Public Act 90-0566 of the 90th General Assembly
Public Act 90-0566
HB1005 Enrolled LRB9004521THpk
AN ACT relating to education, amending named Acts.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 3. The Illinois Pension Code is amended by
changing Sections 17-106, 17-114, 17-115, 17-116, 17-116.1,
17-117, 17-117.1, 17-118, 17-119, 17-120, 17-122, 17-123,
17-124, 17-125, 17-126, 17-127, 17-127.1, 17-129, 17-130,
17-130.1, 17-131, 17-132, 17-133, 17-134, 17-135, 17-137,
17-138, 17-139, 17-140, 17-141, 17-142, 17-142.1, 17-143.1,
17-144, 17-145, 17-146, 17-146.1, 17-146.2, 17-147, 17-149,
17-150, 17-151, 17-153, 17-154, 17-156, and 17-158 and adding
Section 17-105.1 as follows:
(40 ILCS 5/17-105.1 new)
Sec. 17-105.1. Employer. "Employer": The Board of
Education and a charter school as defined under the
provisions of Section 27a-5 of the School Code.
(40 ILCS 5/17-106) (from Ch. 108 1/2, par. 17-106)
Sec. 17-106. Contributor, member or teacher.
"Contributor", "member" or "teacher": All members of the
teaching force of the city, including principals, assistant
principals, the general superintendent of schools, deputy
superintendents of schools, associate superintendents of
schools, assistant and district superintendents of schools,
members of the Board of Examiners, all other persons whose
employment requires a teaching certificate issued under the
laws governing the certification of teachers by the Board of
Examiners, any educational, administrative, professional, or
other staff employed in a charter school operating in
compliance with the Charter Schools Law who is certified
under the law governing the certification of teachers, and
employees of the Board of Trustees, but excluding persons
contributing concurrently to any other public employee
pension system in Illinois or receiving retirement pensions
under another Article of this Code (unless the person's
eligibility to participate in that other pension system
arises from the holding of an elective public office, and the
person has held that public office for at least 10 years),
persons employed on an hourly basis, and persons receiving
pensions from the Fund fund who are employed temporarily by
an Employer the Board of Education for 100 days or less in
any school year and not on an annual basis.
In the case of a person who has been making contributions
and otherwise participating in this Fund prior to the
effective date of this amendatory Act of 1991, and whose
right to participate in the Fund is established or confirmed
by this amendatory Act, such prior participation in the Fund,
including all contributions previously made and service
credits previously earned by the person, are hereby
validated.
(Source: P.A. 89-450, eff. 4-10-96; 90-32, eff. 6-27-97.)
(40 ILCS 5/17-114) (from Ch. 108 1/2, par. 17-114)
Sec. 17-114. Computation of service.
When computing validated service, 10 months or more shall
constitute one year of service unless a lesser number of
months is established as a school year by an Employer the
Board of Education. Salary representing 5 days' or more
employment paid in a semi-monthly or bi-weekly payroll
period, whichever the case may be, shall be considered for
the purpose of computing service credit and shall entitle a
contributor to 1/2 month of service. When computing total
service rendered, 3 to 10 days' employment in the final total
of such service shall entitle a contributor to 1/2 month of
service.
(Source: P. A. 76-742.)
(40 ILCS 5/17-115) (from Ch. 108 1/2, par. 17-115)
Sec. 17-115. Eligibility for service retirement pension.
(a) The Board shall find a contributor eligible for
service retirement pension when he has:
(1) Left the employment of an Employer the Board of
Education or the board after completing 5 or more years
of service.
(2) Contributed to the Fund fund the total sums
provided in this Article.
(3) Contributed as a member of the teaching force
in the public schools of the City or to the State
Universities Retirement System or to the Teachers'
Retirement System of the State of Illinois during the
last 5 years of his term of service.
(4) Filed a written application for pension.
(b) In computing the years of service for which annuity
is granted, the following conditions shall apply:
(1) No more than 10 years of teaching service in
public schools of the several states or in schools
operated by or under the auspices of the United States
shall be allowed. This maximum shall be reduced by the
service credit which is validated under paragraph (i) of
Section 15-113 and paragraph (3) of Section 16-127 of
this Code. Three-fifths of the term of service for which
an annuity is granted shall have been rendered in the
public schools of the city. No portion of any such
service shall be included in the total period of service
for which a pension is payable or paid by some other
public retirement system; provided that this shall not
apply to any benefit payable only after the teacher's
death or to any compensation or annuity paid by an
employer the Board of Education after retirement from
active service.
(2) Up to 5 years of military active service, if
preceded by service as a teacher under this Fund fund or
under Article 16, shall be included in the total period
of service even though it can otherwise be used in the
computation of a pension or other benefit provided for
service in any branch of the armed forces of the United
States.
(Source: P.A. 90-32, eff. 6-27-97.)
(40 ILCS 5/17-116) (from Ch. 108 1/2, par. 17-116)
Sec. 17-116. Service retirement pension. Each teacher
having 20 years of service upon attainment of age 55, or who
thereafter attains age 55 shall be entitled to a service
retirement pension upon or after attainment of age 55; and
each teacher in service on or after July 1, 1971, with 5 or
more but less than 20 years of service shall be entitled to
receive a service retirement pension upon or after attainment
of age 62. Such pension is to be calculated as follows:
Beginning as of June 25, 1971, the service retirement
pension for a teacher who retires on or after such date, at
age 60 or over, shall be 1.67% for each of the first 10 years
of service; 1.90% for each of the next 10 years of service;
2.10% for each year of service in excess of 20 but not
exceeding 30; and 2.30% for each year of service in excess of
30, based upon average salary as herein defined. When
computing such service retirement pensions, the following
conditions shall apply:
1. Average salary shall consist of the average annual
rate of salary for the 4 consecutive years of validated
service within the last 10 years of service when such average
annual rate was highest. In the determination of average
salary for retirement allowance purposes, for members who
commenced employment after August 31, 1979, that part of the
salary for any year shall be excluded which exceeds the
annual full-time salary rate for the preceding year by more
than 20%. In the case of a member who commenced employment
before August 31, 1979 and who receives salary during any
year after September 1, 1983 which exceeds the annual full
time salary rate for the preceding year by more than 20%, an
Employer and other employers of eligible contributors as
defined in Section 17-106 the Board of Education or employer
shall pay to the Fund an amount equal to the present value of
the additional service retirement pension resulting from such
excess salary. The present value of the additional service
retirement pension shall be computed by the Board on the
basis of actuarial tables adopted by the Board. If a member
elects to receive a pension from this Fund fund provided by
Section 20-121, his salary under the State Universities
Retirement System and the Teachers' Retirement System of the
State of Illinois shall be considered in determining such
average salary. Amounts paid after the effective date of
this amendatory Act of 1991 for unused vacation time earned
after that effective date shall not under any circumstances
be included in the calculation of average salary or the
annual rate of salary for the purposes of this Article.
2. Proportionate credit shall be given for validated
service of less than one year.
3. For retirement at age 60 or over the pension shall be
payable at the full rate.
4. For separation from service below age 60 to a minimum
age of 55, the pension shall be discounted at the rate of
1/2 of one per cent for each month that the age of the
contributor is less than 60, but a teacher may elect to defer
the effective date of pension in order to eliminate or reduce
this discount. This discount shall not be applicable to any
participant who has at least 35 years of service on the date
the retirement annuity begins.
5. No additional pension shall be granted for service
exceeding 45 years. Beginning June 26, 1971 no pension shall
exceed the greater of $1,500 per month or 75% of average
salary as herein defined.
6. Service retirement pensions shall begin on the
effective date of resignation, retirement, the day following
the close of the payroll period for which service credit was
validated, or the time the person resigning or retiring
attains age 55, or on a date elected by the teacher,
whichever shall be latest.
(Source: P.A. 86-1488.)
(40 ILCS 5/17-116.1) (from Ch. 108 1/2, par. 17-116.1)
(Text of Section from P.A. 90-32)
Sec. 17-116.1. Early retirement without discount.
(a) A member retiring after June 1, 1980 and before June
30, 1995 and within 6 months of the last day of teaching for
which retirement contributions were required, may elect at
the time of application to make a one time employee
contribution to the system and thereby avoid the early
retirement reduction in allowance specified in paragraph (4)
of Section 17-116 of this Article. The exercise of the
election shall obligate the last Employer employer to also
make a one time non-refundable contribution to the Fund fund.
(b) Subject to authorization by the Employer employer as
provided in subsection (c), a member retiring on or after
June 30, 1995 and on or before June 30, 2000 and within 6
months of the last day of teaching for which retirement
contributions were required may elect at the time of
application to make a one-time employee contribution to the
Fund and thereby avoid the early retirement reduction in
allowance specified in paragraph (4) of Section 17-116. The
exercise of the election shall obligate the last Employer
employer to also make a one-time nonrefundable contribution
to the Fund.
(c) The benefits provided in subsection (b) are
available only to members who retire, during a specified
period, from employment with an Employer employer that has
adopted and filed with the Board board of the Fund a
resolution expressly providing for the creation of an early
retirement without discount program under this Section for
that period.
The Employer employer has the full discretion and
authority to determine whether an early retirement without
discount program is in its best interest and to provide such
a program to its eligible employees in accordance with this
Section. The Employer employer may decide to authorize such
a program for one or more of the following periods: for the
period beginning July 1, 1997 and ending June 30, 1998, in
which case the resolution must be adopted by January 1, 1998;
for the period beginning July 1, 1998 and ending June 30,
1999, in which case the resolution must be adopted by March
31, 1998; and for the period beginning July 1, 1999 and
ending June 30, 2000, in which case the resolution must be
adopted by March 31, 1999. The resolution must be filed with
the Board board of the Fund within 10 days after it is
adopted. A single resolution may authorize an early
retirement without discount program as provided in this
Section for more than one period.
Notwithstanding Section 17-157, the Employer employer
shall also have full discretion and authority to determine
whether to allow its employees who withdrew from service on
or after June 30, 1995 and before June 27, the effective date
of this amendatory Act of 1997 to participate in an early
retirement without discount program under subsection (b). An
early retirement without discount program for those who
withdrew from service on or after June 30, 1995 and before
June 27, the effective date of this amendatory Act of 1997
may be authorized only by a resolution of the Employer
employer that is adopted by January 1, 1998 and filed with
the Board board of the Fund within 10 days after its
adoption. If such a resolution is duly adopted and filed, a
person who (i) withdrew from service with the Employer
employer on or after June 30, 1995 and before June 27, the
effective date of this amendatory Act of 1997, (ii) qualifies
for early retirement without discount under subsection (b),
(iii) applies to the Fund within 90 days after the
authorizing resolution is adopted, and (iv) pays the required
employee contribution shall have his or her retirement
pension recalculated in accordance with subsection (b). The
resulting increase shall be effective retroactively to the
starting date of the retirement pension.
(d) The one-time employee contribution shall be equal to
7% of the retiring member's highest full-time annual salary
rate used in the determination of the average salary rate for
retirement pension, or if not full-time then the full-time
equivalent, multiplied by (1) the number of years the teacher
is under age 60, or (2) the number of years the employee's
creditable service is less than 35 years, whichever is less.
The Employer employer contribution shall be 20% of such
salary multiplied by such number of years.
(e) Upon receipt of the application and election, the
Board board shall determine the one time employee and
Employer employer contributions. The provisions of this
Section shall not be applicable until all the above outlined
contributions have been received by the Fund fund; however,
the date such contributions are received shall not be
considered in determining the effective date of retirement.
