SB0001 EngrossedLRB098 05457 JDS 35491 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 Public Labor Relations Act is
5amended by changing Sections 4 and 15 as follows:
 
6    (5 ILCS 315/4)  (from Ch. 48, par. 1604)
7    Sec. 4. Management Rights. Employers shall not be required
8to bargain over matters of inherent managerial policy, which
9shall include such areas of discretion or policy as the
10functions of the employer, standards of services, its overall
11budget, the organizational structure and selection of new
12employees, examination techniques and direction of employees.
13Employers, however, shall be required to bargain collectively
14with regard to policy matters directly affecting wages (but
15subject to any applicable restrictions in Section 16-122.9 of
16the Illinois Pension Code), hours and terms and conditions of
17employment as well as the impact thereon upon request by
18employee representatives, but excluding the changes, the
19impact of changes, and the implementation of the changes set
20forth in this amendatory Act of the 98th General Assembly.
21    To preserve the rights of employers and exclusive
22representatives which have established collective bargaining
23relationships or negotiated collective bargaining agreements

 

 

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1prior to the effective date of this Act, employers shall be
2required to bargain collectively with regard to any matter
3concerning wages (but subject to any applicable restrictions in
4Section 16-122.9 of the Illinois Pension Code), hours or
5conditions of employment about which they have bargained for
6and agreed to in a collective bargaining agreement prior to the
7effective date of this Act, but excluding the changes, the
8impact of changes, and the implementation of the changes set
9forth in this amendatory Act of the 98th General Assembly.
10    The chief judge of the judicial circuit that employs a
11public employee who is a court reporter, as defined in the
12Court Reporters Act, has the authority to hire, appoint,
13promote, evaluate, discipline, and discharge court reporters
14within that judicial circuit.
15    Nothing in this amendatory Act of the 94th General Assembly
16shall be construed to intrude upon the judicial functions of
17any court. This amendatory Act of the 94th General Assembly
18applies only to nonjudicial administrative matters relating to
19the collective bargaining rights of court reporters.
20(Source: P.A. 94-98, eff. 7-1-05.)
 
21    (5 ILCS 315/15)  (from Ch. 48, par. 1615)
22    Sec. 15. Act Takes Precedence.
23    (a) In case of any conflict between the provisions of this
24Act and any other law (other than Section 5 of the State
25Employees Group Insurance Act of 1971 and other than the

 

 

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1changes made to the Illinois Pension Code by Public Act 96-889
2and the changes, impact of changes, and the implementation of
3the changes made to the Illinois Pension Code and the State
4Employees Group Insurance Act of 1971 by this amendatory Act of
5the 98th 96th General Assembly), executive order or
6administrative regulation relating to wages, hours and
7conditions of employment and employment relations, the
8provisions of this Act or any collective bargaining agreement
9negotiated thereunder shall prevail and control. Nothing in
10this Act shall be construed to replace or diminish the rights
11of employees established by Sections 28 and 28a of the
12Metropolitan Transit Authority Act, Sections 2.15 through 2.19
13of the Regional Transportation Authority Act. The provisions of
14this Act are subject to the changes made by this amendatory Act
15of the 98th General Assembly, including Section 16-122.9 of the
16Illinois Pension Code, and Section 5 of the State Employees
17Group Insurance Act of 1971. Nothing in this Act shall be
18construed to replace the necessity of complaints against a
19sworn peace officer, as defined in Section 2(a) of the Uniform
20Peace Officer Disciplinary Act, from having a complaint
21supported by a sworn affidavit.
22    (b) Except as provided in subsection (a) above, any
23collective bargaining contract between a public employer and a
24labor organization executed pursuant to this Act shall
25supersede any contrary statutes, charters, ordinances, rules
26or regulations relating to wages, hours and conditions of

 

 

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1employment and employment relations adopted by the public
2employer or its agents. Any collective bargaining agreement
3entered into prior to the effective date of this Act shall
4remain in full force during its duration.
5    (c) It is the public policy of this State, pursuant to
6paragraphs (h) and (i) of Section 6 of Article VII of the
7Illinois Constitution, that the provisions of this Act are the
8exclusive exercise by the State of powers and functions which
9might otherwise be exercised by home rule units. Such powers
10and functions may not be exercised concurrently, either
11directly or indirectly, by any unit of local government,
12including any home rule unit, except as otherwise authorized by
13this Act.
14(Source: P.A. 95-331, eff. 8-21-07; 96-889, eff. 1-1-11.)
 
15    Section 12. The State Employees Group Insurance Act of 1971
16is amended by adding Section 6.16 as follows:
 
17    (5 ILCS 375/6.16 new)
18    Sec. 6.16. Health benefit election for Tier I employees and
19Tier I retirees.
20    (a) For purposes of this Section:
21    "Eligible Tier I employee" means, except as provided in
22subsection (g) of this Section, an individual who makes or is
23deemed to have made an election under paragraph (1) of
24subsection (a) of Section 16-122.9 of the Illinois Pension

 

 

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1Code.
2    "Program of health benefits" means (i) a health plan, as
3defined in subsection (o) of Section 3 of this Act, that is
4designed and contracted for by the Director under this Act or
5any successor Act or (ii) if administration of that health plan
6is transferred to a trust established by the State or an
7independent Board in order to provide health benefits to a
8class of persons that includes eligible Tier I retirees, then
9the plan of health benefits provided through that trust.
10    (b) As adequate and legal consideration for making the
11election under paragraph (1) of subsection (a) of Section
1216-122.9 of the Illinois Pension Code each eligible Tier I
13employee shall receive a vested and enforceable contractual
14right to participate in a program of health benefits while he
15or she qualifies as an annuitant or retired employee. That
16right also extends to such a person's dependents and survivors
17who are eligible under the applicable program of health
18benefits.
19    (c) Notwithstanding subsection (b), eligible Tier I
20employees may be required to make contributions toward the cost
21of coverage under a program of health benefits.
22    (d) The vested and enforceable contractual right to a
23program of health benefits is not offered as, and shall not be
24considered, a pension or retirement benefit under Article XIII,
25Section 5 of the Illinois Constitution, the Illinois Pension
26Code, or any subsequent or successor enactment providing

 

 

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1pension benefits.
2    (e) Notwithstanding any other provision of this Act to the
3contrary, except subsection (g) of this Section, a Tier I
4employee who has made an election under paragraph (2) of
5subsection (a) of Section 16-122.9 of the Illinois Pension Code
6shall not be entitled to participate in any program of health
7benefits under this Act as an annuitant or retired employee
8receiving a retirement annuity, regardless of any contrary
9election under any other retirement system.
10    Notwithstanding any other provision of this Act to the
11contrary, except subsection (g) of this Section, a Tier I
12employee who is not entitled to participate in the program of
13health benefits as an annuitant or retired employee receiving a
14retirement annuity, due to an election under paragraph (2) of
15subsection (a) of Section 16-122.9 of the Illinois Pension Code
16shall not be required to make contributions toward the program
17of health benefits while he or she is an employee or active
18contributor. However, an active employee may be required to
19make contributions toward health benefits he or she receives
20during active service.
21    (f) The Department shall coordinate with each retirement
22system administering an election in accordance with this
23amendatory Act of the 98th General Assembly to provide
24information concerning the impact of the election of health
25benefits. Each System shall include information prepared by the
26Department in the required election packet. The Department

 

 

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1shall make information available to Tier I employees through
2video materials, group presentations, consultation by
3telephone or other electronic means, or any combination of
4these methods. The information in the election packet shall
5include a notice that states: "YOU ARE HEREBY ADVISED THAT THE
6PROGRAM OF HEALTH BENEFITS OFFERED IS FOR ACCESS TO A GROUP
7HEALTHCARE PLAN ADMINISTERED BY THE DEPARTMENT, AND YOU MAY BE
8REQUIRED TO PAY FOR THE FULL COST OF COVERAGE PROVIDED BY THE
9PLAN, INCLUDING ALL PREMIUM, DEDUCTIBLE, AND COPAY AMOUNTS."
10    (g) Nothing in this Section shall be construed as applying
11to a person who qualifies as a Tier I retiree under Section
1216-107.2 of the Illinois Pension Code or to a retiree who, as a
13consequence of returning to active service, qualifies as a Tier
14I employee under Section 16-107.1.
 
15    Section 22. The Budget Stabilization Act is amended by
16changing Sections 20 and 25 as follows:
 
17    (30 ILCS 122/20)
18    Sec. 20. Pension Stabilization Fund.
19    (a) The Pension Stabilization Fund is hereby created as a
20special fund in the State treasury. Moneys in the fund shall be
21used for the sole purpose of making payments to the designated
22retirement systems as provided in Section 25.
23    (b) For each fiscal year when the General Assembly's
24appropriations and transfers or diversions as required by law

 

 

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1from general funds do not exceed 99% of the estimated general
2funds revenues pursuant to subsection (a) of Section 10, the
3Comptroller shall transfer from the General Revenue Fund as
4provided by this Section a total amount equal to 0.5% of the
5estimated general funds revenues to the Pension Stabilization
6Fund.
7    (c) For each fiscal year through State fiscal year 2013,
8when the General Assembly's appropriations and transfers or
9diversions as required by law from general funds do not exceed
1098% of the estimated general funds revenues pursuant to
11subsection (b) of Section 10, the Comptroller shall transfer
12from the General Revenue Fund as provided by this Section a
13total amount equal to 1.0% of the estimated general funds
14revenues to the Pension Stabilization Fund.
15    (c-10) In State fiscal year 2020 and each fiscal year
16thereafter, the State Comptroller shall order transferred and
17the State Treasurer shall transfer $1,000,000,000 from the
18General Revenue Fund to the Pension Stabilization Fund.
19    (c-15) The transfers made pursuant to subsection (c-10) of
20this Section shall continue through State fiscal year 2045 or
21until each of the designated retirement systems, as defined in
22Section 25, has achieved the funding ratio prescribed by law
23for that retirement system, whichever occurs first.
24    (d) The Comptroller shall transfer 1/12 of the total amount
25to be transferred each fiscal year under this Section into the
26Pension Stabilization Fund on the first day of each month of

 

 

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1that fiscal year or as soon thereafter as possible; except that
2the final transfer of the fiscal year shall be made as soon as
3practical after the August 31 following the end of the fiscal
4year.
5    Until State fiscal year 2014, before Before the final
6transfer for a fiscal year is made, the Comptroller shall
7reconcile the estimated general funds revenues used in
8calculating the other transfers under this Section for that
9fiscal year with the actual general funds revenues for that
10fiscal year. The final transfer for the fiscal year shall be
11adjusted so that the total amount transferred under this
12Section for that fiscal year is equal to the percentage
13specified in subsection (b) or (c) of this Section, whichever
14is applicable, of the actual general funds revenues for that
15fiscal year. The actual general funds revenues for the fiscal
16year shall be calculated in a manner consistent with subsection
17(c) of Section 10 of this Act.
18(Source: P.A. 94-839, eff. 6-6-06.)
 
