Rep. Darlene J. Senger

Filed: 4/10/2013

 

 


 

 


 
09800HB3372ham001LRB098 07598 EFG 44172 a

1
AMENDMENT TO HOUSE BILL 3372

2    AMENDMENT NO. ______. Amend House Bill 3372 on page 1, by
3replacing all of line 5 with "Sections 7-109, 7-114, 7-116,
47-139, 9-219, 9-220, 14-104.3, 14-106, 15-106, 15-107, 15-112,
515-113.4, 16-106, 16-121, 16-127, 17-116, and 17-134"; and
 
6by replacing line 2 on page 6 through line 24 on page 9 with the
7following:
 
8    "(40 ILCS 5/7-114)  (from Ch. 108 1/2, par. 7-114)
9    Sec. 7-114. Earnings. "Earnings":
10    (a) An amount to be determined by the board, equal to the
11sum of:
12        1. The total amount of money paid to an employee for
13    personal services or official duties as an employee (except
14    those employed as independent contractors) paid out of the
15    general fund, or out of any special funds controlled by the
16    municipality, or by any instrumentality thereof, or

 

 

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1    participating instrumentality, including compensation,
2    fees, allowances, or other emolument paid for official
3    duties (but not including automobile maintenance, travel
4    expense, or reimbursements for expenditures incurred in
5    the performance of duties, or, in the case of a person who
6    first becomes a participant on or after the effective date
7    of this amendatory Act of the 98th General Assembly,
8    payments for unused sick or vacation time) and, for fee
9    offices, the fees or earnings of the offices to the extent
10    such fees are paid out of funds controlled by the
11    municipality, or instrumentality or participating
12    instrumentality; and
13        2. The money value, as determined by rules prescribed
14    by the governing body of the municipality, or
15    instrumentality thereof, of any board, lodging, fuel,
16    laundry, and other allowances provided an employee in lieu
17    of money.
18    (b) For purposes of determining benefits payable under this
19fund payments to a person who is engaged in an independently
20established trade, occupation, profession or business and who
21is paid for his service on a basis other than a monthly or
22other regular salary, are not earnings.
23    (c) If a disabled participating employee is eligible to
24receive Workers' Compensation for an accidental injury and the
25participating municipality or instrumentality which employed
26the participating employee when injured continues to pay the

 

 

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1participating employee regular salary or other compensation or
2pays the employee an amount in excess of the Workers'
3Compensation amount, then earnings shall be deemed to be the
4total payments, including an amount equal to the Workers'
5Compensation payments. These payments shall be subject to
6employee contributions and allocated as if paid to the
7participating employee when the regular payroll amounts would
8have been paid if the participating employee had continued
9working, and creditable service shall be awarded for this
10period.
11    (d) If an elected official who is a participating employee
12becomes disabled but does not resign and is not removed from
13office, then earnings shall include all salary payments made
14for the remainder of that term of office and the official shall
15be awarded creditable service for the term of office.
16    (e) If a participating employee is paid pursuant to "An Act
17to provide for the continuation of compensation for law
18enforcement officers, correctional officers and firemen who
19suffer disabling injury in the line of duty", approved
20September 6, 1973, as amended, the payments shall be deemed
21earnings, and the participating employee shall be awarded
22creditable service for this period.
23    (f) Additional compensation received by a person while
24serving as a supervisor of assessments, assessor, deputy
25assessor or member of a board of review from the State of
26Illinois pursuant to Section 4-10 or 4-15 of the Property Tax

 

 

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1Code shall not be earnings for purposes of this Article and
2shall not be included in the contribution formula or
3calculation of benefits for such person pursuant to this
4Article.
5(Source: P.A. 87-740; 88-670, eff. 12-2-94.)
 
6    (40 ILCS 5/7-116)  (from Ch. 108 1/2, par. 7-116)
7    Sec. 7-116. "Final rate of earnings":
8    (a) For retirement and survivor annuities, the monthly
9earnings obtained by dividing the total earnings received by
10the employee during the period of either (1) the 48 consecutive
11months of service within the last 120 months of service in
12which his total earnings were the highest or (2) the employee's
13total period of service, by the number of months of service in
14such period.
15    (b) For death benefits, the higher of the rate determined
16under paragraph (a) of this Section or total earnings received
17in the last 12 months of service divided by twelve. If the
18deceased employee has less than 12 months of service, the
19monthly final rate shall be the monthly rate of pay the
20employee was receiving when he began service.
21    (c) For disability benefits, the total earnings of a
22participating employee in the last 12 calendar months of
23service prior to the date he becomes disabled divided by 12.
24    (d) In computing the final rate of earnings: (1) the
25earnings rate for all periods of prior service shall be

 

 

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1considered equal to the average earnings rate for the last 3
2calendar years of prior service for which creditable service is
3received under Section 7-139 or, if there is less than 3 years
4of creditable prior service, the average for the total prior
5service period for which creditable service is received under
6Section 7-139; (2) for out of state service and authorized
7leave, the earnings rate shall be the rate upon which service
8credits are granted; (3) periods of military leave shall not be
9considered; (4) the earnings rate for all periods of disability
10shall be considered equal to the rate of earnings upon which
11the employee's disability benefits are computed for such
12periods; (5) the earnings to be considered for each of the
13final three months of the final earnings period for persons who
14first became participants before January 1, 2012 and the
15earnings to be considered for each of the final 24 months for
16participants who first become participants on or after January
171, 2012 shall not exceed 125% of the highest earnings of any
18other month in the final earnings period; and (6) the annual
19amount of final rate of earnings shall be the monthly amount
20multiplied by the number of months of service normally required
21by the position in a year; and (7) in the case of a person who
22first becomes a participant on or after the effective date of
23this amendatory Act of the 98th General Assembly, payments for
24unused sick or vacation time shall not be considered.
25(Source: P.A. 97-609, eff. 1-1-12.)
 

 

 

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1    (40 ILCS 5/7-139)  (from Ch. 108 1/2, par. 7-139)
2    Sec. 7-139. Credits and creditable service to employees.
3    (a) Each participating employee shall be granted credits
4and creditable service, for purposes of determining the amount
5of any annuity or benefit to which he or a beneficiary is
6entitled, as follows:
7        1. For prior service: Each participating employee who
8    is an employee of a participating municipality or
9    participating instrumentality on the effective date shall
10    be granted creditable service, but no credits under
11    paragraph 2 of this subsection (a), for periods of prior
12    service for which credit has not been received under any
13    other pension fund or retirement system established under
14    this Code, as follows:
15        If the effective date of participation for the
16    participating municipality or participating
17    instrumentality is on or before January 1, 1998, creditable
18    service shall be granted for the entire period of prior
19    service with that employer without any employee
20    contribution.
21        If the effective date of participation for the
22    participating municipality or participating
23    instrumentality is after January 1, 1998, creditable
24    service shall be granted for the last 20% of the period of
25    prior service with that employer, but no more than 5 years,
26    without any employee contribution. A participating

 

 