(f) The number of employees who may retire under this
Section in any year may be limited at the option of the
Employer employer to a specified percentage of those
eligible, not lower than 30%, with the right to participate
to be allocated among those applying on the basis of
seniority in the service of the Employer employer.
(Source: P.A. 90-32, eff. 6-27-97.)
(Text of Section from P.A. 90-448)
Sec. 17-116.1. Early retirement without discount.
(a) A member retiring after June 1, 1980 and before June
30, 1995 2005 and within 6 months of the last day of teaching
for which retirement contributions were required, may elect
at the time of application to make a one time employee
contribution to the system and thereby avoid the early
retirement reduction in allowance specified in paragraph (4)
of Section 17-116 of this Article. The exercise of the
election shall obligate the last Employer employer to also
make a one time non-refundable contribution to the Fund fund.
(b) Subject to authorization by the Employer as provided
in subsection (c), a member retiring on or after June 30,
1995 and on or before June 30, 2000 and within 6 months of
the last day of teaching for which retirement contributions
were required may elect at the time of application to make a
one-time employee contribution to the Fund and thereby avoid
the early retirement reduction in allowance specified in
paragraph (4) of Section 17-116. The exercise of the
election shall obligate the last Employer to also make a
one-time nonrefundable contribution to the Fund.
(c) The benefits provided in subsection (b) are
available only to members who retire, during a specified
period, from employment with an Employer that has adopted and
filed with the Board a resolution expressly providing for the
creation of an early retirement without discount program
under this Section for that period.
The Employer has the full discretion and authority to
determine whether an early retirement without discount
program is in its best interest and to provide such a program
to its eligible employees in accordance with this Section.
The Employer may decide to authorize such a program for one
or more of the following periods: for the period beginning
July 1, 1997 and ending June 30, 1998, in which case the
resolution must be adopted by January 1, 1998; for the period
beginning July 1, 1998 and ending June 30, 1999, in which
case the resolution must be adopted by March 31, 1998; and
for the period beginning July 1, 1999 and ending June 30,
2000, in which case the resolution must be adopted by March
31, 1999. The resolution must be filed with the Board within
10 days after it is adopted. A single resolution may
authorize an early retirement without discount program as
provided in this Section for more than one period.
Notwithstanding Section 17-157, the Employer shall also
have full discretion and authority to determine whether to
allow its employees who withdrew from service on or after
June 30, 1995 and before June 27, 1997 to participate in an
early retirement without discount program under subsection
(b). An early retirement without discount program for those
who withdrew from service on or after June 30, 1995 and
before June 27, 1997 may be authorized only by a resolution
of the Employer that is adopted by January 1, 1998 and filed
with the Board within 10 days after its adoption. If such a
resolution is duly adopted and filed, a person who (i)
withdrew from service with the Employer on or after June 30,
1995 and before June 27, 1997, (ii) qualifies for early
retirement without discount under subsection (b), (iii)
applies to the Fund within 90 days after the authorizing
resolution is adopted, and (iv) pays the required employee
contribution shall have his or her retirement pension
recalculated in accordance with subsection (b). The
resulting increase shall be effective retroactively to the
starting date of the retirement pension.
(d) The one-time employee contribution shall be equal to
7% of the retiring member's highest full-time annual salary
rate used in the determination of the average salary rate for
retirement pension, or if not full-time then the full-time
equivalent, multiplied by (1) the number of years the teacher
is under age 60, or (2) the number of years the employee's
creditable service is less than 35 years, whichever is less.
The Employer employer contribution shall be 20% of such
salary multiplied by such number of years.
(e) Upon receipt of the application and election, the
Board board shall determine the one time employee and
Employer employer contributions. The provisions of this
Section shall not be applicable until all the above outlined
contributions have been received by the Fund fund; however,
the date such contributions are received shall not be
considered in determining the effective date of retirement.
(f) The number of employees who may retire under this
Section in any year may be limited at the option of the
Employer employer to a specified percentage of those
eligible, not lower than 30%, with the right to participate
to be allocated among those applying on the basis of
seniority in the service of the Employer employer.
Notwithstanding Section 17-157, the extension of the
deadline for early retirement without discount under this
Section effected by this amendatory Act of 1997 also applies
to persons who withdrew from service on or after June 30,
1995 and before the effective date of this amendatory Act of
1997. Any such person who qualifies for early retirement
without discount under this Section, applies to the Fund
within 90 days after the effective date of this amendatory
Act of 1997, and pays the required employee contribution may
have his or her retirement pension recalculated in accordance
with this Section; the resulting increase shall be effective
retroactively to the starting date of the retirement pension.
(Source: P.A. 90-448, eff. 8-16-97.)
(40 ILCS 5/17-117) (from Ch. 108 1/2, par. 17-117)
Sec. 17-117. Disability retirement pension.
(a) The conditions prescribed in items 1 and 2 in
Section 17-116 for computing service retirement pensions
shall apply in the computation of disability retirement
pensions.
(1) Each teacher retired or retiring after 10 years
of service and with less than 20 years of service because
of permanent disability not incurred as a proximate
result of the performance of duty shall receive a
disability retirement pension equal to 1 2/3% of average
salary for each year of service.
(2) If the total service is 20 years and less than
25 years and the teacher's age is under 55, the
disability retirement pension shall equal a service
retirement pension discounted 1/2 of 1% for each month
the age of the contributor is less than 55 down to a
minimum age of 50 years, provided the disability
retirement pension so computed shall not be less than the
amount payable under paragraph 1.
(3) If the total service is 20 years or more and
the teacher has attained age 55, and is under age 60, a
disability retirement pension shall equal a service
retirement pension without discount.
(4) If the total service is 25 years or more
regardless of age, a disability pension shall equal a
service retirement pension without discount.
(5) If the total service is 20 years or more and
the teacher is age 60 or over, a service retirement
pension shall be payable.
(b) For disability retirement pensions, the following
further conditions shall apply:
(1) Written application shall be submitted within 3
years from the date of separation.
(2) The applicant shall submit to examination by
physicians appointed by the Board board within one year
from the date of their appointment.
(3) Two physicians, appointed by the Board board,
shall declare the applicant to be suffering from a
disability which wholly and presumably permanently
incapacitates him for teaching or for service as an
employee of the Board board. In the event of
disagreement by the physicians, a third physician,
appointed by the Board board, shall declare the applicant
wholly and presumably permanently incapacitated.
(c) Disability retirement pensions shall begin on the
effective date of resignation or the day following the close
of the payroll period for which credit was validated,
whichever is later.
(Source: P.A. 90-32; eff. 6-27-97.)
(40 ILCS 5/17-117.1) (from Ch. 108 1/2, par. 17-117.1)
Sec. 17-117.1. Duty disability. A teacher who becomes
wholly and presumably permanently incapacitated for duty
while under age 65 as the proximate result of injuries
sustained or a hazardous condition encountered in the
performance and within the scope of his duties, if such
injury or hazard was not the result of his own negligence,
shall be entitled to a duty disability benefit, provided:
(1) application for the benefit is made to the
Board not more than 6 months after a final settlement or
an award from the Industrial Commission or within 6
months of the manifestation of an injury or illness that
can be traced directly to an injury or illness for which
a claim was filed with the Industrial Commission;
(2) certification is received from 2 or more
physicians designated by the Board board that the teacher
is physically incapacitated for teaching service; and
(3) the teacher provides the Board with a copy of
the notice of the occurrence that was filed with the
Employer Board of Education within the time provided by
law.
The benefit shall be payable during disability and shall
be 75% of the salary in effect at date of disability, payable
until the teacher's attainment of age 65. At such time if
disability still exists, the teacher shall become entitled to
a service retirement pension. Creditable service shall accrue
during the period the disability benefit is payable.
Before any action is taken by the Board board on an
application for a duty disability benefit, the teacher shall
file a claim with the Industrial Commission to establish that
the disability was incurred while the teacher was acting
within the scope of and in the course of his duties under the
terms of the Workers' Compensation or Occupational Diseases
Acts, whichever may be applicable. The benefit shall be
payable after a finding by the Commission that the claim was
compensable under either of the aforesaid Acts; but if such
finding is appealed the benefit shall be payable only upon
affirmance of the Commission's finding. After the teacher has
made timely application for a duty disability benefit
supported by the certificate of two or more physicians, he
shall be entitled to a disability retirement pension provided
in Section 17-117 of this Act until such time as the
Industrial Commission award finding that his disability is
duty-connected as provided in this Section becomes final.
Any amounts provided for the teacher under such Acts
shall be applied as an offset to the duty disability benefit
payable hereunder in such manner as may be prescribed by the
rules of the Board board.
(Source: P.A. 90-32, eff. 6-27-97.)
(40 ILCS 5/17-118) (from Ch. 108 1/2, par. 17-118)
Sec. 17-118. Disability pension administration. A
disability pensioner may be required to submit to an
examination periodically by a physician or physicians
appointed by the Board board. The purpose of the examination
is to establish whether the disability still exists and to
determine whether the person is still incapacitated for
teaching service or service as an employee of the Board
board. The Board board may require disability pensioners to
submit evidence of the continued existence of the disability.
The Board board may also employ investigative services to
determine whether such pensioners are employed elsewhere as
teachers or to establish whether they are still disabled.
The Board board shall cancel a disability pension upon
evidence that a pensioner is no longer incapacitated for
teaching or service as an employee of the Board board.
However, if a pensioner has attained age 55 and has 20 or
more years of service, the pension shall not be cancelled
unless he is re-employed as a teacher or as a
pensioner-substitute. If a disability pensioner is
re-employed as a teacher or pensioner-substitute, the pension
shall be cancelled on the first day of re-employment. The
pensioner shall reimburse the Fund for pension payments
received after the date of re-employment (if any), plus 5%
interest compounded annually beginning one year after the
Fund's notification of the cancellation and indebtedness.
Upon cancellation of a disability pension, unless such person
re-enters service and becomes a contributor, a refund shall
be payable of the excess, if any, of the refundable
contributions paid by him over the amount paid in disability
pension.
(Source: P.A. 81-1536.)
(40 ILCS 5/17-119) (from Ch. 108 1/2, par. 17-119)
Sec. 17-119. Automatic annual increase in pension. Each
teacher retiring on or after September 1, 1959, is entitled
to the annual increase in pension, defined herein, while he
is receiving a pension from the Fund fund.
1. The term "base pension" means a service retirement or
disability retirement pension in the amount fixed and payable
at the date of retirement of a teacher.
2. The annual increase in pension shall be at the rate
of 1 1/2% of base pension. This increase shall first occur in
January of the year next following the first anniversary of
retirement. At such time the Fund fund shall pay the pro rata
part of the increase for the period from the first
anniversary date to the date of the first increase in
pension. Beginning January 1, 1972, the rate of annual
increase in pension shall be 2% of the base pension.
Beginning January 1, 1979, the rate of annual increase in
pension shall be 3% of the base pension. Beginning January 1,
1990, all automatic annual increases payable under this
Section shall be calculated as a percentage of the total
pension payable at the time of the increase, including all
increases previously granted under this Article,
notwithstanding Section 17-157.
3. An increase in pension shall be granted only if the
retired teacher is age 60 or over. If the teacher attains age
60 after retirement, the increase in pension shall begin in
January of the year following the 61st birthday. At such time
the Fund fund also shall pay the pro rata part of the
increase from the 61st birthday to the date of first increase
in pension.
