093_HB3606

 
                                     LRB093 11169 EFG 12110 b

 1        AN ACT in relation to public employee benefits.

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

 4        Section 5.  The  Illinois  Pension  Code  is  amended  by
 5    changing Sections 16-127 and 16-128 as follows:

 6        (40 ILCS 5/16-127) (from Ch. 108 1/2, par. 16-127)
 7        Sec. 16-127.  Computation of creditable service.
 8        (a)  Each  member  shall  receive  regular credit for all
 9    service as a teacher from the  date  membership  begins,  for
10    which satisfactory evidence is supplied and all contributions
11    have been paid.
12        (b)  The following periods of service shall earn optional
13    credit  and  each  member  shall  receive credit for all such
14    service for which satisfactory evidence is supplied  and  all
15    contributions have been paid as of the date specified:
16             (1)  Prior service as a teacher.
17             (2)  Service  in  a  capacity essentially similar or
18        equivalent to that of a teacher,  in  the  public  common
19        schools  in  school  districts in this State not included
20        within the provisions of this System,  or  of  any  other
21        State,  territory, dependency or possession of the United
22        States, or in schools operated by or under  the  auspices
23        of the United States, or under the auspices of any agency
24        or  department of any other State, and service during any
25        period  of  professional  speech  correction  or  special
26        education experience for  a  public  agency  within  this
27        State  or  any  other  State,  territory,  dependency  or
28        possession  of  the  United  States, and service prior to
29        February 1, 1951 as a recreation worker for the  Illinois
30        Department  of  Public Safety, for a period not exceeding
31        the lesser of 2/5 of the total creditable service of  the
 
                            -2-      LRB093 11169 EFG 12110 b
 1        member  or  10  years.   The  maximum service of 10 years
 2        which is allowable under this paragraph shall be  reduced
 3        by  the  service  credit  which  is  validated  by  other
 4        retirement  systems under paragraph (i) of Section 15-113
 5        and paragraph 1 of Section 17-133.  Credit granted  under
 6        this  paragraph  may  not  be  used in determination of a
 7        retirement annuity  or  disability  benefits  unless  the
 8        member  has at least 5 years of creditable service earned
 9        subsequent to this employment with one  or  more  of  the
10        following  systems:  Teachers'  Retirement  System of the
11        State of Illinois, State Universities Retirement  System,
12        and  the  Public  School Teachers' Pension and Retirement
13        Fund of Chicago.  Whenever such  service  credit  exceeds
14        the maximum allowed for all purposes of this Article, the
15        first   service  rendered  in  point  of  time  shall  be
16        considered. The changes to this subdivision  (b)(2)  made
17        by  Public Act 86-272 shall apply not only to persons who
18        on or after its effective date (August 23, 1989)  are  in
19        service  as  a  teacher  under  the  System,  but also to
20        persons whose status as such a teacher  terminated  prior
21        to  such effective date, whether or not such person is an
22        annuitant on that date.
23             (3)  Any  periods  immediately  following   teaching
24        service,  under  this  System  or  under  Article 17, (or
25        immediately following service prior to February  1,  1951
26        as  a  recreation  worker  for the Illinois Department of
27        Public Safety) spent in active service with the  military
28        forces of the United States; periods spent in educational
29        programs that prepare for return to teaching sponsored by
30        the  federal  government  following  such active military
31        service; if a teacher returns to teaching service  within
32        one calendar year after discharge or after the completion
33        of   the  educational  program,  a  further  period,  not
34        exceeding  one  calendar  year,  between  time  spent  in
 
                            -3-      LRB093 11169 EFG 12110 b
 1        military service or in such educational programs and  the
 2        return  to employment as a teacher under this System; and
 3        a period of up to 5 years  2  years  of  active  military
 4        service   not   immediately  following  employment  as  a
 5        teacher.
 6             The changes  to  this  Section  and  Section  16-128
 7        relating  to  military  service made by P.A. 87-794 shall
 8        apply not only to persons who on or after  its  effective
 9        date  are  in  service as a teacher under the System, but
10        also to persons whose  status  as  a  teacher  terminated
11        prior  to  that  date,  whether  or  not the person is an
12        annuitant on that date.  In the case of an annuitant  who
13        applies  for  credit  allowable  under this Section for a
14        period of  military  service  that  did  not  immediately
15        follow   employment,   and  who  has  made  the  required
16        contributions for  such  credit,  the  annuity  shall  be
17        recalculated  to  include  the additional service credit,
18        with the increase taking effect on the  date  the  System
19        received  written  notification of the annuitant's intent
20        to purchase the credit, if payment of  all  the  required
21        contributions  is  made within 60 days of such notice, or
22        else on the first annuity payment date following the date
23        of payment of the required contributions.  In calculating
24        the automatic annual increase for  an  annuity  that  has
25        been  recalculated  under    this  Section,  the increase
26        attributable to the additional  service  allowable  under
27        P.A.  87-794  shall  be  included  in  the calculation of
28        automatic annual increases accruing after  the  effective
29        date of the recalculation.
30             Credit  for  military service shall be determined as
31        follows: if entry  occurs  during  the  months  of  July,
32        August,  or September and the member was a teacher at the
33        end of the  immediately  preceding  school  term,  credit
34        shall  be  granted from July 1 of the year in which he or
 