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1    employee may establish creditable service for the
2    remainder of the period of prior service with that employer
3    by making an application in writing, accompanied by payment
4    of an employee contribution in an amount determined by the
5    Fund, based on the employee contribution rates in effect at
6    the time of application for the creditable service and the
7    employee's salary rate on the effective date of
8    participation for that employer, plus interest at the
9    effective rate from the date of the prior service to the
10    date of payment. Application for this creditable service
11    may be made at any time while the employee is still in
12    service.
13        A municipality that (i) has at least 35 employees; (ii)
14    is located in a county with at least 2,000,000 inhabitants;
15    and (iii) maintains an independent defined benefit pension
16    plan for the benefit of its eligible employees may restrict
17    creditable service in whole or in part for periods of prior
18    service with the employer if the governing body of the
19    municipality adopts an irrevocable resolution to restrict
20    that creditable service and files the resolution with the
21    board before the municipality's effective date of
22    participation.
23        Any person who has withdrawn from the service of a
24    participating municipality or participating
25    instrumentality prior to the effective date, who reenters
26    the service of the same municipality or participating

 

 

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1    instrumentality after the effective date and becomes a
2    participating employee is entitled to creditable service
3    for prior service as otherwise provided in this subdivision
4    (a)(1) only if he or she renders 2 years of service as a
5    participating employee after the effective date.
6    Application for such service must be made while in a
7    participating status. The salary rate to be used in the
8    calculation of the required employee contribution, if any,
9    shall be the employee's salary rate at the time of first
10    reentering service with the employer after the employer's
11    effective date of participation.
12        2. For current service, each participating employee
13    shall be credited with:
14            a. Additional credits of amounts equal to each
15        payment of additional contributions received from him
16        under Section 7-173, as of the date the corresponding
17        payment of earnings is payable to him.
18            b. Normal credits of amounts equal to each payment
19        of normal contributions received from him, as of the
20        date the corresponding payment of earnings is payable
21        to him, and normal contributions made for the purpose
22        of establishing out-of-state service credits as
23        permitted under the conditions set forth in paragraph 6
24        of this subsection (a).
25            c. Municipality credits in an amount equal to 1.4
26        times the normal credits, except those established by

 

 

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1        out-of-state service credits, as of the date of
2        computation of any benefit if these credits would
3        increase the benefit.
4            d. Survivor credits equal to each payment of
5        survivor contributions received from the participating
6        employee as of the date the corresponding payment of
7        earnings is payable, and survivor contributions made
8        for the purpose of establishing out-of-state service
9        credits.
10        3. For periods of temporary and total and permanent
11    disability benefits, each employee receiving disability
12    benefits shall be granted creditable service for the period
13    during which disability benefits are payable. Normal and
14    survivor credits, based upon the rate of earnings applied
15    for disability benefits, shall also be granted if such
16    credits would result in a higher benefit to any such
17    employee or his beneficiary.
18        4. For authorized leave of absence without pay: A
19    participating employee shall be granted credits and
20    creditable service for periods of authorized leave of
21    absence without pay under the following conditions:
22            a. An application for credits and creditable
23        service is submitted to the board while the employee is
24        in a status of active employment.
25            b. Not more than 12 complete months of creditable
26        service for authorized leave of absence without pay

 

 

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1        shall be counted for purposes of determining any
2        benefits payable under this Article.
3            c. Credits and creditable service shall be granted
4        for leave of absence only if such leave is approved by
5        the governing body of the municipality, including
6        approval of the estimated cost thereof to the
7        municipality as determined by the fund, and employee
8        contributions, plus interest at the effective rate
9        applicable for each year from the end of the period of
10        leave to date of payment, have been paid to the fund in
11        accordance with Section 7-173. The contributions shall
12        be computed upon the assumption earnings continued
13        during the period of leave at the rate in effect when
14        the leave began.
15            d. Benefits under the provisions of Sections
16        7-141, 7-146, 7-150 and 7-163 shall become payable to
17        employees on authorized leave of absence, or their
18        designated beneficiary, only if such leave of absence
19        is creditable hereunder, and if the employee has at
20        least one year of creditable service other than the
21        service granted for leave of absence. Any employee
22        contributions due may be deducted from any benefits
23        payable.
24            e. No credits or creditable service shall be
25        allowed for leave of absence without pay during any
26        period of prior service.

 

 

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1        5. For military service: The governing body of a
2    municipality or participating instrumentality may elect to
3    allow creditable service to participating employees who
4    leave their employment to serve in the armed forces of the
5    United States for all periods of such service, provided
6    that the person returns to active employment within 90 days
7    after completion of full time active duty, but no
8    creditable service shall be allowed such person for any
9    period that can be used in the computation of a pension or
10    any other pay or benefit, other than pay for active duty,
11    for service in any branch of the armed forces of the United
12    States. If necessary to the computation of any benefit, the
13    board shall establish municipality credits for
14    participating employees under this paragraph on the
15    assumption that the employee received earnings at the rate
16    received at the time he left the employment to enter the
17    armed forces. A participating employee in the armed forces
18    shall not be considered an employee during such period of
19    service and no additional death and no disability benefits
20    are payable for death or disability during such period.
21        Any participating employee who left his employment
22    with a municipality or participating instrumentality to
23    serve in the armed forces of the United States and who
24    again became a participating employee within 90 days after
25    completion of full time active duty by entering the service
26    of a different municipality or participating

 

 

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1    instrumentality, which has elected to allow creditable
2    service for periods of military service under the preceding
3    paragraph, shall also be allowed creditable service for his
4    period of military service on the same terms that would
5    apply if he had been employed, before entering military
6    service, by the municipality or instrumentality which
7    employed him after he left the military service and the
8    employer costs arising in relation to such grant of
9    creditable service shall be charged to and paid by that
10    municipality or instrumentality.
11        Notwithstanding the foregoing, any participating
12    employee shall be entitled to creditable service as
13    required by any federal law relating to re-employment
14    rights of persons who served in the United States Armed
15    Services. Such creditable service shall be granted upon
16    payment by the member of an amount equal to the employee
17    contributions which would have been required had the
18    employee continued in service at the same rate of earnings
19    during the military leave period, plus interest at the
20    effective rate.
21        5.1. In addition to any creditable service established
22    under paragraph 5 of this subsection (a), creditable
23    service may be granted for up to 48 months of service in
24    the armed forces of the United States.
25        In order to receive creditable service for military
26    service under this paragraph 5.1, a participating employee

 

 

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1    must (1) apply to the Fund in writing and provide evidence
2    of the military service that is satisfactory to the Board;
3    (2) obtain the written approval of the current employer;
4    and (3) make contributions to the Fund equal to (i) the
5    employee contributions that would have been required had
6    the service been rendered as a member, plus (ii) an amount
7    determined by the board to be equal to the employer's
8    normal cost of the benefits accrued for that military
9    service, plus (iii) interest on items (i) and (ii) from the
10    date of first membership in the Fund to the date of
11    payment. The required interest shall be calculated at the
12    regular interest rate.
13        The changes made to this paragraph 5.1 by Public Acts
14    95-483 and 95-486 apply only to participating employees in
15    service on or after August 28, 2007 (the effective date of
16    those Public Acts).
17        6. For out-of-state service: Creditable service shall
18    be granted for service rendered to an out-of-state local
19    governmental body under the following conditions: The
20    employee had participated and has irrevocably forfeited
21    all rights to benefits in the out-of-state public employees
22    pension system; the governing body of his participating
23    municipality or instrumentality authorizes the employee to
24    establish such service; the employee has 2 years current
25    service with this municipality or participating
26    instrumentality; the employee makes a payment of

