97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
SB3569

 

Introduced 2/10/2012, by Sen. Matt Murphy

 

SYNOPSIS AS INTRODUCED:
 
40 ILCS 5/7-114  from Ch. 108 1/2, par. 7-114
40 ILCS 5/7-116  from Ch. 108 1/2, par. 7-116
40 ILCS 5/7-139  from Ch. 108 1/2, par. 7-139
40 ILCS 5/9-219  from Ch. 108 1/2, par. 9-219
40 ILCS 5/9-220  from Ch. 108 1/2, par. 9-220
40 ILCS 5/14-104.3  from Ch. 108 1/2, par. 14-104.3
40 ILCS 5/14-106  from Ch. 108 1/2, par. 14-106
40 ILCS 5/15-112  from Ch. 108 1/2, par. 15-112
40 ILCS 5/15-113.4  from Ch. 108 1/2, par. 15-113.4
40 ILCS 5/16-121  from Ch. 108 1/2, par. 16-121
40 ILCS 5/16-127  from Ch. 108 1/2, par. 16-127
40 ILCS 5/17-116  from Ch. 108 1/2, par. 17-116
40 ILCS 5/17-134  from Ch. 108 1/2, par. 17-134

    Amends the Illinois Municipal Retirement Fund (IMRF), Cook County, State Employees, State Universities, Downstate Teachers, and Chicago Teachers Articles of the Illinois Pension Code. For participants who first become participants on or after the effective date, prohibits (i) payments for unused sick or vacation time from being used to calculate pensionable earnings and salary and (ii) unused sick or vacation time from being used to establish service credit. Effective immediately.


LRB097 15485 JDS 60586 b

FISCAL NOTE ACT MAY APPLY
PENSION IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB3569LRB097 15485 JDS 60586 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 7-114, 7-116, 7-139, 9-219, 9-220, 14-104.3, 14-106,
615-112, 15-113.4, 16-121, 16-127, 17-116, and 17-134 as
7follows:
 
8    (40 ILCS 5/7-114)  (from Ch. 108 1/2, par. 7-114)
9    Sec. 7-114. Earnings. "Earnings":
10    (a) An amount to be determined by the board, equal to the
11sum of:
12        1. The total amount of money paid to an employee for
13    personal services or official duties as an employee (except
14    those employed as independent contractors) paid out of the
15    general fund, or out of any special funds controlled by the
16    municipality, or by any instrumentality thereof, or
17    participating instrumentality, including compensation,
18    fees, allowances, or other emolument paid for official
19    duties (but not including automobile maintenance, travel
20    expense, or reimbursements for expenditures incurred in
21    the performance of duties, or, in the case of a person who
22    first becomes a participant on or after the effective date
23    of this amendatory Act of the 97th General Assembly,

 

 

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1    payments for unused sick or vacation time) and, for fee
2    offices, the fees or earnings of the offices to the extent
3    such fees are paid out of funds controlled by the
4    municipality, or instrumentality or participating
5    instrumentality; and
6        2. The money value, as determined by rules prescribed
7    by the governing body of the municipality, or
8    instrumentality thereof, of any board, lodging, fuel,
9    laundry, and other allowances provided an employee in lieu
10    of money.
11    (b) For purposes of determining benefits payable under this
12fund payments to a person who is engaged in an independently
13established trade, occupation, profession or business and who
14is paid for his service on a basis other than a monthly or
15other regular salary, are not earnings.
16    (c) If a disabled participating employee is eligible to
17receive Workers' Compensation for an accidental injury and the
18participating municipality or instrumentality which employed
19the participating employee when injured continues to pay the
20participating employee regular salary or other compensation or
21pays the employee an amount in excess of the Workers'
22Compensation amount, then earnings shall be deemed to be the
23total payments, including an amount equal to the Workers'
24Compensation payments. These payments shall be subject to
25employee contributions and allocated as if paid to the
26participating employee when the regular payroll amounts would

 

 

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1have been paid if the participating employee had continued
2working, and creditable service shall be awarded for this
3period.
4    (d) If an elected official who is a participating employee
5becomes disabled but does not resign and is not removed from
6office, then earnings shall include all salary payments made
7for the remainder of that term of office and the official shall
8be awarded creditable service for the term of office.
9    (e) If a participating employee is paid pursuant to "An Act
10to provide for the continuation of compensation for law
11enforcement officers, correctional officers and firemen who
12suffer disabling injury in the line of duty", approved
13September 6, 1973, as amended, the payments shall be deemed
14earnings, and the participating employee shall be awarded
15creditable service for this period.
16    (f) Additional compensation received by a person while
17serving as a supervisor of assessments, assessor, deputy
18assessor or member of a board of review from the State of
19Illinois pursuant to Section 4-10 or 4-15 of the Property Tax
20Code shall not be earnings for purposes of this Article and
21shall not be included in the contribution formula or
22calculation of benefits for such person pursuant to this
23Article.
24(Source: P.A. 87-740; 88-670, eff. 12-2-94.)
 
25    (40 ILCS 5/7-116)  (from Ch. 108 1/2, par. 7-116)

 

 

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1    Sec. 7-116. "Final rate of earnings":
2    (a) For retirement and survivor annuities, the monthly
3earnings obtained by dividing the total earnings received by
4the employee during the period of either (1) the 48 consecutive
5months of service within the last 120 months of service in
6which his total earnings were the highest or (2) the employee's
7total period of service, by the number of months of service in
8such period.
9    (b) For death benefits, the higher of the rate determined
10under paragraph (a) of this Section or total earnings received
11in the last 12 months of service divided by twelve. If the
12deceased employee has less than 12 months of service, the
13monthly final rate shall be the monthly rate of pay the
14employee was receiving when he began service.
15    (c) For disability benefits, the total earnings of a
16participating employee in the last 12 calendar months of
17service prior to the date he becomes disabled divided by 12.
18    (d) In computing the final rate of earnings: (1) the
19earnings rate for all periods of prior service shall be
20considered equal to the average earnings rate for the last 3
21calendar years of prior service for which creditable service is
22received under Section 7-139 or, if there is less than 3 years
23of creditable prior service, the average for the total prior
24service period for which creditable service is received under
25Section 7-139; (2) for out of state service and authorized
26leave, the earnings rate shall be the rate upon which service

 

 

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1credits are granted; (3) periods of military leave shall not be
2considered; (4) the earnings rate for all periods of disability
3shall be considered equal to the rate of earnings upon which
4the employee's disability benefits are computed for such
5periods; (5) the earnings to be considered for each of the
6final three months of the final earnings period for persons who
7first became participants before January 1, 2012 and the
8earnings to be considered for each of the final 24 months for
9participants who first become participants on or after January
101, 2012 shall not exceed 125% of the highest earnings of any
11other month in the final earnings period; and (6) the annual
12amount of final rate of earnings shall be the monthly amount
13multiplied by the number of months of service normally required
14by the position in a year; and (7) in the case of a person who
15first becomes a participant on or after the effective date of
16this amendatory Act of the 97th General Assembly, payments for
17unused sick or vacation time shall not be considered.
18(Source: P.A. 97-609, eff. 1-1-12.)
 
19    (40 ILCS 5/7-139)  (from Ch. 108 1/2, par. 7-139)
20    Sec. 7-139. Credits and creditable service to employees.
21    (a) Each participating employee shall be granted credits
22and creditable service, for purposes of determining the amount
23of any annuity or benefit to which he or a beneficiary is
24entitled, as follows:
25        1. For prior service: Each participating employee who

 

 

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1    is an employee of a participating municipality or
2    participating instrumentality on the effective date shall
3    be granted creditable service, but no credits under
4    paragraph 2 of this subsection (a), for periods of prior
5    service for which credit has not been received under any
6    other pension fund or retirement system established under
7    this Code, as follows:
8        If the effective date of participation for the
9    participating municipality or participating
10    instrumentality is on or before January 1, 1998, creditable
11    service shall be granted for the entire period of prior
12    service with that employer without any employee
13    contribution.
14        If the effective date of participation for the
15    participating municipality or participating
16    instrumentality is after January 1, 1998, creditable
17    service shall be granted for the last 20% of the period of
18    prior service with that employer, but no more than 5 years,
19    without any employee contribution. A participating
20    employee may establish creditable service for the
21    remainder of the period of prior service with that employer
22    by making an application in writing, accompanied by payment
23    of an employee contribution in an amount determined by the
24    Fund, based on the employee contribution rates in effect at
25    the time of application for the creditable service and the
26    employee's salary rate on the effective date of

 

 

