093_SB1851

                                     SRS093 00078 WZL 00078 b

 1        AN  ACT  to  amend  the Illinois Pension Code by changing
 2    Section 16-128.

 3        Be it enacted by the People of  the  State  of  Illinois,
 4    represented in the General Assembly:

 5        "Section  5.   The  Illinois  Pension  Code is amended by
 6    changing Section 16-128 as follows:

 7        (40 ILCS 5/16-128) (from Ch. 108 1/2, par. 16-128)
 8        Sec.    16-128.  Creditable    service     -     required
 9    contributions.
10        (a)  In order to receive the creditable service specified
11    under  subsection (b) of Section 16-127, a member is required
12    to make the following contributions: (i) an amount  equal  to
13    the  contributions  which  would  have been required had such
14    service been rendered as a member under this System; (ii) for
15    military service not immediately following employment and for
16    service established  under  subdivision  (b)(10)  of  Section
17    16-127,  an amount determined by the Board to be equal to the
18    employer's normal cost  of  the  benefits  accrued  for  such
19    service;  and  (iii) interest from the date the contributions
20    would have been due (or, in the case of a person establishing
21    credit for  military  service  under  subdivision  (b)(3)  of
22    Section  16-127,  from  the  date  the employee last became a
23    member of the System or November 19, 1991, whichever the date
24    of first membership in the System, if that date is later)  to
25    the  date  of  payment,  at  the  following rate of interest,
26    compounded annually:  for periods  prior  to  July  1,  1965,
27    regular  interest; from July 1, 1965 to June 30, 1977, 4% per
28    year; on and after July 1, 1977, regular interest.
29        The change in the  manner  of  calculating  interest  for
30    certain  military  service credit made by this amendatory Act
31    of the 93rd General Assembly applies to credit purchased by a
 
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 1    teacher on or after its effective date and does  not  entitle
 2    any  person  to a refund of contributions or interest already
 3    paid.
 4        (b)  In  order  to  receive  creditable   service   under
 5    paragraph  (2)  of subsection (b) of Section 16-127 for those
 6    who were not members on June 30, 1963, the  minimum  required
 7    contribution  shall be $420 per year of service together with
 8    interest at 4% per year  compounded  annually  from  July  1,
 9    preceding  the  date of membership until June 30, 1977 and at
10    regular interest compounded annually thereafter to  the  date
11    of payment.
12        (c)  In determining the contribution required in order to
13    receive  creditable service under paragraph (3) of subsection
14    (b) of Section 16-127, the salary rate for the  remainder  of
15    the  school  term  in  which a member enters military service
16    shall be assumed to be equal to the member's salary  rate  at
17    the time of entering military service.  However, for military
18    service not immediately following employment, the salary rate
19    on  the  last  date  as a participating teacher prior to such
20    military service, or on the first  date  as  a  participating
21    teacher  after  such  military service, whichever is greater,
22    shall be assumed to be equal to the member's salary  rate  at
23    the  time of entering military service.  For each school term
24    thereafter, the member's salary rate shall be assumed  to  be
25    5% higher than the salary rate in the previous school term.
26        (d)  In determining the contribution required in order to
27    receive  creditable service under paragraph (5) of subsection
28    (b) of Section 16-127, a  member's  salary  rate  during  the
29    period for which credit is being established shall be assumed
30    to  be  equal  to  the  member's last salary rate immediately
31    preceding that period.
32        (e)  The contributions required under this Section may be
33    made from the date the statement for such creditable  service
34    is   issued   until   retirement  date.   All  such  required
 
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 1    contributions must be made before any retirement  annuity  is
 2    granted.
 3    (Source: P.A. 89-430, eff. 12-15-95.)

 4        Section  99.  Effective date.  This Act takes effect upon
 5    becoming law.".