19    other staff employed in the public common schools included
20    within this system in a position requiring certification
21    under the law governing the certification of teachers;
22        (2) Any educational, administrative, professional or
23    other staff employed in any facility of the Department of
24    Children and Family Services or the Department of Human
25    Services, in a position requiring certification under the

 

 

HB3372 Engrossed- 51 -LRB098 07598 EFG 37669 b

1    law governing the certification of teachers, and any person
2    who (i) works in such a position for the Department of
3    Corrections, (ii) was a member of this System on May 31,
4    1987, and (iii) did not elect to become a member of the
5    State Employees' Retirement System pursuant to Section
6    14-108.2 of this Code; except that "teacher" does not
7    include any person who (A) becomes a security employee of
8    the Department of Human Services, as defined in Section
9    14-110, after June 28, 2001 (the effective date of Public
10    Act 92-14), or (B) becomes a member of the State Employees'
11    Retirement System pursuant to Section 14-108.2c of this
12    Code;
13        (3) Any regional superintendent of schools, assistant
14    regional superintendent of schools, State Superintendent
15    of Education; any person employed by the State Board of
16    Education as an executive; any executive of the boards
17    engaged in the service of public common school education in
18    school districts covered under this system of which the
19    State Superintendent of Education is an ex-officio member;
20        (4) Any employee of a school board association
21    operating in compliance with Article 23 of the School Code
22    who is certificated under the law governing the
23    certification of teachers, provided that he or she becomes
24    such an employee before the effective date of this
25    amendatory Act of the 98th General Assembly;
26        (5) Any person employed by the retirement system who:

 

 

HB3372 Engrossed- 52 -LRB098 07598 EFG 37669 b

1            (i) was an employee of and a participant in the
2        system on August 17, 2001 (the effective date of Public
3        Act 92-416), or
4            (ii) becomes an employee of the system on or after
5        August 17, 2001;
6        (6) Any educational, administrative, professional or
7    other staff employed by and under the supervision and
8    control of a regional superintendent of schools, provided
9    such employment position requires the person to be
10    certificated under the law governing the certification of
11    teachers and is in an educational program serving 2 or more
12    districts in accordance with a joint agreement authorized
13    by the School Code or by federal legislation;
14        (7) Any educational, administrative, professional or
15    other staff employed in an educational program serving 2 or
16    more school districts in accordance with a joint agreement
17    authorized by the School Code or by federal legislation and
18    in a position requiring certification under the laws
19    governing the certification of teachers;
20        (8) Any officer or employee of a statewide teacher
21    organization or officer of a national teacher organization
22    who is certified under the law governing certification of
23    teachers, provided: (i) the individual had previously
24    established creditable service under this Article, (ii)
25    the individual files with the system an irrevocable
26    election to become a member before the effective date of

 

 

HB3372 Engrossed- 53 -LRB098 07598 EFG 37669 b

1    this amendatory Act of the 97th General Assembly, (iii) the
2    individual does not receive credit for such service under
3    any other Article of this Code, and (iv) the individual
4    first became an officer or employee of the teacher
5    organization and becomes a member before the effective date
6    of this amendatory Act of the 97th General Assembly;
7        (9) Any educational, administrative, professional, or
8    other staff employed in a charter school operating in
9    compliance with the Charter Schools Law who is certificated
10    under the law governing the certification of teachers; .
11        (10) Any person employed, on the effective date of this
12    amendatory Act of the 94th General Assembly, by the
13    Macon-Piatt Regional Office of Education in a
14    birth-through-age-three pilot program receiving funds
15    under Section 2-389 of the School Code who is required by
16    the Macon-Piatt Regional Office of Education to hold a
17    teaching certificate, provided that the Macon-Piatt
18    Regional Office of Education makes an election, within 6
19    months after the effective date of this amendatory Act of
20    the 94th General Assembly, to have the person participate
21    in the system. Any service established prior to the
22    effective date of this amendatory Act of the 94th General
23    Assembly for service as an employee of the Macon-Piatt
24    Regional Office of Education in a birth-through-age-three
25    pilot program receiving funds under Section 2-389 of the
26    School Code shall be considered service as a teacher if

 

 

HB3372 Engrossed- 54 -LRB098 07598 EFG 37669 b

1    employee and employer contributions have been received by
2    the system and the system has not refunded those
3    contributions.
4    An annuitant receiving a retirement annuity under this
5Article or under Article 17 of this Code who is employed by a
6board of education or other employer as permitted under Section
716-118 or 16-150.1 is not a "teacher" for purposes of this
8Article. A person who has received a single-sum retirement
9benefit under Section 16-136.4 of this Article is not a
10"teacher" for purposes of this Article.
11(Source: P.A. 97-651, eff. 1-5-12; revised 8-3-12.)
 