 

 

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1    contributions, which shall be computed at 8% (normal) plus
2    2% (survivor) times length of service purchased times the
3    average rate of earnings for the first 2 years of service
4    with the municipality or participating instrumentality
5    whose governing body authorizes the service established
6    plus interest at the effective rate on the date such
7    credits are established, payable from the date the employee
8    completes the required 2 years of current service to date
9    of payment. In no case shall more than 120 months of
10    creditable service be granted under this provision.
11        7. For retroactive service: Any employee who could have
12    but did not elect to become a participating employee, or
13    who should have been a participant in the Municipal Public
14    Utilities Annuity and Benefit Fund before that fund was
15    superseded, may receive creditable service for the period
16    of service not to exceed 50 months; however, a current or
17    former elected or appointed official of a participating
18    municipality may establish credit under this paragraph 7
19    for more than 50 months of service as an official of that
20    municipality, if the excess over 50 months is approved by
21    resolution of the governing body of the affected
22    municipality filed with the Fund before January 1, 2002.
23        Any employee who is a participating employee on or
24    after September 24, 1981 and who was excluded from
25    participation by the age restrictions removed by Public Act
26    82-596 may receive creditable service for the period, on or

 

 

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1    after January 1, 1979, excluded by the age restriction and,
2    in addition, if the governing body of the participating
3    municipality or participating instrumentality elects to
4    allow creditable service for all employees excluded by the
5    age restriction prior to January 1, 1979, for service
6    during the period prior to that date excluded by the age
7    restriction. Any employee who was excluded from
8    participation by the age restriction removed by Public Act
9    82-596 and who is not a participating employee on or after
10    September 24, 1981 may receive creditable service for
11    service after January 1, 1979. Creditable service under
12    this paragraph shall be granted upon payment of the
13    employee contributions which would have been required had
14    he participated, with interest at the effective rate for
15    each year from the end of the period of service established
16    to date of payment.
17        8. For accumulated unused sick leave: A participating
18    employee who first becomes a participating employee before
19    the effective date of this amendatory Act of the 98th
20    General Assembly and who is applying for a retirement
21    annuity shall be entitled to creditable service for that
22    portion of the employee's accumulated unused sick leave for
23    which payment is not received, as follows:
24            a. Sick leave days shall be limited to those
25        accumulated under a sick leave plan established by a
26        participating municipality or participating

 

 

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1        instrumentality which is available to all employees or
2        a class of employees.
3            b. Except as provided in item b-1, only sick leave
4        days accumulated with a participating municipality or
5        participating instrumentality with which the employee
6        was in service within 60 days of the effective date of
7        his retirement annuity shall be credited; If the
8        employee was in service with more than one employer
9        during this period only the sick leave days with the
10        employer with which the employee has the greatest
11        number of unpaid sick leave days shall be considered.
12            b-1. If the employee was in the service of more
13        than one employer as defined in item (2) of paragraph
14        (a) of subsection (A) of Section 7-132, then the sick
15        leave days from all such employers shall be credited,
16        as long as the creditable service attributed to those
17        sick leave days does not exceed the limitation in item
18        f of this paragraph 8. In calculating the creditable
19        service under this item b-1, the sick leave days from
20        the last employer shall be considered first, then the
21        remaining sick leave days shall be considered until
22        there are no more days or the maximum creditable sick
23        leave threshold under item f of this paragraph 8 has
24        been reached.
25            c. The creditable service granted shall be
26        considered solely for the purpose of computing the

 

 

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1        amount of the retirement annuity and shall not be used
2        to establish any minimum service period required by any
3        provision of the Illinois Pension Code, the effective
4        date of the retirement annuity, or the final rate of
5        earnings.
6            d. The creditable service shall be at the rate of
7        1/20 of a month for each full sick day, provided that
8        no more than 12 months may be credited under this
9        subdivision 8.
10            e. Employee contributions shall not be required
11        for creditable service under this subdivision 8.
12            f. Each participating municipality and
13        participating instrumentality with which an employee
14        has service within 60 days of the effective date of his
15        retirement annuity shall certify to the board the
16        number of accumulated unpaid sick leave days credited
17        to the employee at the time of termination of service.
18        9. For service transferred from another system:
19    Credits and creditable service shall be granted for service
20    under Article 3, 4, 5, 8, 14, or 16 of this Act, to any
21    active member of this Fund, and to any inactive member who
22    has been a county sheriff, upon transfer of such credits
23    pursuant to Section 3-110.3, 4-108.3, 5-235, 8-226.7,
24    14-105.6, or 16-131.4, and payment by the member of the
25    amount by which (1) the employer and employee contributions
26    that would have been required if he had participated in

 

 

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1    this Fund as a sheriff's law enforcement employee during
2    the period for which credit is being transferred, plus
3    interest thereon at the effective rate for each year,
4    compounded annually, from the date of termination of the
5    service for which credit is being transferred to the date
6    of payment, exceeds (2) the amount actually transferred to
7    the Fund. Such transferred service shall be deemed to be
8    service as a sheriff's law enforcement employee for the
9    purposes of Section 7-142.1.
10        10. For service transferred from an Article 3 system
11    under Section 3-110.8: Credits and creditable service
12    shall be granted for service under Article 3 of this Act as
13    provided in Section 3-110.8, to any active member of this
14    Fund upon transfer of such credits pursuant to Section
15    3-110.8. If the amount by which (1) the employer and
16    employee contributions that would have been required if he
17    had participated in this Fund during the period for which
18    credit is being transferred, plus interest thereon at the
19    effective rate for each year, compounded annually, from the
20    date of termination of the service for which credit is
21    being transferred to the date of payment, exceeds (2) the
22    amount actually transferred to the Fund, then the amount of
23    creditable service established under this paragraph 10
24    shall be reduced by a corresponding amount in accordance
25    with the rules and procedures established under this
26    paragraph 10.