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1    participation for that employer, plus interest at the
2    effective rate from the date of the prior service to the
3    date of payment. Application for this creditable service
4    may be made at any time while the employee is still in
5    service.
6        A municipality that (i) has at least 35 employees; (ii)
7    is located in a county with at least 2,000,000 inhabitants;
8    and (iii) maintains an independent defined benefit pension
9    plan for the benefit of its eligible employees may restrict
10    creditable service in whole or in part for periods of prior
11    service with the employer if the governing body of the
12    municipality adopts an irrevocable resolution to restrict
13    that creditable service and files the resolution with the
14    board before the municipality's effective date of
15    participation.
16        Any person who has withdrawn from the service of a
17    participating municipality or participating
18    instrumentality prior to the effective date, who reenters
19    the service of the same municipality or participating
20    instrumentality after the effective date and becomes a
21    participating employee is entitled to creditable service
22    for prior service as otherwise provided in this subdivision
23    (a)(1) only if he or she renders 2 years of service as a
24    participating employee after the effective date.
25    Application for such service must be made while in a
26    participating status. The salary rate to be used in the

 

 

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1    calculation of the required employee contribution, if any,
2    shall be the employee's salary rate at the time of first
3    reentering service with the employer after the employer's
4    effective date of participation.
5        2. For current service, each participating employee
6    shall be credited with:
7            a. Additional credits of amounts equal to each
8        payment of additional contributions received from him
9        under Section 7-173, as of the date the corresponding
10        payment of earnings is payable to him.
11            b. Normal credits of amounts equal to each payment
12        of normal contributions received from him, as of the
13        date the corresponding payment of earnings is payable
14        to him, and normal contributions made for the purpose
15        of establishing out-of-state service credits as
16        permitted under the conditions set forth in paragraph 6
17        of this subsection (a).
18            c. Municipality credits in an amount equal to 1.4
19        times the normal credits, except those established by
20        out-of-state service credits, as of the date of
21        computation of any benefit if these credits would
22        increase the benefit.
23            d. Survivor credits equal to each payment of
24        survivor contributions received from the participating
25        employee as of the date the corresponding payment of
26        earnings is payable, and survivor contributions made

 

 

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1        for the purpose of establishing out-of-state service
2        credits.
3        3. For periods of temporary and total and permanent
4    disability benefits, each employee receiving disability
5    benefits shall be granted creditable service for the period
6    during which disability benefits are payable. Normal and
7    survivor credits, based upon the rate of earnings applied
8    for disability benefits, shall also be granted if such
9    credits would result in a higher benefit to any such
10    employee or his beneficiary.
11        4. For authorized leave of absence without pay: A
12    participating employee shall be granted credits and
13    creditable service for periods of authorized leave of
14    absence without pay under the following conditions:
15            a. An application for credits and creditable
16        service is submitted to the board while the employee is
17        in a status of active employment.
18            b. Not more than 12 complete months of creditable
19        service for authorized leave of absence without pay
20        shall be counted for purposes of determining any
21        benefits payable under this Article.
22            c. Credits and creditable service shall be granted
23        for leave of absence only if such leave is approved by
24        the governing body of the municipality, including
25        approval of the estimated cost thereof to the
26        municipality as determined by the fund, and employee

 

 

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1        contributions, plus interest at the effective rate
2        applicable for each year from the end of the period of
3        leave to date of payment, have been paid to the fund in
4        accordance with Section 7-173. The contributions shall
5        be computed upon the assumption earnings continued
6        during the period of leave at the rate in effect when
7        the leave began.
8            d. Benefits under the provisions of Sections
9        7-141, 7-146, 7-150 and 7-163 shall become payable to
10        employees on authorized leave of absence, or their
11        designated beneficiary, only if such leave of absence
12        is creditable hereunder, and if the employee has at
13        least one year of creditable service other than the
14        service granted for leave of absence. Any employee
15        contributions due may be deducted from any benefits
16        payable.
17            e. No credits or creditable service shall be
18        allowed for leave of absence without pay during any
19        period of prior service.
20        5. For military service: The governing body of a
21    municipality or participating instrumentality may elect to
22    allow creditable service to participating employees who
23    leave their employment to serve in the armed forces of the
24    United States for all periods of such service, provided
25    that the person returns to active employment within 90 days
26    after completion of full time active duty, but no

 

 

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1    creditable service shall be allowed such person for any
2    period that can be used in the computation of a pension or
3    any other pay or benefit, other than pay for active duty,
4    for service in any branch of the armed forces of the United
5    States. If necessary to the computation of any benefit, the
6    board shall establish municipality credits for
7    participating employees under this paragraph on the
8    assumption that the employee received earnings at the rate
9    received at the time he left the employment to enter the
10    armed forces. A participating employee in the armed forces
11    shall not be considered an employee during such period of
12    service and no additional death and no disability benefits
13    are payable for death or disability during such period.
14        Any participating employee who left his employment
15    with a municipality or participating instrumentality to
16    serve in the armed forces of the United States and who
17    again became a participating employee within 90 days after
18    completion of full time active duty by entering the service
19    of a different municipality or participating
20    instrumentality, which has elected to allow creditable
21    service for periods of military service under the preceding
22    paragraph, shall also be allowed creditable service for his
23    period of military service on the same terms that would
24    apply if he had been employed, before entering military
25    service, by the municipality or instrumentality which
26    employed him after he left the military service and the

 

 

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1    employer costs arising in relation to such grant of
2    creditable service shall be charged to and paid by that
3    municipality or instrumentality.
4        Notwithstanding the foregoing, any participating
5    employee shall be entitled to creditable service as
6    required by any federal law relating to re-employment
7    rights of persons who served in the United States Armed
8    Services. Such creditable service shall be granted upon
9    payment by the member of an amount equal to the employee
10    contributions which would have been required had the
11    employee continued in service at the same rate of earnings
12    during the military leave period, plus interest at the
13    effective rate.
14        5.1. In addition to any creditable service established
15    under paragraph 5 of this subsection (a), creditable
16    service may be granted for up to 48 months of service in
17    the armed forces of the United States.
18        In order to receive creditable service for military
19    service under this paragraph 5.1, a participating employee
20    must (1) apply to the Fund in writing and provide evidence
21    of the military service that is satisfactory to the Board;
22    (2) obtain the written approval of the current employer;
23    and (3) make contributions to the Fund equal to (i) the
24    employee contributions that would have been required had
25    the service been rendered as a member, plus (ii) an amount
26    determined by the board to be equal to the employer's

 

 

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1    normal cost of the benefits accrued for that military
2    service, plus (iii) interest on items (i) and (ii) from the
3    date of first membership in the Fund to the date of
4    payment. The required interest shall be calculated at the
5    regular interest rate.
6        The changes made to this paragraph 5.1 by Public Acts
7    95-483 and 95-486 apply only to participating employees in
8    service on or after August 28, 2007 (the effective date of
9    those Public Acts).
10        6. For out-of-state service: Creditable service shall
11    be granted for service rendered to an out-of-state local
12    governmental body under the following conditions: The
13    employee had participated and has irrevocably forfeited
14    all rights to benefits in the out-of-state public employees
15    pension system; the governing body of his participating
16    municipality or instrumentality authorizes the employee to
17    establish such service; the employee has 2 years current
18    service with this municipality or participating
19    instrumentality; the employee makes a payment of
20    contributions, which shall be computed at 8% (normal) plus
21    2% (survivor) times length of service purchased times the
22    average rate of earnings for the first 2 years of service
23    with the municipality or participating instrumentality
24    whose governing body authorizes the service established
25    plus interest at the effective rate on the date such
26    credits are established, payable from the date the employee

 

 

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1    completes the required 2 years of current service to date
2    of payment. In no case shall more than 120 months of
3    creditable service be granted under this provision.
4        7. For retroactive service: Any employee who could have
5    but did not elect to become a participating employee, or
6    who should have been a participant in the Municipal Public
7    Utilities Annuity and Benefit Fund before that fund was
8    superseded, may receive creditable service for the period
9    of service not to exceed 50 months; however, a current or
10    former elected or appointed official of a participating
11    municipality may establish credit under this paragraph 7
12    for more than 50 months of service as an official of that
13    municipality, if the excess over 50 months is approved by
14    resolution of the governing body of the affected
15    municipality filed with the Fund before January 1, 2002.
16        Any employee who is a participating employee on or
17    after September 24, 1981 and who was excluded from
18    participation by the age restrictions removed by Public Act
19    82-596 may receive creditable service for the period, on or
20    after January 1, 1979, excluded by the age restriction and,
21    in addition, if the governing body of the participating
22    municipality or participating instrumentality elects to
23    allow creditable service for all employees excluded by the
24    age restriction prior to January 1, 1979, for service
25    during the period prior to that date excluded by the age
26    restriction. Any employee who was excluded from