12    (40 ILCS 5/16-121)  (from Ch. 108 1/2, par. 16-121)
13    Sec. 16-121. Salary. "Salary": The actual compensation
14received by a teacher during any school year and recognized by
15the system in accordance with rules of the board. For purposes
16of this Section, "school year" includes the regular school term
17plus any additional period for which a teacher is compensated
18and such compensation is recognized by the rules of the board.
19In the case of a person who first becomes a member on or after
20the effective date of this amendatory Act of the 98th General
21Assembly, "salary" shall not include any payment for unused
22sick or vacation time.
23(Source: P.A. 84-1028.)
 
24    (40 ILCS 5/16-127)  (from Ch. 108 1/2, par. 16-127)

 

 

HB3372 Engrossed- 55 -LRB098 07598 EFG 37669 b

1    Sec. 16-127. Computation of creditable service.
2    (a) Each member shall receive regular credit for all
3service as a teacher from the date membership begins, for which
4satisfactory evidence is supplied and all contributions have
5been paid.
6    (b) The following periods of service shall earn optional
7credit and each member shall receive credit for all such
8service for which satisfactory evidence is supplied and all
9contributions have been paid as of the date specified:
10        (1) Prior service as a teacher.
11        (2) Service in a capacity essentially similar or
12    equivalent to that of a teacher, in the public common
13    schools in school districts in this State not included
14    within the provisions of this System, or of any other
15    State, territory, dependency or possession of the United
16    States, or in schools operated by or under the auspices of
17    the United States, or under the auspices of any agency or
18    department of any other State, and service during any
19    period of professional speech correction or special
20    education experience for a public agency within this State
21    or any other State, territory, dependency or possession of
22    the United States, and service prior to February 1, 1951 as
23    a recreation worker for the Illinois Department of Public
24    Safety, for a period not exceeding the lesser of 2/5 of the
25    total creditable service of the member or 10 years. The
26    maximum service of 10 years which is allowable under this

 

 

HB3372 Engrossed- 56 -LRB098 07598 EFG 37669 b

1    paragraph shall be reduced by the service credit which is
2    validated by other retirement systems under paragraph (i)
3    of Section 15-113 and paragraph 1 of Section 17-133. Credit
4    granted under this paragraph may not be used in
5    determination of a retirement annuity or disability
6    benefits unless the member has at least 5 years of
7    creditable service earned subsequent to this employment
8    with one or more of the following systems: Teachers'
9    Retirement System of the State of Illinois, State
10    Universities Retirement System, and the Public School
11    Teachers' Pension and Retirement Fund of Chicago. Whenever
12    such service credit exceeds the maximum allowed for all
13    purposes of this Article, the first service rendered in
14    point of time shall be considered. The changes to this
15    subdivision (b)(2) made by Public Act 86-272 shall apply
16    not only to persons who on or after its effective date
17    (August 23, 1989) are in service as a teacher under the
18    System, but also to persons whose status as such a teacher
19    terminated prior to such effective date, whether or not
20    such person is an annuitant on that date.
21        (3) Any periods immediately following teaching
22    service, under this System or under Article 17, (or
23    immediately following service prior to February 1, 1951 as
24    a recreation worker for the Illinois Department of Public
25    Safety) spent in active service with the military forces of
26    the United States; periods spent in educational programs

 

 

HB3372 Engrossed- 57 -LRB098 07598 EFG 37669 b

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

 

 

HB3372 Engrossed- 58 -LRB098 07598 EFG 37669 b

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

 

 

