HB3813 EngrossedLRB097 13613 AMC 58149 b

1    AN ACT concerning public employee benefits.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Pension Code is amended by changing
5Sections 1-114, 1-135, 8-226, 11-215, 17-134, and 17-134.1 and
6by adding Sections 3-110.12, 3-110.13, 3-110.14, 4-108.7,
74-108.8, 4-108.9, 5-212.1, 5-212.2, 5-212.3, 6-209.2, 6-209.3,
86-209.4, 8-117.1, 8-226.8, 11-116.1, 11-215.2, 15-113.12,
915-113.13, 15-113.14, 16-110.1, 16-110.2, 16-110.3, 17-109.3,
10and 17-134.2 as follows:
 
11    (40 ILCS 5/1-114)  (from Ch. 108 1/2, par. 1-114)
12    Sec. 1-114. Liability for Breach of Fiduciary Duty. (a) Any
13person who is a fiduciary with respect to a retirement system
14or pension fund established under this Code who breaches any
15duty imposed upon fiduciaries by this Code, including, but not
16limited to, a failure to report a reasonable suspicion of a
17false statement specified in Section 1-135 of this Code, shall
18be personally liable to make good to such retirement system or
19pension fund any losses to it resulting from each such breach,
20and to restore to such retirement system or pension fund any
21profits of such fiduciary which have been made through use of
22assets of the retirement system or pension fund by the
23fiduciary, and shall be subject to such equitable or remedial

 

 

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1relief as the court may deem appropriate, including the removal
2of such fiduciary.
3    (b) No person shall be liable with respect to a breach of
4fiduciary duty under this Code if such breach occurred before
5such person became a fiduciary or after such person ceased to
6be a fiduciary.
7(Source: P.A. 82-960.)
 
8    (40 ILCS 5/1-135)
9    Sec. 1-135. Fraud. Any person who knowingly makes any false
10statement or falsifies or permits to be falsified any record of
11a retirement system or pension fund created under this Code or
12the Illinois State Board of Investment in an attempt to defraud
13the retirement system or pension fund created under this Code
14or the Illinois State Board of Investment is guilty of a Class
153 felony. Any reasonable suspicion by any appointed or elected
16commissioner, trustee, director, board member, or employee of a
17retirement system or pension fund created under this Code or
18the State Board of Investment of a false statement or falsified
19record being submitted or permitted by a person under this Code
20shall be immediately referred to the board of trustees of a
21retirement system or pension fund created under this Code or
22the State Board of Investment or the State's Attorney of the
23jurisdiction where the alleged fraudulent activity occurred.
24The board of trustees of a retirement system or pension fund
25created under this Code or the State Board of Investment shall

 

 

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1immediately notify the State's Attorney of the jurisdiction
2where any alleged fraudulent activity occurred for
3investigation.
4(Source: P.A. 96-6, eff. 4-3-09.)
 
5    (40 ILCS 5/3-110.12 new)
6    Sec. 3-110.12. Leaves of absence. For any leave of absence
7that is covered under subsection (c) of Section 3-110 and that
8is granted after the effective date of this amendatory Act of
9the 97th General Assembly, any pension credit earned in this
10Article shall be based on the participant's salary immediately
11before the leave of absence. The participant must contribute an
12amount equal to the actuarially determined normal cost of the
13benefit as calculated by the fund. The employer of the
14participant may elect to contribute all or a portion of the
15participant's required contribution.
 
16    (40 ILCS 5/3-110.13 new)
17    Sec. 3-110.13. Leave of absence benefit recalculation.
18Every 3 years, beginning on or as soon as practical after the
19effective date of this amendatory Act of the 97th General
20Assembly, each fund shall determine if any benefit earned by a
21participant who first earns credit on or after the effective
22date of this Section as a result of subsection (c) of Section
233-110 has created any additional unfunded liability to the
24fund. If it is determined by the fund that additional unfunded

 

 

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1liability has been created, then the participant must remit the
2total cost to the fund, as determined by the fund, within one
3year.
 
4    (40 ILCS 5/3-110.14 new)
5    Sec. 3-110.14. Leaves of absence; computation of salary.
6For any participant who, on or after the effective date of this
7amendatory Act of the 97th General Assembly, takes a leave of
8absence covered by subsection (c) of Section 3-110, his or her
9average salary shall be based upon the regular salary rate
10received by the participant for his or her municipal employment
11immediately prior to that leave of absence.
 