19    (30 ILCS 122/25)
20    Sec. 25. Transfers from the Pension Stabilization Fund.
21    (a) As used in this Section, "designated retirement
22systems" means:
23        (1) the State Employees' Retirement System of
24    Illinois;
25        (2) the Teachers' Retirement System of the State of

 

 

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1    Illinois;
2        (3) the State Universities Retirement System;
3        (4) the Judges Retirement System of Illinois; and
4        (5) the General Assembly Retirement System.
5    (b) As soon as may be practical after any money is
6deposited into the Pension Stabilization Fund, the State
7Comptroller shall apportion the deposited amount among the
8designated retirement systems and the State Comptroller and
9State Treasurer shall pay the apportioned amounts to the
10designated retirement systems. The amount deposited shall be
11apportioned among the designated retirement systems in the same
12proportion as their respective portions of the total actuarial
13reserve deficiency of the designated retirement systems, as
14most recently determined by the Governor's Office of Management
15and Budget. Amounts received by a designated retirement system
16under this Section shall be used for funding the unfunded
17liabilities of the retirement system. Payments under this
18Section are authorized by the continuing appropriation under
19Section 1.7 of the State Pension Funds Continuing Appropriation
20Act.
21    (c) At the request of the State Comptroller, the Governor's
22Office of Management and Budget shall determine the individual
23and total actuarial reserve deficiencies of the designated
24retirement systems. For this purpose, the Governor's Office of
25Management and Budget shall consider the latest available audit
26and actuarial reports of each of the retirement systems and the

 

 

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1relevant reports and statistics of the Public Pension Division
2of the Department of Financial and Professional Regulation.
3    (d) Payments to the designated retirement systems under
4this Section shall be in addition to, and not in lieu of, any
5State contributions required under Section 2-124, 14-131,
615-155, 16-158, or 18-131 of the Illinois Pension Code.
7    Payments to the designated retirement systems under this
8Section, transferred after the effective date of this
9amendatory Act of the 98th General Assembly, do not reduce and
10do not constitute payment of any portion of the required State
11contribution under Article 2, 14, 15, 16, or 18 of the Illinois
12Pension Code in that fiscal year. Such amounts shall not
13reduce, and shall not be included in the calculation of, the
14required State contribution under Article 2, 14, 15, 16, or 18
15of the Illinois Pension Code in any future year, until the
16designated retirement system has received payment of
17contributions pursuant to this Act.
18(Source: P.A. 94-839, eff. 6-6-06.)
 
19    Section 25. The Illinois Pension Code is amended by
20changing Sections 16-106, 16-121, 16-127, 16-133.1, 16-133.6,
2116-136.1, 16-152, and 16-203 and by adding Sections 1-162,
2216-107.1, 16-107.2, 16-121.1, 16-122.9, 16-133.6, and 16-158.2
23as follows:
 
24    (40 ILCS 5/1-162 new)

 

 

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1    Sec. 1-162. Optional cash balance plan.
2    (a) Participation and Applicability. Beginning 12 months
3after the effective date of this Section, any Tier I employee
4who has made the election under paragraph (1) of subsection (a)
5of Section 16-122.9 may elect to participate in the optional
6cash balance plan created under this Section.
7    The Board of Trustees of the applicable retirement system
8shall promulgate rules to create an annual election wherein a
9person eligible to participate in the optional cash balance
10plan may elect to participate, and an active employee who is a
11participant in the plan may elect to cease active
12participation. The election to cease active participation
13shall not disqualify the employee from eligibility to receive
14an interest credit under subsection (f), a distribution upon
15termination under subsection (f-10), a refund under subsection
16(f-15), a retirement annuity under subsection (g), or a
17survivor's annuity under subsection (k), or from eligibility to
18resume active participation in the optional cash balance plan
19in a subsequent year.
20    (b) Title. The package of benefits provided under this
21Section may be referred to as the "optional cash balance plan".
22Persons subject to the provisions of this Section may be
23referred to as "participants in the optional cash balance
24plan".
25    (b-5) Definitions. As used in this Section:
26    "Account" means the notional cash balance account

 

 

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1established under this Section for a participant in the
2optional cash balance plan.
3    "Salary" means "salary" as defined in Article 16, without
4regard to the limitation in subsection (b-5) of Section 1-160.
5    "Tier I employee" means a person who is a Tier I employee
6under the applicable Article of this Code.
7    (c) Cash Balance Account. A notional cash balance account
8shall be established by the applicable retirement system for
9each participant in the optional cash balance plan. The account
10is notional and does not contain any actual money segregated
11from the commingled assets of the retirement system. The cash
12balance in the account is to be used in calculating benefits as
13provided in this Section, but is not to be used in the
14calculation of any refund, transfer, or other benefit under the
15applicable Article of this Code.
16    The amounts to be credited to the cash balance account
17shall consist of (i) amounts contributed by or on behalf of the
18participant as employee contributions, (ii) notional employer
19contributions, and (iii) interest credit that is attributable
20to the account, all as provided in this Section.
21    Whenever necessary for the prompt calculation or
22administration, or when the System lacks information necessary
23to the calculation or administration otherwise required of or
24for a benefit under this Section, the applicable retirement
25system may estimate an amount to be credited to or debited from
26a participant's cash balance account and then adjust the amount

 

 

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1so credited or debited when more accurate information becomes
2available.
3    The applicable retirement system shall give to each
4participant in the optional cash balance plan who has not yet
5retired annual notice of (1) the balance in the participant's
6cash balance account and (2) an estimate of the retirement
7annuity that will be payable to the participant if he or she
8retires at age 59 1/2.
9    (d) Employee Contributions. In addition to the other
10contributions required under the applicable Article, each
11participant shall make contributions to the applicable
12retirement system at the rate of 2% of each payment of salary.
13The amount of each contribution shall be credited to the
14participant's cash balance account upon receipt and after the
15retirement system's reconciliation of the contribution.
16    (e) Optional Employer Contributions. Employers may make
17optional additional contributions to the applicable retirement
18system on behalf of their employees who are participants in the
19optional cash balance plan in accordance with procedures
20prescribed by the retirement system to the extent permitted by
21federal law and the rules prescribed by the retirement system.
22The optional additional contributions under this subsection
23are actual monetary contributions to the retirement system, and
24the amount of each optional additional contribution shall be
25credited to the participant's cash balance account upon receipt
26and after the retirement system's reconciliation of the

 

 

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1contribution.
2    (f) Interest Credit. An amount representing earnings on
3investments shall be determined by the retirement system in
4accordance with this Section and credited to the participant's
5cash balance account for each fiscal year in which there is a
6positive balance in that account; except that no additional
7interest credit shall be credited while an annuity based on the
8account is being paid. The interest credit amount shall be a
9percentage of the average quarterly balance in the cash balance
10account during that fiscal year and shall be calculated on June
1130.
12    The percentage shall be the assumed treasury rate for the
13previous fiscal year, unless neither the retirement system's
14actual rate of investment earnings for the previous fiscal year
15nor the retirement system's actual rate of investment earnings
16for the five-year period ending at the end of the previous
17fiscal year is less than the assumed treasury rate.
18    If both the retirement system's actual rate of investment
19earnings for the previous fiscal year and the actual rate of
20investment earnings for the five-year period ending at the end
21of the previous fiscal year are at least the assumed treasury
22rate, then the percentage shall be:
23        (i) the assumed treasury rate, plus
24        (ii) two-thirds of the amount of the actual rate of
25    investment earnings for the previous fiscal year that
26    exceeds the assumed treasury rate.

 

 

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1However, in no event shall the percentage applied under this
2subsection exceed 10%.
3    For the purposes of this subsection only, "previous fiscal
4year" means the fiscal year ending one year before the interest
5rate is calculated.
6    For the purposes of this subsection only, "assumed treasury
7rate" means the average annual yield of the 30-year U.S.
8Treasury Bond over the previous fiscal year, but not less than
94%.
10    When a person applies for a benefit under this Section, the
11retirement system shall apply an interest credit based on a
12proration of an estimate of what the interest credit will be
13for the relevant year. When the retirement system certifies the
14credit on June 30, it shall adjust the benefit accordingly.
15    (f-10) Distribution upon Termination of Employment. Upon
16termination of active employment with at least 5 years of
17service credit under the applicable retirement system and prior
18to making application for an annuity under this Section, a
19participant in the optional cash balance plan may make an
20irrevocable election to distribute an amount not to exceed 40%
21of the balance in the participant's account in the form of a
22direct rollover to another qualified plan, to the extent
23allowed by federal law. If the participant makes such an
24election, then the amount distributed shall be debited from the
25participant's cash balance account. A participant in the
26optional cash balance plan shall be allowed only one

 

 