In addition to other increases which may be provided by
this Section, on January 1, 1981 any teacher who was
receiving a retirement pension on or before January 1, 1971
shall have his retirement pension then being paid increased
$1 per month for each year of creditable service. On January
1, 1982, any teacher whose retirement pension began on or
before January 1, 1977, shall have his retirement pension
then being paid increased $1 per month for each year of
creditable service.
On January 1, 1987, any teacher whose retirement pension
began on or before January 1, 1977, shall have the monthly
retirement pension increased by an amount equal to 8¢ per
year of creditable service times the number of years that
have elapsed since the retirement pension began.
(Source: P.A. 86-273.)
(40 ILCS 5/17-120) (from Ch. 108 1/2, par. 17-120)
Sec. 17-120. Reversionary pension. Any contributor, at
any time prior to retirement on a service retirement pension,
may exercise an option of taking a lesser amount of service
retirement pension and providing with the remainder of his
equity, determined on an actuarial equivalent basis, a
reversionary pension benefit for any person named in a
written designation filed by the contributor with the Board
board, provided that the pension resulting from such election
is not less than $40 per month, or more than the reduced
pension payable after the exercise of the option. If the
reduced pension to the retired teacher is less than that
provided for a beneficiary, whether or not the aforesaid
minimum amount is payable, the election shall be void.
The pension to a beneficiary shall begin on the first day
of the month next following the month in which the retired
teacher dies.
If the beneficiary survives the date of retirement of the
teacher, but does not survive the retired teacher, no
reversionary pensions shall be payable, and the teacher's
service pension shall be restored to the full service pension
amount beginning on the first day of the month next following
the month in which the beneficiary dies or on the effective
date of this amendatory Act of 1997, whichever occurs later.
If the beneficiary dies after the election but before the
retirement of the teacher, the election shall be void. No
change shall be permitted in the written designation filed
with the Board board.
In the case of a reversionary annuity elected on or after
January 1, 1984, no reversionary annuity shall be paid if the
teacher dies before the expiration of 730 days from the date
that a written designation was filed with the Board board,
even though the teacher was receiving a reduced annuity.
Sections 1-103.1 and 17-157 do not apply to the changes
made to this Section by this amendatory Act of 1997.
(Source: P.A. 90-32, eff. 6-27-97.)
(40 ILCS 5/17-122) (from Ch. 108 1/2, par. 17-122)
Sec. 17-122. Survivor's and children's pensions - Amount.
Upon the death of a teacher who has completed at least 1 1/2
years of contributing service with either this Fund or the
State Universities Retirement System or the Teachers'
Retirement System of the State of Illinois, provided his
death occurred while (a) in active service covered by the
Fund fund or during his first 18 months of continuous
employment without a break in service under any other
participating system as defined in the Illinois Retirement
Systems Reciprocal Act except the State Universities
Retirement System and the Teachers' Retirement System of the
State of Illinois, (b) on a creditable leave of absence, (c)
on a noncreditable leave of absence of no more than one year,
or (d) a pension was deferred or pending provided the teacher
had at least 10 years of validated service credit, or upon
the death of a pensioner otherwise qualified for such
benefit, the surviving spouse and unmarried minor children of
the deceased teacher under age 18 shall be entitled to
pensions, under the conditions stated hereinafter. Such
survivor's and children's pensions shall be based on the
average of the 4 highest consecutive years of salary in the
last 10 years of service or on the average salary for total
service, if total service has been less than 4 years,
according to the following percentages:
30% of average salary or 50% of the retirement pension
earned by the teacher, whichever is larger, subject to the
prescribed maximum monthly payment, for a surviving spouse
alone on attainment of age 50;
60% of average salary for a surviving spouse and
eligible minor children of the deceased teacher.
If no eligible spouse survives, or the surviving spouse
remarries, or the parent of the children of the deceased
member is otherwise ineligible for a survivor's pension, a
children's pension for eligible minor children under age 18
shall be paid to their parent or legal guardian for their
benefit according to the following percentages:
30% of average salary for one child;
60% of average salary for 2 or more children.
On January 1, 1981, any survivor or child who was
receiving a survivor's or children's pension on or before
January 1, 1971, shall have his survivor's or children's
pension then being paid increased by 1% for each full year
which has elapsed from the date the pension began. On January
1, 1982, any survivor or child whose pension began after
January 1, 1971, but before January 1, 1981, shall have his
survivor's or children's pension then being paid increased 1%
for each full year which has elapsed from the date the
pension began. On January 1, 1987, any survivor or child
whose pension began on or before January 1, 1977, shall have
the monthly survivor's or children's pension increased by $1
for each full year which has elapsed since the pension began.
Beginning January 1, 1990, every survivor's and
children's pension shall be increased (1) on each January 1
occurring on or after the commencement of the pension if the
deceased teacher died while receiving a retirement pension,
or (2) in other cases, on each January 1 occurring on or
after the first anniversary of the commencement of the
pension, by an amount equal to 3% of the current amount of
the pension, including all increases previously granted under
this Article, notwithstanding Section 17-157. Such increases
shall apply without regard to whether the deceased teacher
was in service on or after the effective date of this
amendatory Act of 1991, but shall not accrue for any period
prior to January 1, 1990.
Subject to the minimum established below, the maximum
amount of pension for a surviving spouse alone or one minor
child shall be $400 per month, and the maximum combined
pensions for a surviving spouse and children of the deceased
teacher shall be $600 per month, with individual pensions
adjusted for all beneficiaries pro rata to conform with this
limitation. If proration is unnecessary the minimum
survivor's and children's pensions shall be $40 per month.
The minimum total survivor's and children's pension payable
upon the death of a contributor or annuitant which occurs
after December 31, 1986, shall be 50% of the earned
retirement pension of such contributor or annuitant,
calculated without early retirement discount in the case of
death in service.
On death after retirement, the total survivor's and
children's pensions shall not exceed the monthly retirement
or disability pension paid to the deceased retirant.
Survivor's and children's benefits described in this Section
shall apply to all service and disability pensioners eligible
for a pension as of July 1, 1981.
(Source: P.A. 90-32, eff. 6-27-97.)
(40 ILCS 5/17-123) (from Ch. 108 1/2, par. 17-123)
Sec. 17-123. Death benefits - Death in service. If a
teacher dies (a) in service, (b) after resignation or (c)
after retirement but before receiving any pension payment,
his estate shall be paid a refund of the amounts he
contributed to the Fund fund less (1) any former refund that
has not been repaid, (2) the amount contributed for a
survivor's pension in the event such pension is payable under
Sections 121 and 122 of this Article and (3) pension payments
received; but if a written direction, signed by the
contributor before an officer authorized to take
acknowledgments and stating that the refund shall be paid to
named beneficiaries, was filed with the Board board prior to
his death, the refund shall be paid to such named
beneficiaries. If any of several named beneficiaries does not
survive the contributor and no directive was furnished by the
member to cover this contingency, the deceased beneficiary's
share of the refund shall be paid to the estate of the
contributor.
In addition to the payment provided in the foregoing
paragraph, if such teacher has received service credit within
13 calendar months of the date of death or was on a sick
leave authorized by the Employer Board of Education at the
time of death, and if no other pensions or benefits were
payable under the provisions of this Article or any other
participating system, as defined in the Illinois Retirement
Systems Reciprocal Act, except a refund of contributions or a
survivor's pension, there shall be paid a single payment
death benefit. For a teacher who dies on or after the
effective date of this amendatory Act of 1991, this benefit
shall be equal to the last month's base rate of salary,
subject to the limitations and conditions set forth in this
Article, for each year of validated service, not to exceed 6
times such salary, or $10,000, whichever is less. The single
payment death benefit shall be paid in the manner prescribed
for a refund of contributions to the Fund fund.
Death benefits shall be paid only on written application
to the Board board.
(Source: P.A. 86-1488.)
(40 ILCS 5/17-124) (from Ch. 108 1/2, par. 17-124)
Sec. 17-124. Death Benefits - Death on pension. On
written application to the Board board, there shall be paid
to the estate of a deceased teacher-pensioner pension
payments, accrued, temporarily withheld or represented by
checks uncashed at the date of his death and the excess, if
any, of an amount equal to his refundable contributions for
service or disability retirement pension over pension to the
date of death; provided, that if there be filed with the
Board board prior to the death of the pensioner his written
direction, signed and acknowledged before an officer
authorized to take acknowledgments, that such payments be
paid to designated beneficiaries, they shall be so paid on
written application therefor to the Board board. If none of
several named beneficiaries survives the pensioner and no
directive was furnished by the member to cover this
contingency, the deceased beneficiary's share shall be paid
to the estate of the pensioner.
If a reversionary pension is payable upon death of a
pensioner, the determination and payment of any refund of
contributions payable under this Section shall be made upon
death of the reversionary pensioner. At such time a refund of
contributions less (1) the amount contributed for annual
increases in pension and (2) total pension payments to the
teacher-pensioner and survivor shall be paid in the manner
provided in this Section to the designated beneficiaries, or
estate of the deceased survivor.
If a pension is payable to a surviving spouse and/or
minor children upon death of a pensioner, the determination
of any refund of contributions payable under this Section
shall be made upon death of the survivor and marriage or
attainment of age 18 of minor children. At that time a refund
of contributions for retirement and survivors' and children's
pensions less total pension payments to teacher-pensioner,
survivor and minor children shall be paid in the manner
provided in this Section to the designated beneficiaries, or
estate of the deceased survivor.
If eligible beneficiaries for survivors' or children's
benefits existed at the time of a pensioner's retirement but
not on the date of his death thereafter, the excess of total
contributions for retirement and survivors' and children's
pensions over pensions paid shall be determined upon death of
the pensioner and paid in the manner provided in this Section
to the designated beneficiaries, or estate of the deceased
teacher-pensioner.
Reversionary or survivor's pension payments accrued,
temporarily withheld, or represented by uncashed checks to
the date of death shall be paid to the reversionary
pensioner's or survivor's designated beneficiaries, or estate
in the manner provided in this Section.
On death of a retired teacher whose death occurs on or
after the effective date of this amendatory Act of 1991,
there shall be payable a lump sum death benefit equal to 6
times the teacher's salary rate for his last month of service
or $10,000, whichever is less, upon death during the first
year on pension minus 1/5 of the death benefit, as defined
herein, for each year or fraction thereof on pension after
the first full year, to a minimum of $5,000.
Notwithstanding Section 17-157, the changes made in this
Section and Section 17-123 by this amendatory Act of 1991
shall apply to teachers dying on or after the effective date
of this amendatory Act of 1991 without regard to whether
service terminated prior to that date.
(Source: P.A. 86-1488.)
(40 ILCS 5/17-125) (from Ch. 108 1/2, par. 17-125)
Sec. 17-125. Refund of contributions. Upon certification
by the Employer On approval of his resignation by the Board
of Education or cancellation of his teaching certificate
prior to completion of the minimum term of service required
to establish eligibility for a pension and on written
application therefor, a teacher shall be paid a refund of all
the amounts he has contributed to the Fund fund, less any
former refund that has not been repaid.
Upon certification by the Employer On approval of his
resignation by the Board of Education or cancellation of his
teaching certificate after completion of the minimum term of
service required to establish eligibility for a pension and
on written application therefor, a teacher shall be paid a
refund of all the amounts he has contributed, less (1) any
former refund that has not been repaid, and (2) pension
payments received, provided he has executed and delivered to
the Board board his written receipt and release in that
behalf. Thereupon, he shall have no further interest in or
claim against the Fund fund.
A request for refund under either of the preceding
paragraphs shall be considered valid if withdrawal from
service occurred at least 2 months prior to the filing of
such request.