12    (40 ILCS 5/4-108.7 new)
13    Sec. 4-108.7. Leaves of absence. For any leave of absence
14that is covered under subdivision (c)(3) of Section 4-108 and
15that is granted after the effective date of this amendatory Act
16of the 97th General Assembly, any pension credit earned in this
17Article shall be based on the participant's salary immediately
18before the leave of absence. The participant must contribute an
19amount equal to the actuarially determined normal cost of the
20benefit as calculated by the fund. The employer of the
21participant may elect to contribute all or a portion of the
22participant's required contribution.
 
23    (40 ILCS 5/4-108.8 new)

 

 

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1    Sec. 4-108.8. Leave of absence benefit recalculation.
2Every 3 years, beginning on or as soon as practical after the
3effective date of this amendatory Act of the 97th General
4Assembly, each fund shall determine if any benefit earned by a
5participant who first earns credit on or after the effective
6date of this Section as a result of subdivision (c)(3) of
7Section 4-108 has created any additional unfunded liability to
8the fund. If it is determined by the fund that additional
9unfunded liability has been created, then the participant must
10remit the total cost to the fund, as determined by the fund,
11within one year.
 
12    (40 ILCS 5/4-108.9 new)
13    Sec. 4-108.9. Leaves of absence; computation of salary. For
14any participant who, on or after the effective date of this
15amendatory Act of the 97th General Assembly, takes a leave of
16absence covered by subdivision (c)(3) of Section 4-108, his or
17her average salary shall be based upon the regular salary rate
18received by the participant for his or her municipal employment
19immediately prior to that leave of absence.
 
20    (40 ILCS 5/5-212.1 new)
21    Sec. 5-212.1. Pension credit earned for other service. Any
22credit for other service that is covered under subdivision (b)
23of Section 5-214 and that is granted after the effective date
24of this amendatory Act of the 97th General Assembly shall be

 

 

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1based on the participant's salary immediately before engaging
2in the type of employment specified in that provision. The
3participant must contribute an amount equal to the actuarially
4determined normal cost of the benefit as calculated by the
5fund. The employer of the participant may elect to contribute
6all or a portion of the participant's required contribution.
 
7    (40 ILCS 5/5-212.2 new)
8    Sec. 5-212.2. Credit for other service; recalculation.
9Every 3 years, beginning on or as soon as practical after the
10effective date of this amendatory Act of the 97th General
11Assembly, the fund shall determine if any benefit earned by a
12participant who first earns credit on or after the effective
13date of this Section as a result of subdivision (b) of Section
145-214 has created any additional unfunded liability to the
15fund. If it is determined by the fund that additional unfunded
16liability has been created, then the participant must remit the
17total cost to the fund, as determined by the fund, within one
18year.
 
19    (40 ILCS 5/5-212.3 new)
20    Sec. 5-212.3. Salary for credit earned for other service.
21For any participant who, on or after the effective date of this
22amendatory Act of the 97th General Assembly, earns credit under
23subdivision (b) of Section 5-214, his or her average salary
24shall be based upon the regular salary rate received by the

 

 

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1participant for his or her municipal employment immediately
2prior to that engaging in the type of employment specified in
3that provision.
 
4    (40 ILCS 5/6-209.2 new)
5    Sec. 6-209.2. Pension credit earned for other service. Any
6credit earned under item (f) of the second paragraph of Section
76-209 and that is granted after the effective date of this
8amendatory Act of the 97th General Assembly shall be based on
9the participant's salary immediately before engaging in the
10type of employment specified in that provision. The participant
11must contribute an amount equal to the actuarially determined
12normal cost of the benefit as calculated by the fund. The
13employer of the participant may elect to contribute all or a
14portion of the participant's required contribution.
 
15    (40 ILCS 5/6-209.3 new)
16    Sec. 6-209.3. Credit for other service; recalculation.
17Every 3 years, beginning on or as soon as practical after the
18effective date of this amendatory Act of the 97th General
19Assembly, the fund shall determine if any benefit earned by a
20participant who first earns credit on or after the effective
21date of this Section as a result of item (f) of the second
22paragraph of Section 6-209 has created any additional unfunded
23liability to the fund. If it is determined by the fund that
24additional unfunded liability has been created, then the

 

 

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1participant must remit the total cost to the fund, as
2determined by the fund, within one year.
 