 

 

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1        The board shall establish by rule the manner of making
2    the calculation required under this paragraph 10, taking
3    into account the appropriate actuarial assumptions; the
4    member's service, age, and salary history; the level of
5    funding of the employer; and any other factors that the
6    board determines to be relevant.
7        Until January 1, 2010, members who transferred service
8    from an Article 3 system under the provisions of Public Act
9    94-356 may establish additional credit in this Fund, but
10    only up to the amount of the service credit reduction in
11    that transfer, as calculated under the actuarial
12    assumptions. This credit may be established upon payment by
13    the member of an amount to be determined by the board,
14    equal to (1) the amount that would have been contributed as
15    employee and employer contributions had all the service
16    been as an employee under this Article, plus interest
17    thereon compounded annually from the date of service to the
18    date of transfer, less (2) the total amount transferred
19    from the Article 3 system, plus (3) interest on the
20    difference at the effective rate for each year, compounded
21    annually, from the date of the transfer to the date of
22    payment. The additional service credit is allowed under
23    this amendatory Act of the 95th General Assembly
24    notwithstanding the provisions of Article 3 terminating
25    all transferred credits on the date of transfer.
26    (b) Creditable service - amount:

 

 

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1        1. One month of creditable service shall be allowed for
2    each month for which a participating employee made
3    contributions as required under Section 7-173, or for which
4    creditable service is otherwise granted hereunder. Not
5    more than 1 month of service shall be credited and counted
6    for 1 calendar month, and not more than 1 year of service
7    shall be credited and counted for any calendar year. A
8    calendar month means a nominal month beginning on the first
9    day thereof, and a calendar year means a year beginning
10    January 1 and ending December 31.
11        2. A seasonal employee shall be given 12 months of
12    creditable service if he renders the number of months of
13    service normally required by the position in a 12-month
14    period and he remains in service for the entire 12-month
15    period. Otherwise a fractional year of service in the
16    number of months of service rendered shall be credited.
17        3. An intermittent employee shall be given creditable
18    service for only those months in which a contribution is
19    made under Section 7-173.
20    (c) No application for correction of credits or creditable
21service shall be considered unless the board receives an
22application for correction while (1) the applicant is a
23participating employee and in active employment with a
24participating municipality or instrumentality, or (2) while
25the applicant is actively participating in a pension fund or
26retirement system which is a participating system under the

 

 

09800HB3372ham001- 21 -LRB098 07598 EFG 44172 a

1Retirement Systems Reciprocal Act. A participating employee or
2other applicant shall not be entitled to credits or creditable
3service unless the required employee contributions are made in
4a lump sum or in installments made in accordance with board
5rule.
6    (d) Upon the granting of a retirement, surviving spouse or
7child annuity, a death benefit or a separation benefit, on
8account of any employee, all individual accumulated credits
9shall thereupon terminate. Upon the withdrawal of additional
10contributions, the credits applicable thereto shall thereupon
11terminate. Terminated credits shall not be applied to increase
12the benefits any remaining employee would otherwise receive
13under this Article.
14(Source: P.A. 96-299, eff. 8-11-09; 97-415, eff. 8-16-11.)
 
15    (40 ILCS 5/9-219)  (from Ch. 108 1/2, par. 9-219)
16    Sec. 9-219. Computation of service.
17    (1) In computing the term of service of an employee prior
18to the effective date, the entire period beginning on the date
19he was first appointed and ending on the day before the
20effective date, except any intervening period during which he
21was separated by withdrawal from service, shall be counted for
22all purposes of this Article.
23    (2) In computing the term of service of any employee on or
24after the effective date, the following periods of time shall
25be counted as periods of service for age and service, widow's

 

 

09800HB3372ham001- 22 -LRB098 07598 EFG 44172 a

1and child's annuity purposes:
2        (a) The time during which he performed the duties of
3    his position.
4        (b) Vacations, leaves of absence with whole or part
5    pay, and leaves of absence without pay not longer than 90
6    days.
7        (c) For an employee who is a member of a county police
8    department or a correctional officer with the county
9    department of corrections, approved leaves of absence
10    without pay during which the employee serves as a full-time
11    officer or employee of an employee association, the
12    membership of which consists of other participants in the
13    Fund, provided that the employee contributes to the Fund
14    (1) the amount that he would have contributed had he
15    remained an active employee in the position he occupied at
16    the time the leave of absence was granted, (2) an amount
17    calculated by the Board representing employer
18    contributions, and (3) regular interest thereon from the
19    date of service to the date of payment. However, if the
20    employee's application to establish credit under this
21    subsection is received by the Fund on or after July 1, 2002
22    and before July 1, 2003, the amount representing employer
23    contributions specified in item (2) shall be waived.
24        For a former member of a county police department who
25    has received a refund under Section 9-164, periods during
26    which the employee serves as head of an employee

 

 

09800HB3372ham001- 23 -LRB098 07598 EFG 44172 a

1    association, the membership of which consists of other
2    police officers, provided that the employee contributes to
3    the Fund (1) the amount that he would have contributed had
4    he remained an active member of the county police
5    department in the position he occupied at the time he left
6    service, (2) an amount calculated by the Board representing
7    employer contributions, and (3) regular interest thereon
8    from the date of service to the date of payment. However,
9    if the former member of the county police department
10    retires on or after January 1, 1993 but no later than March
11    1, 1993, the amount representing employer contributions
12    specified in item (2) shall be waived.
13        For leaves of absence to which this item (c) applies
14    and for other periods to which this item (c) applies,
15    including those leaves of absence and other periods of
16    service beginning before January 5, 2012 (the effective
17    date of Public Act 97-651) this amendatory Act of the 97th
18    General Assembly, the employee or former member must
19    continue to remain in sworn status, subject to the
20    professional standards of the public employer or those
21    terms established in statute.
22        (d) Any period of disability for which he received
23    disability benefit or whole or part pay.
24        (e) For a person who first becomes an employee before
25    the effective date of this amendatory Act of the 98th
26    General Assembly, accumulated Accumulated vacation or

 

 

09800HB3372ham001- 24 -LRB098 07598 EFG 44172 a

1    other time for which an employee who retires on or after
2    November 1, 1990 receives a lump sum payment at the time of
3    retirement, provided that contributions were made to the
4    fund at the time such lump sum payment was received. The
5    service granted for the lump sum payment shall not change
6    the employee's date of withdrawal for computing the
7    effective date of the annuity.
8        (f) An employee who first becomes an employee before
9    the effective date of this amendatory Act of the 98th
10    General Assembly may receive service credit for annuity
11    purposes for accumulated sick leave as of the date of the
12    employee's withdrawal from service, not to exceed a total
13    of 180 days, provided that the amount of such accumulated
14    sick leave is certified by the County Comptroller to the
15    Board and the employee pays an amount equal to 8.5% (9% for
16    members of the County Police Department who are eligible to
17    receive an annuity under Section 9-128.1) of the amount
18    that would have been paid had such accumulated sick leave
19    been paid at the employee's final rate of salary. Such
20    payment shall be made within 30 days after the date of
21    withdrawal and prior to receipt of the first annuity check.
22    The service credit granted for such accumulated sick leave
23    shall not change the employee's date of withdrawal for the
24    purpose of computing the effective date of the annuity.
25    (3) In computing the term of service of an employee on or
26after the effective date for ordinary disability benefit

 

 