Upon retirement of a teacher either on immediate or
deferred pension, if the teacher is not then married, or if
his spouse or children do not meet the qualifying conditions
for survivor's or children's pensions, the total amount
contributed by him or otherwise paid by deductions from
salary for survivor's pension, shall be refunded to him,
without interest. No survivor's or children's pension rights
shall be effective thereafter in such a case.
During a teacher's term of service, no refund is payable
except contributions made in error.
(Source: P.A. 84-1028.)
(40 ILCS 5/17-126) (from Ch. 108 1/2, par. 17-126)
Sec. 17-126. Repayment of refund. If any person who has
received a refund is reemployed by an Employer the Board of
Education and again becomes a contributor for a period of at
least 2 years, or has established credit of at least 2 years
of service subsequent to the date of such refund, in a
retirement system which has subscribed to the "Retirement
Systems Reciprocal Act" and is a contributor thereto, he may
repay to the Fund fund the amount he received as a refund,
together with interest thereon at 5% per annum compounded
annually from the time the refund was paid to the date of
repayment.
(Source: P.A. 80-570.)
(40 ILCS 5/17-127) (from Ch. 108 1/2, par. 17-127)
Sec. 17-127. Financing; revenues for the Fund.
(a) The revenues for the Fund shall consist of: (1)
amounts paid into the Fund by contributors thereto and from
taxes and State appropriations in accordance with this
Article; (2) amounts contributed to the Fund by an Employer;
(3) amounts contributed to the Fund pursuant to any law now
in force or hereafter to be enacted; (4) (3) contributions
from any other source; and (5) (4) the earnings on
investments.
(b) The General Assembly finds that for many years the
State has contributed to the Fund an annual amount that is
between 20% and 30% of the amount of the annual State
contribution to the Article 16 retirement system, and the
General Assembly declares that it is its goal and intention
to continue this level of contribution to the Fund in the
future.
(Source: P.A. 88-593, eff. 8-22-94.)
(40 ILCS 5/17-127.1) (from Ch. 108 1/2, par. 17-127.1)
Sec. 17-127.1. Special revenues. Donations, gifts, and
legacies received by the fund shall be held and accounted for
as the Board so provides of Trustees so provide by
appropriate resolution. Nothing in this Article shall be so
construed as to prevent the Board of Trustees from directing
such resources to be used for memorial or other commemorative
purposes honoring the grantors, while alive or posthumously,
of such special revenues.
(Source: P.A. 83-388.)
(40 ILCS 5/17-129) (from Ch. 108 1/2, par. 17-129)
Sec. 17-129. Employer contributions; deficiency in Fund.
(a) If in any fiscal year the total amounts paid to the
Fund from the Board board of Education education (other than
under this subsection, and other than amounts used for making
or "picking up" contributions on behalf of teachers) and from
the State do not equal the total contributions made by or on
behalf of the teachers for such year, or if the total income
of the Fund in any fiscal year from all sources is less than
the total expenditures by the Fund for such year, the Board
of Education shall, in the next succeeding year, in addition
to any other payment to the Fund set apart and appropriate
from moneys from its tax levy for educational purposes, a sum
sufficient to remove such deficiency or deficiencies, and
promptly pay such sum into the Fund in order to restore any
of the reserves of the Fund that may have been so temporarily
applied.
(b) For fiscal years 2011 through 2045, the minimum
contribution to the Fund to be made by the Board board of
Education education in each fiscal year shall be an amount
determined by the Fund to be sufficient to bring the total
assets of the Fund up to 90% of the total actuarial
liabilities of the Fund by the end of fiscal year 2045. In
making these determinations, the required Board board of
Education education contribution shall be calculated each
year as a level percentage of the applicable employee
payrolls payroll over the years remaining to and including
fiscal year 2045 and shall be determined under the projected
unit credit actuarial cost method.
For fiscal years 1999 through 2010, the Board board of
Education's education's contribution to the Fund, as a
percentage of the applicable employee payroll, shall be
increased in equal annual increments so that by fiscal year
2011, the Board board of Education education is contributing
at the rate required under this subsection.
Beginning in fiscal year 2046, the minimum Board board of
Education education contribution for each fiscal year shall
be the amount needed to maintain the total assets of the Fund
at 90% of the total actuarial liabilities of the Fund.
(c) The Board of Trustees shall determine the amount of
Board board of Education education contributions required for
each fiscal year on the basis of the actuarial tables and
other assumptions adopted by the Board and the
recommendations of the actuary, in order to meet the minimum
contribution requirements of subsections (a) and (b).
Annually, on or before February 28 November 15, the Board
shall certify to the Board board of Education education the
amount of the required Board board of Education education
contribution for the coming fiscal year. The certification
shall include a copy of the actuarial recommendations upon
which it is based.
(Source: P.A. 89-15, eff. 5-30-95.)
(40 ILCS 5/17-130) (from Ch. 108 1/2, par. 17-130)
Sec. 17-130. Participants' contributions by payroll
deductions. There shall be deducted from the salary of each
teacher 6 1/2% of his salary for service or disability
retirement pension and 1/2 of 1% of salary for the annual
increase in base pension.
In addition, there shall be deducted from the salary of
each teacher 1% of his salary for survivors' and children's
pensions.
An Employer and any employer of eligible contributors as
defined in Section 17-106 The board is authorized to make the
necessary deductions from the salaries of its teachers, to
receive any other contributions required to be made by them,
and to certify to the city treasurer the amounts so deducted
and contributed by them. Such amounts shall be included as a
part of the Fund fund. An Employer and any employer of
eligible contributors as defined in Section 17-106 The board
shall formulate such rules and regulations as may be
necessary to give effect to the provisions of this Section.
All persons employed as teachers shall, by such
employment, accept the provisions of this Article and of
Sections 34-83 to 34-87, inclusive, of "The School Code",
approved March 18, 1961, as amended, and thereupon become
contributors to the Fund fund in accordance with the terms
thereof. The provisions of this Article and of those Sections
shall become a part of the contract of employment.
(Source: P.A. 81-1536.)
(40 ILCS 5/17-130.1) (from Ch. 108 1/2, par. 17-130.1)
Sec. 17-130.1. Employer contributions on behalf of
employees. An Employer and the Board The Board of Education
may make and may incur an obligation to make contributions on
behalf of its employees in an amount not to exceed the
employee contributions required by Section 17-130 for all
compensation earned after September 21, 1981. If the
Employer or the Board of Education determines not to make
such contributions or incur an obligation to make such
contributions, the amount that it could have contributed on
behalf of its employees shall continue to be deducted from
salary. If contributions are made by an Employer or the
Board of Education on behalf of its employees they shall be
treated as employer contributions in determining tax
treatment under the United States Internal Revenue Code. An
Employer or the The Board of Education may make these
contributions on behalf of its employees by a reduction in
the cash salary of the employee or by an offset against a
future salary increase or by a combination of a reduction in
salary and offset against a future salary increase. An
Employer or the Board The employer shall pay these employee
contributions from the same source of funds which is used in
paying salary to the employee, or it may also or
alternatively make such contributions from the proceeds of
the tax authorized by Section 34-60 of the School Code.
Such If employee contributions are made by the Board of
Education on behalf of its employees, they shall be treated
for all purposes of this Article 17 in the same manner and to
the same extent as employee contributions made by employees
and deducted from salary; provided, however, that
contributions made by the Board of Education on behalf of its
employees which are to be paid from the proceeds of the tax,
as provided in Section 34-60 of the School Code, shall not be
treated as teachers' pension contributions for the purposes
of Section 17-132 of the Illinois Pension Code, and provided
further, that contributions which are made by the Board of
Education on behalf of its employees shall not be treated as
a pension or retirement obligation of the Board of Education
for purposes of Section 12 of "An Act in relation to State
revenue sharing with local governmental entities", approved
July 31, 1969.
(Source: P.A. 86-1471; 86-1488.)
(40 ILCS 5/17-131) (from Ch. 108 1/2, par. 17-131)
Sec. 17-131. Administration of payroll deductions.
During any period in which salaries are paid, such deductions
by an Employer or the Board of Education or the board shall
be made on the basis of the full salary rates, exclusive of
salaries for overtime, special services or any employment on
an optional basis, such as in summer school. If salaries
represent adjustments on account of error, deductions by the
Employer or the Board of Education shall be at rates in force
during the applicable payroll period. If teachers receive
salaries for the school year, as established by an Employer
the Board of Education, or if they receive salaries for more
than 10 calendar months, the amount required for each year of
service shall be deducted by such Employer the Board of
Education in installments. The total amounts for each
semimonthly payroll period, or bi-weekly payroll period, as
the case may be, shall be deducted only when salary payments
represent 5 days' pay or more. If an Employer or the Board
of Education pays salaries to members of the teaching force
for vacation periods, the salary shall be considered part of
the teacher's annual salary, shall be subject to the standard
deductions for pension contributions, and shall be considered
to represent pay for 5 or more days' employment in a
bi-weekly or semi-monthly payroll period for purposes set
forth in this Section. If deductions from salaries result in
amounts of less than one cent, the fractional sums shall be
increased to the next higher cent. Any excess of these
fractional increases over the prescribed annual contributions
shall be credited to the teachers' accounts.
In the event that, pursuant to Section 17-130.1, employee
employer contributions are picked up or made by the Board of
Education on behalf of its employees from the proceeds of the
tax levied under Section 34-60 of the School Code, then the
amount of the employee contributions which are picked up or
made in that manner shall not be deducted from the salaries
of such employees.
(Source: P.A. 86-1471; 86-1488.)
(40 ILCS 5/17-132) (from Ch. 108 1/2, par. 17-132)
Sec. 17-132. Payments and certification of salary
deductions. An Employer The Board of Education shall cause
the Fund to receive all teachers' pension contributions
within 15 business days of the predesignated paydays. Amount
not received by the fifth day shall be deemed delinquent and
subject to late interest penalty (calculated at the average
short-term rate of interest earned by the Fund for the
calendar month preceding the calendar month in which the
delinquency occurs) starting from the predesignated payday
and ending on the date payment is received. The appropriate
officers of the Employer president and the secretary of the
Board of Education shall certify at least monthly to the Fund
city treasurer all amounts deducted from the salaries of
contributors. The certification shall constitute a
confirmation of the accuracy of such deductions according to
the provisions of this Article. For the purpose of this
Section the predesignated payday shall be determined in
accordance with each Employer's the Board of Education
official payroll schedule for contributions to the Fund.
The Board has the authority to conduct payroll audits of
a charter school to determine the existence of any
delinquencies in contributions to the Fund, and such charter
school shall be required to provide such books and records
and contribution information as the Board or its authorized
representative may require. The Board is also authorized to
collect delinquent contributions from charter schools and
develop procedures for the collection of such delinquencies.
Collection procedures may include legal proceedings in the
courts of the State of Illinois. Expenses, including
reasonable attorneys' fees, incurred in the collection of
delinquent contributions may be assessed by the Board against
the charter school.
(Source: P.A. 82-581.)
(40 ILCS 5/17-133) (from Ch. 108 1/2, par. 17-133)
Sec. 17-133. Contributions for periods of outside and
other service. Regularly certified and appointed teachers who
desire to have the following described services credited for
pension purposes shall submit to the Board board evidence
thereof and pay into the Fund fund the amounts prescribed
herein:
1. For teaching service by a certified teacher in
the public schools of the several states or in schools
operated by or under the auspices of the United States, a
teacher shall pay the contributions at the rates in force
(a) on the date of appointment as a regularly certified
teacher after salary adjustments are completed, or (b) at
the time of reappointment after salary adjustments are
completed, whichever is later, but not less than $450 per
year of service. Upon the Board's board's approval of
such service and the payment of the required
contributions, service credit of not more than 10 years
shall be granted.