3    (40 ILCS 5/6-209.4 new)
4    Sec. 6-209.4. Salary for credit earned for other service.
5For any participant who, on or after the effective date of this
6amendatory Act of the 97th General Assembly, has earned credit
7under item (f) of the second paragraph of Section 6-209, his or
8her average salary shall be based upon the regular salary rate
9received by the participant for his or her municipal employment
10immediately prior to that leave of absence.
 
11    (40 ILCS 5/8-117.1 new)
12    Sec. 8-117.1. Leaves of absence; computation of salary. For
13any participant who, on or after the effective date of this
14amendatory Act of the 97th General Assembly, takes a leave of
15absence under subdivision (c) of Section 8-226, his or her
16highest average annual salary shall be based upon the regular
17salary rate received by the participant for his or her
18municipal employment immediately prior to that leave of
19absence.
 
20    (40 ILCS 5/8-226)  (from Ch. 108 1/2, par. 8-226)
21    Sec. 8-226. Computation of service. In computing the term
22of service of an employee prior to the effective date, the
23entire period beginning on the date he was first appointed and

 

 

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1ending on the day before the effective date, except any
2intervening period during which he was separated by withdrawal
3from service, shall be counted for all purposes of this
4Article, except that for any employee who was not in service on
5the day before the effective date, service rendered prior to
6such date shall not be considered for the purposes of Section
78-138.
8    For a person employed by an employer for whom this Article
9was in effect prior to January 1, 1950, from whose salary
10deductions are first made under this Article after December 31,
111949, any period of service rendered prior to the effective
12date, unless he was in service on the day before the effective
13date, shall not be counted as service.
14    The time a person was an employee of any territory annexed
15to the city prior to the effective date shall be counted as a
16period of service.
17    In computing the term of service of any employee subsequent
18to the day before the effective date, the following periods
19shall be counted as periods of service for age and service,
20widow's and child's annuity purposes:
21        (a) The time during which he performed the duties of
22    his position;
23        (b) Vacations, leaves of absence with whole or part
24    pay, and leaves of absence without pay not longer than 90
25    days;
26        (c) Leaves of absence without pay during which a

 

 

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1    participant is employed full-time by a local labor
2    organization that represents municipal employees, provided
3    that (1) the participant continues to make employee
4    contributions to the Fund as though he were an active
5    employee, based on the regular salary rate received by the
6    participant for his municipal employment immediately prior
7    to such leave of absence (and in the case of such
8    employment prior to December 9, 1987, pays to the Fund an
9    amount equal to the employee contributions for such
10    employment plus regular interest thereon as calculated by
11    the board), and based on his current salary with such labor
12    organization after the effective date of this amendatory
13    Act of 1991 for leaves of absence before the effective date
14    of this amendatory Act of the 97th General Assembly, and,
15    for leaves of absence after the effective date of this
16    amendatory Act of the 97th General Assembly, based on the
17    regular salary rate received by the participant for his
18    municipal employment immediately prior to such leave of
19    absence, (2) after January 1, 1989 the participant, or the
20    labor organization on the participant's behalf, makes
21    contributions to the Fund as though it were the employer,
22    in the same amount and same manner as specified under this
23    Article, based on the regular salary rate received by the
24    participant for his municipal employment immediately prior
25    to such leave of absence, and based on his current salary
26    with such labor organization after the effective date of

 

 

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1    this amendatory Act of 1991 for leaves of absence before
2    the effective date of this amendatory Act of the 97th
3    General Assembly, and, for leaves of absence after the
4    effective date of this amendatory Act of the 97th General
5    Assembly, based on the regular salary rate received by the
6    participant for his municipal employment immediately prior
7    to such leave of absence, and (3) the participant does not
8    receive credit in any pension plan established by the local
9    labor organization based on his employment by the
10    organization, including, but not limited to, pension plans
11    established by the local labor organization, the national
12    labor organization, or the international labor
13    organization;
14        (d) Any period of disability for which he received (i)
15    a disability benefit under this Article, or (ii) a
16    temporary total disability benefit under the Workers'
17    Compensation Act if the disability results from a condition
18    commonly termed heart attack or stroke or any other
19    condition falling within the broad field of coronary
20    involvement or heart disease, or (iii) whole or part pay;
21        (e) Any period for which contributions and service
22    credit have been transferred to this Fund under subsection
23    (d) of Section 9-121.1 or subsection (d) of Section
24    12-127.1 of this Code.
25    For a person employed by an employer in which the 1921 Act
26was in effect prior to January 1, 1950, from whose salary