 

 

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1    participation by the age restriction removed by Public Act
2    82-596 and who is not a participating employee on or after
3    September 24, 1981 may receive creditable service for
4    service after January 1, 1979. Creditable service under
5    this paragraph shall be granted upon payment of the
6    employee contributions which would have been required had
7    he participated, with interest at the effective rate for
8    each year from the end of the period of service established
9    to date of payment.
10        8. For accumulated unused sick leave: A participating
11    employee who first becomes a participating employee before
12    the effective date of this amendatory Act of the 97th
13    General Assembly and who is applying for a retirement
14    annuity shall be entitled to creditable service for that
15    portion of the employee's accumulated unused sick leave for
16    which payment is not received, as follows:
17            a. Sick leave days shall be limited to those
18        accumulated under a sick leave plan established by a
19        participating municipality or participating
20        instrumentality which is available to all employees or
21        a class of employees.
22            b. Except as provided in item b-1, only sick leave
23        days accumulated with a participating municipality or
24        participating instrumentality with which the employee
25        was in service within 60 days of the effective date of
26        his retirement annuity shall be credited; If the

 

 

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1        employee was in service with more than one employer
2        during this period only the sick leave days with the
3        employer with which the employee has the greatest
4        number of unpaid sick leave days shall be considered.
5            b-1. If the employee was in the service of more
6        than one employer as defined in item (2) of paragraph
7        (a) of subsection (A) of Section 7-132, then the sick
8        leave days from all such employers shall be credited,
9        as long as the creditable service attributed to those
10        sick leave days does not exceed the limitation in item
11        f of this paragraph 8. In calculating the creditable
12        service under this item b-1, the sick leave days from
13        the last employer shall be considered first, then the
14        remaining sick leave days shall be considered until
15        there are no more days or the maximum creditable sick
16        leave threshold under item f of this paragraph 8 has
17        been reached.
18            c. The creditable service granted shall be
19        considered solely for the purpose of computing the
20        amount of the retirement annuity and shall not be used
21        to establish any minimum service period required by any
22        provision of the Illinois Pension Code, the effective
23        date of the retirement annuity, or the final rate of
24        earnings.
25            d. The creditable service shall be at the rate of
26        1/20 of a month for each full sick day, provided that

 

 

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1        no more than 12 months may be credited under this
2        subdivision 8.
3            e. Employee contributions shall not be required
4        for creditable service under this subdivision 8.
5            f. Each participating municipality and
6        participating instrumentality with which an employee
7        has service within 60 days of the effective date of his
8        retirement annuity shall certify to the board the
9        number of accumulated unpaid sick leave days credited
10        to the employee at the time of termination of service.
11        9. For service transferred from another system:
12    Credits and creditable service shall be granted for service
13    under Article 3, 4, 5, 8, 14, or 16 of this Act, to any
14    active member of this Fund, and to any inactive member who
15    has been a county sheriff, upon transfer of such credits
16    pursuant to Section 3-110.3, 4-108.3, 5-235, 8-226.7,
17    14-105.6, or 16-131.4, and payment by the member of the
18    amount by which (1) the employer and employee contributions
19    that would have been required if he had participated in
20    this Fund as a sheriff's law enforcement employee during
21    the period for which credit is being transferred, plus
22    interest thereon at the effective rate for each year,
23    compounded annually, from the date of termination of the
24    service for which credit is being transferred to the date
25    of payment, exceeds (2) the amount actually transferred to
26    the Fund. Such transferred service shall be deemed to be

 

 

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1    service as a sheriff's law enforcement employee for the
2    purposes of Section 7-142.1.
3        10. For service transferred from an Article 3 system
4    under Section 3-110.8: Credits and creditable service
5    shall be granted for service under Article 3 of this Act as
6    provided in Section 3-110.8, to any active member of this
7    Fund upon transfer of such credits pursuant to Section
8    3-110.8. If the amount by which (1) the employer and
9    employee contributions that would have been required if he
10    had participated in this Fund during the period for which
11    credit is being transferred, plus interest thereon at the
12    effective rate for each year, compounded annually, from the
13    date of termination of the service for which credit is
14    being transferred to the date of payment, exceeds (2) the
15    amount actually transferred to the Fund, then the amount of
16    creditable service established under this paragraph 10
17    shall be reduced by a corresponding amount in accordance
18    with the rules and procedures established under this
19    paragraph 10.
20        The board shall establish by rule the manner of making
21    the calculation required under this paragraph 10, taking
22    into account the appropriate actuarial assumptions; the
23    member's service, age, and salary history; the level of
24    funding of the employer; and any other factors that the
25    board determines to be relevant.
26        Until January 1, 2010, members who transferred service

 

 

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1    from an Article 3 system under the provisions of Public Act
2    94-356 may establish additional credit in this Fund, but
3    only up to the amount of the service credit reduction in
4    that transfer, as calculated under the actuarial
5    assumptions. This credit may be established upon payment by
6    the member of an amount to be determined by the board,
7    equal to (1) the amount that would have been contributed as
8    employee and employer contributions had all the service
9    been as an employee under this Article, plus interest
10    thereon compounded annually from the date of service to the
11    date of transfer, less (2) the total amount transferred
12    from the Article 3 system, plus (3) interest on the
13    difference at the effective rate for each year, compounded
14    annually, from the date of the transfer to the date of
15    payment. The additional service credit is allowed under
16    this amendatory Act of the 95th General Assembly
17    notwithstanding the provisions of Article 3 terminating
18    all transferred credits on the date of transfer.
19    (b) Creditable service - amount:
20        1. One month of creditable service shall be allowed for
21    each month for which a participating employee made
22    contributions as required under Section 7-173, or for which
23    creditable service is otherwise granted hereunder. Not
24    more than 1 month of service shall be credited and counted
25    for 1 calendar month, and not more than 1 year of service
26    shall be credited and counted for any calendar year. A

 

 

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1    calendar month means a nominal month beginning on the first
2    day thereof, and a calendar year means a year beginning
3    January 1 and ending December 31.
4        2. A seasonal employee shall be given 12 months of
5    creditable service if he renders the number of months of
6    service normally required by the position in a 12-month
7    period and he remains in service for the entire 12-month
8    period. Otherwise a fractional year of service in the
9    number of months of service rendered shall be credited.
10        3. An intermittent employee shall be given creditable
11    service for only those months in which a contribution is
12    made under Section 7-173.
13    (c) No application for correction of credits or creditable
14service shall be considered unless the board receives an
15application for correction while (1) the applicant is a
16participating employee and in active employment with a
17participating municipality or instrumentality, or (2) while
18the applicant is actively participating in a pension fund or
19retirement system which is a participating system under the
20Retirement Systems Reciprocal Act. A participating employee or
21other applicant shall not be entitled to credits or creditable
22service unless the required employee contributions are made in
23a lump sum or in installments made in accordance with board
24rule.
25    (d) Upon the granting of a retirement, surviving spouse or
26child annuity, a death benefit or a separation benefit, on

 

 

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1account of any employee, all individual accumulated credits
2shall thereupon terminate. Upon the withdrawal of additional
3contributions, the credits applicable thereto shall thereupon
4terminate. Terminated credits shall not be applied to increase
5the benefits any remaining employee would otherwise receive
6under this Article.
7(Source: P.A. 96-299, eff. 8-11-09; 97-415, eff. 8-16-11.)
 