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1distribution under this subsection. The remaining balance in
2the participant's account shall be used for the determination
3of other benefits provided under this Section.
4    (f-15) Refund. In lieu of receiving a distribution under
5subsection (f-10), at any time after terminating active
6employment under the applicable retirement system, but before
7receiving a retirement annuity under this Section, a
8participant in the optional cash balance plan may elect to
9receive a refund under this subsection. The refund shall
10consist of an amount equal to the amount of all employee
11contributions credited to the participant's account, but shall
12not include any interest credit or employer contributions. If
13the participant so requests, the refund may be paid in the form
14of a direct rollover to another qualified plan, to the extent
15allowed by federal law and in accordance with the rules of the
16applicable retirement system. Upon payment of the refund, the
17participant's notional cash balance account shall be closed.
18    (g) Retirement Annuity. A participant in the optional cash
19balance plan may begin collecting a retirement annuity at age
2059 1/2, but no earlier than the date of termination of active
21employment under the applicable retirement system.
22    The amount of the retirement annuity shall be calculated by
23the retirement system, based on the balance in the cash balance
24account, the assumption of future investment returns as
25specified in this subsection, the participant's election to
26have a lifetime survivor's annuity as specified in this

 

 

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1subsection, the annual increase in retirement annuity as
2specified in subsection (h), the annual increase in survivor's
3annuity as specified in subsection (l), and any actuarial
4assumptions and tables adopted by the board of the retirement
5system for this purpose. The calculation shall determine the
6amount of retirement annuity, on an actuarially equivalent
7basis, that shall be designed to result in the balance in the
8participant's account arriving at zero on the date when the
9last payment of the retirement annuity (or survivor's annuity,
10if the participant elects to provide for a survivor's annuity
11pursuant to this subsection) is anticipated to be paid under
12the relevant actuarial assumptions. A retirement annuity or a
13survivor's annuity provided under this Section shall be a life
14annuity and shall not expire if the account balance equals
15zero.
16    The annuity payment shall begin on the date specified by
17the participant submitting a written application, which date
18shall not be prior to termination of employment or more than
19one year before the application is received by the board;
20however, if the participant is not an employee of an employer
21participating in this System or in a participating system as
22defined in Article 20 of this Code on April 1 of the calendar
23year next following the calendar year in which the participant
24attains age 70 1/2, the annuity payment period shall begin on
25that date regardless of whether an application has been filed.
26    The participant may elect, under the participant's written

 

 

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1application for retirement, to receive a reduced annuity
2payable for his or her life and to have a lifetime survivor's
3annuity in a monthly amount equal to 50%, 75%, or 100% of that
4reduced monthly amount, to be paid after the participant's
5death to his or her eligible survivor. Eligibility for a
6survivor's annuity shall be determined under the applicable
7Article of this Code.
8    For the purpose of calculating retirement annuities,
9future investment returns shall be assumed to be a percentage
10equal to the average yield of the 30-year U.S. Treasury Bond
11over the 5 fiscal years prior to the calculation of the initial
12retirement annuity, plus 250 basis points, but not less than 4%
13nor more than 8%.
14    (h) Annual Increase in Retirement Annuity. The retirement
15annuity shall be subject to an automatic annual increase in an
16amount equal to 3% of the originally granted annuity on each
17January 1 occurring on or after the first anniversary of the
18annuity start date.
19    (i) Disability Benefits. There are no disability benefits
20provided under the optional cash balance plan, and no amounts
21for disability shall be deducted from the account of a
22participant in the optional cash balance plan. The disability
23benefits provided under the applicable retirement system apply
24to participants in the optional cash balance plan.
25    (j) Return to Service. Upon a return to service under the
26same retirement system after beginning to receive a retirement

 

 

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1annuity under the optional cash balance plan, the retirement
2annuity shall be suspended and active participation in the
3optional cash balance plan shall resume. Upon termination of
4the employment, the retirement annuity shall resume in an
5amount to be recalculated in accordance with subsection (g),
6taking into consideration the changes in the cash balance
7account. If a retired annuitant returns to service, his or her
8notional cash balance account shall be decreased by each
9payment of retirement annuity prior to the return to service.
10    (k) Survivor's Annuity - Death before Retirement. In the
11case of a participant in the optional cash balance plan who had
12less than 5 years of service under the applicable Article and
13had not begun receiving a retirement annuity, the eligible
14survivor shall be entitled only to a refund of employee
15contributions under subsection (f-15).
16    In the case of a participant in the optional cash balance
17plan who had at least 5 years of service under the applicable
18Article and had not begun receiving a retirement annuity, the
19eligible survivor shall be entitled to receive a survivor's
20annuity beginning at age 59 1/2 upon written application. The
21survivor's annuity shall be calculated in the same manner as a
22retirement annuity under subsection (g). At any time before
23receiving a survivor's annuity, the eligible survivor may claim
24a distribution under subsection (f-10) or a refund under
25subsection (f-15). The deceased participant's account shall
26continue to receive interest credit until the eligible survivor

 

 

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1begins to receive a survivor's annuity or receives a refund of
2employee contributions under subsection (f-15).
3    Eligibility for a survivor's annuity shall be determined
4under the applicable Article of this Code. A child's or
5parent's annuity for an otherwise eligible child or dependent
6parent shall be in the same amount, if any, prescribed under
7the applicable Article.
8    (l) Annual Increase in Survivor's Annuity. A survivor's
9annuity granted under subsection (g) or (k) shall be subject to
10an automatic annual increase in an amount equal to 3% of the
11originally granted annuity on each January 1 occurring on or
12after the first anniversary of the annuity start date.
13    (m) Applicability of Provisions. The following provisions,
14if and as they exist in this Code, do not apply to participants
15in the optional cash balance plan with respect to participation
16in the optional cash balance plan, except as they are
17specifically provided for in this Section:
18        (1) minimum service or vesting requirements (other
19    than as provided in this Section);
20        (2) provisions limiting a retirement annuity to a
21    specified percentage of salary;
22        (3) provisions authorizing a minimum retirement or
23    survivor's annuity or a supplemental annuity;
24        (4) provisions authorizing any form of retirement
25    annuity or survivor's annuity not authorized under this
26    Section;

 

 

SB0001 Engrossed- 22 -LRB098 05457 JDS 35491 b

1        (5) provisions authorizing a reversionary annuity
2    (other than the survivor's annuity under subsection (g));
3        (6) provisions authorizing a refund of employee
4    contributions upon termination of service (other than upon
5    the death of the participant without an eligible survivor)
6    or any lump-sum payout in lieu of a retirement or
7    survivor's annuity (other than the distribution under
8    subsection (f-10) or the refund under subsection (f-15) of
9    this Section);
10        (7) provisions authorizing optional service credits or
11    the payment of optional additional contributions (other
12    than the optional employer contributions specifically
13    authorized in this Section); or
14        (8) a level income option.
15    The Retirement Systems Reciprocal Act (Article 20 of this
16Code) does not apply to participation in the optional cash
17balance plan and does not affect the calculation of benefits
18payable under this Section.
19    The other provisions of this Code continue to apply to
20participants in the optional cash balance plan to the extent
21that they do not conflict with this Section. In the case of a
22conflict between the provisions of this Section and any other
23provision of this Code, the provisions of this Section control.
24    (n) Rules. The Board of Trustees of the applicable
25retirement system may adopt rules and procedures for the
26implementation of this Section, including but not limited to

 

 

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1determinations of how to integrate the administration of this
2Section with the requirements of the applicable Article and any
3other applicable provisions of this Code.
4    (o) Actual Employer Contributions. Payment of employer
5contributions with respect to participants in the optional cash
6balance plan shall be the responsibility of the actual
7employer. Optional additional contributions by employers may
8be paid in any amount, but must be paid in the manner specified
9by the applicable retirement system.
10    (p) Prospective Modification. The provisions set forth in
11this Section are subject to prospective changes made by law
12provided that any such changes shall not apply to any benefits
13accrued under this Section prior to the effective date of any
14amendatory Act of the General Assembly.
15    (q) Qualified Plan Status. No provision of this Section
16shall be interpreted in a way that would cause the applicable
17retirement system to cease to be a qualified plan under Section
18401(a) of the Internal Revenue Code of 1986.
 
19    (40 ILCS 5/16-106)  (from Ch. 108 1/2, par. 16-106)
20    Sec. 16-106. Teacher. "Teacher": The following
21individuals, provided that, for employment prior to July 1,
221990, they are employed on a full-time basis, or if not
23full-time, on a permanent and continuous basis in a position in
24which services are expected to be rendered for at least one
25school term:

 

 

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1        (1) Any educational, administrative, professional or
2    other staff employed in the public common schools included
3    within this system in a position requiring certification
4    under the law governing the certification of teachers;
5        (2) Any educational, administrative, professional or
6    other staff employed in any facility of the Department of
7    Children and Family Services or the Department of Human
8    Services, in a position requiring certification under the
9    law governing the certification of teachers, and any person
10    who (i) works in such a position for the Department of
11    Corrections, (ii) was a member of this System on May 31,
12    1987, and (iii) did not elect to become a member of the
13    State Employees' Retirement System pursuant to Section
14    14-108.2 of this Code; except that "teacher" does not
15    include any person who (A) becomes a security employee of
16    the Department of Human Services, as defined in Section
17    14-110, after June 28, 2001 (the effective date of Public
18    Act 92-14), or (B) becomes a member of the State Employees'
19    Retirement System pursuant to Section 14-108.2c of this
20    Code;
21        (3) Any regional superintendent of schools, assistant
22    regional superintendent of schools, State Superintendent
23    of Education; any person employed by the State Board of
24    Education as an executive; any executive of the boards
25    engaged in the service of public common school education in
26    school districts covered under this system of which the

 

 

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1    State Superintendent of Education is an ex-officio member;
2        (4) Any employee of a school board association
3    operating in compliance with Article 23 of the School Code
4    who is certificated under the law governing the
5    certification of teachers, provided that he or she becomes
6    such an employee before the effective date of this
7    amendatory Act of the 98th General Assembly;
8        (5) Any person employed by the retirement system who:
9            (i) was an employee of and a participant in the
10        system on August 17, 2001 (the effective date of Public
11        Act 92-416), or
12            (ii) becomes an employee of the system on or after
13        August 17, 2001;
14        (6) Any educational, administrative, professional or
15    other staff employed by and under the supervision and
16    control of a regional superintendent of schools, provided
17    such employment position requires the person to be
18    certificated under the law governing the certification of
19    teachers and is in an educational program serving 2 or more
20    districts in accordance with a joint agreement authorized
21    by the School Code or by federal legislation;
22        (7) Any educational, administrative, professional or
23    other staff employed in an educational program serving 2 or
24    more school districts in accordance with a joint agreement
25    authorized by the School Code or by federal legislation and
26    in a position requiring certification under the laws