 

 

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1deductions are first made under the 1921 Act or this Article
2after December 31, 1949, any period of service rendered
3subsequent to the effective date and prior to the date he
4became an employee and contributor, shall not be counted as a
5period of service under this Article, except such period for
6which he made payment as provided in Section 8-230 of this
7Article, in which case such period shall be counted as a period
8of service for all annuity purposes hereunder.
9    In computing the term of service of an employee subsequent
10to the day before the effective date for ordinary disability
11benefit purposes, all periods described in the preceding
12paragraph, except any such period for which he receives
13ordinary disability benefit, shall be counted as periods of
14service; provided, that for any person employed by an employer
15in which this Article was in effect prior to January 1, 1950,
16from whose salary deductions are first made under this Article
17after December 31, 1949, any period of service rendered
18subsequent to the effective date and prior to the date he
19became an employee and contributor, shall not be counted as a
20period of service for ordinary disability benefit purposes,
21unless the person made payment for the period as provided in
22Section 8-230 of this Article, in which case the period shall
23be counted as a period of service for ordinary disability
24purposes for periods of disability on or after the effective
25date of this amendatory Act of 1997.
26    Overtime or extra service shall not be included in

 

 

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1computing any term of service. Not more than 1 year of service
2shall be allowed for service rendered during any calendar year.
3(Source: P.A. 90-511, eff. 8-22-97.)
 
4    (40 ILCS 5/8-226.8 new)
5    Sec. 8-226.8. Leave of absence benefit recalculation.
6Every 3 years, beginning on or as soon as practical after the
7effective date of this amendatory Act of the 97th General
8Assembly, the fund shall determine if any benefit earned by a
9participant who first earns credit on or after the effective
10date of this Section as a result of subdivision (c) of Section
118-226 has created any additional unfunded liability to the
12fund. If it is determined by the fund that additional unfunded
13liability has been created, then the participant must remit the
14total cost to the fund, as determined by the fund, within one
15year.
 
16    (40 ILCS 5/11-116.1 new)
17    Sec. 11-116.1. Leaves of absence; computation of salary.
18For any participant who, on or after the effective date of this
19amendatory Act of the 97th General Assembly, takes a leave of
20absence under paragraph (3) of subsection (c) of Section
2111-215, his or her highest average annual salary shall be based
22upon the regular salary rate received by the participant for
23his or her municipal employment immediately prior to that leave
24of absence.
 

 

 

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1    (40 ILCS 5/11-215)  (from Ch. 108 1/2, par. 11-215)
2    Sec. 11-215. Computation of service.
3    (a) In computing the term of service of an employee prior
4to the effective date, the entire period beginning on the date
5he was first appointed and ending on the day before the
6effective date, except any intervening period during which he
7was separated by withdrawal from service, shall be counted for
8all purposes of this Article. Only the first year of each
9period of lay-off or leave of absence without pay, continuing
10or extending for a period in excess of one year, shall be
11counted as such service.
12    (b) For a person employed by an employer for whom this
13Article was in effect prior to August 1, 1949, from whose
14salary deductions are first made under this Article after July
1531, 1949, any period of service rendered prior to the effective
16date, unless he was in service on the day before the effective
17date, shall not be counted as service.
18    (c) In computing the term of service of an employee
19subsequent to the day before the effective date, the following
20periods of time shall be counted as periods of service for
21annuity purposes:
22        (1) the time during which he performed the duties of
23    his position;
24        (2) leaves of absence with whole or part pay, and
25    leaves of absence without pay not longer than 90 days;

 

 

