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92_HB5169sam001 LRB9212222EGfgam03 1 AMENDMENT TO HOUSE BILL 5169 2 AMENDMENT NO. . Amend House Bill 5169 by replacing 3 everything after the enacting clause with the following: 4 "Section 5. The Illinois Pension Code is amended by 5 changing Sections 16-127 and 16-128 as follows: 6 (40 ILCS 5/16-127) (from Ch. 108 1/2, par. 16-127) 7 Sec. 16-127. Computation of creditable service. 8 (a) Each member shall receive regular credit for all 9 service as a teacher from the date membership begins, for 10 which satisfactory evidence is supplied and all contributions 11 have been paid. 12 (b) The following periods of service shall earn optional 13 credit and each member shall receive credit for all such 14 service for which satisfactory evidence is supplied and all 15 contributions have been paid as of the date specified: 16 (1) Prior service as a teacher. 17 (2) Service in a capacity essentially similar or 18 equivalent to that of a teacher, in the public common 19 schools in school districts in this State not included 20 within the provisions of this System, or of any other 21 State, territory, dependency or possession of the United 22 States, or in schools operated by or under the auspices -2- LRB9212222EGfgam03 1 of the United States, or under the auspices of any agency 2 or department of any other State, and service during any 3 period of professional speech correction or special 4 education experience for a public agency within this 5 State or any other State, territory, dependency or 6 possession of the United States, and service prior to 7 February 1, 1951 as a recreation worker for the Illinois 8 Department of Public Safety, for a period not exceeding 9 the lesser of 2/5 of the total creditable service of the 10 member or 10 years. The maximum service of 10 years 11 which is allowable under this paragraph shall be reduced 12 by the service credit which is validated by other 13 retirement systems under paragraph (i) of Section 15-113 14 and paragraph 1 of Section 17-133. Credit granted under 15 this paragraph may not be used in determination of a 16 retirement annuity or disability benefits unless the 17 member has at least 5 years of creditable service earned 18 subsequent to this employment with one or more of the 19 following systems: Teachers' Retirement System of the 20 State of Illinois, State Universities Retirement System, 21 and the Public School Teachers' Pension and Retirement 22 Fund of Chicago. Whenever such service credit exceeds 23 the maximum allowed for all purposes of this Article, the 24 first service rendered in point of time shall be 25 considered. The changes to this subdivision (b)(2) made 26 by Public Act 86-272 shall apply not only to persons who 27 on or after its effective date (August 23, 1989) are in 28 service as a teacher under the System, but also to 29 persons whose status as such a teacher terminated prior 30 to such effective date, whether or not such person is an 31 annuitant on that date. 32 (3) Any periods immediately following teaching 33 service, under this System or under Article 17, (or 34 immediately following service prior to February 1, 1951 -3- LRB9212222EGfgam03 1 as a recreation worker for the Illinois Department of 2 Public Safety) spent in active service with the military 3 forces of the United States; periods spent in educational 4 programs that prepare for return to teaching sponsored by 5 the federal government following such active military 6 service; if a teacher returns to teaching service within 7 one calendar year after discharge or after the completion 8 of the educational program, a further period, not 9 exceeding one calendar year, between time spent in 10 military service or in such educational programs and the 11 return to employment as a teacher under this System; and 12 a period of up to 2 years of active military service not 13 immediately following employment as a teacher. 14 The changes to this Section and Section 16-128 15 relating to military service made by P.A. 87-794 shall 16 apply not only to persons who on or after its effective 17 date are in service as a teacher under the System, but 18 also to persons whose status as a teacher terminated 19 prior to that date, whether or not the person is an 20 annuitant on that date. In the case of an annuitant who 21 applies for credit allowable under this Section for a 22 period of military service that did not immediately 23 follow employment, and who has made the required 24 contributions for such credit, the annuity shall be 25 recalculated to include the additional service credit, 26 with the increase taking effect on the date the System 27 received written notification of the annuitant's intent 28 to purchase the credit, if payment of all the required 29 contributions is made within 60 days of such notice, or 30 else on the first annuity payment date following the date 31 of payment of the required contributions. In calculating 32 the automatic annual increase for an annuity that has 33 been recalculated under this Section, the increase 34 attributable to the additional service allowable under -4- LRB9212222EGfgam03 1 P.A. 87-794 shall be included in the calculation of 2 automatic annual increases accruing after the effective 3 date of the recalculation. 4 Credit for military service shall be determined as 5 follows: if entry occurs during the months of July, 6 August, or September and the member was a teacher at the 7 end of the immediately preceding school term, credit 8 shall be granted from July 1 of the year in which he or 9 she entered service; if entry occurs during the school 10 term and the teacher was in teaching service at the 11 beginning of the school term, credit shall be granted 12 from July 1 of such year. In all other cases where credit 13 for military service is allowed, credit shall be granted 14 from the date of entry into the service. 15 The total period of military service for which 16 credit is granted shall not exceed 5 years for any member 17 unless the service: (A) is validated before July 1, 18 1964, and (B) does not extend beyond July 1, 1963. 