09800HB3372ham001- 25 -LRB098 07598 EFG 44172 a

1purposes, the following periods of time shall be counted as
2periods of service:
3        (a) Unless otherwise specified in Section 9-157, the
4    time during which he performed the duties of his position.
5        (b) Paid vacations and leaves of absence with whole or
6    part pay.
7        (c) Any period for which he received duty disability
8    benefit.
9        (d) Any period of disability for which he received
10    whole or part pay.
11    (4) For an employee who on January 1, 1958, was transferred
12by Act of the 70th General Assembly from his position in a
13department of welfare of any city located in the county in
14which this Article is in force and effect to a similar position
15in a department of such county, service shall also be credited
16for ordinary disability benefit and child's annuity for such
17period of department of welfare service during which period he
18was a contributor to a statutory annuity and benefit fund in
19such city and for which purposes service credit would otherwise
20not be credited by virtue of such involuntary transfer.
21    (5) An employee described in subsection (e) of Section
229-108 shall receive credit for child's annuity and ordinary
23disability benefit for the period of time for which he was
24credited with service in the fund from which he was
25involuntarily separated through class or group transfer;
26provided, that no such credit shall be allowed to the extent

 

 

09800HB3372ham001- 26 -LRB098 07598 EFG 44172 a

1that it results in a duplication of credits or benefits, and
2neither shall such credit be allowed to the extent that it was
3or may be forfeited by the application for and acceptance of a
4refund from the fund from which the employee was transferred.
5    (6) Overtime or extra service shall not be included in
6computing service. Not more than 1 year of service shall be
7allowed for service rendered during any calendar year.
8    (7) Unused sick or vacation time shall not be used to
9compute the service of an employee who first becomes an
10employee on or after the effective date of this amendatory Act
11of the 98th General Assembly.
12(Source: P.A. 97-651, eff. 1-5-12.)
 
13    (40 ILCS 5/9-220)  (from Ch. 108 1/2, par. 9-220)
14    Sec. 9-220. Basis of service credit.
15    (a) In computing the period of service of any employee for
16annuity purposes under Section 9-134, the following provisions
17shall govern:
18        (1) All periods prior to the effective date shall be
19    computed in accordance with the provisions governing the
20    computation of such service.
21        (2) Service on or after the effective date shall
22    include:
23            (i) The actual period of time the employee
24        contributes or has contributed to the fund for service
25        rendered to age 65 plus the actual period of time after

 

 

09800HB3372ham001- 27 -LRB098 07598 EFG 44172 a

1        age 65 for which the employee performs the duties of
2        his position or performs such duties and is given a
3        county contribution for age and service annuity or
4        minimum annuity purposes.
5            (ii) Leaves of absence from duty, or vacation, for
6        which an employee receives all or part of his salary.
7            (iii) For a person who first becomes an employee
8        before the effective date of this amendatory Act of the
9        98th General Assembly, accumulated Accumulated
10        vacation or other time for which an employee who
11        retires on or after November 1, 1990 receives a lump
12        sum payment at the time of retirement, provided that
13        contributions were made to the fund at the time such
14        lump sum payment was received. The service granted for
15        the lump sum payment shall not change the employee's
16        date of withdrawal for computing the effective date of
17        the annuity.
18            (iv) For a person who first becomes an employee
19        before the effective date of this amendatory Act of the
20        98th General Assembly, accumulated Accumulated sick
21        leave as of the date of the employee's withdrawal from
22        service, not to exceed a total of 180 days, provided
23        that the amount of such accumulated sick leave is
24        certified by the County Comptroller to the Board and
25        the employee pays an amount equal to 8.5% (9% for
26        members of the County Police Department who are

 

 

09800HB3372ham001- 28 -LRB098 07598 EFG 44172 a

1        eligible to receive an annuity under Section 9-128.1)
2        of the amount that would have been paid had such
3        accumulated sick leave been paid at the employee's
4        final rate of salary. Such payment shall be made within
5        30 days after the date of withdrawal and prior to
6        receipt of the first annuity check. The service credit
7        granted for such accumulated sick leave shall not
8        change the employee's date of withdrawal for the
9        purpose of computing the effective date of the annuity.
10            (v) Periods during which the employee has had
11        contributions for annuity purposes made for him in
12        accordance with law while on military leave of absence
13        during World War II.
14            (vi) Periods during which the employee receives a
15        disability benefit under this Article.
16            (vii) For any person who first becomes a member on
17        or after January 1, 2011, the actual period of time the
18        employee contributes or has contributed to the fund for
19        service rendered up to the limitation on salary in
20        subsection (b-5) of Section 1-160 plus the actual
21        period of time thereafter for which the employee
22        performs the duties of his position and ceased
23        contributing due to the salary limitation in
24        subsection (b-5) of Section 1-160.
25        (3) The right to have certain periods of time
26    considered as service as stated in paragraph (2) of Section

 

 

09800HB3372ham001- 29 -LRB098 07598 EFG 44172 a

1    9-164 shall not apply for annuity purposes unless the
2    refunds shall have been repaid in accordance with this
3    Article.
4        (4) All service shall be computed in whole calendar
5    months, and at least 15 days of service in any one calendar
6    month shall constitute one calendar month of service, and 1
7    year of service shall be equal to the number of months,
8    days or hours for which an appropriation was made in the
9    annual appropriation ordinance for the position held by the
10    employee.
11        (5) Unused sick or vacation time shall not be used to
12    compute the service of an employee who first becomes an
13    employee on or after the effective date of this amendatory
14    Act of the 98th General Assembly.
15    (b) For all other annuity purposes of this Article the
16following schedule shall govern the computation of a year of
17service of an employee whose salary or wages is on the basis
18stated, and any fractional part of a year of service shall be
19determined according to said schedule:
20    Annual or Monthly Basis: Service during 4 months in any 1
21calendar year;
22    Weekly Basis: Service during any 17 weeks of any 1 calendar
23year, and service during any week shall constitute a week of
24service;
25    Daily Basis: Service during 100 days in any 1 calendar
26year, and service during any day shall constitute a day of

 

 

09800HB3372ham001- 30 -LRB098 07598 EFG 44172 a

1service;
2    Hourly Basis: Service during 800 hours in any 1 calendar
3year, and service during any hour shall constitute an hour of
4service.
5(Source: P.A. 96-1490, eff. 1-1-11.)
 
6    (40 ILCS 5/14-104.3)  (from Ch. 108 1/2, par. 14-104.3)
7    Sec. 14-104.3. Notwithstanding provisions contained in
8Section 14-103.10, any person who first becomes a member before
9the effective date of this amendatory Act of the 98th General
10Assembly and who at the time of retirement and after December
116, 1983 receives compensation in a lump sum for accumulated
12vacation, sickness, or personal business may receive service
13credit for such periods by making contributions within 90 days
14of withdrawal, based on the rate of compensation in effect
15immediately prior to retirement and the contribution rate then
16in effect. Any person who first becomes a member on or after
17the effective date of this amendatory Act of the 98th General
18Assembly and who receives compensation in a lump sum for
19accumulated vacation, sickness, or personal business may not
20receive service credit for such periods. Exercising the option
21provided in this Section shall not change a member's date of
22withdrawal or final average compensation for purposes of
23computing the amount or effective date of a retirement annuity.
24Any annuitant who establishes service credit as herein provided
25shall have his retirement annuity adjusted retroactively to the

 

 

09800HB3372ham001- 31 -LRB098 07598 EFG 44172 a

1date of retirement.
2(Source: P.A. 83-1362.)
 