HB3372 Engrossed- 59 -LRB098 07598 EFG 37669 b

1    of the armed forces of the United States. The changes to
2    this subdivision (b)(3) made by Public Act 86-272 shall
3    apply not only to persons who on or after its effective
4    date (August 23, 1989) are in service as a teacher under
5    the System, but also to persons whose status as such a
6    teacher terminated prior to such effective date, whether or
7    not such person is an annuitant on that date.
8        (4) Any periods served as a member of the General
9    Assembly.
10        (5)(i) Any periods for which a teacher, as defined in
11    Section 16-106, is granted a leave of absence, provided he
12    or she returns to teaching service creditable under this
13    System or the State Universities Retirement System
14    following the leave; (ii) periods during which a teacher is
15    involuntarily laid off from teaching, provided he or she
16    returns to teaching following the lay-off; (iii) periods
17    prior to July 1, 1983 during which a teacher ceased covered
18    employment due to pregnancy, provided that the teacher
19    returned to teaching service creditable under this System
20    or the State Universities Retirement System following the
21    pregnancy and submits evidence satisfactory to the Board
22    documenting that the employment ceased due to pregnancy;
23    and (iv) periods prior to July 1, 1983 during which a
24    teacher ceased covered employment for the purpose of
25    adopting an infant under 3 years of age or caring for a
26    newly adopted infant under 3 years of age, provided that

 

 

HB3372 Engrossed- 60 -LRB098 07598 EFG 37669 b

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

 

 

HB3372 Engrossed- 61 -LRB098 07598 EFG 37669 b

1    (b)(5) for periods during which a teacher has been granted
2    a leave of absence pursuant to Section 24-13 of the School
3    Code. A teacher whose service under this Article terminated
4    prior to the effective date of P.A. 86-1488 shall be
5    eligible to purchase such optional credit. If a teacher who
6    purchases this optional credit is already receiving a
7    retirement annuity under this Article, the annuity shall be
8    recalculated as if the annuitant had applied for the leave
9    of absence credit at the time of retirement. The difference
10    between the entitled annuity and the actual annuity shall
11    be credited to the purchase of the optional credit. The
12    remainder of the purchase cost of the optional credit shall
13    be paid on or before April 1, 1992.
14        The change in this paragraph made by Public Act 86-273
15    shall be applicable to teachers who retire after June 1,
16    1989, as well as to teachers who are in service on that
17    date.
18        (6) For a person who first becomes a member before the
19    effective date of this amendatory Act of the 98th General
20    Assembly, any Any days of unused and uncompensated
21    accumulated sick leave earned by a teacher. The service
22    credit granted under this paragraph shall be the ratio of
23    the number of unused and uncompensated accumulated sick
24    leave days to 170 days, subject to a maximum of 2 years of
25    service credit. Prior to the member's retirement, each
26    former employer shall certify to the System the number of

 

 

HB3372 Engrossed- 62 -LRB098 07598 EFG 37669 b

1    unused and uncompensated accumulated sick leave days
2    credited to the member at the time of termination of
3    service. The period of unused sick leave shall not be
4    considered in determining the effective date of
5    retirement. A member is not required to make contributions
6    in order to obtain service credit for unused sick leave.
7        Credit for sick leave shall, at retirement, be granted
8    by the System for any retiring regional or assistant
9    regional superintendent of schools who first becomes a
10    member before the effective date of this amendatory Act of
11    the 98th General Assembly at the rate of 6 days per year of
12    creditable service or portion thereof established while
13    serving as such superintendent or assistant
14    superintendent.
15        (7) Periods prior to February 1, 1987 served as an
16    employee of the Illinois Mathematics and Science Academy
17    for which credit has not been terminated under Section
18    15-113.9 of this Code.
19        (8) Service as a substitute teacher for work performed
20    prior to July 1, 1990.
21        (9) Service as a part-time teacher for work performed
22    prior to July 1, 1990.
23        (10) Up to 2 years of employment with Southern Illinois
24    University - Carbondale from September 1, 1959 to August
25    31, 1961, or with Governors State University from September
26    1, 1972 to August 31, 1974, for which the teacher has no

 

 

HB3372 Engrossed- 63 -LRB098 07598 EFG 37669 b

1    credit under Article 15. To receive credit under this item
2    (10), a teacher must apply in writing to the Board and pay
3    the required contributions before May 1, 1993 and have at
4    least 12 years of service credit under this Article.
5    (b-1) A member may establish optional credit for up to 2
6years of service as a teacher or administrator employed by a
7private school recognized by the Illinois State Board of
8Education, provided that the teacher (i) was certified under
9the law governing the certification of teachers at the time the
10service was rendered, (ii) applies in writing on or after
11August 1, 2009 and on or before August 1, 2012, (iii) supplies
12satisfactory evidence of the employment, (iv) completes at
13least 10 years of contributing service as a teacher as defined
14in Section 16-106, and (v) pays the contribution required in
15subsection (d-5) of Section 16-128. The member may apply for
16credit under this subsection and pay the required contribution
17before completing the 10 years of contributing service required
18under item (iv), but the credit may not be used until the item
19(iv) contributing service requirement has been met.
20    (c) The service credits specified in this Section shall be
21granted only if: (1) such service credits are not used for
22credit in any other statutory tax-supported public employee
23retirement system other than the federal Social Security
24program; and (2) the member makes the required contributions as
25specified in Section 16-128. Except as provided in subsection
26(b-1) of this Section, the service credit shall be effective as