19 Credit for military service shall be granted under this 20 Section only if not more than 5 years of the military 21 service for which credit is granted under this Section is 22 used by the member to qualify for a military retirement 23 allotment from any branch of the armed forces of the 24 United States. The changes to this subdivision (b)(3) 25 made by Public Act 86-272 shall apply not only to persons 26 who on or after its effective date (August 23, 1989) are 27 in service as a teacher under the System, but also to 28 persons whose status as such a teacher terminated prior 29 to such effective date, whether or not such person is an 30 annuitant on that date. 31 (4) Any periods served as a member of the General 32 Assembly. 33 (5)(i) Any periods for which a teacher, as defined 34 in Section 16-106, is granted a leave of absence, -5- LRB9212222EGfgam03 1 provided he or she returns to teaching service creditable 2 under this System or the State Universities Retirement 3 System following the leave; (ii) periods during which a 4 teacher is involuntarily laid off from teaching, provided 5 he or she returns to teaching following the lay-off; 6 (iii) periods prior to July 1, 1983 during which a 7 teacher ceased covered employment due to pregnancy, 8 provided that the teacher returned to teaching service 9 creditable under this System or the State Universities 10 Retirement System following the pregnancy and submits 11 evidence satisfactory to the Board documenting that the 12 employment ceased due to pregnancy; and (iv) periods 13 prior to July 1, 1983 during which a teacher ceased 14 covered employment for the purpose of adopting an infant 15 under 3 years of age or caring for a newly adopted infant 16 under 3 years of age, provided that the teacher returned 17 to teaching service creditable under this System or the 18 State Universities Retirement System following the 19 adoption and submits evidence satisfactory to the Board 20 documenting that the employment ceased for the purpose of 21 adopting an infant under 3 years of age or caring for a 22 newly adopted infant under 3 years of age. However, 23 total credit under this paragraph (5) may not exceed 3 24 years. 25 Any qualified member or annuitant may apply for 26 credit under item (iii) or (iv) of this paragraph (5) 27 without regard to whether service was terminated before 28 the effective date of this amendatory Act of 1997. In 29 the case of an annuitant who establishes credit under 30 item (iii) or (iv), the annuity shall be recalculated to 31 include the additional service credit. The increase in 32 annuity shall take effect on the date the System receives 33 written notification of the annuitant's intent to 34 purchase the credit, if the required evidence is -6- LRB9212222EGfgam03 1 submitted and the required contribution paid within 60 2 days of that notification, otherwise on the first annuity 3 payment date following the System's receipt of the 4 required evidence and contribution. The increase in an 5 annuity recalculated under this provision shall be 6 included in the calculation of automatic annual increases 7 in the annuity accruing after the effective date of the 8 recalculation. 9 Optional credit may be purchased under this 10 subsection (b)(5) for periods during which a teacher has 11 been granted a leave of absence pursuant to Section 24-13 12 of the School Code. A teacher whose service under this 13 Article terminated prior to the effective date of P.A. 14 86-1488 shall be eligible to purchase such optional 15 credit. If a teacher who purchases this optional credit 16 is already receiving a retirement annuity under this 17 Article, the annuity shall be recalculated as if the 18 annuitant had applied for the leave of absence credit at 19 the time of retirement. The difference between the 20 entitled annuity and the actual annuity shall be credited 21 to the purchase of the optional credit. The remainder of 22 the purchase cost of the optional credit shall be paid on 23 or before April 1, 1992. 24 The change in this paragraph made by Public Act 25 86-273 shall be applicable to teachers who retire after 26 June 1, 1989, as well as to teachers who are in service 27 on that date. 28 (6) Any days of unused and uncompensated 29 accumulated sick leave earned by a teacher. The service 30 credit granted under this paragraph shall be the ratio of 31 the number of unused and uncompensated accumulated sick 32 leave days to 170 days, subject to a maximum of 2 years 33
one yearof service credit. Prior to the member's 34 retirement, each former employer shall certify to the -7- LRB9212222EGfgam03 1 System the number of unused and uncompensated accumulated 2 sick leave days credited to the member at the time of 3 termination of service. The period of unused sick leave 4 shall not be considered in determining the effective date 5 of retirement. A member is not required to make 6 contributions in order to obtain service credit for 7 unused sick leave. 8 Credit for sick leave shall, at retirement, be 9 granted by the System for any retiring regional or 10 assistant regional superintendent of schools at the rate 11 of 6 days per year of creditable service or portion 12 thereof established while serving as such superintendent 13 or assistant superintendent. 14 (7) Periods prior to February 1, 1987 served as an 15 employee of the Illinois Mathematics and Science Academy 16 for which credit has not been terminated under Section 17 15-113.9 of this Code. 18 (8) Service as a substitute teacher for work 19 performed prior to July 1, 1990. 20 (9) Service as a part-time teacher for work 21 performed prior to July 1, 1990. 22 (10) Up to 2 years of employment with Southern 23 Illinois University - Carbondale from September 1, 1959 24 to August 31, 1961, or with Governors State University 25 from September 1, 1972 to August 31, 1974, for which the 26 teacher has no credit under Article 15. To receive 27 credit under this item (10), a teacher must apply in 28 writing to the Board and pay the required contributions 29 before May 1, 1993 and have at least 12 years of service 30 credit under this Article. 