2. For service as a playground instructor in public
school playgrounds, teachers shall pay the contributions
prescribed in this Article (a) at the time of
appointment, as a regularly certified teacher after
salary adjustments are completed, or (b) on return to
service as a full time regularly certified teacher, as
the case may be, provided such rates or amounts shall not
be less than $450 per year.
3. For service prior to September 1, 1955, in the
public schools of the City as a substitute, evening
school or temporary teacher, or for service as an
Americanization teacher prior to December 31, 1955,
teachers shall pay the contributions prescribed in this
Article (a) at the time of appointment, as a regularly
certified teacher after salary adjustments are completed,
(b) on return to service as a full time regularly
certified teacher, as the case may be, provided such
rates or amounts shall not be less than $450 per year;
and provided further that for teachers employed on or
after September 1, 1953, rates shall not include
contributions for widows' pensions if the service
described in this sub-paragraph 3 was rendered before
that date. Any teacher entitled to repay a refund of
contributions under Section 126 of this Article may
validate service described in this paragraph by payment
of the amounts prescribed herein, together with the
repayment of the refund, provided that if such creditable
service was the last service rendered in the public
schools of the City and is not automatically reinstated
by repayment of the refund, the rates or amounts shall
not be less than $450 per year.
4. For service after June 30, 1982 as a member of
the Board of Education, if required to resign from an
administrative or teaching position in order to qualify
as a member of the Board of Education.
For service described in sub-paragraphs 1, 2 and 3 of
this Section, interest shall be charged beginning one year
after the effective date of appointment or reappointment.
Effective September 1, 1974, the interest rate to be
charged by the Fund fund on contributions provided in
sub-paragraphs 1, 2, 3 and 4 shall be 5% per annum compounded
annually.
(Source: P.A. 87-794.)
(40 ILCS 5/17-134) (from Ch. 108 1/2, par. 17-134)
Sec. 17-134. Contributions for leaves of absence;
military service; computing service. In computing service
for pension purposes the following periods of service shall
stand in lieu of a like number of years of teaching service
upon payment therefor in the manner hereinafter provided: (a)
time spent on sabbatical leaves of absence, sick leaves or
maternity or paternity leaves; (b) service with teacher or
labor organizations based upon special leaves of absence
therefor granted by an Employer the Board of Education; (c) a
maximum of 5 years spent in the military service of the
United States, of which up to 2 years may have been served
outside the pension period; (d) unused sick days at
termination of service to a maximum of 244 days; (e) time
lost due to layoff and curtailment of the school term from
June 6 through June 21, 1976; and (f) time spent after June
30, 1982 as a member of the Board of Education, if required
to resign from an administrative or teaching position in
order to qualify as a member of the Board of Education.
(1) For time spent on or after September 6, 1948 on
sabbatical leaves of absence or sick leaves, for which
salaries are paid, an Employer the Board of Education
shall make payroll deductions at the applicable rates in
effect during such periods.
(2) For time spent on sabbatical or sick leaves
commencing on or after September 1, 1961, and for time
spent on maternity or paternity leaves, for which no
salaries are paid, teachers desiring credit therefor
shall pay the required contributions at the rates in
effect during such periods as though they were in
teaching service. If an Employer the Board of Education
pays salary for vacations which occur during a teacher's
sick leave or maternity or paternity leave without
salary, vacation pay for which the teacher would have
qualified while in active service shall be considered
part of the teacher's total salary for pension purposes.
No more than 12 months of sick leave or maternity or
paternity leave credit may be allowed any person during
the entire term of service. Sabbatical leave credit shall
be limited to the time the person on leave without salary
under an Employer's Board of Education rules is allowed
to engage in an activity for which he receives salary or
compensation.
(3) For time spent prior to September 6, 1948, on
sabbatical leaves of absence or sick leaves for which
salaries were paid, teachers desiring service credit
therefor shall pay the required contributions at the
maximum applicable rates in effect during such periods.
(4) For service with teacher or labor organizations
authorized by special leaves of absence, for which no
payroll deductions are made by an Employer the Board of
Education, teachers desiring service credit therefor
shall contribute to the Fund fund upon the basis of the
actual salary received from such organizations at the
percentage rates in effect during such periods for
certified positions with such Employer the Board of
Education. To the extent the actual salary exceeds the
regular salary, which shall be defined as the salary
rate, as calculated by the Board board of trustees, in
effect for the teacher's regular position in teaching
service on September 1, 1983 or on the effective date of
the leave with the organization, whichever is later, the
organization shall pay to the Fund the employer's normal
cost as set by the Board fund the employer's normal cost
as set by the board of trustees on the increment.
(5) For time spent in the military service,
teachers entitled to and desiring credit therefor shall
contribute the amount required for each year of service
or fraction thereof at the rates in force (a) at the date
of appointment, or (b) on return to teaching service as a
regularly certified teacher, as the case may be; provided
such rates shall not be less than $450 per year of
service. These conditions shall apply unless an Employer
the Board of Education elects to and does pay into the
Fund fund the amount which would have been due from such
person had he been employed as a teacher during such
time. In the case of credit for military service not
during the pension period, the teacher must also pay to
the Fund an amount determined by the Board board to be
equal to the employer's normal cost of the benefits
accrued from such service, plus interest thereon at 5%
per year, compounded annually, from the date of
appointment to the date of payment.
The changes to this Section made by Public Act
87-795 shall apply not only to persons who on or after
its effective date are in service under the Fund, but
also to persons whose status as a teacher terminated
prior to that date, whether or not the person is an
annuitant on that date. In the case of an annuitant who
applies for credit allowable under this Section for a
period of military service that did not immediately
follow employment, and who has made the required
contributions for such credit, the annuity shall be
recalculated to include the additional service credit,
with the increase taking effect on the date the Fund
received written notification of the annuitant's intent
to purchase the credit, if payment of all the required
contributions is made within 60 days of such notice, or
else on the first annuity payment date following the date
of payment of the required contributions. In calculating
the automatic annual increase for an annuity that has
been recalculated under this Section, the increase
attributable to the additional service allowable under
this amendatory Act of 1991 shall be included in the
calculation of automatic annual increases accruing after
the effective date of the recalculation.
The total credit for military service shall not
exceed 5 years, except that any teacher who on July 1,
1963, had validated credit for more than 5 years of
military service shall be entitled to the total amount of
such credit.
(6) A maximum of 244 unused sick days credited to
his account by an Employer the Board of Education on the
date of termination of employment. Members, upon
verification of unused sick days, may add this service
time to total creditable service.
(7) In all cases where time spent on leave is
creditable and no payroll deductions therefor are made by
an Employer the Board of Education, persons desiring
service credit shall make the required contributions
directly to the Fund fund.
(8) For time lost without pay due to layoff and
curtailment of the school term from June 6 through June
21, 1976, as provided in item (e) of the first paragraph
of this Section, persons who were contributors on the
days immediately preceding such layoff shall receive
credit upon paying to the Fund a contribution based on
the rates of compensation and employee contributions in
effect at the time of such layoff, together with an
additional amount equal to 12.2% of the compensation
computed for such period of layoff, plus interest on the
entire amount at 5% per annum from January 1, 1978 to the
date of payment. If such contribution is paid, salary
for pension purposes for any year in which such a layoff
occurred shall include the compensation recognized for
purposes of computing that contribution.
(9) For time spent after June 30, 1982, as a
nonsalaried member of the Board of Education, if required
to resign from an administrative or teaching position in
order to qualify as a member of the Board of Education,
an administrator or teacher desiring credit therefor
shall pay the required contributions at the rates and
salaries in effect during such periods as though the
member were in service.
Effective September 1, 1974, the interest charged for
validation of service described in paragraphs (2) through (5)
of this Section shall be compounded annually at a rate of 5%
commencing one year after the termination of the leave or
return to service.
(Source: P.A. 90-32, eff. 6-27-97.)
(40 ILCS 5/17-135) (from Ch. 108 1/2, par. 17-135)
Sec. 17-135. Contributions for other service credits. On
payment at the rates prescribed herein on the date of
appointment or employment as teachers, or as such rates are
adjusted by the Board of Education, but not less than $450
per year of service, members shall be entitled to have
credited for pension purposes service as: (a) a civil service
librarian in the public schools of the city, or in such city;
(b) a playground or recreational instructor for such city or
the Park District in such city; (c) a school clerk, employed
by the Board of Education; and (d) a lunchroom manager for
the Board of Education. Interest on such payments shall be
charged commencing one year after the date of such
appointment or employment.
Effective September 1, 1974, the interest rate to be
charged by the Fund fund shall be 5% per annum compounded
annually.
(Source: P.A. 80-570.)
(40 ILCS 5/17-137) (from Ch. 108 1/2, par. 17-137)
Sec. 17-137. Board created. There shall be elected a
Board of Trustees, herein also referred to as the "Board"
"board", to administer and control the Fund fund created by
this Article. The Board of Trustees shall consist of 12
members, 2 of whom shall be members of the Board of
Education, 6 of whom shall be contributors who are not
principals, one of whom shall be a contributor who is a
principal, and 3 of whom shall be pensioners, all to be
chosen as provided in this Article.
(Source: P.A. 89-136, eff. 7-14-95.)
(40 ILCS 5/17-138) (from Ch. 108 1/2, par. 17-138)
Sec. 17-138. Board membership. At the first meeting of
the Board of Education in November of each year, the Board of
Education shall appoint one of its members to serve, while a
member of the Board of Education, on the Board of Trustees
for a term of 2 years.
On the last school day of the 4th week of October of each
year there shall be elected 2 members of the Board of
Trustees from the teachers other than principals, who shall
hold office for terms of 3 years while retaining their status
as teachers other than principals, and other members to fill
unexpired terms. In the event that schools are not in
session on or during the week prior to the last Friday in
October, this election shall be held on the Friday of the
first subsequent full week of school. The election shall be
by secret ballot and shall be held in such manner as the
Board of Trustees by bylaws or rules shall provide. Only
teachers who are not principals shall be eligible to vote in
the election.
During the first week of November of 1995 and every third
year thereafter, one contributor who is a principal shall be
elected a member of the Board of Trustees. This trustee
shall hold office for a term of 3 years while retaining his
or her status as a principal. The election shall be by mail
ballot and only contributors who are principals shall be
eligible to vote. The election shall be held in the manner
provided by the Board of Trustees by rule or bylaw.
During the first week of November of each odd-numbered
year there shall be elected 3 members of the Board of
Trustees from the pensioners, who shall hold office for a
term of 2 years while retaining their status as pensioners.
The election shall be by mail ballot to all service and
disability pensioners, and shall be held in such manner as
the Board of Trustees by bylaws or rules shall provide.
All trustees, while members of the Board of Education or
while principals, teachers other than principals, or
pensioners, as the case may be, shall hold their offices
until their successors shall have been appointed or elected
and qualified by subscribing to the constitutional oath of
office at the immediately succeeding regular meeting of the
Board board.
(Source: P.A. 89-136, eff. 7-14-95.)
(40 ILCS 5/17-139) (from Ch. 108 1/2, par. 17-139)
Sec. 17-139. Board elections and vacancies.