 

 

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1    governing the certification of teachers;
2        (8) Any officer or employee of a statewide teacher
3    organization or officer of a national teacher organization
4    who is certified under the law governing certification of
5    teachers, provided: (i) the individual had previously
6    established creditable service under this Article, (ii)
7    the individual files with the system an irrevocable
8    election to become a member before the effective date of
9    this amendatory Act of the 97th General Assembly, (iii) the
10    individual does not receive credit for such service under
11    any other Article of this Code, and (iv) the individual
12    first became an officer or employee of the teacher
13    organization and becomes a member before the effective date
14    of this amendatory Act of the 97th General Assembly;
15        (9) Any educational, administrative, professional, or
16    other staff employed in a charter school operating in
17    compliance with the Charter Schools Law who is certificated
18    under the law governing the certification of teachers; .
19        (10) Any person employed, on the effective date of this
20    amendatory Act of the 94th General Assembly, by the
21    Macon-Piatt Regional Office of Education in a
22    birth-through-age-three pilot program receiving funds
23    under Section 2-389 of the School Code who is required by
24    the Macon-Piatt Regional Office of Education to hold a
25    teaching certificate, provided that the Macon-Piatt
26    Regional Office of Education makes an election, within 6

 

 

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1    months after the effective date of this amendatory Act of
2    the 94th General Assembly, to have the person participate
3    in the system. Any service established prior to the
4    effective date of this amendatory Act of the 94th General
5    Assembly for service as an employee of the Macon-Piatt
6    Regional Office of Education in a birth-through-age-three
7    pilot program receiving funds under Section 2-389 of the
8    School Code shall be considered service as a teacher if
9    employee and employer contributions have been received by
10    the system and the system has not refunded those
11    contributions.
12    An annuitant receiving a retirement annuity under this
13Article or under Article 17 of this Code who is employed by a
14board of education or other employer as permitted under Section
1516-118 or 16-150.1 is not a "teacher" for purposes of this
16Article. A person who has received a single-sum retirement
17benefit under Section 16-136.4 of this Article is not a
18"teacher" for purposes of this Article.
19(Source: P.A. 97-651, eff. 1-5-12; revised 8-3-12.)
 
20    (40 ILCS 5/16-107.1 new)
21    Sec. 16-107.1. Tier I employee. "Tier I employee": An
22employee under this Article (i) who first became a member or
23participant before January 1, 2011 under any reciprocal
24retirement system or pension fund established under this Code
25other than a retirement system or pension fund established

 

 

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1under Article 2, 3, 4, 5, 6, or 18 of this Code and (ii) who has
2not made an irrevocable election on or before January 1, 2013
3to retire from service pursuant to the terms of a collective
4bargaining agreement in effect on that date, excluding any
5extension, amendment, or renewal of that agreement on or after
6that date.
 
7    (40 ILCS 5/16-107.2 new)
8    Sec. 16-107.2. Tier I retiree. "Tier I retiree": A former
9Tier I employee who is receiving a retirement annuity.
 
10    (40 ILCS 5/16-121)  (from Ch. 108 1/2, par. 16-121)
11    Sec. 16-121. Salary. "Salary": The actual compensation
12received by a teacher during any school year and recognized by
13the system in accordance with rules of the board. For purposes
14of this Section, "school year" includes the regular school term
15plus any additional period for which a teacher is compensated
16and such compensation is recognized by the rules of the board.
17    Notwithstanding any other provision of this Section,
18"salary" does not include any future increase in income offered
19by an employer under this Article pursuant to the requirements
20of subsection (c) of Section 16-122.9 that is accepted by a
21Tier I employee who has made an election under paragraph (2) of
22subsection (a) of Section 16-122.9.
23(Source: P.A. 84-1028.)
 

 

 

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1    (40 ILCS 5/16-121.1 new)
2    Sec. 16-121.1. Future increase in income. "Future increase
3in income": Any increase in income in any form offered by an
4employer to a teacher under this Article after the end of the
5election period in Section 16-122.9 that would qualify as
6"salary", as defined in Section 16-121, but for the fact that
7the employer offered the increase in income to the employee on
8the condition that it not qualify as salary and the employee
9accepted the increase in income subject to that condition. The
10term "future increase in income" does not include an increase
11in income in any form that is paid to a Tier I employee under an
12employment contract or collective bargaining agreement that is
13in effect on the effective date of this Section but does
14include an increase in income in any form pursuant to an
15extension, amendment, or renewal of any such employment
16contract or collective bargaining agreement on or after the
17effective date of this amendatory Act of the 98th General
18Assembly.
 
19    (40 ILCS 5/16-122.9 new)
20    Sec. 16-122.9. Election by Tier I employees.
21    (a) Each Tier I employee shall make an irrevocable election
22either:
23        (1) to agree to the following:
24            (i) to have the amount of the automatic annual
25        increases in his or her retirement annuity that are

 

 

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1        otherwise provided for in this Article calculated,
2        instead, as provided in subsection (a-1) of Section
3        16-133.1 or subsection (b-1) of Section 16-136.1,
4        whichever is applicable; and
5            (ii) to have his or her eligibility for automatic
6        annual increases in retirement annuity postponed as
7        provided in subsection (a-2) of Section 16-133.1 or
8        subsection (b-2) of Section 16-136.1, whichever is
9        applicable; or
10        (2) to not agree to items (i) and (ii) as set forth in
11    paragraph (1) of this subsection.
12    The election required under this subsection (a) shall be
13made by each Tier I employee no earlier than January 1, 2014
14and no later than May 31, 2014, except that:
15        (i) a person who becomes a Tier I employee under this
16    Article after January 1, 2014 must make the election under
17    this subsection (a) within 60 days after becoming a Tier I
18    employee; and
19        (ii) a person who returns to active service as a Tier I
20    employee under this Article, including a Tier I retiree
21    returning to service as a Tier I employee, after January 1,
22    2014 and has not yet made an election under this Section
23    must make the election under this subsection (a) within 60
24    days after returning to active service as a Tier I
25    employee.
26    If a Tier I employee fails for any reason to make a

 

 

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1required election under this subsection within the time
2specified, then the employee shall be deemed to have made the
3election under paragraph (2) of this subsection.
4    (a-10) All elections under subsection (a) that are made or
5deemed to be made by June 1, 2014 shall take effect July 1,
62014. Elections that are made or deemed to be on or after June
71, 2014 shall take effect on the first day of the month
8following the month in which the election is made or deemed to
9be made.
10    (b) As adequate and legal consideration provided under this
11amendatory Act of the 98th General Assembly for making the
12election under paragraph (1) of subsection (a) of this Section,
13any future increases in income offered by an employer under
14this Article to a Tier I employee who has made the election
15under paragraph (1) of subsection (a) of this Section shall be
16offered expressly and irrevocably as constituting salary under
17Section 16-121. In addition, a Tier I employee who has made the
18election under paragraph (1) of subsection (a) of this Section
19shall receive the right to also participate in the optional
20cash balance plan established under Section 1-162. Finally, a
21Tier I employee, other than a Tier I retiree returning to
22active service as a Tier I employee, who has made the election
23under paragraph (1) of subsection (a) of this Section shall
24receive the right to the early retirement without discount
25option under Section 16-133.6.
26    (c) A Tier I employee who makes the election under

 

 

SB0001 Engrossed- 32 -LRB098 05457 JDS 35491 b

1paragraph (2) of subsection (a) of this Section shall not be
2subject to items (i) and (ii) set forth in paragraph (1) of
3subsection (a) of this Section. However, any future increases
4in income offered by an employer under this Article to a Tier I
5employee who has made the election under paragraph (2) of
6subsection (a) of this Section shall be offered by the employer
7expressly and irrevocably as not constituting salary under
8Section 16-121, and the employee may not accept any future
9increase in income that is offered in violation of this
10requirement. In addition, a Tier I employee who has made the
11election under paragraph (2) of subsection (a) of this Section
12shall not receive the right to participate in the optional cash
13balance plan established under Section 1-162. Finally, a Tier I
14employee who has made the election under paragraph (2) of
15subsection (a) of this Section shall not receive the right to
16the early retirement without discount option under Section
1716-133.6.
18    (d) The System shall make a good faith effort to contact
19each Tier I employee subject to this Section. The System shall
20mail information describing the required election to each Tier
21I employee by United States Postal Service mail to his or her
22last known address on file with the System. If the Tier I
23employee is not responsive to other means of contact, it is
24sufficient for the System to publish the details of any
25required elections on its website or to publish those details
26in a regularly published newsletter or other existing public

 

 

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1forum.
2    Tier I employees who are subject to this Section shall be
3provided with an election packet containing information
4regarding their options, as well as the forms necessary to make
5the required election. Upon request, the System shall offer
6Tier I employees an opportunity to receive information from the
7System before making the required election. The information may
8consist of video materials, group presentations, individual
9consultation with a member or authorized representative of the
10System in person or by telephone or other electronic means, or
11any combination of those methods. The System shall not provide
12advice or counseling with respect to which election a Tier I
13employee should make or specific to the legal or tax
14circumstances of or consequences to the Tier I employee.
15    The System shall inform Tier I employees in the election
16packet required under this subsection that the Tier I employee
17may also wish to obtain information and counsel relating to the
18election required under this Section from any other available
19source, including but not limited to labor organizations and
20private counsel.
21    In no event shall the System, its staff, or the Board be
22held liable for any information given to a member, beneficiary,
23or annuitant regarding the elections under this Section. The
24System shall coordinate with the Illinois Department of Central
25Management Services and each other retirement system
26administering an election in accordance with this amendatory

 

 