3    (40 ILCS 5/14-106)  (from Ch. 108 1/2, par. 14-106)
4    Sec. 14-106. Membership service credit.
5    (a) After January 1, 1944, all service of a member since he
6last became a member with respect to which contributions are
7made shall count as membership service; provided, that for
8service on and after July 1, 1950, 12 months of service shall
9constitute a year of membership service, the completion of 15
10days or more of service during any month shall constitute 1
11month of membership service, 8 to 15 days shall constitute 1/2
12month of membership service and less than 8 days shall
13constitute 1/4 month of membership service. The payroll record
14of each department shall constitute conclusive evidence of the
15record of service rendered by a member.
16    (b) For a member who is employed and paid on an
17academic-year basis rather than on a 12-month annual basis,
18employment for a full academic year shall constitute a full
19year of membership service, except that the member shall not
20receive more than one year of membership service credit (plus
21any additional service credit granted for unused sick leave)
22for service during any 12-month period. This subsection (b)
23applies to all such service for which the member has not begun
24to receive a retirement annuity before January 1, 2001.
25    (c) A person who first becomes a member before the

 

 

09800HB3372ham001- 32 -LRB098 07598 EFG 44172 a

1effective date of this amendatory Act of the 98th General
2Assembly shall be entitled to additional service credit, under
3rules prescribed by the Board, for accumulated unused sick
4leave credited to his account in the last Department on the
5date of withdrawal from service or for any period for which he
6would have been eligible to receive benefits under a sick pay
7plan authorized by law, if he had suffered a sickness or
8accident on the date of withdrawal from service. It shall be
9the responsibility of the last Department to certify to the
10Board the length of time salary or benefits would have been
11paid to the member based upon the accumulated unused sick leave
12or the applicable sick pay plan if he had become entitled
13thereto because of sickness on the date that his status as an
14employee terminated. This period of service credit granted
15under this paragraph shall not be considered in determining the
16date the retirement annuity is to begin, or final average
17compensation.
18    (d) A person who first becomes a member on or after the
19effective date of this amendatory Act of the 98th General
20Assembly shall not be entitled to additional service credit for
21accumulated unused sick leave.
22(Source: P.A. 92-14, eff. 6-28-01.)"; and
 
23on page 17, below line 18, by inserting the following:
 
24    "(40 ILCS 5/15-112)  (from Ch. 108 1/2, par. 15-112)

 

 

09800HB3372ham001- 33 -LRB098 07598 EFG 44172 a

1    Sec. 15-112. Final rate of earnings.
2    "Final rate of earnings":
3    (a) This subsection (a) applies only to a person who first
4becomes a participant of any system before January 1, 2011.
5     For an employee who is paid on an hourly basis or who
6receives an annual salary in installments during 12 months of
7each academic year, the average annual earnings during the 48
8consecutive calendar month period ending with the last day of
9final termination of employment or the 4 consecutive academic
10years of service in which the employee's earnings were the
11highest, whichever is greater. For any other employee, the
12average annual earnings during the 4 consecutive academic years
13of service in which his or her earnings were the highest. For
14an employee with less than 48 months or 4 consecutive academic
15years of service, the average earnings during his or her entire
16period of service. The earnings of an employee with more than
1736 months of service prior to the date of becoming a
18participant are, for such period, considered equal to the
19average earnings during the last 36 months of such service.
20    (b) This subsection (b) applies to a person to whom
21subsection (a) does not apply.
22    For an employee who is paid on an hourly basis or who
23receives an annual salary in installments during 12 months of
24each academic year, the average annual earnings obtained by
25dividing by 8 the total earnings of the employee during the 96
26consecutive months in which the total earnings were the highest

 

 

09800HB3372ham001- 34 -LRB098 07598 EFG 44172 a

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

 

 

09800HB3372ham001- 35 -LRB098 07598 EFG 44172 a

1applies is an employee for at least 6 months during the
2academic year in which his or her employment is terminated, the
3annual final rate of earnings shall be 25% of the sum of (1)
4the annual basic compensation for that year, and (2) the amount
5earned during the 36 months immediately preceding that year, if
6this is greater than the final rate of earnings as calculated
7under the other provisions of this Section.
8    (g) In the determination of the final rate of earnings for
9an employee, that part of an employee's earnings for any
10academic year beginning after June 30, 1997, which exceeds the
11employee's earnings with that employer for the preceding year
12by more than 20 percent shall be excluded; in the event that an
13employee has more than one employer this limitation shall be
14calculated separately for the earnings with each employer. In
15making such calculation, only the basic compensation of
16employees shall be considered, without regard to vacation or
17overtime or to contracts for summer employment.
18    (h) The following are not considered as earnings in
19determining final rate of earnings: (1) severance or separation
20pay, (2) retirement pay, (3) payment for unused sick leave, and
21(4) payments from an employer for the period used in
22determining final rate of earnings for any purpose other than
23(i) services rendered, (ii) leave of absence or vacation
24granted during that period, and (iii) vacation of up to 56 work
25days allowed upon termination of employment; except that, if
26the benefit has been collectively bargained between the

 

 

09800HB3372ham001- 36 -LRB098 07598 EFG 44172 a

1employer and the recognized collective bargaining agent
2pursuant to the Illinois Educational Labor Relations Act,
3payment received during a period of up to 2 academic years for
4unused sick leave may be considered as earnings in accordance
5with the applicable collective bargaining agreement, subject
6to the 20% increase limitation of this Section, and if the
7person first becomes a participant on or after the effective
8date of this amendatory Act of the 98th General Assembly,
9payments for unused sick or vacation time shall not be
10considered as earnings. Any unused sick leave considered as
11earnings under this Section shall not be taken into account in
12calculating service credit under Section 15-113.4.
13    (i) Intermittent periods of service shall be considered as
14consecutive in determining final rate of earnings.
15(Source: P.A. 96-1490, eff. 1-1-11.)
 
16    (40 ILCS 5/15-113.4)  (from Ch. 108 1/2, par. 15-113.4)
17    Sec. 15-113.4. Service for unused sick leave. "Service for
18unused sick leave": A person who first becomes a participant
19before the effective date of this amendatory Act of the 98th
20General Assembly and who is an employee under this System or
21one of the other systems subject to Article 20 of this Code
22within 60 days immediately preceding the date on which his or
23her retirement annuity begins, is entitled to credit for
24service for that portion of unused sick leave earned in the
25course of employment with an employer and credited on the date

 

 

09800HB3372ham001- 37 -LRB098 07598 EFG 44172 a

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

 

 

09800HB3372ham001- 38 -LRB098 07598 EFG 44172 a

1This period of unused sick leave shall not be considered in
2determining the date the retirement annuity begins. A person
3who first becomes a participant on or after the effective date
4of this amendatory Act of the 98th General Assembly shall not
5receive service credit for unused sick leave.
6(Source: P.A. 90-65, eff. 7-7-97; 90-511, eff. 8-22-97.)"; and
 
7on page 21, below line 19, by inserting the following:
 
8    "(40 ILCS 5/16-121)  (from Ch. 108 1/2, par. 16-121)
9    Sec. 16-121. Salary. "Salary": The actual compensation
10received by a teacher during any school year and recognized by
11the system in accordance with rules of the board. For purposes
12of this Section, "school year" includes the regular school term
13plus any additional period for which a teacher is compensated
14and such compensation is recognized by the rules of the board.
15In the case of a person who first becomes a member on or after
16the effective date of this amendatory Act of the 98th General
17Assembly, "salary" shall not include any payment for unused
18sick or vacation time.
19(Source: P.A. 84-1028.)
 