                            -4-      LRB093 11169 EFG 12110 b
 1        she entered service; if entry occurs  during  the  school
 2        term  and  the  teacher  was  in  teaching service at the
 3        beginning of the school term,  credit  shall  be  granted
 4        from  July  1  of  such  year.   In all other cases where
 5        credit for military service is allowed, credit  shall  be
 6        granted from the date of entry into the service.
 7             The  total  period  of  military  service  for which
 8        credit is granted shall not exceed 5 years for any member
 9        unless the service:  (A)  is  validated  before  July  1,
10        1964,  and  (B)  does  not  extend  beyond  July 1, 1963.
11        Credit for military service shall be granted  under  this
12        Section  only  if  not  more than 5 years of the military
13        service for which credit is granted under this Section is
14        used by the member to qualify for a  military  retirement
15        allotment  from  any  branch  of  the armed forces of the
16        United States.  The changes to  this  subdivision  (b)(3)
17        made by Public Act 86-272 shall apply not only to persons
18        who  on or after its effective date (August 23, 1989) are
19        in service as a teacher under the  System,  but  also  to
20        persons  whose  status as such a teacher terminated prior
21        to such effective date, whether or not such person is  an
22        annuitant on that date.
23             (4)  Any  periods  served as a member of the General
24        Assembly.
25             (5)(i)  Any periods for which a teacher, as  defined
26        in  Section  16-106,  is  granted  a  leave  of  absence,
27        provided he or she returns to teaching service creditable
28        under  this  System  or the State Universities Retirement
29        System following the leave; (ii) periods during  which  a
30        teacher is involuntarily laid off from teaching, provided
31        he  or  she  returns  to  teaching following the lay-off;
32        (iii) periods prior  to  July  1,  1983  during  which  a
33        teacher  ceased  covered  employment  due  to  pregnancy,
34        provided  that  the  teacher returned to teaching service
 
                            -5-      LRB093 11169 EFG 12110 b
 1        creditable under this System or  the  State  Universities
 2        Retirement  System  following  the  pregnancy and submits
 3        evidence satisfactory to the Board documenting  that  the
 4        employment  ceased  due  to  pregnancy;  and (iv) periods
 5        prior to July 1,  1983  during  which  a  teacher  ceased
 6        covered  employment for the purpose of adopting an infant
 7        under 3 years of age or caring for a newly adopted infant
 8        under 3 years of age, provided that the teacher  returned
 9        to  teaching  service creditable under this System or the
10        State  Universities  Retirement  System   following   the
11        adoption  and  submits evidence satisfactory to the Board
12        documenting that the employment ceased for the purpose of
13        adopting an infant under 3 years of age or caring  for  a
14        newly  adopted  infant  under  3  years of age.  However,
15        total credit under this paragraph (5) may  not  exceed  3
16        years.
17             Any  qualified  member  or  annuitant  may apply for
18        credit under item (iii) or (iv)  of  this  paragraph  (5)
19        without  regard  to whether service was terminated before
20        the effective date of this amendatory Act  of  1997.   In
21        the  case  of  an  annuitant who establishes credit under
22        item (iii) or (iv), the annuity shall be recalculated  to
23        include  the  additional service credit.  The increase in
24        annuity shall take effect on the date the System receives
25        written  notification  of  the  annuitant's   intent   to
26        purchase   the   credit,  if  the  required  evidence  is
27        submitted and the required contribution  paid  within  60
28        days of that notification, otherwise on the first annuity
29        payment  date  following  the  System's  receipt  of  the
30        required  evidence  and contribution.  The increase in an
31        annuity  recalculated  under  this  provision  shall   be
32        included in the calculation of automatic annual increases
33        in  the  annuity accruing after the effective date of the
34        recalculation.
 