SB0001 Engrossed- 34 -LRB098 05457 JDS 35491 b

1Act of the 98th General Assembly to provide information
2concerning the impact of the election set forth in this
3Section.
4    (e) Notwithstanding any other provision of law, an employer
5under this Article is required to offer any future increases in
6income expressly and irrevocably as not constituting "salary"
7under Section 16-121 to any Tier I employee who has made an
8election under paragraph (2) of subsection (a) of Section
916-122.9. A Tier I employee who has made an election under
10paragraph (2) of subsection (a) of Section 16-122.9 shall not
11accept any future increase in income that is offered by an
12employer under this Article in violation of the requirement set
13forth in this subsection.
14    (f) A member's election under this Section is not a
15prohibited election under subdivision (j)(1) of Section 1-119
16of this Code.
17    (g) An employee who has made the election under paragraph
18(1) of subsection (a) of this Section may elect to participate
19in the optional cash balance plan under Section 1-162.
20    The election to participate in the optional cash balance
21plan shall be made in writing, in the manner provided by the
22applicable retirement system.
23    (h) No provision of this Section shall be interpreted in a
24way that would cause the System to cease to be a qualified plan
25under Section 401(a) of the Internal Revenue Code of 1986.
26    (i) If this Section is determined to be unconstitutional or

 

 

SB0001 Engrossed- 35 -LRB098 05457 JDS 35491 b

1otherwise invalid by a final unappealable decision of an
2Illinois court or a court of competent jurisdiction as applied
3to Tier I employees but not as applied to Tier I retirees
4returning to active service, then this Section and the changes
5deriving from the election required under this Section shall be
6null and void as applied to Tier I employees but shall remain
7in full effect for Tier I retirees returning to active service.
8    (j) If this Section is determined to be unconstitutional or
9otherwise invalid by a final unappealable decision of an
10Illinois court or a court of competent jurisdiction as applied
11to Tier I retirees returning to active service but not as
12applied to Tier I employees, then this Section and the changes
13deriving from the election required under this Section shall be
14null and void as applied to Tier I retirees returning to active
15service but shall remain in full effect for Tier I employees.
 
16    (40 ILCS 5/16-127)  (from Ch. 108 1/2, par. 16-127)
17    Sec. 16-127. Computation of creditable service.
18    (a) Each member shall receive regular credit for all
19service as a teacher from the date membership begins, for which
20satisfactory evidence is supplied and all contributions have
21been paid.
22    (b) The following periods of service shall earn optional
23credit and each member shall receive credit for all such
24service for which satisfactory evidence is supplied and all
25contributions have been paid as of the date specified:

 

 

SB0001 Engrossed- 36 -LRB098 05457 JDS 35491 b

1        (1) Prior service as a teacher.
2        (2) Service in a capacity essentially similar or
3    equivalent to that of a teacher, in the public common
4    schools in school districts in this State not included
5    within the provisions of this System, or of any other
6    State, territory, dependency or possession of the United
7    States, or in schools operated by or under the auspices of
8    the United States, or under the auspices of any agency or
9    department of any other State, and service during any
10    period of professional speech correction or special
11    education experience for a public agency within this State
12    or any other State, territory, dependency or possession of
13    the United States, and service prior to February 1, 1951 as
14    a recreation worker for the Illinois Department of Public
15    Safety, for a period not exceeding the lesser of 2/5 of the
16    total creditable service of the member or 10 years. The
17    maximum service of 10 years which is allowable under this
18    paragraph shall be reduced by the service credit which is
19    validated by other retirement systems under paragraph (i)
20    of Section 15-113 and paragraph 1 of Section 17-133. Credit
21    granted under this paragraph may not be used in
22    determination of a retirement annuity or disability
23    benefits unless the member has at least 5 years of
24    creditable service earned subsequent to this employment
25    with one or more of the following systems: Teachers'
26    Retirement System of the State of Illinois, State

 

 

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1    Universities Retirement System, and the Public School
2    Teachers' Pension and Retirement Fund of Chicago. Whenever
3    such service credit exceeds the maximum allowed for all
4    purposes of this Article, the first service rendered in
5    point of time shall be considered. The changes to this
6    subdivision (b)(2) made by Public Act 86-272 shall apply
7    not only to persons who on or after its effective date
8    (August 23, 1989) are in service as a teacher under the
9    System, but also to persons whose status as such a teacher
10    terminated prior to such effective date, whether or not
11    such person is an annuitant on that date.
12        (3) Any periods immediately following teaching
13    service, under this System or under Article 17, (or
14    immediately following service prior to February 1, 1951 as
15    a recreation worker for the Illinois Department of Public
16    Safety) spent in active service with the military forces of
17    the United States; periods spent in educational programs
18    that prepare for return to teaching sponsored by the
19    federal government following such active military service;
20    if a teacher returns to teaching service within one
21    calendar year after discharge or after the completion of
22    the educational program, a further period, not exceeding
23    one calendar year, between time spent in military service
24    or in such educational programs and the return to
25    employment as a teacher under this System; and a period of
26    up to 2 years of active military service not immediately

 

 

SB0001 Engrossed- 38 -LRB098 05457 JDS 35491 b

1    following employment as a teacher.
2        The changes to this Section and Section 16-128 relating
3    to military service made by P.A. 87-794 shall apply not
4    only to persons who on or after its effective date are in
5    service as a teacher under the System, but also to persons
6    whose status as a teacher terminated prior to that date,
7    whether or not the person is an annuitant on that date. In
8    the case of an annuitant who applies for credit allowable
9    under this Section for a period of military service that
10    did not immediately follow employment, and who has made the
11    required contributions for such credit, the annuity shall
12    be recalculated to include the additional service credit,
13    with the increase taking effect on the date the System
14    received written notification of the annuitant's intent to
15    purchase the credit, if payment of all the required
16    contributions is made within 60 days of such notice, or
17    else on the first annuity payment date following the date
18    of payment of the required contributions. In calculating
19    the automatic annual increase for an annuity that has been
20    recalculated under this Section, the increase attributable
21    to the additional service allowable under P.A. 87-794 shall
22    be included in the calculation of automatic annual
23    increases accruing after the effective date of the
24    recalculation.
25        Credit for military service shall be determined as
26    follows: if entry occurs during the months of July, August,

 

 

SB0001 Engrossed- 39 -LRB098 05457 JDS 35491 b

1    or September and the member was a teacher at the end of the
2    immediately preceding school term, credit shall be granted
3    from July 1 of the year in which he or she entered service;
4    if entry occurs during the school term and the teacher was
5    in teaching service at the beginning of the school term,
6    credit shall be granted from July 1 of such year. In all
7    other cases where credit for military service is allowed,
8    credit shall be granted from the date of entry into the
9    service.
10        The total period of military service for which credit
11    is granted shall not exceed 5 years for any member unless
12    the service: (A) is validated before July 1, 1964, and (B)
13    does not extend beyond July 1, 1963. Credit for military
14    service shall be granted under this Section only if not
15    more than 5 years of the military service for which credit
16    is granted under this Section is used by the member to
17    qualify for a military retirement allotment from any branch
18    of the armed forces of the United States. The changes to
19    this subdivision (b)(3) made by Public Act 86-272 shall
20    apply not only to persons who on or after its effective
21    date (August 23, 1989) are in service as a teacher under
22    the System, but also to persons whose status as such a
23    teacher terminated prior to such effective date, whether or
24    not such person is an annuitant on that date.
25        (4) Any periods served as a member of the General
26    Assembly.

 

 

SB0001 Engrossed- 40 -LRB098 05457 JDS 35491 b

1        (5)(i) Any periods for which a teacher, as defined in
2    Section 16-106, is granted a leave of absence, provided he
3    or she returns to teaching service creditable under this
4    System or the State Universities Retirement System
5    following the leave; (ii) periods during which a teacher is
6    involuntarily laid off from teaching, provided he or she
7    returns to teaching following the lay-off; (iii) periods
8    prior to July 1, 1983 during which a teacher ceased covered
9    employment due to pregnancy, provided that the teacher
10    returned to teaching service creditable under this System
11    or the State Universities Retirement System following the
12    pregnancy and submits evidence satisfactory to the Board
13    documenting that the employment ceased due to pregnancy;
14    and (iv) periods prior to July 1, 1983 during which a
15    teacher ceased covered employment for the purpose of
16    adopting an infant under 3 years of age or caring for a
17    newly adopted infant under 3 years of age, provided that
18    the teacher returned to teaching service creditable under
19    this System or the State Universities Retirement System
20    following the adoption and submits evidence satisfactory
21    to the Board documenting that the employment ceased for the
22    purpose of adopting an infant under 3 years of age or
23    caring for a newly adopted infant under 3 years of age.
24    However, total credit under this paragraph (5) may not
25    exceed 3 years.
26        Any qualified member or annuitant may apply for credit

 

 

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1    under item (iii) or (iv) of this paragraph (5) without
2    regard to whether service was terminated before the
3    effective date of this amendatory Act of 1997. In the case
4    of an annuitant who establishes credit under item (iii) or
5    (iv), the annuity shall be recalculated to include the
6    additional service credit. The increase in annuity shall
7    take effect on the date the System receives written
8    notification of the annuitant's intent to purchase the
9    credit, if the required evidence is submitted and the
10    required contribution paid within 60 days of that
11    notification, otherwise on the first annuity payment date
12    following the System's receipt of the required evidence and
13    contribution. The increase in an annuity recalculated
14    under this provision shall be included in the calculation
15    of automatic annual increases in the annuity accruing after
16    the effective date of the recalculation.
17        Optional credit may be purchased under this subsection
18    (b)(5) for periods during which a teacher has been granted
19    a leave of absence pursuant to Section 24-13 of the School
20    Code. A teacher whose service under this Article terminated
21    prior to the effective date of P.A. 86-1488 shall be
22    eligible to purchase such optional credit. If a teacher who
23    purchases this optional credit is already receiving a
24    retirement annuity under this Article, the annuity shall be
25    recalculated as if the annuitant had applied for the leave
26    of absence credit at the time of retirement. The difference

 

 

