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90_HB1274
40 ILCS 5/15-113.6 from Ch. 108 1/2, par. 15-113.6
Amends the Universities Article of the Pension Code to
allow purchase of up to 10 years of service credit for
employment at a private college or university. Requires the
employee to pay both employee and employer contributions,
plus interest. Effective immediately.
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1 AN ACT to amend the Illinois Pension Code by changing
2 Section 15-113.6.
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 15-113.6 as follows:
7 (40 ILCS 5/15-113.6) (from Ch. 108 1/2, par. 15-113.6)
8 Sec. 15-113.6. Service for employment in public schools
9 and private universities.
10 (a) "Service for employment in public schools":
11 Includes those periods not exceeding the lesser of 10 years
12 or 2/3 of the service granted under other Sections of this
13 Article dealing with service credit, during which a person
14 who entered the system after September 1, 1974 was employed
15 full time by a public common school, public college and
16 public university, or by an agency or instrumentality of any
17 of the foregoing, of any state, territory, dependency or
18 possession of the United States of America, including the
19 Phillipine Islands, or a school operated by or under the
20 auspices of any agency or department of any other state, if
21 the person (1) cannot qualify for a retirement pension or
22 other benefit based upon employer contributions from another
23 retirement system, exclusive of federal social security,
24 based in whole or in part upon this employment, and (2) pays
25 the lesser of (A) an amount equal to 8% of his or her annual
26 basic compensation on the date of becoming a participating
27 employee subsequent to this service multiplied by the number
28 of years of such service, together with compound interest
29 from the date participation begins to the date payment is
30 received by the board at the rate of 6% per annum through
31 August 31, 1982, and at the effective rates after that date,
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1 and (B) 50% of the actuarial value of the increase in the
2 retirement annuity provided by this service, and (3)
3 contributes for at least 5 years subsequent to this
4 employment to one or more of the following systems: the State
5 Universities Retirement System, the Teachers' Retirement
6 System of the State of Illinois, and the Public School
7 Teachers' Pension and Retirement Fund of Chicago.
8 The service granted under this subsection (a) Section
9 shall not be considered in determining whether the person has
10 the minimum of 8 years of service required to qualify for a
11 retirement annuity at age 55 or the 5 years of service
12 required to qualify for a retirement annuity at age 62, as
13 provided in Section 15-135. The maximum allowable service of
14 10 years for this governmental employment shall be reduced by
15 the service credit which is validated under paragraph (3) of
16 Section 16-127 and paragraph one of Section 17-133.
17 (b) "Service for employment in private colleges or
18 universities": Includes those periods not exceeding the
19 lesser of 10 years or 2/3 of the service granted under other
20 Sections of this Article dealing with service credit, during
21 which a person was employed full time by a private college or
22 university, if the person (1) cannot qualify for a retirement
23 pension or other benefit based upon employer contributions
24 from another retirement system, exclusive of federal social
25 security, based in whole or in part upon this employment, (2)
26 makes written application to the board by July 1, 1998, (3)
27 pays to the System an amount determined by the board, equal
28 to 8% of his or her annual basic compensation on the date of
29 becoming a participating employee following this service
30 multiplied by the number of years of service to be
31 established, plus the employer's normal cost of the service
32 credit being established, plus interest from the date
33 participation begins to the date payment is received by the
34 board at the rate of 6% per annum through August 31, 1982,
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1 and at the effective rates after that date, and (4) is a
2 participating employee in this System for at least 5 years
3 after the employment for which credit is established.
4 The service granted under this subsection (b) shall not
5 be considered in determining whether the person has the
6 minimum of 8 years of service required to qualify for a
7 retirement annuity at age 55 or the 5 years of service
8 required to qualify for a retirement annuity at age 62, as
9 provided in Section 15-135. The maximum allowable service of
10 10 years that may be established under this subsection (b)
11 shall be reduced by the amount of any service credit that is
12 established under subsection (a) of this Section or validated
13 under paragraph (3) of Section 16-127 or paragraph one of
14 Section 17-133.
15 (Source: P.A. 83-1440.)
16 Section 99. Effective date. This Act takes effect upon
17 becoming law.