8    (40 ILCS 5/9-219)  (from Ch. 108 1/2, par. 9-219)
9    Sec. 9-219. Computation of service.
10    (1) In computing the term of service of an employee prior
11to the effective date, the entire period beginning on the date
12he was first appointed and ending on the day before the
13effective date, except any intervening period during which he
14was separated by withdrawal from service, shall be counted for
15all purposes of this Article.
16    (2) In computing the term of service of any employee on or
17after the effective date, the following periods of time shall
18be counted as periods of service for age and service, widow's
19and child's annuity purposes:
20        (a) The time during which he performed the duties of
21    his position.
22        (b) Vacations, leaves of absence with whole or part
23    pay, and leaves of absence without pay not longer than 90
24    days.
25        (c) For an employee who is a member of a county police

 

 

SB3569- 22 -LRB097 15485 JDS 60586 b

1    department or a correctional officer with the county
2    department of corrections, approved leaves of absence
3    without pay during which the employee serves as a full-time
4    officer or employee of an employee association, the
5    membership of which consists of other participants in the
6    Fund, provided that the employee contributes to the Fund
7    (1) the amount that he would have contributed had he
8    remained an active employee in the position he occupied at
9    the time the leave of absence was granted, (2) an amount
10    calculated by the Board representing employer
11    contributions, and (3) regular interest thereon from the
12    date of service to the date of payment. However, if the
13    employee's application to establish credit under this
14    subsection is received by the Fund on or after July 1, 2002
15    and before July 1, 2003, the amount representing employer
16    contributions specified in item (2) shall be waived.
17        For a former member of a county police department who
18    has received a refund under Section 9-164, periods during
19    which the employee serves as head of an employee
20    association, the membership of which consists of other
21    police officers, provided that the employee contributes to
22    the Fund (1) the amount that he would have contributed had
23    he remained an active member of the county police
24    department in the position he occupied at the time he left
25    service, (2) an amount calculated by the Board representing
26    employer contributions, and (3) regular interest thereon

 

 

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1    from the date of service to the date of payment. However,
2    if the former member of the county police department
3    retires on or after January 1, 1993 but no later than March
4    1, 1993, the amount representing employer contributions
5    specified in item (2) shall be waived.
6        (d) Any period of disability for which he received
7    disability benefit or whole or part pay.
8        (e) For a person who first becomes an employee before
9    the effective date of this amendatory Act of the 97th
10    General Assembly, accumulated Accumulated vacation or
11    other time for which an employee who retires on or after
12    November 1, 1990 receives a lump sum payment at the time of
13    retirement, provided that contributions were made to the
14    fund at the time such lump sum payment was received. The
15    service granted for the lump sum payment shall not change
16    the employee's date of withdrawal for computing the
17    effective date of the annuity.
18        (f) An employee who first becomes an employee before
19    the effective date of this amendatory Act of the 97th
20    General Assembly may receive service credit for annuity
21    purposes for accumulated sick leave as of the date of the
22    employee's withdrawal from service, not to exceed a total
23    of 180 days, provided that the amount of such accumulated
24    sick leave is certified by the County Comptroller to the
25    Board and the employee pays an amount equal to 8.5% (9% for
26    members of the County Police Department who are eligible to

 

 

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1    receive an annuity under Section 9-128.1) of the amount
2    that would have been paid had such accumulated sick leave
3    been paid at the employee's final rate of salary. Such
4    payment shall be made within 30 days after the date of
5    withdrawal and prior to receipt of the first annuity check.
6    The service credit granted for such accumulated sick leave
7    shall not change the employee's date of withdrawal for the
8    purpose of computing the effective date of the annuity.
9    (3) In computing the term of service of an employee on or
10after the effective date for ordinary disability benefit
11purposes, the following periods of time shall be counted as
12periods of service:
13        (a) Unless otherwise specified in Section 9-157, the
14    time during which he performed the duties of his position.
15        (b) Paid vacations and leaves of absence with whole or
16    part pay.
17        (c) Any period for which he received duty disability
18    benefit.
19        (d) Any period of disability for which he received
20    whole or part pay.
21    (4) For an employee who on January 1, 1958, was transferred
22by Act of the 70th General Assembly from his position in a
23department of welfare of any city located in the county in
24which this Article is in force and effect to a similar position
25in a department of such county, service shall also be credited
26for ordinary disability benefit and child's annuity for such

 

 

SB3569- 25 -LRB097 15485 JDS 60586 b

1period of department of welfare service during which period he
2was a contributor to a statutory annuity and benefit fund in
3such city and for which purposes service credit would otherwise
4not be credited by virtue of such involuntary transfer.
5    (5) An employee described in subsection (e) of Section
69-108 shall receive credit for child's annuity and ordinary
7disability benefit for the period of time for which he was
8credited with service in the fund from which he was
9involuntarily separated through class or group transfer;
10provided, that no such credit shall be allowed to the extent
11that it results in a duplication of credits or benefits, and
12neither shall such credit be allowed to the extent that it was
13or may be forfeited by the application for and acceptance of a
14refund from the fund from which the employee was transferred.
15    (6) Overtime or extra service shall not be included in
16computing service. Not more than 1 year of service shall be
17allowed for service rendered during any calendar year.
18    (7) Unused sick or vacation time shall not be used to
19compute the service of an employee who first becomes an
20employee on or after the effective date of this amendatory Act
21of the 97th General Assembly.
22(Source: P.A. 92-599, eff. 6-28-02.)
 
23    (40 ILCS 5/9-220)  (from Ch. 108 1/2, par. 9-220)
24    Sec. 9-220. Basis of service credit.
25    (a) In computing the period of service of any employee for

 

 

SB3569- 26 -LRB097 15485 JDS 60586 b

1annuity purposes under Section 9-134, the following provisions
2shall govern:
3        (1) All periods prior to the effective date shall be
4    computed in accordance with the provisions governing the
5    computation of such service.
6        (2) Service on or after the effective date shall
7    include:
8            (i) The actual period of time the employee
9        contributes or has contributed to the fund for service
10        rendered to age 65 plus the actual period of time after
11        age 65 for which the employee performs the duties of
12        his position or performs such duties and is given a
13        county contribution for age and service annuity or
14        minimum annuity purposes.
15            (ii) Leaves of absence from duty, or vacation, for
16        which an employee receives all or part of his salary.
17            (iii) For a person who first becomes an employee
18        before the effective date of this amendatory Act of the
19        97th General Assembly, accumulated Accumulated
20        vacation or other time for which an employee who
21        retires on or after November 1, 1990 receives a lump
22        sum payment at the time of retirement, provided that
23        contributions were made to the fund at the time such
24        lump sum payment was received. The service granted for
25        the lump sum payment shall not change the employee's
26        date of withdrawal for computing the effective date of

 

 

SB3569- 27 -LRB097 15485 JDS 60586 b

1        the annuity.
2            (iv) For a person who first becomes an employee
3        before the effective date of this amendatory Act of the
4        97th General Assembly, accumulated Accumulated sick
5        leave as of the date of the employee's withdrawal from
6        service, not to exceed a total of 180 days, provided
7        that the amount of such accumulated sick leave is
8        certified by the County Comptroller to the Board and
9        the employee pays an amount equal to 8.5% (9% for
10        members of the County Police Department who are
11        eligible to receive an annuity under Section 9-128.1)
12        of the amount that would have been paid had such
13        accumulated sick leave been paid at the employee's
14        final rate of salary. Such payment shall be made within
15        30 days after the date of withdrawal and prior to
16        receipt of the first annuity check. The service credit
17        granted for such accumulated sick leave shall not
18        change the employee's date of withdrawal for the
19        purpose of computing the effective date of the annuity.
20            (v) Periods during which the employee has had
21        contributions for annuity purposes made for him in
22        accordance with law while on military leave of absence
23        during World War II.
24            (vi) Periods during which the employee receives a
25        disability benefit under this Article.
26            (vii) For any person who first becomes a member on

 

 

SB3569- 28 -LRB097 15485 JDS 60586 b

1        or after January 1, 2011, the actual period of time the
2        employee contributes or has contributed to the fund for
3        service rendered up to the limitation on salary in
4        subsection (b-5) of Section 1-160 plus the actual
5        period of time thereafter for which the employee
6        performs the duties of his position and ceased
7        contributing due to the salary limitation in
8        subsection (b-5) of Section 1-160.
9        (3) The right to have certain periods of time
10    considered as service as stated in paragraph (2) of Section
11    9-164 shall not apply for annuity purposes unless the
12    refunds shall have been repaid in accordance with this
13    Article.
14        (4) All service shall be computed in whole calendar
15    months, and at least 15 days of service in any one calendar
16    month shall constitute one calendar month of service, and 1
17    year of service shall be equal to the number of months,
18    days or hours for which an appropriation was made in the
19    annual appropriation ordinance for the position held by the
20    employee.
21        (5) Unused sick or vacation time shall not be used to
22    compute the service of an employee who first becomes an
23    employee on or after the effective date of this amendatory
24    Act of the 97th General Assembly.
25    (b) For all other annuity purposes of this Article the
26following schedule shall govern the computation of a year of

 

 

SB3569- 29 -LRB097 15485 JDS 60586 b

1service of an employee whose salary or wages is on the basis
2stated, and any fractional part of a year of service shall be
3determined according to said schedule:
4    Annual or Monthly Basis: Service during 4 months in any 1
5calendar year;
6    Weekly Basis: Service during any 17 weeks of any 1 calendar
7year, and service during any week shall constitute a week of
8service;
9    Daily Basis: Service during 100 days in any 1 calendar
10year, and service during any day shall constitute a day of
11service;
12    Hourly Basis: Service during 800 hours in any 1 calendar
13year, and service during any hour shall constitute an hour of
14service.
15(Source: P.A. 96-1490, eff. 1-1-11.)
 