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1        (3) leaves of absence without pay during which a
2    participant is employed full-time by a local labor
3    organization that represents municipal employees, provided
4    that (A) the participant continues to make employee
5    contributions to the Fund as though he were an active
6    employee, based on the regular salary rate received by the
7    participant for his municipal employment immediately prior
8    to such leave of absence (and in the case of such
9    employment prior to December 9, 1987, pays to the Fund an
10    amount equal to the employee contributions for such
11    employment plus regular interest thereon as calculated by
12    the board), and based on his current salary with such labor
13    organization after the effective date of this amendatory
14    Act of 1991 for leaves of absence before the effective date
15    of this amendatory Act of the 97th General Assembly, and,
16    for leaves of absence after the effective date of this
17    amendatory Act of the 97th General Assembly, based on the
18    regular salary rate received by the participant for his
19    municipal employment immediately prior to such leave of
20    absence, (B) after January 1, 1989 the participant, or the
21    labor organization on the participant's behalf, makes
22    contributions to the Fund as though it were the employer,
23    in the same amount and same manner as specified under this
24    Article, based on the regular salary rate received by the
25    participant for his municipal employment immediately prior
26    to such leave of absence, and based on his current salary

 

 

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1    with such labor organization after the effective date of
2    this amendatory Act of 1991 and for leaves of absence
3    before the effective date of this amendatory Act of the
4    97th General Assembly, and, for leaves of absence after the
5    effective date of this amendatory Act of the 97th General
6    Assembly, based on the regular salary rate received by the
7    participant for his municipal employment immediately prior
8    to such leave of absence, and (C) the participant does not
9    receive credit in any pension plan established by the local
10    labor organization based on his employment by the
11    organization, including, but not limited to, pension plans
12    established by the local labor organization, the national
13    labor organization, or the international labor
14    organization;
15        (4) any period of disability for which he received (i)
16    a disability benefit under this Article, or (ii) a
17    temporary total disability benefit under the Workers'
18    Compensation Act if the disability results from a condition
19    commonly termed heart attack or stroke or any other
20    condition falling within the broad field of coronary
21    involvement or heart disease, or (iii) whole or part pay.
22    (d) For a person employed by an employer, or the retirement
23board, in which "The 1935 Act" was in effect prior to August 1,
241949, from whose salary deductions are first made under "The
251935 Act" or this Article after July 31, 1949, any period of
26service rendered subsequent to the effective date and prior to

 

 

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1August 1, 1949, shall not be counted as a period of service
2under this Article, except such period for which he made
3payment, as provided in Section 11-221 of this Article, in
4which case such period shall be counted as a period of service
5for all annuity purposes hereunder.
6    (e) In computing the term of service of an employee
7subsequent to the day before the effective date for ordinary
8disability benefit purposes, the following periods of time
9shall be counted as periods of service:
10        (1) any period during which he performed the duties of
11    his position;
12        (2) leaves of absence with whole or part pay;
13        (3) any period of disability for which he received (i)
14    a duty disability benefit under this Article, or (ii) a
15    temporary total disability benefit under the Workers'
16    Compensation Act if the disability results from a condition
17    commonly termed heart attack or stroke or any other
18    condition falling within the broad field of coronary
19    involvement or heart disease, or (iii) whole or part pay.
20    However, any period of service rendered by an employee
21contributor prior to the date he became a contributor to the
22fund shall not be counted as a period of service for ordinary
23disability purposes, unless the person made payment for the
24period as provided in Section 11-221 of this Article, in which
25case the period shall be counted as a period of service for
26ordinary disability purposes for periods of disability on or

 

 

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1after the effective date of this amendatory Act of 1997.
2    Overtime or extra service shall not be included in
3computing any term of service. Not more than 1 year of service
4shall be allowed for service rendered during any calendar year.
5(Source: P.A. 90-511, eff. 8-22-97.)
 
6    (40 ILCS 5/11-215.2 new)
7    Sec. 11-215.2. Leave of absence benefit recalculation.
8Every 3 years, beginning on or as soon as practical after the
9effective date of this amendatory Act of the 97th General
10Assembly, the fund shall determine if any benefit earned by a
11participant who first earns credit on or after the effective
12date of this Section as a result of subdivision (c)(3) of
13Section 11-215 has created any additional unfunded liability to
14the fund. If it is determined by the fund that additional
15unfunded liability has been created, then the participant must
16remit the total cost to the fund, as determined by the fund,
17within one year.
 
18    (40 ILCS 5/15-113.12 new)
19    Sec. 15-113.12. Pension credit earned for employment with a
20teacher organization. Any credit earned under subsection (i) of
21Section 15-107 and that is granted after the effective date of
22this amendatory Act of the 97th General Assembly shall be based
23on the participant's salary immediately before engaging in the
24type of employment specified in that provision. The participant

 

 

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1must contribute an amount equal to the actuarially determined
2normal cost of the benefit as calculated by the System. The
3employer of the participant may elect to contribute all or a
4portion of the participant's required contribution.
 