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1    between the entitled annuity and the actual annuity shall
2    be credited to the purchase of the optional credit. The
3    remainder of the purchase cost of the optional credit shall
4    be paid on or before April 1, 1992.
5        The change in this paragraph made by Public Act 86-273
6    shall be applicable to teachers who retire after June 1,
7    1989, as well as to teachers who are in service on that
8    date.
9        (6) Any days of unused and uncompensated accumulated
10    sick leave earned by a teacher who first became a
11    participant in the System before the effective date of this
12    amendatory Act of the 98th General Assembly. The service
13    credit granted under this paragraph shall be the ratio of
14    the number of unused and uncompensated accumulated sick
15    leave days to 170 days, subject to a maximum of 2 years of
16    service credit. Prior to the member's retirement, each
17    former employer shall certify to the System the number of
18    unused and uncompensated accumulated sick leave days
19    credited to the member at the time of termination of
20    service. The period of unused sick leave shall not be
21    considered in determining the effective date of
22    retirement. A member is not required to make contributions
23    in order to obtain service credit for unused sick leave.
24        Credit for sick leave shall, at retirement, be granted
25    by the System for any retiring regional or assistant
26    regional superintendent of schools who first became a

 

 

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1    participant in this System before the effective date of
2    this amendatory Act of the 98th General Assembly at the
3    rate of 6 days per year of creditable service or portion
4    thereof established while serving as such superintendent
5    or assistant superintendent.
6    Service credit is not available for unused sick leave
7accumulated by a teacher who first becomes a participant in
8this System on or after the effective date of this amendatory
9Act of the 98th General Assembly.
10        (7) Periods prior to February 1, 1987 served as an
11    employee of the Illinois Mathematics and Science Academy
12    for which credit has not been terminated under Section
13    15-113.9 of this Code.
14        (8) Service as a substitute teacher for work performed
15    prior to July 1, 1990.
16        (9) Service as a part-time teacher for work performed
17    prior to July 1, 1990.
18        (10) Up to 2 years of employment with Southern Illinois
19    University - Carbondale from September 1, 1959 to August
20    31, 1961, or with Governors State University from September
21    1, 1972 to August 31, 1974, for which the teacher has no
22    credit under Article 15. To receive credit under this item
23    (10), a teacher must apply in writing to the Board and pay
24    the required contributions before May 1, 1993 and have at
25    least 12 years of service credit under this Article.
26    (b-1) A member may establish optional credit for up to 2

 

 

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1years of service as a teacher or administrator employed by a
2private school recognized by the Illinois State Board of
3Education, provided that the teacher (i) was certified under
4the law governing the certification of teachers at the time the
5service was rendered, (ii) applies in writing on or after
6August 1, 2009 and on or before August 1, 2012, (iii) supplies
7satisfactory evidence of the employment, (iv) completes at
8least 10 years of contributing service as a teacher as defined
9in Section 16-106, and (v) pays the contribution required in
10subsection (d-5) of Section 16-128. The member may apply for
11credit under this subsection and pay the required contribution
12before completing the 10 years of contributing service required
13under item (iv), but the credit may not be used until the item
14(iv) contributing service requirement has been met.
15    (c) The service credits specified in this Section shall be
16granted only if: (1) such service credits are not used for
17credit in any other statutory tax-supported public employee
18retirement system other than the federal Social Security
19program; and (2) the member makes the required contributions as
20specified in Section 16-128. Except as provided in subsection
21(b-1) of this Section, the service credit shall be effective as
22of the date the required contributions are completed.
23    Any service credits granted under this Section shall
24terminate upon cessation of membership for any cause.
25    Credit may not be granted under this Section covering any
26period for which an age retirement or disability retirement

 

 

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1allowance has been paid.
2(Source: P.A. 96-546, eff. 8-17-09.)
 
3    (40 ILCS 5/16-133.1)  (from Ch. 108 1/2, par. 16-133.1)
4    Sec. 16-133.1. Automatic annual increase in annuity.
5    (a) Each member with creditable service and retiring on or
6after August 26, 1969 is entitled to the automatic annual
7increases in annuity provided under this Section while
8receiving a retirement annuity or disability retirement
9annuity from the system.
10    An annuitant shall first be entitled to an initial increase
11under this Section on the January 1 next following the first
12anniversary of retirement, or January 1 of the year next
13following attainment of age 61, whichever is later. At such
14time, the system shall pay an initial increase determined as
15follows or as provided in subsections (a-1) and (a-2):
16        (1) 1.5% of the originally granted retirement annuity
17    or disability retirement annuity multiplied by the number
18    of years elapsed, if any, from the date of retirement until
19    January 1, 1972, plus
20        (2) 2% of the originally granted annuity multiplied by
21    the number of years elapsed, if any, from the date of
22    retirement or January 1, 1972, whichever is later, until
23    January 1, 1978, plus
24        (3) 3% of the originally granted annuity multiplied by
25    the number of years elapsed from the date of retirement or

 

 

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1    January 1, 1978, whichever is later, until the effective
2    date of the initial increase.
3However, the initial annual increase calculated under this
4Section for the recipient of a disability retirement annuity
5granted under Section 16-149.2 shall be reduced by an amount
6equal to the total of all increases in that annuity received
7under Section 16-149.5 (but not exceeding 100% of the amount of
8the initial increase otherwise provided under this Section).
9    Following the initial increase, automatic annual increases
10in annuity shall be payable on each January 1 thereafter during
11the lifetime of the annuitant, determined as a percentage of
12the originally granted retirement annuity or disability
13retirement annuity for increases granted prior to January 1,
141990, and calculated as a percentage of the total amount of
15annuity, including previous increases under this Section, for
16increases granted on or after January 1, 1990, as follows: 1.5%
17for periods prior to January 1, 1972, 2% for periods after
18December 31, 1971 and prior to January 1, 1978, and 3% for
19periods after December 31, 1977, or as provided in subsections
20(a-1) and (a-2).
21    (a-1) Notwithstanding any other provision of this Article,
22for a Tier I employee who made the election under paragraph (1)
23of subsection (a) of Section 16-122.9, the amount of each
24automatic annual increase in retirement annuity occurring on or
25after the effective date of that election shall be 3% or
26one-half of the annual unadjusted percentage increase, if any,

 

 

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1in the Consumer Price Index-U for the 12 months ending with the
2preceding September, whichever is less, of the originally
3granted retirement annuity. For the purposes of this Section,
4"Consumer Price Index-U" means the index published by the
5Bureau of Labor Statistics of the United States Department of
6Labor that measures the average change in prices of goods and
7services purchased by all urban consumers, United States city
8average, all items, 1982-84 = 100.
9    (a-2) Notwithstanding any other provision of this Article,
10for a Tier I employee who made the election under paragraph (1)
11of subsection (a) of Section 16-122.9, the monthly retirement
12annuity shall first be subject to annual increases on the
13January 1 occurring on or next after either the attainment of
14age 67 or the January 1 occurring on or next after the fifth
15anniversary of the annuity start date, whichever occurs
16earlier.
17    (b) The automatic annual increases in annuity provided
18under this Section shall not be applicable unless a member has
19made contributions toward such increases for a period
20equivalent to one full year of creditable service. If a member
21contributes for service performed after August 26, 1969 but the
22member becomes an annuitant before such contributions amount to
23one full year's contributions based on the salary at the date
24of retirement, he or she may pay the necessary balance of the
25contributions to the system and be eligible for the automatic
26annual increases in annuity provided under this Section.

 

 

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1    (c) Each member shall make contributions toward the cost of
2the automatic annual increases in annuity as provided under
3Section 16-152.
4    (d) An annuitant receiving a retirement annuity or
5disability retirement annuity on July 1, 1969, who subsequently
6re-enters service as a teacher is eligible for the automatic
7annual increases in annuity provided under this Section if he
8or she renders at least one year of creditable service
9following the latest re-entry.
10    (e) In addition to the automatic annual increases in
11annuity provided under this Section, an annuitant who meets the
12service requirements of this Section and whose retirement
13annuity or disability retirement annuity began on or before
14January 1, 1971 shall receive, on January 1, 1981, an increase
15in the annuity then being paid of one dollar per month for each
16year of creditable service. On January 1, 1982, an annuitant
17whose retirement annuity or disability retirement annuity
18began on or before January 1, 1977 shall receive an increase in
19the annuity then being paid of one dollar per month for each
20year of creditable service.
21    On January 1, 1987, any annuitant whose retirement annuity
22began on or before January 1, 1977, shall receive an increase
23in the monthly retirement annuity equal to 8 per year of
24creditable service times the number of years that have elapsed
25since the annuity began.
26(Source: P.A. 91-927, eff. 12-14-00.)
 

 

 

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1    (40 ILCS 5/16-133.6 new)
2    Sec. 16-133.6. Optional teacher early retirement without
3discount. A Tier I employee who makes an election under
4paragraph (1) of subsection (a) of Section 16-122.9, retires on
5or after July 1, 2014, and applies for a retirement annuity
6within 6 months of the last day of teaching for which
7retirement contributions were required may elect, at the time
8of application for a retirement annuity, to make a one-time
9member contribution to the System and, thereby, avoid the
10reduction in the retirement annuity for retirement before age
1160 specified in paragraph (B) of Section 16-133. The exercise
12of the election shall also obligate the last employer to make a
13one-time nonrefundable contribution to the System. Substitute
14teachers wishing to exercise this election must teach 85 or
15more days in one school term with one employer, who shall be
16deemed the last employer for purposes of this Section. The last
17day of teaching with that employer must be within 6 months of
18the date of application for retirement. All substitute teaching
19credit applied toward the required 85 days must be earned after
20June 30, 1990.
21    The one-time member and employer contributions shall be a
22percentage of the cost of this benefit as determined by the
23System. However, when determining the one-time member and
24employer contributions, that part of a member's salary with the
25same employer which exceeds the annual salary rate for the

 

 

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1preceding year by more than 20% shall be excluded. The member
2contribution shall be at the rate of 50% of the cost of the
3benefits as determined by the System. The employer contribution
4shall be at the rate of 50% of the cost of the benefits as
5determined by the System.
6    Upon receipt of the application and election, the System
7shall determine the one-time employee and employer
8contributions required. The member contribution shall be
9credited to the individual account of the member and the
10employer contribution shall be credited to the Benefit Trust
11Reserve. The avoidance of the reduction in retirement annuity
12provided under this Section is not applicable until the
13member's contribution, if any, has been received by the System;
14however, the date that contribution is received shall not be
15considered in determining the effective date of retirement.
16    The number of members working for a single employer who may
17retire under this Section in any year may be limited at the
18option of the employer to a specified percentage of those
19eligible, not less than 10%, with the right to participate to
20be allocated among those applying on the basis of seniority in
21the service of the employer.
 