16    (40 ILCS 5/14-104.3)  (from Ch. 108 1/2, par. 14-104.3)
17    Sec. 14-104.3. Notwithstanding provisions contained in
18Section 14-103.10, any person who first becomes a member before
19the effective date of this amendatory Act of the 97th General
20Assembly and who at the time of retirement and after December
216, 1983 receives compensation in a lump sum for accumulated
22vacation, sickness, or personal business may receive service
23credit for such periods by making contributions within 90 days
24of withdrawal, based on the rate of compensation in effect
25immediately prior to retirement and the contribution rate then

 

 

SB3569- 30 -LRB097 15485 JDS 60586 b

1in effect. Any person who first becomes a member on or after
2the effective date of this amendatory Act of the 97th General
3Assembly and who receives compensation in a lump sum for
4accumulated vacation, sickness, or personal business may not
5receive service credit for such periods. Exercising the option
6provided in this Section shall not change a member's date of
7withdrawal or final average compensation for purposes of
8computing the amount or effective date of a retirement annuity.
9Any annuitant who establishes service credit as herein provided
10shall have his retirement annuity adjusted retroactively to the
11date of retirement.
12(Source: P.A. 83-1362.)
 
13    (40 ILCS 5/14-106)  (from Ch. 108 1/2, par. 14-106)
14    Sec. 14-106. Membership service credit.
15    (a) After January 1, 1944, all service of a member since he
16last became a member with respect to which contributions are
17made shall count as membership service; provided, that for
18service on and after July 1, 1950, 12 months of service shall
19constitute a year of membership service, the completion of 15
20days or more of service during any month shall constitute 1
21month of membership service, 8 to 15 days shall constitute 1/2
22month of membership service and less than 8 days shall
23constitute 1/4 month of membership service. The payroll record
24of each department shall constitute conclusive evidence of the
25record of service rendered by a member.

 

 

SB3569- 31 -LRB097 15485 JDS 60586 b

1    (b) For a member who is employed and paid on an
2academic-year basis rather than on a 12-month annual basis,
3employment for a full academic year shall constitute a full
4year of membership service, except that the member shall not
5receive more than one year of membership service credit (plus
6any additional service credit granted for unused sick leave)
7for service during any 12-month period. This subsection (b)
8applies to all such service for which the member has not begun
9to receive a retirement annuity before January 1, 2001.
10    (c) A person who first becomes a member before the
11effective date of this amendatory Act of the 97th General
12Assembly shall be entitled to additional service credit, under
13rules prescribed by the Board, for accumulated unused sick
14leave credited to his account in the last Department on the
15date of withdrawal from service or for any period for which he
16would have been eligible to receive benefits under a sick pay
17plan authorized by law, if he had suffered a sickness or
18accident on the date of withdrawal from service. It shall be
19the responsibility of the last Department to certify to the
20Board the length of time salary or benefits would have been
21paid to the member based upon the accumulated unused sick leave
22or the applicable sick pay plan if he had become entitled
23thereto because of sickness on the date that his status as an
24employee terminated. This period of service credit granted
25under this paragraph shall not be considered in determining the
26date the retirement annuity is to begin, or final average

 

 

SB3569- 32 -LRB097 15485 JDS 60586 b

1compensation.
2    (d) A person who first becomes a member on or after the
3effective date of this amendatory Act of the 97th General
4Assembly shall not be entitled to additional service credit for
5accumulated unused sick leave.
6(Source: P.A. 92-14, eff. 6-28-01.)
 
7    (40 ILCS 5/15-112)  (from Ch. 108 1/2, par. 15-112)
8    Sec. 15-112. Final rate of earnings.
9    "Final rate of earnings":
10    (a) This subsection (a) applies only to a person who first
11becomes a participant of any system before January 1, 2011.
12     For an employee who is paid on an hourly basis or who
13receives an annual salary in installments during 12 months of
14each academic year, the average annual earnings during the 48
15consecutive calendar month period ending with the last day of
16final termination of employment or the 4 consecutive academic
17years of service in which the employee's earnings were the
18highest, whichever is greater. For any other employee, the
19average annual earnings during the 4 consecutive academic years
20of service in which his or her earnings were the highest. For
21an employee with less than 48 months or 4 consecutive academic
22years of service, the average earnings during his or her entire
23period of service. The earnings of an employee with more than
2436 months of service prior to the date of becoming a
25participant are, for such period, considered equal to the

 

 

SB3569- 33 -LRB097 15485 JDS 60586 b

1average earnings during the last 36 months of such service.
2    (b) This subsection (b) applies to a person to whom
3subsection (a) does not apply.
4    For an employee who is paid on an hourly basis or who
5receives an annual salary in installments during 12 months of
6each academic year, the average annual earnings obtained by
7dividing by 8 the total earnings of the employee during the 96
8consecutive months in which the total earnings were the highest
9within the last 120 months prior to termination.
10    For any other employee, the average annual earnings during
11the 8 consecutive academic years within the 10 years prior to
12termination in which the employee's earnings were the highest.
13For an employee with less than 96 consecutive months or 8
14consecutive academic years of service, whichever is necessary,
15the average earnings during his or her entire period of
16service.
17    (c) For an employee on leave of absence with pay, or on
18leave of absence without pay who makes contributions during
19such leave, earnings are assumed to be equal to the basic
20compensation on the date the leave began.
21    (d) For an employee on disability leave, earnings are
22assumed to be equal to the basic compensation on the date
23disability occurs or the average earnings during the 24 months
24immediately preceding the month in which disability occurs,
25whichever is greater.
26    (e) For a participant who retires on or after the effective

 

 

SB3569- 34 -LRB097 15485 JDS 60586 b

1date of this amendatory Act of 1997 with at least 20 years of
2service as a firefighter or police officer under this Article,
3the final rate of earnings shall be the annual rate of earnings
4received by the participant on his or her last day as a
5firefighter or police officer under this Article, if that is
6greater than the final rate of earnings as calculated under the
7other provisions of this Section.
8    (f) If a participant to whom subsection (a) of this Section
9applies is an employee for at least 6 months during the
10academic year in which his or her employment is terminated, the
11annual final rate of earnings shall be 25% of the sum of (1)
12the annual basic compensation for that year, and (2) the amount
13earned during the 36 months immediately preceding that year, if
14this is greater than the final rate of earnings as calculated
15under the other provisions of this Section.
16    (g) In the determination of the final rate of earnings for
17an employee, that part of an employee's earnings for any
18academic year beginning after June 30, 1997, which exceeds the
19employee's earnings with that employer for the preceding year
20by more than 20 percent shall be excluded; in the event that an
21employee has more than one employer this limitation shall be
22calculated separately for the earnings with each employer. In
23making such calculation, only the basic compensation of
24employees shall be considered, without regard to vacation or
25overtime or to contracts for summer employment.
26    (h) The following are not considered as earnings in

 

 

SB3569- 35 -LRB097 15485 JDS 60586 b

1determining final rate of earnings: (1) severance or separation
2pay, (2) retirement pay, (3) payment for unused sick leave, and
3(4) payments from an employer for the period used in
4determining final rate of earnings for any purpose other than
5(i) services rendered, (ii) leave of absence or vacation
6granted during that period, and (iii) vacation of up to 56 work
7days allowed upon termination of employment; except that, if
8the benefit has been collectively bargained between the
9employer and the recognized collective bargaining agent
10pursuant to the Illinois Educational Labor Relations Act,
11payment received during a period of up to 2 academic years for
12unused sick leave may be considered as earnings in accordance
13with the applicable collective bargaining agreement, subject
14to the 20% increase limitation of this Section, and if the
15person first becomes a participant on or after the effective
16date of this amendatory Act of the 97th General Assembly,
17payments for unused sick or vacation time shall not be
18considered as earnings. Any unused sick leave considered as
19earnings under this Section shall not be taken into account in
20calculating service credit under Section 15-113.4.
21    (i) Intermittent periods of service shall be considered as
22consecutive in determining final rate of earnings.
23(Source: P.A. 96-1490, eff. 1-1-11.)
 