5    (40 ILCS 5/15-113.13 new)
6    Sec. 15-113.13. Credit recalculation. Every 3 years,
7beginning on or as soon as practical after the effective date
8of this amendatory Act of the 97th General Assembly, the System
9shall determine if any benefit earned by a participant who
10first becomes a participant on or after the effective date of
11this Section as a result of subsection (i) of Section 15-107
12has created any additional unfunded liability to the System. If
13it is determined by the System that additional unfunded
14liability has been created, then the participant must remit the
15total cost to the System, as determined by the System, within
16one year.
 
17    (40 ILCS 5/15-113.14 new)
18    Sec. 15-113.14. Salary for credit earned for service to a
19teacher organization. For any participant who, on or after the
20effective date of this amendatory Act of the 97th General
21Assembly, earned credit under subsection (i) of Section 15-107,
22his or her average salary shall be based upon the regular
23salary rate received by the participant for his or her
24employment immediately prior to engaging in the type of

 

 

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1employment specified in that provision.
 
2    (40 ILCS 5/16-110.1 new)
3    Sec. 16-110.1. Pension credit earned for employment with a
4teacher organization or a school board association. Any credit
5earned under item (4) or (8) of Section 16-106 and that is
6granted after the effective date of this amendatory Act of the
797th General Assembly shall be based on the participant's
8salary immediately before engaging in the type of employment
9specified in that provision. The participant must contribute an
10amount equal to the actuarially determined normal cost of the
11benefit as calculated by the System. The employer of the
12participant may elect to contribute all or a portion of the
13participant's required contribution.
 
14    (40 ILCS 5/16-110.2 new)
15    Sec. 16-110.2. Credit recalculation. Every 3 years,
16beginning on or as soon as practical after the effective date
17of this amendatory Act of the 97th General Assembly, the System
18shall determine if any benefit earned by a participant who
19first earns credit on or after the effective date of this
20Section as a result of item (4) or (8) of Section 16-106 has
21created any additional unfunded liability to the System. If it
22is determined by the System that additional unfunded liability
23has been created, then the participant must remit the total
24cost to the System, as determined by the System, within one

 

 

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1year.
 
2    (40 ILCS 5/16-110.3 new)
3    Sec. 16-110.3. Leaves of absence; computation of salary.
4For any participant who, on or after the effective date of this
5amendatory Act of the 97th General Assembly, has earned credit
6under item (4) or (8) of Section 16-106, his or her average
7salary shall be based upon the regular salary rate received by
8the participant for his or her employment immediately prior to
9that leave of absence.
 
10    (40 ILCS 5/17-109.3 new)
11    Sec. 17-109.3. Salary for credit earned for employment with
12a teacher organization or school board association. Any credit
13earned, on or after the effective date of this amendatory Act
14of the 97th General Assembly, under subdivision (4) of Section
1517-134 or subsection (b) of Section 17-134.1, shall be based
16upon the regular salary rate received by the participant for
17his or her employment immediately before engaging in the type
18of employment specified in that provision.
 
19    (40 ILCS 5/17-134)  (from Ch. 108 1/2, par. 17-134)
20    Sec. 17-134. Contributions for leaves of absence; military
21service; computing service. In computing service for pension
22purposes the following periods of service shall stand in lieu
23of a like number of years of teaching service upon payment

 

 

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1therefor in the manner hereinafter provided: (a) time spent on
2a leave of absence granted by the employer; (b) service with
3teacher or labor organizations based upon special leaves of
4absence therefor granted by an Employer; (c) a maximum of 5
5years spent in the military service of the United States, of
6which up to 2 years may have been served outside the pension
7period; (d) unused sick days at termination of service to a
8maximum of 244 days; (e) time lost due to layoff and
9curtailment of the school term from June 6 through June 21,
101976; and (f) time spent after June 30, 1982 as a member of the
11Board of Education, if required to resign from an
12administrative or teaching position in order to qualify as a
13member of the Board of Education.
14        (1) For time spent on or after September 6, 1948 on
15    sabbatical leaves of absence or sick leaves, for which
16    salaries are paid, an Employer shall make payroll
17    deductions at the applicable rates in effect during such
18    periods.
19        (2) For time spent on a leave of absence granted by the
20    employer for which no salaries are paid, teachers desiring
21    credit therefor shall pay the required contributions at the
22    rates in effect during such periods as though they were in
23    teaching service. If an Employer pays salary for vacations
24    which occur during a teacher's sick leave or maternity or
25    paternity leave without salary, vacation pay for which the
26    teacher would have qualified while in active service shall