                            -6-      LRB093 11169 EFG 12110 b
 1             Optional  credit  may  be   purchased   under   this
 2        subsection  (b)(5) for periods during which a teacher has
 3        been granted a leave of absence pursuant to Section 24-13
 4        of the School Code.  A teacher whose service  under  this
 5        Article  terminated  prior  to the effective date of P.A.
 6        86-1488 shall  be  eligible  to  purchase  such  optional
 7        credit.   If a teacher who purchases this optional credit
 8        is already receiving  a  retirement  annuity  under  this
 9        Article,  the  annuity  shall  be  recalculated as if the
10        annuitant had applied for the leave of absence credit  at
11        the  time  of  retirement.   The  difference  between the
12        entitled annuity and the actual annuity shall be credited
13        to the purchase of the optional credit.  The remainder of
14        the purchase cost of the optional credit shall be paid on
15        or before April 1, 1992.
16             The change in this  paragraph  made  by  Public  Act
17        86-273  shall  be applicable to teachers who retire after
18        June 1, 1989, as well as to teachers who are  in  service
19        on that date.
20             (6)  Any    days   of   unused   and   uncompensated
21        accumulated sick leave earned by a teacher.  The  service
22        credit granted under this paragraph shall be the ratio of
23        the  number  of unused and uncompensated accumulated sick
24        leave days to 170 days, subject to a maximum of  2  years
25        of  service  credit.   Prior  to the member's retirement,
26        each former employer shall  certify  to  the  System  the
27        number of unused and uncompensated accumulated sick leave
28        days credited to the member at the time of termination of
29        service.  The  period  of  unused sick leave shall not be
30        considered  in  determining   the   effective   date   of
31        retirement.    A   member   is   not   required  to  make
32        contributions in  order  to  obtain  service  credit  for
33        unused sick leave.
34             Credit  for  sick  leave  shall,  at  retirement, be
 
                            -7-      LRB093 11169 EFG 12110 b
 1        granted by  the  System  for  any  retiring  regional  or
 2        assistant  regional superintendent of schools at the rate
 3        of 6 days per  year  of  creditable  service  or  portion
 4        thereof  established while serving as such superintendent
 5        or assistant superintendent.
 6             (7)  Periods prior to February 1, 1987 served as  an
 7        employee  of the Illinois Mathematics and Science Academy
 8        for which credit has not been  terminated  under  Section
 9        15-113.9 of this Code.
10             (8)  Service   as  a  substitute  teacher  for  work
11        performed prior to July 1, 1990.
12             (9)  Service  as  a  part-time  teacher   for   work
13        performed prior to July 1, 1990.
14             (10)  Up  to  2  years  of  employment with Southern
15        Illinois University - Carbondale from September  1,  1959
16        to  August  31,  1961, or with Governors State University
17        from September 1, 1972 to August 31, 1974, for which  the
18        teacher  has  no  credit  under  Article  15.  To receive
19        credit under this item (10),  a  teacher  must  apply  in
20        writing  to  the Board and pay the required contributions
21        before May 1, 1993 and have at least 12 years of  service
22        credit under this Article.
23        (b-1)  A member may establish optional credit for up to 2
24    years  of service as a teacher or administrator employed by a
25    private school recognized by  the  Illinois  State  Board  of
26    Education,  provided that the teacher (i) was certified under
27    the law governing the certification of teachers at  the  time
28    the service was rendered, (ii) applies in writing on or after
29    June  1,  2002  and on or before June 1, 2005, (iii) supplies
30    satisfactory evidence of the employment,  (iv)  completes  at
31    least  10  years  of  contributing  service  as  a teacher as
32    defined in Section 16-106,  and  (v)  pays  the  contribution
33    required  in  subsection (d-5) of Section 16-128.  The member
34    may apply for  credit  under  this  subsection  and  pay  the
 
                            -8-      LRB093 11169 EFG 12110 b
 1    required  contribution  before  completing  the  10  years of
 2    contributing service required under item (iv), but the credit
 3    may not be used until  the  item  (iv)  contributing  service
 4    requirement has been met.
 5        (c)  The  service credits specified in this Section shall
 6    be granted only if: (1) such service credits are not used for
 7    credit in any other statutory tax-supported  public  employee
 8    retirement  system  other  than  the  federal Social Security
 9    program; and (2) the member makes the required  contributions
10    as  specified  in  Section  16-128.   Except  as  provided in
11    subsection (b-1) of this Section, the service credit shall be
12    effective as of  the  date  the  required  contributions  are
13    completed.
14        Any  service  credits  granted  under  this Section shall
15    terminate upon cessation of membership for any cause.
16        Credit may not be granted under this Section covering any
17    period for which an age retirement or  disability  retirement
18    allowance has been paid.
19    (Source: P.A. 92-867, eff. 1-3-03.)