24    (40 ILCS 5/15-113.4)  (from Ch. 108 1/2, par. 15-113.4)
25    Sec. 15-113.4. Service for unused sick leave. "Service for

 

 

SB3569- 36 -LRB097 15485 JDS 60586 b

1unused sick leave": A person who first becomes a participant
2before the effective date of this amendatory Act of the 97th
3General Assembly and who is an employee under this System or
4one of the other systems subject to Article 20 of this Code
5within 60 days immediately preceding the date on which his or
6her retirement annuity begins, is entitled to credit for
7service for that portion of unused sick leave earned in the
8course of employment with an employer and credited on the date
9of termination of employment by an employer for which payment
10is not received, in accordance with the following schedule: 30
11through 90 full calendar days and 20 through 59 full work days
12of unused sick leave, 1/4 of a year of service; 91 through 180
13full calendar days and 60 through 119 full work days, 1/2 of a
14year of service; 181 through 270 full calendar days and 120
15through 179 full work days, 3/4 of a year of service; 271
16through 360 full calendar days and 180 through 240 full work
17days, one year of service. Only uncompensated, unused sick
18leave earned in accordance with an employer's sick leave
19accrual policy generally applicable to employees or a class of
20employees shall be taken into account in calculating service
21credit under this Section. Any uncompensated, unused sick leave
22granted by an employer to facilitate the hiring, retirement,
23termination, or other special circumstances of an employee
24shall not be taken into account in calculating service credit
25under this Section. If a participant transfers from one
26employer to another, the unused sick leave credited by the

 

 

SB3569- 37 -LRB097 15485 JDS 60586 b

1previous employer shall be considered in determining service to
2be credited under this Section, even if the participant
3terminated service prior to the effective date of P.A. 86-272
4(August 23, 1989); if necessary, the retirement annuity shall
5be recalculated to reflect such sick leave credit. Each
6employer shall certify to the board the number of days of
7unused sick leave accrued to the participant's credit on the
8date that the participant's status as an employee terminated.
9This period of unused sick leave shall not be considered in
10determining the date the retirement annuity begins. A person
11who first becomes a participant on or after the effective date
12of this amendatory Act of the 97th General Assembly shall not
13receive service credit for unused sick leave.
14(Source: P.A. 90-65, eff. 7-7-97; 90-511, eff. 8-22-97.)
 
15    (40 ILCS 5/16-121)  (from Ch. 108 1/2, par. 16-121)
16    Sec. 16-121. Salary. "Salary": The actual compensation
17received by a teacher during any school year and recognized by
18the system in accordance with rules of the board. For purposes
19of this Section, "school year" includes the regular school term
20plus any additional period for which a teacher is compensated
21and such compensation is recognized by the rules of the board.
22In the case of a person who first becomes a member on or after
23the effective date of this amendatory Act of the 97th General
24Assembly, "salary" shall not include any payment for unused
25sick or vacation time.

 

 

SB3569- 38 -LRB097 15485 JDS 60586 b

1(Source: P.A. 84-1028.)
 
2    (40 ILCS 5/16-127)  (from Ch. 108 1/2, par. 16-127)
3    Sec. 16-127. Computation of creditable service.
4    (a) Each member shall receive regular credit for all
5service as a teacher from the date membership begins, for which
6satisfactory evidence is supplied and all contributions have
7been paid.
8    (b) The following periods of service shall earn optional
9credit and each member shall receive credit for all such
10service for which satisfactory evidence is supplied and all
11contributions have been paid as of the date specified:
12        (1) Prior service as a teacher.
13        (2) Service in a capacity essentially similar or
14    equivalent to that of a teacher, in the public common
15    schools in school districts in this State not included
16    within the provisions of this System, or of any other
17    State, territory, dependency or possession of the United
18    States, or in schools operated by or under the auspices of
19    the United States, or under the auspices of any agency or
20    department of any other State, and service during any
21    period of professional speech correction or special
22    education experience for a public agency within this State
23    or any other State, territory, dependency or possession of
24    the United States, and service prior to February 1, 1951 as
25    a recreation worker for the Illinois Department of Public

 

 

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1    Safety, for a period not exceeding the lesser of 2/5 of the
2    total creditable service of the member or 10 years. The
3    maximum service of 10 years which is allowable under this
4    paragraph shall be reduced by the service credit which is
5    validated by other retirement systems under paragraph (i)
6    of Section 15-113 and paragraph 1 of Section 17-133. Credit
7    granted under this paragraph may not be used in
8    determination of a retirement annuity or disability
9    benefits unless the member has at least 5 years of
10    creditable service earned subsequent to this employment
11    with one or more of the following systems: Teachers'
12    Retirement System of the State of Illinois, State
13    Universities Retirement System, and the Public School
14    Teachers' Pension and Retirement Fund of Chicago. Whenever
15    such service credit exceeds the maximum allowed for all
16    purposes of this Article, the first service rendered in
17    point of time shall be considered. The changes to this
18    subdivision (b)(2) made by Public Act 86-272 shall apply
19    not only to persons who on or after its effective date
20    (August 23, 1989) are in service as a teacher under the
21    System, but also to persons whose status as such a teacher
22    terminated prior to such effective date, whether or not
23    such person is an annuitant on that date.
24        (3) Any periods immediately following teaching
25    service, under this System or under Article 17, (or
26    immediately following service prior to February 1, 1951 as

 

 

SB3569- 40 -LRB097 15485 JDS 60586 b

1    a recreation worker for the Illinois Department of Public
2    Safety) spent in active service with the military forces of
3    the United States; periods spent in educational programs
4    that prepare for return to teaching sponsored by the
5    federal government following such active military service;
6    if a teacher returns to teaching service within one
7    calendar year after discharge or after the completion of
8    the educational program, a further period, not exceeding
9    one calendar year, between time spent in military service
10    or in such educational programs and the return to
11    employment as a teacher under this System; and a period of
12    up to 2 years of active military service not immediately
13    following employment as a teacher.
14        The changes to this Section and Section 16-128 relating
15    to military service made by P.A. 87-794 shall apply not
16    only to persons who on or after its effective date are in
17    service as a teacher under the System, but also to persons
18    whose status as a teacher terminated prior to that date,
19    whether or not the person is an annuitant on that date. In
20    the case of an annuitant who applies for credit allowable
21    under this Section for a period of military service that
22    did not immediately follow employment, and who has made the
23    required contributions for such credit, the annuity shall
24    be recalculated to include the additional service credit,
25    with the increase taking effect on the date the System
26    received written notification of the annuitant's intent to

 

 

SB3569- 41 -LRB097 15485 JDS 60586 b

1    purchase the credit, if payment of all the required
2    contributions is made within 60 days of such notice, or
3    else on the first annuity payment date following the date
4    of payment of the required contributions. In calculating
5    the automatic annual increase for an annuity that has been
6    recalculated under this Section, the increase attributable
7    to the additional service allowable under P.A. 87-794 shall
8    be included in the calculation of automatic annual
9    increases accruing after the effective date of the
10    recalculation.
11        Credit for military service shall be determined as
12    follows: if entry occurs during the months of July, August,
13    or September and the member was a teacher at the end of the
14    immediately preceding school term, credit shall be granted
15    from July 1 of the year in which he or she entered service;
16    if entry occurs during the school term and the teacher was
17    in teaching service at the beginning of the school term,
18    credit shall be granted from July 1 of such year. In all
19    other cases where credit for military service is allowed,
20    credit shall be granted from the date of entry into the
21    service.
22        The total period of military service for which credit
23    is granted shall not exceed 5 years for any member unless
24    the service: (A) is validated before July 1, 1964, and (B)
25    does not extend beyond July 1, 1963. Credit for military
26    service shall be granted under this Section only if not

 

 

SB3569- 42 -LRB097 15485 JDS 60586 b

1    more than 5 years of the military service for which credit
2    is granted under this Section is used by the member to
3    qualify for a military retirement allotment from any branch
4    of the armed forces of the United States. The changes to
5    this subdivision (b)(3) made by Public Act 86-272 shall
6    apply not only to persons who on or after its effective
7    date (August 23, 1989) are in service as a teacher under
8    the System, but also to persons whose status as such a
9    teacher terminated prior to such effective date, whether or
10    not such person is an annuitant on that date.
11        (4) Any periods served as a member of the General
12    Assembly.
13        (5)(i) Any periods for which a teacher, as defined in
14    Section 16-106, is granted a leave of absence, provided he
15    or she returns to teaching service creditable under this
16    System or the State Universities Retirement System
17    following the leave; (ii) periods during which a teacher is
18    involuntarily laid off from teaching, provided he or she
19    returns to teaching following the lay-off; (iii) periods
20    prior to July 1, 1983 during which a teacher ceased covered
21    employment due to pregnancy, provided that the teacher
22    returned to teaching service creditable under this System
23    or the State Universities Retirement System following the
24    pregnancy and submits evidence satisfactory to the Board
25    documenting that the employment ceased due to pregnancy;
26    and (iv) periods prior to July 1, 1983 during which a

 

 