20    (40 ILCS 5/16-127)  (from Ch. 108 1/2, par. 16-127)
21    Sec. 16-127. Computation of creditable service.
22    (a) Each member shall receive regular credit for all
23service as a teacher from the date membership begins, for which

 

 

09800HB3372ham001- 39 -LRB098 07598 EFG 44172 a

1satisfactory evidence is supplied and all contributions have
2been paid.
3    (b) The following periods of service shall earn optional
4credit and each member shall receive credit for all such
5service for which satisfactory evidence is supplied and all
6contributions have been paid as of the date specified:
7        (1) Prior service as a teacher.
8        (2) Service in a capacity essentially similar or
9    equivalent to that of a teacher, in the public common
10    schools in school districts in this State not included
11    within the provisions of this System, or of any other
12    State, territory, dependency or possession of the United
13    States, or in schools operated by or under the auspices of
14    the United States, or under the auspices of any agency or
15    department of any other State, and service during any
16    period of professional speech correction or special
17    education experience for a public agency within this State
18    or any other State, territory, dependency or possession of
19    the United States, and service prior to February 1, 1951 as
20    a recreation worker for the Illinois Department of Public
21    Safety, for a period not exceeding the lesser of 2/5 of the
22    total creditable service of the member or 10 years. The
23    maximum service of 10 years which is allowable under this
24    paragraph shall be reduced by the service credit which is
25    validated by other retirement systems under paragraph (i)
26    of Section 15-113 and paragraph 1 of Section 17-133. Credit

 

 

09800HB3372ham001- 40 -LRB098 07598 EFG 44172 a

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

 

 

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

 

 

09800HB3372ham001- 42 -LRB098 07598 EFG 44172 a

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

 

 

09800HB3372ham001- 43 -LRB098 07598 EFG 44172 a

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

 

 

09800HB3372ham001- 44 -LRB098 07598 EFG 44172 a

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

 

 

09800HB3372ham001- 45 -LRB098 07598 EFG 44172 a

1    prior to the effective date of P.A. 86-1488 shall be
2    eligible to purchase such optional credit. If a teacher who
3    purchases this optional credit is already receiving a
4    retirement annuity under this Article, the annuity shall be
5    recalculated as if the annuitant had applied for the leave
6    of absence credit at the time of retirement. The difference
7    between the entitled annuity and the actual annuity shall
8    be credited to the purchase of the optional credit. The
9    remainder of the purchase cost of the optional credit shall
10    be paid on or before April 1, 1992.
11        The change in this paragraph made by Public Act 86-273
12    shall be applicable to teachers who retire after June 1,
13    1989, as well as to teachers who are in service on that
14    date.
15        (6) For a person who first becomes a member before the
16    effective date of this amendatory Act of the 98th General
17    Assembly, any Any days of unused and uncompensated
18    accumulated sick leave earned by a teacher. The service
19    credit granted under this paragraph shall be the ratio of
20    the number of unused and uncompensated accumulated sick
21    leave days to 170 days, subject to a maximum of 2 years of
22    service credit. Prior to the member's retirement, each
23    former employer shall certify to the System the number of
24    unused and uncompensated accumulated sick leave days
25    credited to the member at the time of termination of
26    service. The period of unused sick leave shall not be

 

 

09800HB3372ham001- 46 -LRB098 07598 EFG 44172 a

1    considered in determining the effective date of
2    retirement. A member is not required to make contributions
3    in order to obtain service credit for unused sick leave.
4        Credit for sick leave shall, at retirement, be granted
5    by the System for any retiring regional or assistant
6    regional superintendent of schools who first becomes a
7    member before the effective date of this amendatory Act of
8    the 98th General Assembly at the rate of 6 days per year of
9    creditable service or portion thereof established while
10    serving as such superintendent or assistant
11    superintendent.
12        (7) Periods prior to February 1, 1987 served as an
13    employee of the Illinois Mathematics and Science Academy
14    for which credit has not been terminated under Section
15    15-113.9 of this Code.
16        (8) Service as a substitute teacher for work performed
17    prior to July 1, 1990.
18        (9) Service as a part-time teacher for work performed
19    prior to July 1, 1990.
20        (10) Up to 2 years of employment with Southern Illinois
21    University - Carbondale from September 1, 1959 to August
22    31, 1961, or with Governors State University from September
23    1, 1972 to August 31, 1974, for which the teacher has no
24    credit under Article 15. To receive credit under this item
25    (10), a teacher must apply in writing to the Board and pay
26    the required contributions before May 1, 1993 and have at

 

 

09800HB3372ham001- 47 -LRB098 07598 EFG 44172 a

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

 

 

09800HB3372ham001- 48 -LRB098 07598 EFG 44172 a

1    Credit may not be granted under this Section covering any
2period for which an age retirement or disability retirement
3allowance has been paid.
4(Source: P.A. 96-546, eff. 8-17-09.)
 
5    (40 ILCS 5/17-116)  (from Ch. 108 1/2, par. 17-116)
6    Sec. 17-116. Service retirement pension.
7    (a) Each teacher having 20 years of service upon attainment
8of age 55, or who thereafter attains age 55 shall be entitled
9to a service retirement pension upon or after attainment of age
1055; and each teacher in service on or after July 1, 1971, with
115 or more but less than 20 years of service shall be entitled
12to receive a service retirement pension upon or after
13attainment of age 62.
14    (b) The service retirement pension for a teacher who
15retires on or after June 25, 1971, at age 60 or over, shall be
16calculated as follows:
17        (1) For creditable service earned before July 1, 1998
18    that has not been augmented under Section 17-119.1: 1.67%
19    for each of the first 10 years of service; 1.90% for each
20    of the next 10 years of service; 2.10% for each year of
21    service in excess of 20 but not exceeding 30; and 2.30% for
22    each year of service in excess of 30, based upon average
23    salary as herein defined.
24        (2) For creditable service earned on or after July 1,
25    1998 by a member who has at least 30 years of creditable

 

 

09800HB3372ham001- 49 -LRB098 07598 EFG 44172 a

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

 

 