31 (b-1) A member may establish optional credit for up to 2 32 years of service as a teacher or administrator employed by a 33 private school recognized by the Illinois State Board of 34 Education, provided that the teacher (i) was certified under -8- LRB9212222EGfgam03 1 the law governing the certification of teachers at the time 2 the service was rendered, (ii) applies in writing on or after 3 June 1, 2002 and on or before June 1, 2005, (iii) supplies 4 satisfactory evidence of the employment, (iv) completes at 5 least 10 years of contributing service as a teacher as 6 defined in Section 16-106, and (v) pays the contribution 7 required in subsection (d-5) of Section 16-128. The member 8 may apply for credit under this subsection and pay the 9 required contribution before completing the 10 years of 10 contributing service required under item (iv), but the credit 11 may not be used until the item (iv) contributing service 12 requirement has been met. 13 (c) The service credits specified in this Section shall 14 be granted only if: (1) such service credits are not used for 15 credit in any other statutory tax-supported public employee 16 retirement system other than the federal Social Security 17 program; and (2) the member makes the required contributions 18 as specified in Section 16-128. Except as provided in 19 subsection (b-1) of this Section, the service credit shall be 20 effective as of the date the required contributions are 21 completed. 22 Any service credits granted under this Section shall 23 terminate upon cessation of membership for any cause. 24 Credit may not be granted under this Section covering any 25 period for which an age retirement or disability retirement 26 allowance has been paid. 27 (Source: P.A. 89-430, eff. 12-15-95; 90-32, eff. 6-27-97.) 28 (40 ILCS 5/16-128) (from Ch. 108 1/2, par. 16-128) 29 Sec. 16-128. Creditable service - required 30 contributions. 31 (a) In order to receive the creditable service specified 32 under subsection (b) of Section 16-127, a member is required 33 to make the following contributions: (i) an amount equal to -9- LRB9212222EGfgam03 1 the contributions which would have been required had such 2 service been rendered as a member under this System; (ii) for 3 military service not immediately following employment and for 4 service established under subdivision (b)(10) of Section 5 16-127, an amount determined by the Board to be equal to the 6 employer's normal cost of the benefits accrued for such 7 service; and (iii) interest from the date the contributions 8 would have been due (or, in the case of a person establishing 9 credit for military service under subdivision (b)(3) of 10 Section 16-127, the date of first membership in the System, 11 if that date is later) to the date of payment, at the 12 following rate of interest, compounded annually: for periods 13 prior to July 1, 1965, regular interest; from July 1, 1965 to 14 June 30, 1977, 4% per year; on and after July 1, 1977, 15 regular interest. 16 (b) In order to receive creditable service under 17 paragraph (2) of subsection (b) of Section 16-127 for those 18 who were not members on June 30, 1963, the minimum required 19 contribution shall be $420 per year of service together with 20 interest at 4% per year compounded annually from July 1, 21 preceding the date of membership until June 30, 1977 and at 22 regular interest compounded annually thereafter to the date 23 of payment. 24 (c) In determining the contribution required in order to 25 receive creditable service under paragraph (3) of subsection 26 (b) of Section 16-127, the salary rate for the remainder of 27 the school term in which a member enters military service 28 shall be assumed to be equal to the member's salary rate at 29 the time of entering military service. However, for military 30 service not immediately following employment, the salary rate 31 on the last date as a participating teacher prior to such 32 military service, or on the first date as a participating 33 teacher after such military service, whichever is greater, 34 shall be assumed to be equal to the member's salary rate at -10- LRB9212222EGfgam03 1 the time of entering military service. For each school term 2 thereafter, the member's salary rate shall be assumed to be 3 5% higher than the salary rate in the previous school term. 4 (d) In determining the contribution required in order to 5 receive creditable service under paragraph (5) of subsection 6 (b) of Section 16-127, a member's salary rate during the 7 period for which credit is being established shall be assumed 8 to be equal to the member's last salary rate immediately 9 preceding that period. 10 (d-5) For each year of service credit to be established 11 under subsection (b-1) of Section 16-127, a member is 12 required to contribute to the System (i) 16.5% of the annual 13 salary rate during the first year of full-time employment as 14 a teacher under this Article following the private school 15 service, plus (ii) interest thereon from the date of first 16 full-time employment as a teacher under this Article 17 following the private school service to the date of payment, 18 compounded annually, at the rate of 8.5% per year for periods 19 before the effective date of this amendatory Act of the 92nd 20 General Assembly, and for subsequent periods at a rate equal 21 to the System's actuarially assumed rate of return on 22 investments. 23 (e) The contributions required under this Section may be 24 made from the date the statement for such creditable service 25 is issued until retirement date. All such required 26 contributions must be made before any retirement annuity is 27 granted. 28 (Source: P.A. 89-430, eff. 12-15-95.) 29 Section 99. Effective date. This Act takes effect upon 30 becoming law.".
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