 

 

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1    be considered part of the teacher's total salary for
2    pension purposes. No more than 36 months of leave credit
3    may be allowed any person during the entire term of
4    service. Sabbatical leave credit shall be limited to the
5    time the person on leave without salary under an Employer's
6    rules is allowed to engage in an activity for which he
7    receives salary or compensation.
8        (3) For time spent prior to September 6, 1948, on
9    sabbatical leaves of absence or sick leaves for which
10    salaries were paid, teachers desiring service credit
11    therefor shall pay the required contributions at the
12    maximum applicable rates in effect during such periods.
13        (4) For service with teacher or labor organizations
14    authorized by special leaves of absence, for which no
15    payroll deductions are made by an Employer, teachers
16    desiring service credit therefor shall contribute to the
17    Fund upon the basis of the actual salary received from such
18    organizations at the percentage rates in effect during such
19    periods for certified positions with such Employer. To the
20    extent the actual salary exceeds the regular salary, which
21    shall be defined as the salary rate, as calculated by the
22    Board, in effect for the teacher's regular position in
23    teaching service on September 1, 1983 or on the effective
24    date of the leave with the organization, whichever is
25    later, the organization shall pay to the Fund the
26    employer's normal cost as set by the Board on the

 

 

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1    increment. For leaves of absence after the effective date
2    of this amendatory Act of the 97th General Assembly,
3    contributions to the Fund under this subdivision (4) shall
4    be based upon the teacher's regular salary as defined in
5    this subdivision (4).
6        (5) For time spent in the military service, teachers
7    entitled to and desiring credit therefor shall contribute
8    the amount required for each year of service or fraction
9    thereof at the rates in force (a) at the date of
10    appointment, or (b) on return to teaching service as a
11    regularly certified teacher, as the case may be; provided
12    such rates shall not be less than $450 per year of service.
13    These conditions shall apply unless an Employer elects to
14    and does pay into the Fund the amount which would have been
15    due from such person had he been employed as a teacher
16    during such time. In the case of credit for military
17    service not during the pension period, the teacher must
18    also pay to the Fund an amount determined by the Board to
19    be equal to the employer's normal cost of the benefits
20    accrued from such service, plus interest thereon at 5% per
21    year, compounded annually, from the date of appointment to
22    the date of payment.
23        The changes to this Section made by Public Act 87-795
24    shall apply not only to persons who on or after its
25    effective date are in service under the Fund, but also to
26    persons whose status as a teacher terminated prior to that

 

 

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1    date, whether or not the person is an annuitant on that
2    date. In the case of an annuitant who applies for credit
3    allowable under this Section for a period of military
4    service that did not immediately follow employment, and who
5    has made the required contributions for such credit, the
6    annuity shall be recalculated to include the additional
7    service credit, with the increase taking effect on the date
8    the Fund received written notification of the annuitant's
9    intent to purchase the credit, if payment of all the
10    required contributions is made within 60 days of such
11    notice, or else on the first annuity payment date following
12    the date of payment of the required contributions. In
13    calculating the automatic annual increase for an annuity
14    that has been recalculated under this Section, the increase
15    attributable to the additional service allowable under
16    this amendatory Act of 1991 shall be included in the
17    calculation of automatic annual increases accruing after
18    the effective date of the recalculation.
19        The total credit for military service shall not exceed
20    5 years, except that any teacher who on July 1, 1963, had
21    validated credit for more than 5 years of military service
22    shall be entitled to the total amount of such credit.
23        (6) A maximum of 244 unused sick days credited to his
24    account by an Employer on the date of termination of
25    employment. Members, upon verification of unused sick
26    days, may add this service time to total creditable

 

 