 

 

HB3372 Engrossed- 64 -LRB098 07598 EFG 37669 b

1of the date the required contributions are completed.
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(Source: P.A. 96-546, eff. 8-17-09.)
 
8    (40 ILCS 5/17-116)  (from Ch. 108 1/2, par. 17-116)
9    Sec. 17-116. Service retirement pension.
10    (a) Each teacher having 20 years of service upon attainment
11of age 55, or who thereafter attains age 55 shall be entitled
12to a service retirement pension upon or after attainment of age
1355; and each teacher in service on or after July 1, 1971, with
145 or more but less than 20 years of service shall be entitled
15to receive a service retirement pension upon or after
16attainment of age 62.
17    (b) The service retirement pension for a teacher who
18retires on or after June 25, 1971, at age 60 or over, shall be
19calculated as follows:
20        (1) For creditable service earned before July 1, 1998
21    that has not been augmented under Section 17-119.1: 1.67%
22    for each of the first 10 years of service; 1.90% for each
23    of the next 10 years of service; 2.10% for each year of
24    service in excess of 20 but not exceeding 30; and 2.30% for
25    each year of service in excess of 30, based upon average

 

 

HB3372 Engrossed- 65 -LRB098 07598 EFG 37669 b

1    salary as herein defined.
2        (2) For creditable service earned on or after July 1,
3    1998 by a member who has at least 30 years of creditable
4    service on July 1, 1998 and who does not elect to augment
5    service under Section 17-119.1: 2.3% of average salary for
6    each year of creditable service earned on or after July 1,
7    1998.
8        (3) For all other creditable service: 2.2% of average
9    salary for each year of creditable service.
10    (c) When computing such service retirement pensions, the
11following conditions shall apply:
12        1. Average salary shall consist of the average annual
13    rate of salary for the 4 consecutive years of validated
14    service within the last 10 years of service when such
15    average annual rate was highest. In the determination of
16    average salary for retirement allowance purposes, for
17    members who commenced employment after August 31, 1979,
18    that part of the salary for any year shall be excluded
19    which exceeds the annual full-time salary rate for the
20    preceding year by more than 20%. In the case of a member
21    who commenced employment before August 31, 1979 and who
22    receives salary during any year after September 1, 1983
23    which exceeds the annual full time salary rate for the
24    preceding year by more than 20%, an Employer and other
25    employers of eligible contributors as defined in Section
26    17-106 shall pay to the Fund an amount equal to the present

 

 

HB3372 Engrossed- 66 -LRB098 07598 EFG 37669 b

1    value of the additional service retirement pension
2    resulting from such excess salary. The present value of the
3    additional service retirement pension shall be computed by
4    the Board on the basis of actuarial tables adopted by the
5    Board. If a member elects to receive a pension from this
6    Fund provided by Section 20-121, his salary under the State
7    Universities Retirement System and the Teachers'
8    Retirement System of the State of Illinois shall be
9    considered in determining such average salary. Amounts
10    paid after the effective date of this amendatory Act of
11    1991 for unused vacation time earned after that effective
12    date shall not under any circumstances be included in the
13    calculation of average salary or the annual rate of salary
14    for the purposes of this Article.
15        2. Proportionate credit shall be given for validated
16    service of less than one year.
17        3. For retirement at age 60 or over the pension shall
18    be payable at the full rate.
19        4. For separation from service below age 60 to a
20    minimum age of 55, the pension shall be discounted at the
21    rate of 1/2 of one per cent for each month that the age of
22    the contributor is less than 60, but a teacher may elect to
23    defer the effective date of pension in order to eliminate
24    or reduce this discount. This discount shall not be
25    applicable to any participant who has at least 34 years of
26    service or a retirement pension of at least 74.6% of

 

 