20        (40 ILCS 5/16-128) (from Ch. 108 1/2, par. 16-128)
21        Sec.     16-128.  Creditable     service    -    required
22    contributions.
23        (a)  In order to receive the creditable service specified
24    under subsection (b) of Section 16-127, a member is  required
25    to  make  the following contributions: (i) an amount equal to
26    the contributions which would have  been  required  had  such
27    service been rendered as a member under this System; (ii) for
28    military service not immediately following employment and for
29    service  established  under  subdivision  (b)(10)  of Section
30    16-127, an amount determined by the Board to be equal to  the
31    employer's  normal  cost  of  the  benefits  accrued for such
32    service; and (iii) interest from the date  the  contributions
33    would have been due (or, in the case of a person establishing
 
                            -9-      LRB093 11169 EFG 12110 b
 1    credit  for  military  service  under  subdivision  (b)(3) of
 2    Section 16-127, the date of first membership in  the  System,
 3    if  that  date  is  later)  to  the  date  of payment, at the
 4    following rate of interest, compounded annually:  for periods
 5    prior to July 1, 1965, regular interest; from July 1, 1965 to
 6    June 30, 1977, 4% per  year;  on  and  after  July  1,  1977,
 7    regular interest.
 8        (b)  In   order   to  receive  creditable  service  under
 9    paragraph (2) of subsection (b) of Section 16-127  for  those
10    who  were  not members on June 30, 1963, the minimum required
11    contribution shall be $420 per year of service together  with
12    interest  at  4%  per  year  compounded annually from July 1,
13    preceding the date of membership until June 30, 1977  and  at
14    regular  interest  compounded annually thereafter to the date
15    of payment.
16        (c)  In determining the contribution required in order to
17    receive creditable service under paragraph (3) of  subsection
18    (b)  of  Section 16-127, the salary rate for the remainder of
19    the school term in which a  member  enters  military  service
20    shall  be  assumed to be equal to the member's salary rate at
21    the time of entering military service.  However, for military
22    service not immediately following employment, the salary rate
23    on the last date as a participating  teacher  prior  to  such
24    military  service,  or  on  the first date as a participating
25    teacher after such military service,  whichever  is  greater,
26    shall  be  assumed to be equal to the member's salary rate at
27    the time of entering military service.  For each school  term
28    thereafter,  the  member's salary rate shall be assumed to be
29    5% higher than the salary rate in the previous school term.
30        (d)  In determining the contribution required in order to
31    receive creditable service under paragraph (5) of  subsection
32    (b)  of  Section  16-127,  a  member's salary rate during the
33    period for which credit is being established shall be assumed
34    to be equal to the  member's  last  salary  rate  immediately
 
                            -10-     LRB093 11169 EFG 12110 b
 1    preceding that period.
 2        (d-5)  For  each year of service credit to be established
 3    under  subsection  (b-1)  of  Section  16-127,  a  member  is
 4    required to contribute to the System (i) 16.5% of the  annual
 5    salary  rate during the first year of full-time employment as
 6    a teacher under this Article  following  the  private  school
 7    service,  plus  (ii)  interest thereon from the date of first
 8    full-time  employment  as  a  teacher  under   this   Article
 9    following  the private school service to the date of payment,
10    compounded annually, at the rate of 8.5% per year for periods
11    before the effective date of this amendatory Act of the  92nd
12    General  Assembly, and for subsequent periods at a rate equal
13    to  the  System's  actuarially  assumed  rate  of  return  on
14    investments.
15        (e)  The contributions required under this Section may be
16    made from the date the statement for such creditable  service
17    is   issued   until   retirement  date.   All  such  required
18    contributions must be made before any retirement  annuity  is
19    granted.
20    (Source: P.A. 92-867, eff. 1-3-03.)

21        Section  99.  Effective date.  This Act takes effect upon
22    becoming law.