SB3569- 43 -LRB097 15485 JDS 60586 b

1    teacher ceased covered employment for the purpose of
2    adopting an infant under 3 years of age or caring for a
3    newly adopted infant under 3 years of age, provided that
4    the teacher returned to teaching service creditable under
5    this System or the State Universities Retirement System
6    following the adoption and submits evidence satisfactory
7    to the Board documenting that the employment ceased for the
8    purpose of adopting an infant under 3 years of age or
9    caring for a newly adopted infant under 3 years of age.
10    However, total credit under this paragraph (5) may not
11    exceed 3 years.
12        Any qualified member or annuitant may apply for credit
13    under item (iii) or (iv) of this paragraph (5) without
14    regard to whether service was terminated before the
15    effective date of this amendatory Act of 1997. In the case
16    of an annuitant who establishes credit under item (iii) or
17    (iv), the annuity shall be recalculated to include the
18    additional service credit. The increase in annuity shall
19    take effect on the date the System receives written
20    notification of the annuitant's intent to purchase the
21    credit, if the required evidence is submitted and the
22    required contribution paid within 60 days of that
23    notification, otherwise on the first annuity payment date
24    following the System's receipt of the required evidence and
25    contribution. The increase in an annuity recalculated
26    under this provision shall be included in the calculation

 

 

SB3569- 44 -LRB097 15485 JDS 60586 b

1    of automatic annual increases in the annuity accruing after
2    the effective date of the recalculation.
3        Optional credit may be purchased under this subsection
4    (b)(5) for periods during which a teacher has been granted
5    a leave of absence pursuant to Section 24-13 of the School
6    Code. A teacher whose service under this Article terminated
7    prior to the effective date of P.A. 86-1488 shall be
8    eligible to purchase such optional credit. If a teacher who
9    purchases this optional credit is already receiving a
10    retirement annuity under this Article, the annuity shall be
11    recalculated as if the annuitant had applied for the leave
12    of absence credit at the time of retirement. The difference
13    between the entitled annuity and the actual annuity shall
14    be credited to the purchase of the optional credit. The
15    remainder of the purchase cost of the optional credit shall
16    be paid on or before April 1, 1992.
17        The change in this paragraph made by Public Act 86-273
18    shall be applicable to teachers who retire after June 1,
19    1989, as well as to teachers who are in service on that
20    date.
21        (6) For a person who first becomes a member before the
22    effective date of this amendatory Act of the 97th General
23    Assembly, any Any days of unused and uncompensated
24    accumulated sick leave earned by a teacher. The service
25    credit granted under this paragraph shall be the ratio of
26    the number of unused and uncompensated accumulated sick

 

 

SB3569- 45 -LRB097 15485 JDS 60586 b

1    leave days to 170 days, subject to a maximum of 2 years of
2    service credit. Prior to the member's retirement, each
3    former employer shall certify to the System the number of
4    unused and uncompensated accumulated sick leave days
5    credited to the member at the time of termination of
6    service. The period of unused sick leave shall not be
7    considered in determining the effective date of
8    retirement. A member is not required to make contributions
9    in order to obtain service credit for unused sick leave.
10        Credit for sick leave shall, at retirement, be granted
11    by the System for any retiring regional or assistant
12    regional superintendent of schools who first becomes a
13    member before the effective date of this amendatory Act of
14    the 97th General Assembly at the rate of 6 days per year of
15    creditable service or portion thereof established while
16    serving as such superintendent or assistant
17    superintendent.
18        (7) Periods prior to February 1, 1987 served as an
19    employee of the Illinois Mathematics and Science Academy
20    for which credit has not been terminated under Section
21    15-113.9 of this Code.
22        (8) Service as a substitute teacher for work performed
23    prior to July 1, 1990.
24        (9) Service as a part-time teacher for work performed
25    prior to July 1, 1990.
26        (10) Up to 2 years of employment with Southern Illinois

 

 

SB3569- 46 -LRB097 15485 JDS 60586 b

1    University - Carbondale from September 1, 1959 to August
2    31, 1961, or with Governors State University from September
3    1, 1972 to August 31, 1974, for which the teacher has no
4    credit under Article 15. To receive credit under this item
5    (10), a teacher must apply in writing to the Board and pay
6    the required contributions before May 1, 1993 and have at
7    least 12 years of service credit under this Article.
8    (b-1) A member may establish optional credit for up to 2
9years of service as a teacher or administrator employed by a
10private school recognized by the Illinois State Board of
11Education, provided that the teacher (i) was certified under
12the law governing the certification of teachers at the time the
13service was rendered, (ii) applies in writing on or after
14August 1, 2009 and on or before August 1, 2012, (iii) supplies
15satisfactory evidence of the employment, (iv) completes at
16least 10 years of contributing service as a teacher as defined
17in Section 16-106, and (v) pays the contribution required in
18subsection (d-5) of Section 16-128. The member may apply for
19credit under this subsection and pay the required contribution
20before completing the 10 years of contributing service required
21under item (iv), but the credit may not be used until the item
22(iv) contributing service requirement has been met.
23    (c) The service credits specified in this Section shall be
24granted only if: (1) such service credits are not used for
25credit in any other statutory tax-supported public employee
26retirement system other than the federal Social Security

 

 

SB3569- 47 -LRB097 15485 JDS 60586 b

1program; and (2) the member makes the required contributions as
2specified in Section 16-128. Except as provided in subsection
3(b-1) of this Section, the service credit shall be effective as
4of the date the required contributions are completed.
5    Any service credits granted under this Section shall
6terminate upon cessation of membership for any cause.
7    Credit may not be granted under this Section covering any
8period for which an age retirement or disability retirement
9allowance has been paid.
10(Source: P.A. 96-546, eff. 8-17-09.)
 
11    (40 ILCS 5/17-116)  (from Ch. 108 1/2, par. 17-116)
12    Sec. 17-116. Service retirement pension.
13    (a) Each teacher having 20 years of service upon attainment
14of age 55, or who thereafter attains age 55 shall be entitled
15to a service retirement pension upon or after attainment of age
1655; and each teacher in service on or after July 1, 1971, with
175 or more but less than 20 years of service shall be entitled
18to receive a service retirement pension upon or after
19attainment of age 62.
20    (b) The service retirement pension for a teacher who
21retires on or after June 25, 1971, at age 60 or over, shall be
22calculated as follows:
23        (1) For creditable service earned before July 1, 1998
24    that has not been augmented under Section 17-119.1: 1.67%
25    for each of the first 10 years of service; 1.90% for each

 

 

SB3569- 48 -LRB097 15485 JDS 60586 b

1    of the next 10 years of service; 2.10% for each year of
2    service in excess of 20 but not exceeding 30; and 2.30% for
3    each year of service in excess of 30, based upon average
4    salary as herein defined.
5        (2) For creditable service earned on or after July 1,
6    1998 by a member who has at least 30 years of creditable
7    service on July 1, 1998 and who does not elect to augment
8    service under Section 17-119.1: 2.3% of average salary for
9    each year of creditable service earned on or after July 1,
10    1998.
11        (3) For all other creditable service: 2.2% of average
12    salary for each year of creditable service.
13    (c) When computing such service retirement pensions, the
14following conditions shall apply:
15        1. Average salary shall consist of the average annual
16    rate of salary for the 4 consecutive years of validated
17    service within the last 10 years of service when such
18    average annual rate was highest. In the determination of
19    average salary for retirement allowance purposes, for
20    members who commenced employment after August 31, 1979,
21    that part of the salary for any year shall be excluded
22    which exceeds the annual full-time salary rate for the
23    preceding year by more than 20%. In the case of a member
24    who commenced employment before August 31, 1979 and who
25    receives salary during any year after September 1, 1983
26    which exceeds the annual full time salary rate for the

 

 

SB3569- 49 -LRB097 15485 JDS 60586 b

1    preceding year by more than 20%, an Employer and other
2    employers of eligible contributors as defined in Section
3    17-106 shall pay to the Fund an amount equal to the present
4    value of the additional service retirement pension
5    resulting from such excess salary. The present value of the
6    additional service retirement pension shall be computed by
7    the Board on the basis of actuarial tables adopted by the
8    Board. If a member elects to receive a pension from this
9    Fund provided by Section 20-121, his salary under the State
10    Universities Retirement System and the Teachers'
11    Retirement System of the State of Illinois shall be
12    considered in determining such average salary. Amounts
13    paid after the effective date of this amendatory Act of
14    1991 for unused vacation time earned after that effective
15    date shall not under any circumstances be included in the
16    calculation of average salary or the annual rate of salary
17    for the purposes of this Article.
18        2. Proportionate credit shall be given for validated
19    service of less than one year.
20        3. For retirement at age 60 or over the pension shall
21    be payable at the full rate.
22        4. For separation from service below age 60 to a
23    minimum age of 55, the pension shall be discounted at the
24    rate of 1/2 of one per cent for each month that the age of
25    the contributor is less than 60, but a teacher may elect to
26    defer the effective date of pension in order to eliminate