09800HB3372ham001- 50 -LRB098 07598 EFG 44172 a

1    the Board on the basis of actuarial tables adopted by the
2    Board. If a member elects to receive a pension from this
3    Fund provided by Section 20-121, his salary under the State
4    Universities Retirement System and the Teachers'
5    Retirement System of the State of Illinois shall be
6    considered in determining such average salary. Amounts
7    paid after the effective date of this amendatory Act of
8    1991 for unused vacation time earned after that effective
9    date shall not under any circumstances be included in the
10    calculation of average salary or the annual rate of salary
11    for the purposes of this Article.
12        2. Proportionate credit shall be given for validated
13    service of less than one year.
14        3. For retirement at age 60 or over the pension shall
15    be payable at the full rate.
16        4. For separation from service below age 60 to a
17    minimum age of 55, the pension shall be discounted at the
18    rate of 1/2 of one per cent for each month that the age of
19    the contributor is less than 60, but a teacher may elect to
20    defer the effective date of pension in order to eliminate
21    or reduce this discount. This discount shall not be
22    applicable to any participant who has at least 34 years of
23    service or a retirement pension of at least 74.6% of
24    average salary on the date the retirement annuity begins.
25        5. No additional pension shall be granted for service
26    exceeding 45 years. Beginning June 26, 1971 no pension

 

 

09800HB3372ham001- 51 -LRB098 07598 EFG 44172 a

1    shall exceed the greater of $1,500 per month or 75% of
2    average salary as herein defined.
3        6. Service retirement pensions shall begin on the
4    effective date of resignation, retirement, the day
5    following the close of the payroll period for which service
6    credit was validated, or the time the person resigning or
7    retiring attains age 55, or on a date elected by the
8    teacher, whichever shall be latest.
9        7. A member who is eligible to receive a retirement
10    pension of at least 74.6% of average salary and will attain
11    age 55 on or before December 31 during the year which
12    commences on July 1 shall be deemed to attain age 55 on the
13    preceding June 1.
14        8. A member retiring after the effective date of this
15    amendatory Act of 1998 shall receive a pension equal to 75%
16    of average salary if the member is qualified to receive a
17    retirement pension equal to at least 74.6% of average
18    salary under this Article or as proportional annuities
19    under Article 20 of this Code.
20        9. In the case of a person who first becomes a
21    participant on or after the effective date of this
22    amendatory Act of the 98th General Assembly, payments for
23    unused sick or vacation time shall not be used in the
24    calculation of average salary.
25(Source: P.A. 90-566, eff. 1-2-98; 90-582, eff. 5-27-98.)
 

 

 

09800HB3372ham001- 52 -LRB098 07598 EFG 44172 a

1    (40 ILCS 5/17-134)  (from Ch. 108 1/2, par. 17-134)
2    Sec. 17-134. Contributions for leaves of absence; military
3service; computing service. In computing service for pension
4purposes the following periods of service shall stand in lieu
5of a like number of years of teaching service upon payment
6therefor in the manner hereinafter provided: (a) time spent on
7a leave of absence granted by the employer; (b) service with
8teacher or labor organizations based upon special leaves of
9absence therefor granted by an Employer; (c) a maximum of 5
10years spent in the military service of the United States, of
11which up to 2 years may have been served outside the pension
12period; (d) unused sick days at termination of service to a
13maximum of 244 days; (e) time lost due to layoff and
14curtailment of the school term from June 6 through June 21,
151976; and (f) time spent after June 30, 1982 as a member of the
16Board of Education, if required to resign from an
17administrative or teaching position in order to qualify as a
18member of the Board of Education.
19        (1) For time spent on or after September 6, 1948 on
20    sabbatical leaves of absence or sick leaves, for which
21    salaries are paid, an Employer shall make payroll
22    deductions at the applicable rates in effect during such
23    periods.
24        (2) For time spent on a leave of absence granted by the
25    employer for which no salaries are paid, teachers desiring
26    credit therefor shall pay the required contributions at the

 

 

09800HB3372ham001- 53 -LRB098 07598 EFG 44172 a

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

 

 

09800HB3372ham001- 54 -LRB098 07598 EFG 44172 a

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

 

 

09800HB3372ham001- 55 -LRB098 07598 EFG 44172 a

1    year, compounded annually, from the date of appointment to
2    the date of payment.
3        The changes to this Section made by Public Act 87-795
4    shall apply not only to persons who on or after its
5    effective date are in service under the Fund, but also to
6    persons whose status as a teacher terminated prior to that
7    date, whether or not the person is an annuitant on that
8    date. In the case of an annuitant who applies for credit
9    allowable under this Section for a period of military
10    service that did not immediately follow employment, and who
11    has made the required contributions for such credit, the
12    annuity shall be recalculated to include the additional
13    service credit, with the increase taking effect on the date
14    the Fund received written notification of the annuitant's
15    intent to purchase the credit, if payment of all the
16    required contributions is made within 60 days of such
17    notice, or else on the first annuity payment date following
18    the date of payment of the required contributions. In
19    calculating the automatic annual increase for an annuity
20    that has been recalculated under this Section, the increase
21    attributable to the additional service allowable under
22    this amendatory Act of 1991 shall be included in the
23    calculation of automatic annual increases accruing after
24    the effective date of the recalculation.
25        The total credit for military service shall not exceed
26    5 years, except that any teacher who on July 1, 1963, had

 

 

09800HB3372ham001- 56 -LRB098 07598 EFG 44172 a

1    validated credit for more than 5 years of military service
2    shall be entitled to the total amount of such credit.
3        (6) For persons who first become teachers before the
4    effective date of this amendatory Act of the 98th General
5    Assembly, a A maximum of 244 unused sick days credited to
6    his account by an Employer on the date of termination of
7    employment. Members, upon verification of unused sick
8    days, may add this service time to total creditable
9    service.
10        (7) In all cases where time spent on leave is
11    creditable and no payroll deductions therefor are made by
12    an Employer, persons desiring service credit shall make the
13    required contributions directly to the Fund.
14        (8) For time lost without pay due to layoff and
15    curtailment of the school term from June 6 through June 21,
16    1976, as provided in item (e) of the first paragraph of
17    this Section, persons who were contributors on the days
18    immediately preceding such layoff shall receive credit
19    upon paying to the Fund a contribution based on the rates
20    of compensation and employee contributions in effect at the
21    time of such layoff, together with an additional amount
22    equal to 12.2% of the compensation computed for such period
23    of layoff, plus interest on the entire amount at 5% per
24    annum from January 1, 1978 to the date of payment. If such
25    contribution is paid, salary for pension purposes for any
26    year in which such a layoff occurred shall include the

 

 

09800HB3372ham001- 57 -LRB098 07598 EFG 44172 a

1    compensation recognized for purposes of computing that
2    contribution.
3        (9) For time spent after June 30, 1982, as a
4    nonsalaried member of the Board of Education, if required
5    to resign from an administrative or teaching position in
6    order to qualify as a member of the Board of Education, an
7    administrator or teacher desiring credit therefor shall
8    pay the required contributions at the rates and salaries in
9    effect during such periods as though the member were in
10    service.
11    Effective September 1, 1974, the interest charged for
12validation of service described in paragraphs (2) through (5)
13of this Section shall be compounded annually at a rate of 5%
14commencing one year after the termination of the leave or
15return to service.
16(Source: P.A. 97-651, eff. 1-5-12.)".