(1) Contributors other than principals election. Every
member who is not a principal may vote at the election for as
many persons as there are trustees to be elected by the
contributors who are not principals. The name of a candidate
shall not be printed upon the ballot unless he or she has
been assigned on a regular certificate for at least 10 years
in the Chicago public schools or charter schools and
nominated by a petition signed by not less than 200
contributors who are not principals.
Petitions shall be filed with the recording secretary of
the Fund fund on or after September 15 of each year and not
later than October 1st of that year. No more than one
candidate may be nominated by any one petition. If the
nominations do not exceed the number of candidates to be
elected, the canvassing board shall declare the nominated
candidates elected. Otherwise, candidates receiving the
highest number of votes cast for their respective terms shall
be declared elected. The location and number of polling
places shall be designated by the Board board. The election
shall be conducted by the teachers who are not principals,
and the judges of the election shall be selected from the
teachers who are not principals, in such manner as the board
in its bylaws or rules provides.
Elections to fill vacancies on the Board board shall be
held at the next annual election.
(2) Pensioners election. The name of a candidate shall
not be printed on the ballot unless he or she has been
nominated by a petition signed by not less than 100
pensioners of the Fund fund. Petitions shall be filed with
the recording secretary of the Fund fund on or before October
1 of the odd-numbered year. If the nominations do not exceed
3 2, the mailing of ballots shall be eliminated and the
nominated candidates shall be declared elected. Otherwise,
the 3 2 candidates receiving the highest number of votes cast
shall be declared elected. The mailing and counting of the
ballots shall be conducted by the office of the Fund fund
with volunteer assistance from pensioners at the request of
the Board trustees.
(3) Principals election. The name of a candidate shall
not be printed on the ballot unless he or she has been
nominated by a petition signed by at least 25 contributors
who are principals. Petitions shall be filed with the
recording secretary of the Fund on or before October 1 of the
election year. If only one eligible candidate is nominated,
the election shall not be held and the nominated candidate
shall be declared elected. Otherwise, the candidate
receiving the highest number of votes cast shall be declared
elected. The mailing and counting of the ballots shall be
conducted by the office of the Fund.
(4) Vacancies. The Board of Trustees may fill vacancies
occurring in the membership of the Board elected by the
principals, teachers other than principals, or pensioners at
any regular meeting of the Board. The Board of Education may
fill vacancies occurring in the membership of the Board of
Trustees appointed by the Board of Education at any regular
meeting of the Board of Education.
(Source: P.A. 89-136, eff. 7-14-95.)
(40 ILCS 5/17-140) (from Ch. 108 1/2, par. 17-140)
Sec. 17-140. Board officers.
The president, recording secretary and other officers of
the Board board shall be elected by and from the members of
the board at the first meeting of the Board board after the
election of trustees.
In case any officer whose signature appears upon any
check or draft, issued pursuant to this Article, ceases
(after attaching his signature) to hold his office before the
delivery thereof to the payee, his signature nevertheless
shall be valid and sufficient for all purposes with the same
effect as if he had remained in office until delivery
thereof.
(Source: P. A. 78-638.)
(40 ILCS 5/17-141) (from Ch. 108 1/2, par. 17-141)
Sec. 17-141. Board's powers and duties.
The Board board shall have the powers and duties stated
in Sections 17-142 to 17-146, inclusive, in addition to the
other powers and duties provided in this Article.
(Source: Laws 1963, p. 161.)
(40 ILCS 5/17-142) (from Ch. 108 1/2, par. 17-142)
Sec. 17-142. To make payments.
To make payments from the Fund fund of pensions and other
benefits provided in this Article.
(Source: Laws 1963, p. 161.)
(40 ILCS 5/17-142.1) (from Ch. 108 1/2, par. 17-142.1)
Sec. 17-142.1. To defray health insurance costs. To
provide for the partial reimbursement of health insurance
costs.
(1) On the first day of September of each year,
beginning in 1988, the Board board may, by separate warrant,
pay to each recipient of a service retirement, disability
retirement or survivor's pension an amount to be determined
by the Board board, which shall represent partial
reimbursement for the cost of the recipient's health
insurance coverage.
(2) In lieu of the annual payment authorized in
subdivision (1), for pensioners enrolled in the Fund's
regular health care deduction plans, the Fund may pay the
health insurance premium reimbursement on a monthly rather
than annual basis, at the percentage rate established from
time to time by the Board. If the Board so directs, these
monthly payments may be made in the form of a direct payment
of premium and a reduction in the amount deducted from the
annuity, rather than in the form of reimbursement by separate
warrant.
(3) Total payments under this Section in any year may
not exceed $25,000,000 plus any amount that was authorized to
be paid under this Section in the preceding year but was not
actually paid by the Board.
(Source: P.A. 86-1488; 87-794; 87-1265.)
(40 ILCS 5/17-143.1) (from Ch. 108 1/2, par. 17-143.1)
Sec. 17-143.1. Office. To rent, lease, or acquire office
space as may be necessary for the proper administration of
the Fund fund.
(Source: P.A. 83-792.)
(40 ILCS 5/17-144) (from Ch. 108 1/2, par. 17-144)
Sec. 17-144. To fill vacancies. To fill any vacancies
occurring in the Board of Trustees of members elected from
the teachers or pensioners, until the next annual election,
when the vacancies shall be filled as provided by this
Article.
(Source: P.A. 82-260.)
(40 ILCS 5/17-145) (from Ch. 108 1/2, par. 17-145)
Sec. 17-145. To adopt rules.
To adopt such by-laws and rules for the administration of
the Fund fund as it deems advisable.
(Source: Laws 1963, p. 161.)
(40 ILCS 5/17-146) (from Ch. 108 1/2, par. 17-146)
Sec. 17-146. To make investments. To invest the moneys
of the Fund fund, subject to the requirements and
restrictions set forth in this Article and in Sections 1-109,
1-109.1, 1-109.2, 1-110, 1-111, 1-114 and 1-115.
No bank or savings and loan association shall receive
investment funds as permitted by this Section, unless it has
complied with the requirements established pursuant to
Section 6 of the Public Funds Investment Act. Those
requirements shall be applicable only at the time of
investment and shall not require the liquidation of any
investment at any time.
The Board board shall have the authority to enter into
any agreements and to execute any documents that it
determines to be necessary to complete any investment
transaction.
All investments shall be clearly held and accounted for
to indicate ownership by the Fund fund. The Board board may
direct the registration of securities or the holding of
interests in real property in the name of the Fund fund or in
the name of a nominee created for the express purpose of
registering securities or holding interests in real property
by a national or state bank or trust company authorized to
conduct a trust business in the State of Illinois. The Board
board may hold title to interests in real property in the
name of the fund or in the name of a title holding
corporation created for the express purpose of holding title
to interests in real property.
Investments shall be carried at cost or at a value
determined in accordance with generally accepted accounting
principles and accounting procedures approved by the Board
board.
The value of investments held by the Fund fund in one or
more commingled investment accounts shall be determined in
accordance with generally accepted accounting principles.
The Board board of trustees of any fund established under
this Article may not transfer its investment authority, nor
transfer the assets of the Fund fund to any other person or
entity for the purpose of consolidating or merging its assets
and management with any other pension fund or public
investment authority, unless the Board board resolution
authorizing such transfer is submitted for approval to the
contributors and pensioners of the Fund fund at elections
held not less than 30 days after the adoption of such
resolution by the Board board, and such resolution is
approved by a majority of the votes cast on the question in
both the contributors election and the pensioners election.
The election procedures and qualifications governing the
election of trustees shall govern the submission of
resolutions for approval under this paragraph, insofar as
they may be made applicable.
(Source: P.A. 89-636, eff. 8-9-96; 90-19, eff. 6-20-97;
90-32, eff. 6-27-97.)
(40 ILCS 5/17-146.1) (from Ch. 108 1/2, par. 17-146.1)
Sec. 17-146.1. Participation in commingled investment
funds; transfer of investment functions and securities.
(a) The Board retirement board may invest in any
commingled investment fund or funds established and
maintained by the Illinois State Board of Investment under
the provisions of Article 22A of this Code. All commingled
fund participations shall be subject to the law governing the
Illinois State Board of Investment and the rules, policies
and directives of that Board.
(b) The Board retirement board may, by resolution duly
adopted by a majority vote of its membership, transfer to the
Illinois State Board of Investment created by Article 22A of
this Code, for management and administration, all investments
owned by the Fund of every kind and character. Upon
completion of such transfer, the authority of the Board
retirement board to make investments shall terminate.
Thereafter, all investments of the reserves of the Fund shall
be made by the Illinois State Board of Investment in
accordance with the provisions of Article 22A of this Code.
Such transfer shall be made not later than the first day
of the fourth month next following the date of such
resolution. Before such transfer an audit of such
investments shall be completed by a certified public
accountant selected by the Illinois State Board of Investment
and approved by the Auditor General of the State of Illinois.
The expense of such audit shall be defrayed by the retirement
Board board.
(Source: P.A. 90-19, eff. 6-20-97; 90-32, eff. 6-27-97.)
(40 ILCS 5/17-146.2) (from Ch. 108 1/2, par. 17-146.2)
Sec. 17-146.2. To lend securities. The Board board of
trustees may lend securities owned by the Fund to a borrower
upon such written terms and conditions as may be mutually
agreed. The agreement shall provide that during the period
of the loan the Fund (or the custodian of the Fund, or agent
thereof, as applicable) shall retain the right to receive or
collect from the borrower all dividends, interest and
distributions to which the Fund would have otherwise been
entitled. The borrower shall deposit with the Fund
collateral for the loan equal to the market value of the
securities at the time the loan is made, and shall increase
the amount of collateral if the Board requests an additional
amount because of subsequent increased market value of the
securities. The Board may accept from the borrower cash
collateral or collateral consisting of assets described in
Section 1-113 of this Act. To the extent that the Fund
participates in a securities lending program established and
maintained by (1) a national or State bank which is
authorized to do business in the State of Illinois, or (2) an
investment manager, the Board may accept collateral
consisting of an undivided interest in a pool of commingled
collateral that has been established by the bank or
investment manager for the purpose of pooling collateral
received for the loans of securities owned by substantially
all of the participants in such bank's or investment
manager's securities lending program. Nothing in Sections
1-109, 1-110 or 1-113 of this Act shall be construed to
prohibit the Fund's lending of securities in accordance with
this Section.
(Source: P.A. 86-1488.)
(40 ILCS 5/17-147) (from Ch. 108 1/2, par. 17-147)
Sec. 17-147. Custody of Fund fund - Bonds - Legal
proceedings. The city treasurer, ex-officio, shall be the
custodian of the Fund fund, and shall secure and safely keep
it, subject to the control and direction of the Board board.
He shall keep his books and accounts concerning the Fund fund
in the manner prescribed by the Board board. The books and
accounts shall always be subject to the inspection of the
Board board or any member thereof. The city treasurer shall
be liable on his official bond for the proper performance of
his duties and the conservation of the Fund fund.
Payments from the Fund fund shall be made upon warrants
signed by the president and the secretary of the Board of
Education, the president of the Board of Trustees, and
countersigned by the executive director or by such person as
the Board of Trustees may designate from time to time by
appropriate resolution.
Neither the treasurer nor any other officer having the
custody of the Fund fund is entitled to retain any interest
accruing thereon, but such interest shall accrue and inure to
the benefit of such Fund fund, become a part thereof, subject
to the purposes of this Article.
Any legal proceedings necessary for the enforcement of
the provisions of this Article shall be brought by and in the
name of the Board of Trustees of the Fund fund.