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1    service.
2        (7) In all cases where time spent on leave is
3    creditable and no payroll deductions therefor are made by
4    an Employer, persons desiring service credit shall make the
5    required contributions directly to the Fund.
6        (8) For time lost without pay due to layoff and
7    curtailment of the school term from June 6 through June 21,
8    1976, as provided in item (e) of the first paragraph of
9    this Section, persons who were contributors on the days
10    immediately preceding such layoff shall receive credit
11    upon paying to the Fund a contribution based on the rates
12    of compensation and employee contributions in effect at the
13    time of such layoff, together with an additional amount
14    equal to 12.2% of the compensation computed for such period
15    of layoff, plus interest on the entire amount at 5% per
16    annum from January 1, 1978 to the date of payment. If such
17    contribution is paid, salary for pension purposes for any
18    year in which such a layoff occurred shall include the
19    compensation recognized for purposes of computing that
20    contribution.
21        (9) For time spent after June 30, 1982, as a
22    nonsalaried member of the Board of Education, if required
23    to resign from an administrative or teaching position in
24    order to qualify as a member of the Board of Education, an
25    administrator or teacher desiring credit therefor shall
26    pay the required contributions at the rates and salaries in

 

 

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1    effect during such periods as though the member were in
2    service.
3    Effective September 1, 1974, the interest charged for
4validation of service described in paragraphs (2) through (5)
5of this Section shall be compounded annually at a rate of 5%
6commencing one year after the termination of the leave or
7return to service.
8(Source: P.A. 92-599, eff. 6-28-02.)
 
9    (40 ILCS 5/17-134.1)
10    Sec. 17-134.1. Labor organization employees.
11    (a) A former teacher who is employed by a teacher or labor
12organization and is not eligible to participate under
13subdivision (4) of Section 17-134 because he or she is not on a
14special leave of absence may elect to participate in the Fund
15for the duration of that employment by so notifying the Fund in
16writing. Participation shall be subject to the same conditions
17as are applicable to persons participating under that
18subdivision (4), and service credit shall be contingent upon
19the required contributions being received by the Fund.
20    (b) A person who participates in the Fund under subsection
21(a) may establish service credit for periods of such employment
22that took place before beginning participation under this
23Section by submitting a written application to the Fund. Credit
24shall be granted upon payment to the Fund of an amount to be
25determined by the Fund, equal to (i) the employee contributions

 

 

HB3813 Engrossed- 28 -LRB097 13613 AMC 58149 b

1that would have been paid if the person had participated under
2subdivision (4) of Section 17-134 during the period for which
3service credit is to be established, based on the actual salary
4received, plus (ii) the employer's normal cost associated with
5that service credit, plus (iii) interest on items (i) and (ii)
6at the rate of 6% per year, compounded annually, from the date
7of the service established to the date of payment. Service
8credit under this subsection shall not be granted until the
9required contribution has been paid in full; the contribution
10may be paid at any time before retirement. For leaves of
11absence after the effective date of this amendatory Act of the
1297th General Assembly, contributions to the Fund under item (i)
13of this subsection (b) shall be based upon the teacher's
14regular salary as defined in subdivision (4) of Section 17-134.
15    (c) A person who participates in the Fund under subsection
16(a) may reestablish any service credits previously forfeited by
17acceptance of a refund by paying to the Fund the amount of the
18refund plus interest thereon at the rate of 5% per annum,
19compounded annually, from the date of the refund to the date of
20payment.
21    (d) Rollover contributions from other retirement plans
22qualified under the Internal Revenue Code of 1986 may be used
23to make the payments required under subsections (b) and (c).
24    (e) No service credit may be established under this Section
25for any period of employment for which the person receives
26service credit under any other provision of this Code.

 

 

HB3813 Engrossed- 29 -LRB097 13613 AMC 58149 b

1(Source: P.A. 90-448, eff. 8-16-97.)
 
2    (40 ILCS 5/17-134.2 new)
3    Sec. 17-134.2. Credit recalculation. Every 3 years,
4beginning on or as soon as practical after the effective date
5of this amendatory Act of the 97th General Assembly, the Fund
6shall determine if any benefit earned by a participant who
7first earns credit on or after the effective date of this
8Section as a result of item (4) of Section 17-134 and Section
917-134.1 has created any additional unfunded liability to the
10Fund. If it is determined by the Fund that additional unfunded
11liability has been created, then the participant must remit the
12total cost to the Fund, as determined by the Fund, within one
13year.
 
14    Section 99. Effective date. This Act takes effect upon
15becoming law.