 

 

SB3569- 50 -LRB097 15485 JDS 60586 b

1    or reduce this discount. This discount shall not be
2    applicable to any participant who has at least 34 years of
3    service or a retirement pension of at least 74.6% of
4    average salary on the date the retirement annuity begins.
5        5. No additional pension shall be granted for service
6    exceeding 45 years. Beginning June 26, 1971 no pension
7    shall exceed the greater of $1,500 per month or 75% of
8    average salary as herein defined.
9        6. Service retirement pensions shall begin on the
10    effective date of resignation, retirement, the day
11    following the close of the payroll period for which service
12    credit was validated, or the time the person resigning or
13    retiring attains age 55, or on a date elected by the
14    teacher, whichever shall be latest.
15        7. A member who is eligible to receive a retirement
16    pension of at least 74.6% of average salary and will attain
17    age 55 on or before December 31 during the year which
18    commences on July 1 shall be deemed to attain age 55 on the
19    preceding June 1.
20        8. A member retiring after the effective date of this
21    amendatory Act of 1998 shall receive a pension equal to 75%
22    of average salary if the member is qualified to receive a
23    retirement pension equal to at least 74.6% of average
24    salary under this Article or as proportional annuities
25    under Article 20 of this Code.
26        9. In the case of a person who first becomes a

 

 

SB3569- 51 -LRB097 15485 JDS 60586 b

1    participant on or after the effective date of this
2    amendatory Act of the 97th General Assembly, payments for
3    unused sick or vacation time shall not be used in the
4    calculation of average salary.
5(Source: P.A. 90-566, eff. 1-2-98; 90-582, eff. 5-27-98.)
 
6    (40 ILCS 5/17-134)  (from Ch. 108 1/2, par. 17-134)
7    Sec. 17-134. Contributions for leaves of absence; military
8service; computing service. In computing service for pension
9purposes the following periods of service shall stand in lieu
10of a like number of years of teaching service upon payment
11therefor in the manner hereinafter provided: (a) time spent on
12a leave of absence granted by the employer; (b) service with
13teacher or labor organizations based upon special leaves of
14absence therefor granted by an Employer; (c) a maximum of 5
15years spent in the military service of the United States, of
16which up to 2 years may have been served outside the pension
17period; (d) unused sick days at termination of service to a
18maximum of 244 days; (e) time lost due to layoff and
19curtailment of the school term from June 6 through June 21,
201976; and (f) time spent after June 30, 1982 as a member of the
21Board of Education, if required to resign from an
22administrative or teaching position in order to qualify as a
23member of the Board of Education.
24        (1) For time spent on or after September 6, 1948 on
25    sabbatical leaves of absence or sick leaves, for which

 

 

SB3569- 52 -LRB097 15485 JDS 60586 b

1    salaries are paid, an Employer shall make payroll
2    deductions at the applicable rates in effect during such
3    periods.
4        (2) For time spent on a leave of absence granted by the
5    employer for which no salaries are paid, teachers desiring
6    credit therefor shall pay the required contributions at the
7    rates in effect during such periods as though they were in
8    teaching service. If an Employer pays salary for vacations
9    which occur during a teacher's sick leave or maternity or
10    paternity leave without salary, vacation pay for which the
11    teacher would have qualified while in active service shall
12    be considered part of the teacher's total salary for
13    pension purposes. No more than 36 months of leave credit
14    may be allowed any person during the entire term of
15    service. Sabbatical leave credit shall be limited to the
16    time the person on leave without salary under an Employer's
17    rules is allowed to engage in an activity for which he
18    receives salary or compensation.
19        (3) For time spent prior to September 6, 1948, on
20    sabbatical leaves of absence or sick leaves for which
21    salaries were paid, teachers desiring service credit
22    therefor shall pay the required contributions at the
23    maximum applicable rates in effect during such periods.
24        (4) For service with teacher or labor organizations
25    authorized by special leaves of absence, for which no
26    payroll deductions are made by an Employer, teachers

 

 

SB3569- 53 -LRB097 15485 JDS 60586 b

1    desiring service credit therefor shall contribute to the
2    Fund upon the basis of the actual salary received from such
3    organizations at the percentage rates in effect during such
4    periods for certified positions with such Employer. To the
5    extent the actual salary exceeds the regular salary, which
6    shall be defined as the salary rate, as calculated by the
7    Board, in effect for the teacher's regular position in
8    teaching service on September 1, 1983 or on the effective
9    date of the leave with the organization, whichever is
10    later, the organization shall pay to the Fund the
11    employer's normal cost as set by the Board on the
12    increment.
13        (5) For time spent in the military service, teachers
14    entitled to and desiring credit therefor shall contribute
15    the amount required for each year of service or fraction
16    thereof at the rates in force (a) at the date of
17    appointment, or (b) on return to teaching service as a
18    regularly certified teacher, as the case may be; provided
19    such rates shall not be less than $450 per year of service.
20    These conditions shall apply unless an Employer elects to
21    and does pay into the Fund the amount which would have been
22    due from such person had he been employed as a teacher
23    during such time. In the case of credit for military
24    service not during the pension period, the teacher must
25    also pay to the Fund an amount determined by the Board to
26    be equal to the employer's normal cost of the benefits

 

 

SB3569- 54 -LRB097 15485 JDS 60586 b

1    accrued from such service, plus interest thereon at 5% per
2    year, compounded annually, from the date of appointment to
3    the date of payment.
4        The changes to this Section made by Public Act 87-795
5    shall apply not only to persons who on or after its
6    effective date are in service under the Fund, but also to
7    persons whose status as a teacher terminated prior to that
8    date, whether or not the person is an annuitant on that
9    date. In the case of an annuitant who applies for credit
10    allowable under this Section for a period of military
11    service that did not immediately follow employment, and who
12    has made the required contributions for such credit, the
13    annuity shall be recalculated to include the additional
14    service credit, with the increase taking effect on the date
15    the Fund received written notification of the annuitant's
16    intent to purchase the credit, if payment of all the
17    required contributions is made within 60 days of such
18    notice, or else on the first annuity payment date following
19    the date of payment of the required contributions. In
20    calculating the automatic annual increase for an annuity
21    that has been recalculated under this Section, the increase
22    attributable to the additional service allowable under
23    this amendatory Act of 1991 shall be included in the
24    calculation of automatic annual increases accruing after
25    the effective date of the recalculation.
26        The total credit for military service shall not exceed

 

 

SB3569- 55 -LRB097 15485 JDS 60586 b

1    5 years, except that any teacher who on July 1, 1963, had
2    validated credit for more than 5 years of military service
3    shall be entitled to the total amount of such credit.
4        (6) For persons who first become teachers before the
5    effective date of this amendatory Act of the 97th General
6    Assembly, a A maximum of 244 unused sick days credited to
7    his account by an Employer on the date of termination of
8    employment. Members, upon verification of unused sick
9    days, may add this service time to total creditable
10    service.
11        (7) In all cases where time spent on leave is
12    creditable and no payroll deductions therefor are made by
13    an Employer, persons desiring service credit shall make the
14    required contributions directly to the Fund.
15        (8) For time lost without pay due to layoff and
16    curtailment of the school term from June 6 through June 21,
17    1976, as provided in item (e) of the first paragraph of
18    this Section, persons who were contributors on the days
19    immediately preceding such layoff shall receive credit
20    upon paying to the Fund a contribution based on the rates
21    of compensation and employee contributions in effect at the
22    time of such layoff, together with an additional amount
23    equal to 12.2% of the compensation computed for such period
24    of layoff, plus interest on the entire amount at 5% per
25    annum from January 1, 1978 to the date of payment. If such
26    contribution is paid, salary for pension purposes for any

 

 

SB3569- 56 -LRB097 15485 JDS 60586 b

1    year in which such a layoff occurred shall include the
2    compensation recognized for purposes of computing that
3    contribution.
4        (9) For time spent after June 30, 1982, as a
5    nonsalaried member of the Board of Education, if required
6    to resign from an administrative or teaching position in
7    order to qualify as a member of the Board of Education, an
8    administrator or teacher desiring credit therefor shall
9    pay the required contributions at the rates and salaries in
10    effect during such periods as though the member were in
11    service.
12    Effective September 1, 1974, the interest charged for
13validation of service described in paragraphs (2) through (5)
14of this Section shall be compounded annually at a rate of 5%
15commencing one year after the termination of the leave or
16return to service.
17(Source: P.A. 92-599, eff. 6-28-02.)
 
18    Section 99. Effective date. This Act takes effect upon
19becoming law.