(Source: P.A. 80-570.)
(40 ILCS 5/17-149) (from Ch. 108 1/2, par. 17-149)
Sec. 17-149. Cancellation of pensions.
If any person receiving a service or disability
retirement pension from the Fund fund is re-employed as a
teacher by an Employer the Board of Education, the pension
shall be cancelled on the date the re-employment begins, or
on the first day of a payroll period for which service credit
was validated, whichever is earlier. However, beginning
August 23, 1989, the pension shall not be cancelled in case
of a service retirement pensioner who is temporarily
re-employed for not more than 100 days during any school year
or on an hourly basis, provided the pensioner does not
receive salary in any school year of an amount more than that
payable to a substitute teacher for 100 days' employment. A
service retirement pensioner who is temporarily re-employed
for not more than 100 days during any school year or on an
hourly basis shall be entitled, at the end of the school
year, to a refund of any contributions made to the Fund fund
during that school year.
If the pensioner does receive salary from an Employer the
Board of Education in any school year for more than 100 days'
employment, the pensioner shall be deemed to have returned to
service on the first day of employment as a
pensioner-substitute. The pensioner shall reimburse the Fund
fund for pension payments received after the return to
service and shall pay to the Fund fund the participant's
contributions prescribed in Section 17-130 of this Article.
If the date of re-employment occurs within 5 school
months after the date of previous retirement, exclusive of
any vacation period, the member shall be deemed to have been
out of service only temporarily and not permanently retired.
Such person shall be entitled to pension payments for the
time he could have been employed as a teacher and received
salary, but shall not be entitled to pension for or during
the summer vacation prior to his return to service.
When the member again retires on pension, the time of
service and the money contributed by him during re-employment
shall be added to the time and money previously credited.
Such person must acquire 3 consecutive years of additional
contributing service before he may retire again on a pension
at a rate and under conditions other than those in force or
attained at the time of his previous retirement.
Notwithstanding Sections 1-103.1 and 17-157, the changes
to this Section made by this amendatory Act of 1997 shall
apply without regard to whether termination of service
occurred before the effective date of this amendatory Act and
shall apply retroactively to August 23, 1989.
(Source: P.A. 90-32, eff. 6-27-97.)
(40 ILCS 5/17-150) (from Ch. 108 1/2, par. 17-150)
Sec. 17-150. Suspension of pensions. Pension payments,
exclusive of those made to the survivors of persons who were
contributors, shall be suspended while the recipient is
employed in a teaching capacity, outside the City in which
the Fund fund exists, by any public school or charter school
in this State, unless the recipient is so employed
temporarily as a substitute teacher for 100 days or less in a
school year or on an hourly basis with earnings not in excess
of the sum payable for 100 days' substitute service.
(Source: P.A. 86-273; 87-794.)
(40 ILCS 5/17-151) (from Ch. 108 1/2, par. 17-151)
Sec. 17-151. Annuities, etc. - Exempt. All pensions,
annuities, refunds, or death benefits granted under the
provisions of this Article are exempt from State and
municipal taxes and are exempt from attachment or garnishment
process. They shall not be seized or levied upon by virtue of
any judgment or any process or proceedings issued out of or
by any court for the payment or satisfaction in whole or in
part of any debt, claim, damage, demand or judgment.
No pensioner has the right to transfer or assign his
pension or any part thereof by way of mortgage or otherwise
except for the purpose (1) of establishing and maintaining
membership in nonprofit group health or hospital plans
approved by the Board board and (2) of establishing a living
trust, the trustee of which is authorized to engage in the
trust business, provided all pension payments so assigned are
required to be paid monthly to the trustor or, in the event
of his incapacity, expended for his benefit. The Board board
is hereby authorized to administer all the details involved
in establishing and maintaining membership in such health or
hospital plans for the benefit of the annuitants, but it
shall not be obligated to do so or to continue doing so, if
in its judgment such continuance is not desirable.
(Source: P.A. 84-546.)
(40 ILCS 5/17-153) (from Ch. 108 1/2, par. 17-153)
Sec. 17-153. Accounting - Audits. The assets of the Fund
fund shall be held for the express purposes set forth in the
provisions of this Article subject to the conditions
prescribed herein. An adequate system of accounts and records
shall be established and maintained that will give effect to
the requirements hereof. All assets of the Fund fund shall be
credited to designated reserve accounts according to the
purposes for which they are held.
Appropriate reserves shall be maintained representing
member contributions and other revenues accruing from taxes,
state appropriations and miscellaneous sources.
At the end of each fiscal year the Board board of
trustees shall have the accounts and records of the Fund fund
audited by certified public accountants selected by the Board
board. Within 2 weeks after receiving the audit report, the
Board board shall file a copy of the audit report with the
State Superintendent of Education and the Auditor General.
(Source: P.A. 82-581.)
(40 ILCS 5/17-154) (from Ch. 108 1/2, par. 17-154)
Sec. 17-154. Retired teachers supplementary payments.
All persons who were on June 30, 1975, entitled to a service
retirement pension or disability retirement pension, under
this Fund fund or any fund of which this Fund fund is a
continuation, and who meet the conditions prescribed
hereinafter, shall receive supplementary payments as follows:
(1) In the case of any such retired person, who attained
or shall attain after June 30, 1975, the age of 60 years, who
was in receipt of a service retirement pension, the payment
pursuant to this section shall be an amount equal to the
difference between (a) his annual service retirement pension
from the Fund fund plus any annual payment received under the
provisions of Section 34-87 of "The School Code", approved
March 18, 1961, as amended, if the total of such amounts is
less than $4500 per year, and (b) an amount equal to $100 for
each year of validated teaching service forming the basis of
the service retirement pension up to a maximum of 45 years of
such service;
(2) In the case of any such retired person, who was in
receipt on June 30, 1975, of a disability retirement pension,
the payment shall be equal to the difference between (a) his
total annual disability retirement pension and (b) an amount
equal to $100 for each year of validated teaching service
forming the basis of the disability retirement pension.
(Source: P.A. 79-206.)
(40 ILCS 5/17-156) (from Ch. 108 1/2, par. 17-156)
Sec. 17-156. Retired Teachers Supplementary Payment
Fund.) A fund to be known as the Retired Teachers
Supplementary Payment Fund shall be established for the
purpose of making the supplementary payments for service and
disability retirement under Section 17-154.
1. This fund shall be credited with:
(a) the contributions made by retired persons to
establish their right to the supplementary payment;
(b) amounts appropriated by the State of Illinois for
the purpose of providing for the supplementary payment;
(c) any interest accruing to this fund.
2. This fund shall be charged with all supplementary
payments as they are made.
3. All supplementary payments shall be paid in the order
that the payments become due and payable from the Retired
Teachers Supplementary Payment Fund. In the event that the
moneys in the fund are insufficient to make full
supplementary payments to all persons entitled thereto, a
proportionate amount, determined by the ratio of the moneys
available in the fund to the total supplementary payments
then due, shall be payable. Thereafter supplementary payments
shall cease and shall not be resumed until further funds are
made available for this purpose through appropriation by the
State of Illinois. After all supplementary payments to all
persons entitled thereto have been completed, any remaining
moneys in this fund shall be transferred to the Public School
Teachers' Pension and Retirement Fund established by this
Article; provided that, notwithstanding any provision of law
to the contrary, in the event such a transfer shall have been
made in prior biennia, and there is insufficient moneys
available in the supplementary payment fund to make full
statutory payments to persons entitled thereto in the current
biennium, the Public School Teachers' Pension and Retirement
Fund established by this Article may transfer back to the
supplemental payment fund moneys in an amount not exceeding
the amount so transferred to it at the close of prior
biennia.
4. Supplementary payments shall be suspended while the
recipient is employed by the City in which the fund exists,
by any other municipal corporation coterminous with the City
or by any public school or charter school in this State,
unless the recipient is so employed temporarily as a
substitute teacher for 100 days or less in a school year or
on an hourly basis with earnings not in excess of the sum
payable for 100 days' substitute service.
5. The Retired Teachers Supplementary Payment Fund shall
be held and administered by the Public School Teachers'
Pension and Retirement Fund established by this Article.
(Source: P.A. 79-1055.)
(40 ILCS 5/17-158) (from Ch. 108 1/2, par. 17-158)
Sec. 17-158. Administrative review. The provisions of
the Administrative Review Law, and all amendments and
modifications thereof and the rules adopted pursuant thereto,
shall apply to and govern all proceedings for the judicial
review of final administrative decisions of the Board
retirement board provided for under this Article. The term
"administrative decision" is as defined in Section 3-101 of
the Code of Civil Procedure.
(Source: P.A. 82-783.)
Section 5. The School Code is amended by changing
Sections 1D-1, 2-3.64, 2-3.117, 2-3.120 (as added by Public
Act 90-463), 10-20.12b, 10-21.9, 14-15.01, 18-8, 22-23,
34-2.4b, 34-4.5, and 34-18.5 and adding Sections 2-3.109a,
2-3.122, 10-22.13a, 14-8.02b, 17-2.11b, and 27-20.6 as
follows:
(105 ILCS 5/1D-1)
Sec. 1D-1. Block grant funding.
(a) For fiscal year 1996 and each fiscal year
thereafter, the State Board of Education shall award to a
school district having a population exceeding 500,000
inhabitants a general education block grant and an
educational services block grant, determined as provided in
this Section, in lieu of distributing to the district
separate State funding for the programs described in
subsections (b) and (c). The provisions of this Section,
however, do not apply to any federal funds that the district
is entitled to receive.
(b) The general education block grant shall include the
following programs: REI Initiative, Preschool At Risk, K-6
Comprehensive Arts, School Improvement Support, Urban
Education, Scientific Literacy, Substance Abuse Prevention,
Second Language Planning, Staff Development, Outcomes and
Assessment, K-6 Reading Improvement, Truants' Optional
Education, Hispanic Programs, Agriculture Education, Gifted
Education, Parental Education, Prevention Initiative, Report
Cards, and Criminal Background Investigations.
Notwithstanding any other provision of law, all amounts paid
under the general education block grant from State
appropriations to a school district in a city having a
population exceeding 500,000 inhabitants shall be
appropriated and expended by the board of that district for
any of the programs included in the block grant or any of the
board's lawful purposes.
(c) The educational services block grant shall include
the following programs: Bilingual, Regular and Vocational
Transportation, State Lunch and Free Breakfast Program,
Preschool At Risk, Special Education (Personnel,
Extraordinary, Transportation, Orphanage, Private Tuition),
Summer School, Educational Service Centers, and
Administrator's Academy. This subsection (c) does not
relieve the district of its obligation to provide the
services required under a program that is included within the
educational services block grant. It is the intention of the
General Assembly in enacting the provisions of this
subsection (c) to relieve the district of the administrative
burdens that impede efficiency and accompany single-program
funding. The General Assembly encourages the board to pursue
mandate waivers pursuant to Section 2-3.25g.
(d) For fiscal year 1996 and each fiscal year
thereafter, the amount of the district's block grants shall
be determined as follows: (i) with respect to each program
that is included within each block grant, the district shall
receive an amount equal to the same percentage of the current
fiscal year appropriation made for that program as the
percentage of the appropriation received by the district from
the 1995 fiscal year appropriation made for that program, and
(ii) the total amount that is due the district under the
block grant shall be the aggregate of the amounts that the
district is entitled to receive for the fiscal year with
respect to each program that is included within the block
grant that the State Board of Education shall award the
district under this Section for that fiscal year.