HB3372 Engrossed- 67 -LRB098 07598 EFG 37669 b

1    average salary on the date the retirement annuity begins.
2        5. No additional pension shall be granted for service
3    exceeding 45 years. Beginning June 26, 1971 no pension
4    shall exceed the greater of $1,500 per month or 75% of
5    average salary as herein defined.
6        6. Service retirement pensions shall begin on the
7    effective date of resignation, retirement, the day
8    following the close of the payroll period for which service
9    credit was validated, or the time the person resigning or
10    retiring attains age 55, or on a date elected by the
11    teacher, whichever shall be latest.
12        7. A member who is eligible to receive a retirement
13    pension of at least 74.6% of average salary and will attain
14    age 55 on or before December 31 during the year which
15    commences on July 1 shall be deemed to attain age 55 on the
16    preceding June 1.
17        8. A member retiring after the effective date of this
18    amendatory Act of 1998 shall receive a pension equal to 75%
19    of average salary if the member is qualified to receive a
20    retirement pension equal to at least 74.6% of average
21    salary under this Article or as proportional annuities
22    under Article 20 of this Code.
23        9. In the case of a person who first becomes a
24    participant on or after the effective date of this
25    amendatory Act of the 98th General Assembly, payments for
26    unused sick or vacation time shall not be used in the

 

 

HB3372 Engrossed- 68 -LRB098 07598 EFG 37669 b

1    calculation of average salary.
2(Source: P.A. 90-566, eff. 1-2-98; 90-582, eff. 5-27-98.)
 
3    (40 ILCS 5/17-134)  (from Ch. 108 1/2, par. 17-134)
4    Sec. 17-134. Contributions for leaves of absence; military
5service; computing service. In computing service for pension
6purposes the following periods of service shall stand in lieu
7of a like number of years of teaching service upon payment
8therefor in the manner hereinafter provided: (a) time spent on
9a leave of absence granted by the employer; (b) service with
10teacher or labor organizations based upon special leaves of
11absence therefor granted by an Employer; (c) a maximum of 5
12years spent in the military service of the United States, of
13which up to 2 years may have been served outside the pension
14period; (d) unused sick days at termination of service to a
15maximum of 244 days; (e) time lost due to layoff and
16curtailment of the school term from June 6 through June 21,
171976; and (f) time spent after June 30, 1982 as a member of the
18Board of Education, if required to resign from an
19administrative or teaching position in order to qualify as a
20member of the Board of Education.
21        (1) For time spent on or after September 6, 1948 on
22    sabbatical leaves of absence or sick leaves, for which
23    salaries are paid, an Employer shall make payroll
24    deductions at the applicable rates in effect during such
25    periods.

 

 

HB3372 Engrossed- 69 -LRB098 07598 EFG 37669 b

1        (2) For time spent on a leave of absence granted by the
2    employer for which no salaries are paid, teachers desiring
3    credit therefor shall pay the required contributions at the
4    rates in effect during such periods as though they were in
5    teaching service. If an Employer pays salary for vacations
6    which occur during a teacher's sick leave or maternity or
7    paternity leave without salary, vacation pay for which the
8    teacher would have qualified while in active service shall
9    be considered part of the teacher's total salary for
10    pension purposes. No more than 36 months of leave credit
11    may be allowed any person during the entire term of
12    service. Sabbatical leave credit shall be limited to the
13    time the person on leave without salary under an Employer's
14    rules is allowed to engage in an activity for which he
15    receives salary or compensation.
16        (3) For time spent prior to September 6, 1948, on
17    sabbatical leaves of absence or sick leaves for which
18    salaries were paid, teachers desiring service credit
19    therefor shall pay the required contributions at the
20    maximum applicable rates in effect during such periods.
21        (4) For service with teacher or labor organizations
22    authorized by special leaves of absence, for which no
23    payroll deductions are made by an Employer, teachers
24    desiring service credit therefor shall contribute to the
25    Fund upon the basis of the actual salary received from such
26    organizations at the percentage rates in effect during such

 

 