22    (40 ILCS 5/16-136.1)  (from Ch. 108 1/2, par. 16-136.1)
23    Sec. 16-136.1. Annual increase for certain annuitants.
24    (a) Any annuitant receiving a retirement annuity on June
2530, 1969 and any member retiring after June 30, 1969 shall be

 

 

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1eligible for the annual increases provided under this Section
2provided the annuitant is ineligible for the automatic annual
3increase in annuity provided under Section 16-133.1, and
4provided further that (1) retirement occurred at age 55 or over
5and was based on 5 or more years of creditable service or (2)
6if retirement occurred prior to age 55, the retirement annuity
7was based on 20 or more years of creditable service.
8    (b) Subject to the provisions of subsections (b-1) and
9(b-2), an An annuitant entitled to increases under this Section
10shall be entitled to the initial increase as of the later of:
11(1) January 1 following attainment of age 65, (2) January 1
12following the first anniversary of retirement, or (3) the first
13day of the month following receipt of the required qualifying
14contribution from the annuitant. The initial monthly increase
15shall be computed on the basis of the period elapsed between
16the later of the date of last retirement or attainment of age
1750 and the date of qualification for the initial increase, at
18the rate of 1 1/2% of the original monthly retirement annuity
19per year for periods prior to September 1, 1971, and at the
20rate of 2% per year for periods between September 1, 1971 and
21September 1, 1978, and at the rate of 3% per year for periods
22thereafter.
23    Subject to the provisions of subsections (b-1) and (b-2),
24an An annuitant who has received an initial increase under this
25Section, shall be entitled, on each January 1 following the
26granting of the initial increase, to an increase of 3% of the

 

 

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1original monthly retirement annuity for increases granted
2prior to January 1, 1990, and equal to 3% of the total annuity,
3including previous increases under this Section, for increases
4granted on or after January 1, 1990. The original monthly
5retirement annuity for computations under this subsection (b)
6shall be considered to be $83.34 for any annuitant entitled to
7benefits under Section 16-134. The minimum original disability
8retirement annuity for computations under this subsection (b)
9shall be considered to be $33.34 per month for any annuitant
10retired on account of disability.
11    (b-1) Notwithstanding any other provision of this Article,
12for a Tier I employee who made the election under paragraph (1)
13of subsection (a) of Section 16-122.9, the amount of each
14automatic annual increase in retirement annuity occurring on or
15after the effective date of that election shall be 3% or
16one-half of the annual unadjusted percentage increase, if any,
17in the Consumer Price Index-U for the 12 months ending with the
18preceding September, whichever is less, of the originally
19granted retirement annuity. For the purposes of this Section,
20"Consumer Price Index-U" means the index published by the
21Bureau of Labor Statistics of the United States Department of
22Labor that measures the average change in prices of goods and
23services purchased by all urban consumers, United States city
24average, all items, 1982-84 = 100.
25    (b-2) Notwithstanding any other provision of this Article,
26for a Tier I employee who made the election under paragraph (1)

 

 

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1of subsection (a) of Section 16-122.9, the monthly retirement
2annuity shall first be subject to annual increases on the
3January 1 occurring on or next after either the attainment of
4age 67 or the January 1 occurring on or next after the fifth
5anniversary of the annuity start date, whichever occurs
6earlier.
7    (c) An annuitant who otherwise qualifies for annual
8increases under this Section must make a one-time payment of 1%
9of the monthly final average salary for each full year of the
10creditable service forming the basis of the retirement annuity
11or, if the retirement annuity was not computed using final
12average salary, 1% of the original monthly retirement annuity
13for each full year of service forming the basis of the
14retirement annuity.
15    (d) In addition to other increases which may be provided by
16this Section, regardless of creditable service, annuitants not
17meeting the service requirements of Section 16-133.1 and whose
18retirement annuity began on or before January 1, 1971 shall
19receive, on January 1, 1981, an increase in the retirement
20annuity then being paid of one dollar per month for each year
21of creditable service forming the basis of the retirement
22allowance. On January 1, 1982, annuitants whose retirement
23annuity began on or before January 1, 1977, shall receive an
24increase in the retirement annuity then being paid of one
25dollar per month for each year of creditable service.
26    On January 1, 1987, any annuitant whose retirement annuity

 

 

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1began on or before January 1, 1977, shall receive an increase
2in the monthly retirement annuity equal to 8 per year of
3creditable service times the number of years that have elapsed
4since the annuity began.
5(Source: P.A. 86-273.)
 
6    (40 ILCS 5/16-152)  (from Ch. 108 1/2, par. 16-152)
7    Sec. 16-152. Contributions by members.
8    (a) Each member shall make contributions for membership
9service to this System as follows:
10        (1) Effective July 1, 1998, contributions of 7.50% of
11    salary towards the cost of the retirement annuity. Such
12    contributions shall be deemed "normal contributions".
13        (2) Effective July 1, 1969, contributions of 1/2 of 1%
14    of salary toward the cost of the automatic annual increase
15    in retirement annuity provided under Section 16-133.1.
16        (3) Effective July 24, 1959, contributions of 1% of
17    salary towards the cost of survivor benefits. Such
18    contributions shall not be credited to the individual
19    account of the member and shall not be subject to refund
20    except as provided under Section 16-143.2.
21        (4) Effective July 1, 2005, contributions of 0.40% of
22    salary toward the cost of the early retirement without
23    discount option provided under Section 16-133.2. This
24    contribution shall cease upon termination of the early
25    retirement without discount option as provided in Section

 

 

SB0001 Engrossed- 55 -LRB098 05457 JDS 35491 b

1    16-176.
2    (a-1) In addition to the contributions required under
3subsection (a), a member who elects to participate in the
4optional cash balance plan under Section 1-162 shall pay to the
5System for the purpose of participating in the optional cash
6balance plan a contribution of 2% of each payment of
7compensation received while he or she is a participant in the
8optional cash balance plan. These contributions shall not be
9used for the purpose of determining any benefit under this
10Article except as provided in the optional cash balance plan.
11    (b) The minimum required contribution for any year of
12full-time teaching service shall be $192.
13    (c) Contributions shall not be required of any annuitant
14receiving a retirement annuity who is given employment as
15permitted under Section 16-118 or 16-150.1.
16    (d) A person who (i) was a member before July 1, 1998, (ii)
17retires with more than 34 years of creditable service, and
18(iii) does not elect to qualify for the augmented rate under
19Section 16-129.1 shall be entitled, at the time of retirement,
20to receive a partial refund of contributions made under this
21Section for service occurring after the later of June 30, 1998
22or attainment of 34 years of creditable service, in an amount
23equal to 1.00% of the salary upon which those contributions
24were based.
25    (e) A member's contributions toward the cost of early
26retirement without discount made under item (a)(4) of this

 

 

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1Section shall not be refunded if the member has elected early
2retirement without discount under Section 16-133.2 and has
3begun to receive a retirement annuity under this Article
4calculated in accordance with that election. Otherwise, a
5member's contributions toward the cost of early retirement
6without discount made under item (a)(4) of this Section shall
7be refunded according to whichever one of the following
8circumstances occurs first:
9        (1) The contributions shall be refunded to the member,
10    without interest, within 120 days after the member's
11    retirement annuity commences, if the member does not elect
12    early retirement without discount under Section 16-133.2.
13        (2) The contributions shall be included, without
14    interest, in any refund claimed by the member under Section
15    16-151.
16        (3) The contributions shall be refunded to the member's
17    designated beneficiary (or if there is no beneficiary, to
18    the member's estate), without interest, if the member dies
19    without having begun to receive a retirement annuity under
20    this Article.
21        (4) The contributions shall be refunded to the member,
22    without interest, within 120 days after the early
23    retirement without discount option provided under Section
24    16-133.2 is terminated under Section 16-176.
25(Source: P.A. 93-320, eff. 7-23-03; 94-4, eff. 6-1-05.)
 

 

 

SB0001 Engrossed- 57 -LRB098 05457 JDS 35491 b

1    (40 ILCS 5/16-158.2 new)
2    Sec. 16-158.2. Obligations of State; funding guarantee. If
3at least 30% of Tier I employees making an election under
4Section 16-122.9 before June 1, 2014 choose the option under
5paragraph (1) of subsection (a) of that Section, then the State
6shall be contractually obligated to contribute to the System in
7each State fiscal year an amount not less than the sum required
8in Section 16-158 as that Section existed prior to the
9effective date of this amendatory Act of the 98th General
10Assembly notwithstanding the changes made to Section 16-158 by
11Part A of this amendatory Act of the 98th General Assembly.
12    If at least 30% of Tier I employees making an election
13under Section 16-122.9 before June 1, 2014 choose the option
14under paragraph (1) of subsection (a) of that Section, then the
15State shall be contractually obligated for purposes of this
16Article 16 only (i) to make the transfer identified in
17subsection (c-10) of Section 20 of the Budget Stabilization
18Act, (ii) to apportion the amounts transferred pursuant to
19subsection (c-10) of Section 20 of the Budget Stabilization Act
20in accordance with subsection (b) of Section 25 of that Act,
21(iii) to pay the apportioned amounts to the designated
22retirement systems, and (iv) not to use the amounts transferred
23pursuant to subsection (c-10) of Section 20 of the Budget
24Stabilization Act to satisfy any portion of the required State
25contributions due under Article 2, 14, 15, 16, or 18 of the
26Illinois Pension Code.