(e) The district is not required to file any application
or other claim in order to receive the block grants to which
it is entitled under this Section. The State Board of
Education shall make payments to the district of amounts due
under the district's block grants on a schedule determined by
the State Board of Education.
(f) A school district to which this Section applies
shall report to the State Board of Education on its use of
the block grants in such form and detail as the State Board
of Education may specify.
(g) This paragraph provides for the treatment of block
grants under Article 1C for purposes of calculating the
amount of block grants for a district under this Section.
Those block grants under Article IC are, for this purpose,
treated as included in the amount of appropriation for the
various programs set forth in paragraph (b) above. The
appropriation in each current fiscal year for each block
grant under Article 1C shall be treated for these purposes as
appropriations for the individual program included in that
block grant. The proportion of each block grant so allocated
to each such program included in it shall be the proportion
which the appropriation for that program was of all
appropriations for such purposes now in that block grant, in
fiscal 1995.
(Source: P.A. 89-15, eff. 5-30-95; 89-698, eff. 1-14-97.)
(105 ILCS 5/2-3.64) (from Ch. 122, par. 2-3.64)
Sec. 2-3.64. State goals and assessment.
(a) Beginning in the 1992-93 school year, the State
Board of Education shall establish standards and annually,
through the 1997-1998 school year, assess the performance
of: (i) all pupils enrolled in the 3rd, 6th, 8th, and 10th
grades in language arts (reading and writing) and
mathematics; and (ii) all pupils enrolled in the 4th, 7th,
and 11th grades in the biological, physical, and social
sciences. Beginning in the 1998-1999 1995-96 school year,
the State Board of Education shall establish standards and
periodically, in collaboration with local school districts,
conduct, through the 1997-1998 school year, studies of
student performance in the learning areas of fine arts and
physical development/health. Beginning with the 1998-1999
school year, the State Board of Education shall annually
assess the performance of: (i) all pupils enrolled in the
3rd, and 5th, 8th, and 10th grades in English language arts
(reading and writing) the basic subjects of reading, writing,
and mathematics; and (ii) all pupils enrolled in the 4th,
7th, and 11th grades in the biological and physical sciences
and the social sciences. The State Board of Education shall
establish, in final form and within one year after the
effective date of this amendatory Act of 1996, the academic
standards that are to be applicable to pupils who are subject
to State assessment under this Section beginning with the
1998-1999 school year. However, the State Board of Education
shall not establish any such standards in final form without
first providing opportunities for public participation and
local input in the development of the final academic
standards. Those opportunities shall include a
well-publicized period of public comment, public hearings
throughout the State, and opportunities to file written
comments. Beginning with the 1998-99 school year and
thereafter, the State assessment will identify pupils in the
3rd grade or 5th grade who do not meet the State standards.
If, by performance on the State assessment tests or local
assessments or by teacher judgment, a student's performance
is determined to be judgement, demonstrate a proficiency
level comparable to the average pupil performance 2 or more
grades below current placement, the student shall be provided
a remediation program developed by the district in
consultation with a parent or guardian. Such remediation
programs may include, but shall not be limited to, increased
or concentrated instructional time, a remedial summer school
program of not less than 90 hours, improved instructional
approaches, tutorial sessions, retention in grade, and
modifications to instructional materials. Each pupil for whom
a remediation program is developed under this subsection
shall be required to enroll in and attend whatever program
the district determines is appropriate for the pupil.
Districts may combine students in remediation programs where
appropriate and may cooperate with other districts in the
design and delivery of those programs. The parent or
guardian of a student required to attend a remediation
program under this Section shall be given written notice of
that requirement by the school district a reasonable time
prior to commencement of the remediation program that the
student is to attend. The State shall be responsible for
providing school districts with the new and additional
funding, under Section 2-3.51.5 or by other or additional
means, that is required to enable the districts to operate
remediation programs for the pupils who are required to
enroll in and attend those programs under this Section. Every
individualized educational program as described in Article 14
shall identify if the State test or components thereof are
appropriate for that student. For those pupils for whom the
State test or components thereof are not appropriate, the
State Board of Education shall develop rules and regulations
governing the administration of alternative assessments
prescribed within each student's individualized educational
program which are appropriate to the disability of each
student. All pupils who are in a State approved transitional
bilingual education program or transitional program of
instruction shall participate in the State assessment. Any
student who has been enrolled in a State approved bilingual
education program less than 3 academic years shall be
exempted if the student's lack of English as determined by an
English language proficiency test would keep the student from
understanding the test, and that student's district shall
have an alternative assessment program in place for that
student. The State Board of Education shall appoint a task
force of concerned parents, teachers, school administrators
and other professionals to assist in identifying such
alternative assessment programs. Reasonable accommodations as
prescribed by the State Board of Education shall be provided
for individual students in the assessment procedure. All
assessment procedures prescribed by the State Board of
Education shall require: (i) that each test used for State
and local student assessment testing under this Section
identify by name the pupil taking the test; (ii) that the
name of the pupil taking the test be placed on the test at
the time the test is taken; (iii) that the results or scores
of each test taken under this Section by a pupil of the
school district be reported to that district and identify by
name the pupil who received the reported results or of
scores; and (iv) that the results or scores of each test
taken under this Section be made available to the parents of
the pupil. In addition, beginning with the 1998-1999 school
year and in each school year thereafter, all scores received
by a student on the Illinois Goals and Assessment Program
tests administered in grades 10 and 11 by the State Board of
Education under this Section and, beginning with the
1999-2000 school year and in each school year thereafter, the
scores received by a student on the Prairie State Achievement
Examination administered under subsection (c) of this Section
shall become part of the student's permanent record and shall
be entered therein pursuant to regulations that the State
Board of Education shall promulgate for that purpose in
accordance with Section 3 and subsection (e) of Section 2 of
the Illinois School Student Records Act. Scores received by
students on the Illinois Goals and Assessment Program tests
administered in other grades shall be placed into students'
temporary records. Except as provided in subsection (c) of
this Section, the State Board of Education shall establish a
common month in each school year for which State testing
shall occur to meet the objectives of this Section. However,
if the schools of a district are closed and classes are not
scheduled during any week that is established by the State
Board of Education as the week of the month when State
testing under this Section shall occur, the school district
may administer the required State testing at any time up to 2
weeks following the week established by the State Board of
Education for the testing, so long as the school district
gives the State Board of Education written notice of its
intention to deviate from the established schedule by January
2 of the year in which falls the week established by the
State Board of Education for the testing. The maximum time
allowed for all actual testing required under this subsection
during the school year shall not exceed 25 hours as allocated
among the required tests by the State Board of Education.
(a-5) Any IGAP test administered pursuant to this
Section shall be academically based. The State Board of
Education shall review the current assessment testing
schedule applicable under subsection (a) on the effective
date of this amendatory Act of 1996 and submit a plan to the
General Assembly, on or before December 31, 1996, to increase
the effectiveness of the State assessment tests administered
under that subsection with respect to student diagnosis and
to reduce the amount of classroom time spent administering
those tests. The General Assembly may enact the
recommendations made by the State Board of Education to
maximize effectiveness and minimize the hours and grade
levels of testing.
(b) It shall be the policy of the State to encourage
school districts to continuously assess pupil proficiency in
the fundamental learning areas in order to: (i) provide
timely information on individual students' performance
relative to State standards that is adequate to guide
instructional strategies; (ii) improve future instruction;
and (iii) complement the information provided by the State
assessment system described in this Section. Each district's
school improvement plan must address specific activities the
district intends to implement to assist pupils who by teacher
judgment judgement and assessment results as prescribed in
subsection (a) of this Section demonstrate that they are not
meeting State goals or local objectives. Such activities may
include, but shall not be limited to, summer school, extended
school day, special homework, tutorial sessions, modified
instructional materials, other modifications in the
instructional program, reduced class size or retention in
grade. To assist school districts in assessing pupil
proficiency in reading in the primary grades, the State Board
shall make optional reading inventories for diagnostic
purposes available to each school district that requests such
assistance. Districts that administer the reading
inventories may develop remediation programs for students who
perform in the bottom half of the student population. Those
remediation programs may be funded by moneys provided under
the School Safety and Educational Improvement Block Grant
Program established under Section 2-3.51.5. Nothing in this
Section shall prevent school districts from implementing
testing and remediation policies for grades not required
under this Section.
(c) Beginning with the 1999-2000 school year, each
school district that operates a high school program for
students in grades 9 through 12 shall annually administer the
a Prairie State Achievement Examination established under
this subsection to its 12th grade students as set forth below
each year to its 12th grade students. The Prairie State
Achievement Examination shall be developed by the State Board
of Education to measure student performance in the 5
fundamental academic areas of reading, writing, mathematics,
science, and social sciences studies. The State Board of
Education shall establish the academic standards that are to
apply in measuring student performance on the Prairie State
Achievement Examination in those 5 fundamental academic
areas, including the minimum composite examination score and
the minimum score in each area that, taken together, will
qualify a student to for purposes of this Section as a score
that is excellent. A student whose score on the Prairie State
Achievement Examination is determined to be excellent by the
State Board of Education shall receive the Prairie State
Achievement Award from the State in recognition of the
student's excellent performance. Each school district that is
subject to the requirements of this subsection (c) shall
afford a graduating student 2 opportunities to take the
Prairie State Achievement Examination during the semester in
which the student will graduate. The State Board of
Education shall annually notify districts of the weeks during
which these test administrations shall be required to occur.
Each 12th grade student, exclusive of a student whose
individualized educational program developed under Article 14
identifies does not identify the Prairie State Achievement
Examination as inappropriate appropriate for the student,
shall be required to take the examination in the final
semester before his or her graduation. Score reports for
each fundamental academic area shall indicate the score that
qualifies as an excellent score on that portion of the
examination. Any student who attains a satisfactory
composite score but who fails to earn a qualifying score in
any one or more of the fundamental academic areas on the
initial test administration for the semester during which the
student will graduate from high school shall be permitted to
retake such portion or portions of the examination during the
second test of that semester. Districts shall inform their
students of the timelines and procedures applicable to their
optional participation in such additional administrations of
the Prairie State Achievement Examination., which each school
district shall administer to its 12th grade students in
January of each school year. The Prairie State Achievement
Examination shall be administered by each school district a
second time, in March of each school year, for those 12th
grade students who fail to receive a score on the January
examination that would qualify them to receive the Prairie
State Achievement Award and who elect to take the March
examination for the purpose of attempting to earn a score
that will qualify them to receive that award. Students who
will graduate from high school before entering grade 12 shall
take the Prairie State Achievement Examination during the
school year in which they will graduate from high school.
Students receiving special education services whose
individualized educational programs do not identify the
Prairie State Achievement Examination as inappropriate
appropriate for them nevertheless shall have the option of
taking the examination, which shall be administered to those
students in accordance with standards adopted by the State
Board of Education to accommodate the respective disabilities
of those students. A student who successfully completes all
other applicable high school graduation requirements but
fails to receive a score on the Prairie State Achievement
Examination that qualifies the student for receipt of the
Prairie State Achievement Award shall nevertheless qualify
for the receipt of a regular high school diploma.
(Source: P.A. 88-192; 88-227; 88-670, eff. 12-2-94; 88-686,
eff. 1-24-95; 89-610, eff. 8-6-96.)
(105 ILCS 5/2-3.109a new)
Sec. 2-3.109a. Laboratory schools grant eligibility. A
laboratory school as defined in Section 18-8 may apply for
and be eligible to receive, subject to the same restrictions
applicable to school districts, any grant administered by the
State Board of Education that is available for school<