HB3372 Engrossed- 70 -LRB098 07598 EFG 37669 b

1    periods for certified positions with such Employer. To the
2    extent the actual salary exceeds the regular salary, which
3    shall be defined as the salary rate, as calculated by the
4    Board, in effect for the teacher's regular position in
5    teaching service on September 1, 1983 or on the effective
6    date of the leave with the organization, whichever is
7    later, the organization shall pay to the Fund the
8    employer's normal cost as set by the Board on the
9    increment. Notwithstanding any other provision of this
10    subdivision (4), teachers are only eligible for credit for
11    service under this subdivision (4) if the special leave of
12    absence begins before January 5, 2012 (the effective date
13    of Public Act 97-651) this amendatory Act of the 97th
14    General Assembly.
15        (5) For time spent in the military service, teachers
16    entitled to and desiring credit therefor shall contribute
17    the amount required for each year of service or fraction
18    thereof at the rates in force (a) at the date of
19    appointment, or (b) on return to teaching service as a
20    regularly certified teacher, as the case may be; provided
21    such rates shall not be less than $450 per year of service.
22    These conditions shall apply unless an Employer elects to
23    and does pay into the Fund the amount which would have been
24    due from such person had he been employed as a teacher
25    during such time. In the case of credit for military
26    service not during the pension period, the teacher must

 

 

HB3372 Engrossed- 71 -LRB098 07598 EFG 37669 b

1    also pay to the Fund an amount determined by the Board to
2    be equal to the employer's normal cost of the benefits
3    accrued from such service, plus interest thereon at 5% per
4    year, compounded annually, from the date of appointment to
5    the date of payment.
6        The changes to this Section made by Public Act 87-795
7    shall apply not only to persons who on or after its
8    effective date are in service under the Fund, but also to
9    persons whose status as a teacher terminated prior to that
10    date, whether or not the person is an annuitant on that
11    date. In the case of an annuitant who applies for credit
12    allowable under this Section for a period of military
13    service that did not immediately follow employment, and who
14    has made the required contributions for such credit, the
15    annuity shall be recalculated to include the additional
16    service credit, with the increase taking effect on the date
17    the Fund received written notification of the annuitant's
18    intent to purchase the credit, if payment of all the
19    required contributions is made within 60 days of such
20    notice, or else on the first annuity payment date following
21    the date of payment of the required contributions. In
22    calculating the automatic annual increase for an annuity
23    that has been recalculated under this Section, the increase
24    attributable to the additional service allowable under
25    this amendatory Act of 1991 shall be included in the
26    calculation of automatic annual increases accruing after

 

 

HB3372 Engrossed- 72 -LRB098 07598 EFG 37669 b

1    the effective date of the recalculation.
2        The total credit for military service shall not exceed
3    5 years, except that any teacher who on July 1, 1963, had
4    validated credit for more than 5 years of military service
5    shall be entitled to the total amount of such credit.
6        (6) For persons who first become teachers before the
7    effective date of this amendatory Act of the 98th General
8    Assembly, a A maximum of 244 unused sick days credited to
9    his account by an Employer on the date of termination of
10    employment. Members, upon verification of unused sick
11    days, may add this service time to total creditable
12    service.
13        (7) In all cases where time spent on leave is
14    creditable and no payroll deductions therefor are made by
15    an Employer, persons desiring service credit shall make the
16    required contributions directly to the Fund.
17        (8) For time lost without pay due to layoff and
18    curtailment of the school term from June 6 through June 21,
19    1976, as provided in item (e) of the first paragraph of
20    this Section, persons who were contributors on the days
21    immediately preceding such layoff shall receive credit
22    upon paying to the Fund a contribution based on the rates
23    of compensation and employee contributions in effect at the
24    time of such layoff, together with an additional amount
25    equal to 12.2% of the compensation computed for such period
26    of layoff, plus interest on the entire amount at 5% per

 

 

HB3372 Engrossed- 73 -LRB098 07598 EFG 37669 b

1    annum from January 1, 1978 to the date of payment. If such
2    contribution is paid, salary for pension purposes for any
3    year in which such a layoff occurred shall include the
4    compensation recognized for purposes of computing that
5    contribution.
6        (9) For time spent after June 30, 1982, as a
7    nonsalaried member of the Board of Education, if required
8    to resign from an administrative or teaching position in
9    order to qualify as a member of the Board of Education, an
10    administrator or teacher desiring credit therefor shall
11    pay the required contributions at the rates and salaries in
12    effect during such periods as though the member were in
13    service.
14    Effective September 1, 1974, the interest charged for
15validation of service described in paragraphs (2) through (5)
16of this Section shall be compounded annually at a rate of 5%
17commencing one year after the termination of the leave or
18return to service.
19(Source: P.A. 97-651, eff. 1-5-12.)
 
20    Section 99. Effective date. This Act takes effect upon
21becoming law.