 

 

SB0001 Engrossed- 58 -LRB098 05457 JDS 35491 b

1    The obligations created under this Section are contractual
2obligations protected and enforceable under Article I, Section
316 and Article XIII, Section 5 of the Illinois Constitution.
4    Notwithstanding any other provision of law, if the State
5fails to pay in a State fiscal year the amount guaranteed under
6this Section, the System may bring a mandamus action in the
7Circuit Court of Sangamon County to compel the State to make
8that payment, irrespective of other remedies that may be
9available to the System. It shall be the mandatory fiduciary
10obligation of the Board of the System to bring that action if
11the State fails to pay in the fiscal year the amount guaranteed
12under this Section. Before commencing that action, the Board
13shall submit a voucher for monthly contributions as required in
14Section 16-158. If the State fails to pay a vouchered amount
15within 90 days after receiving a voucher for that amount, then
16the Board shall submit a written request to the Comptroller
17seeking payment of that amount. A copy of the request shall be
18filed with the Secretary of State, and the Secretary of State
19shall provide copies of the request to the Governor and General
20Assembly. No earlier than the 16th day after filing a request
21with the Secretary, but no later than the 21st day after filing
22that request, the Board may commence such an action in the
23Circuit Court. If the Board fails to commence such action on or
24before the 21st day after filing the request with the Secretary
25of State, then any Tier I employee or Tier I retiree who chose
26the option under paragraph (1) of subsection (a) or (a-5) of

 

 

SB0001 Engrossed- 59 -LRB098 05457 JDS 35491 b

1Section 16-122.9 may file a mandamus action against the Board
2to compel the Board to commence its mandamus action against the
3State. This Section constitutes an express waiver of the
4State's sovereign immunity. In ordering the State to make the
5required payment, the court may order a reasonable payment
6schedule to enable the State to make the required payment. The
7obligations and causes of action created under this subsection
8shall be in addition to any other right or remedy otherwise
9accorded by common law, or State or federal law, and nothing in
10this subsection shall be construed to deny, abrogate, impair,
11or waive any such common law or statutory right or remedy.
12    Any payments required to be made by the State pursuant to
13this Section are expressly subordinated to the payment of the
14principal, interest, and premium, if any, on any bonded debt
15obligation of the State or any other State-created entity,
16either currently outstanding or to be issued, for which the
17source of repayment or security thereon is derived directly or
18indirectly from tax revenues collected by the State or any
19other State-created entity. Payments on such bonded
20obligations include any statutory fund transfers or other
21prefunding mechanisms or formulas set forth, now or hereafter,
22in State law or bond indentures, into debt service funds or
23accounts of the State related to such bonded obligations,
24consistent with the payment schedules associated with such
25obligations.
 

 

 

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1    (40 ILCS 5/16-203)
2    Sec. 16-203. Application and expiration of new benefit
3increases.
4    (a) As used in this Section, "new benefit increase" means
5an increase in the amount of any benefit provided under this
6Article, or an expansion of the conditions of eligibility for
7any benefit under this Article, that results from an amendment
8to this Code that takes effect after June 1, 2005 (the
9effective date of Public Act 94-4). "New benefit increase",
10however, does not include any benefit increase resulting from
11the changes made to this Article by Public Act 95-910 or this
12amendatory Act of the 98th 95th General Assembly.
13    (b) Notwithstanding any other provision of this Code or any
14subsequent amendment to this Code, every new benefit increase
15is subject to this Section and shall be deemed to be granted
16only in conformance with and contingent upon compliance with
17the provisions of this Section.
18    (c) The Public Act enacting a new benefit increase must
19identify and provide for payment to the System of additional
20funding at least sufficient to fund the resulting annual
21increase in cost to the System as it accrues.
22    Every new benefit increase is contingent upon the General
23Assembly providing the additional funding required under this
24subsection. The Commission on Government Forecasting and
25Accountability shall analyze whether adequate additional
26funding has been provided for the new benefit increase and

 

 

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1shall report its analysis to the Public Pension Division of the
2Department of Financial and Professional Regulation. A new
3benefit increase created by a Public Act that does not include
4the additional funding required under this subsection is null
5and void. If the Public Pension Division determines that the
6additional funding provided for a new benefit increase under
7this subsection is or has become inadequate, it may so certify
8to the Governor and the State Comptroller and, in the absence
9of corrective action by the General Assembly, the new benefit
10increase shall expire at the end of the fiscal year in which
11the certification is made.
12    (d) Every new benefit increase shall expire 5 years after
13its effective date or on such earlier date as may be specified
14in the language enacting the new benefit increase or provided
15under subsection (c). This does not prevent the General
16Assembly from extending or re-creating a new benefit increase
17by law.
18    (e) Except as otherwise provided in the language creating
19the new benefit increase, a new benefit increase that expires
20under this Section continues to apply to persons who applied
21and qualified for the affected benefit while the new benefit
22increase was in effect and to the affected beneficiaries and
23alternate payees of such persons, but does not apply to any
24other person, including without limitation a person who
25continues in service after the expiration date and did not
26apply and qualify for the affected benefit while the new

 

 

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1benefit increase was in effect.
2(Source: P.A. 94-4, eff. 6-1-05; 95-910, eff. 8-26-08.)
 
3    Section 50. The School Code is amended by changing Sections
424-1 and 24-8 as follows:
 
5    (105 ILCS 5/24-1)  (from Ch. 122, par. 24-1)
6    Sec. 24-1. Appointment-Salaries-Payment-School
7month-School term.) School boards shall appoint all teachers,
8determine qualifications of employment and fix the amount of
9their salaries subject to any limitation set forth in this Act
10and subject to any applicable restrictions in Section 16-122.9
11of the Illinois Pension Code. They shall pay the wages of
12teachers monthly, subject, however, to the provisions of
13Section 24-21. The school month shall be the same as the
14calendar month but by resolution the school board may adopt for
15its use a month of 20 days, including holidays. The school term
16shall consist of at least the minimum number of pupil
17attendance days required by Section 10-19, any additional legal
18school holidays, days of teachers' institutes, or equivalent
19professional educational experiences, and one or two days at
20the beginning of the school term when used as a teachers'
21workshop.
22(Source: P.A. 80-249.)
 
23    (105 ILCS 5/24-8)  (from Ch. 122, par. 24-8)

 

 

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1    Sec. 24-8. Minimum salary. In fixing the salaries of
2teachers, school boards shall pay those who serve on a
3full-time basis not less than a rate for the school year that
4is based upon training completed in a recognized institution of
5higher learning, as follows: for the school year beginning July
61, 1980 and thereafter, less than a bachelor's degree, $9,000;
7120 semester hours or more and a bachelor's degree, $10,000;
8150 semester hours or more and a master's degree, $11,000.
9    Based upon previous public school experience in this State
10or any other State, territory, dependency or possession of the
11United States, or in schools operated by or under the auspices
12of the United States, teachers who serve on a full-time basis
13shall have their salaries increased to at least the following
14amounts above the starting salary for a teacher in such
15district in the same classification: with less than a
16bachelor's degree, $750 after 5 years; with 120 semester hours
17or more and a bachelor's degree, $1,000 after 5 years and
18$1,600 after 8 years; with 150 semester hours or more and a
19master's degree, $1,250 after 5 years, $2,000 after 8 years and
20$2,750 after 13 years. However, any salary increase is subject
21to any applicable restrictions in Section 16-122.9 of the
22Illinois Pension Code.
23    For the purpose of this Section a teacher's salary shall
24include any amount paid by the school district on behalf of the
25teacher, as teacher contributions, to the Teachers' Retirement
26System of the State of Illinois.

 

 

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1    If a school board establishes a schedule for teachers'
2salaries based on education and experience, not inconsistent
3with this Section, all certificated nurses employed by that
4board shall be paid in accordance with the provisions of such
5schedule (subject to any applicable restrictions in Section
616-122.9 of the Illinois Pension Code).
7    For purposes of this Section, a teacher who submits a
8certificate of completion to the school office prior to the
9first day of the school term shall be considered to have the
10degree stated in such certificate.
11(Source: P.A. 83-913.)
 
12    Section 60. The Illinois Educational Labor Relations Act is
13amended by changing Sections 4 and 17 as follows:
 
14    (115 ILCS 5/4)  (from Ch. 48, par. 1704)
15    Sec. 4. Employer rights. Employers shall not be required to
16bargain over matters of inherent managerial policy, which shall
17include such areas of discretion or policy as the functions of
18the employer, standards of services, its overall budget, the
19organizational structure and selection of new employees and
20direction of employees. Employers, however, shall be required
21to bargain collectively with regard to policy matters directly
22affecting wages (but subject to any applicable restrictions in
23Section 16-122.9 of the Illinois Pension Code), hours and terms
24and conditions of employment as well as the impact thereon upon

 

 

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1request by employee representatives, but excluding the
2changes, the impact of changes, and the implementation of the
3changes set forth in this amendatory Act of the 98th General
4Assembly. To preserve the rights of employers and exclusive
5representatives which have established collective bargaining
6relationships or negotiated collective bargaining agreements
7prior to the effective date of this Act, employers shall be
8required to bargain collectively with regard to any matter
9concerning wages (but subject to any applicable restrictions in
10Section 16-122.9 of the Illinois Pension Code), hours or
11conditions of employment about which they have bargained for
12and agreed to in a collective bargaining agreement prior to the
13effective date of this Act, but excluding the changes, the
14impact of changes, and the implementation of the changes set
15forth in this amendatory Act of the 98th General Assembly.
16(Source: P.A. 83-1014.)
 
17    (115 ILCS 5/17)  (from Ch. 48, par. 1717)
18    Sec. 17. Effect on other laws. In case of any conflict
19between the provisions of this Act and any other law (other
20than Section 16-122.9 of the Illinois Pension Code), executive
21order or administrative regulation, the provisions of this Act
22shall prevail and control. The provisions of this Act are
23subject to any applicable restrictions in Section 16-122.9 of
24the Illinois Pension Code, as well as the changes, impact of
25changes, and implementation of changes set forth in this

 

 

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1amendatory Act of the 98th General Assembly. Nothing in this
2Act shall be construed to replace or diminish the rights of
3employees established by Section 36d of "An Act to create the
4State Universities Civil Service System", approved May 11,
51905, as amended or modified.
6(Source: P.A. 83-1014.)
 
7    Section 99. Effective date. This Act takes effect upon
8becoming law.