98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
SB1224

 

Introduced 1/30/2013, by Sen. Matt Murphy

 

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

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


LRB098 06102 JDS 36142 b

FISCAL NOTE ACT MAY APPLY
PENSION IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB1224LRB098 06102 JDS 36142 b

1    AN ACT concerning public employee benefits.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Pension Code is amended by changing
5Sections 7-114, 7-116, 7-139, 9-219, 9-220, 14-104.3, 14-106,
615-112, 15-113.4, 16-121, 16-127, 17-116, and 17-134 as
7follows:
 
8    (40 ILCS 5/7-114)  (from Ch. 108 1/2, par. 7-114)
9    Sec. 7-114. Earnings. "Earnings":
10    (a) An amount to be determined by the board, equal to the
11sum of:
12        1. The total amount of money paid to an employee for
13    personal services or official duties as an employee (except
14    those employed as independent contractors) paid out of the
15    general fund, or out of any special funds controlled by the
16    municipality, or by any instrumentality thereof, or
17    participating instrumentality, including compensation,
18    fees, allowances, or other emolument paid for official
19    duties (but not including automobile maintenance, travel
20    expense, or reimbursements for expenditures incurred in
21    the performance of duties, or, in the case of a person who
22    first becomes a participant on or after the effective date
23    of this amendatory Act of the 98th General Assembly,

 

 

SB1224- 2 -LRB098 06102 JDS 36142 b

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

 

 

SB1224- 3 -LRB098 06102 JDS 36142 b

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

 

 

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

 

 

SB1224- 5 -LRB098 06102 JDS 36142 b

1credits are granted; (3) periods of military leave shall not be
2considered; (4) the earnings rate for all periods of disability
3shall be considered equal to the rate of earnings upon which
4the employee's disability benefits are computed for such
5periods; (5) the earnings to be considered for each of the
6final three months of the final earnings period for persons who
7first became participants before January 1, 2012 and the
8earnings to be considered for each of the final 24 months for
9participants who first become participants on or after January
101, 2012 shall not exceed 125% of the highest earnings of any
11other month in the final earnings period; and (6) the annual
12amount of final rate of earnings shall be the monthly amount
13multiplied by the number of months of service normally required
14by the position in a year; and (7) in the case of a person who
15first becomes a participant on or after the effective date of
16this amendatory Act of the 98th General Assembly, payments for
17unused sick or vacation time shall not be considered.
18(Source: P.A. 97-609, eff. 1-1-12.)
 
19    (40 ILCS 5/7-139)  (from Ch. 108 1/2, par. 7-139)
20    Sec. 7-139. Credits and creditable service to employees.
21    (a) Each participating employee shall be granted credits
22and creditable service, for purposes of determining the amount
23of any annuity or benefit to which he or a beneficiary is
24entitled, as follows:
25        1. For prior service: Each participating employee who

 

 

SB1224- 6 -LRB098 06102 JDS 36142 b

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

 

 

SB1224- 7 -LRB098 06102 JDS 36142 b

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

 

 

SB1224- 8 -LRB098 06102 JDS 36142 b

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

 

 

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

 

 

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

 

 

SB1224- 11 -LRB098 06102 JDS 36142 b

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

 

 

SB1224- 12 -LRB098 06102 JDS 36142 b

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

 

 

SB1224- 13 -LRB098 06102 JDS 36142 b

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

 

 

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

 

 

SB1224- 15 -LRB098 06102 JDS 36142 b

1    participation by the age restriction removed by Public Act
2    82-596 and who is not a participating employee on or after
3    September 24, 1981 may receive creditable service for
4    service after January 1, 1979. Creditable service under
5    this paragraph shall be granted upon payment of the
6    employee contributions which would have been required had
7    he participated, with interest at the effective rate for
8    each year from the end of the period of service established
9    to date of payment.
10        8. For accumulated unused sick leave: A participating
11    employee who first becomes a participating employee before
12    the effective date of this amendatory Act of the 98th
13    General Assembly and who is applying for a retirement
14    annuity shall be entitled to creditable service for that
15    portion of the employee's accumulated unused sick leave for
16    which payment is not received, as follows:
17            a. Sick leave days shall be limited to those
18        accumulated under a sick leave plan established by a
19        participating municipality or participating
20        instrumentality which is available to all employees or
21        a class of employees.
22            b. Except as provided in item b-1, only sick leave
23        days accumulated with a participating municipality or
24        participating instrumentality with which the employee
25        was in service within 60 days of the effective date of
26        his retirement annuity shall be credited; If the

 

 

SB1224- 16 -LRB098 06102 JDS 36142 b

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

 

 

SB1224- 17 -LRB098 06102 JDS 36142 b

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

 

 

SB1224- 18 -LRB098 06102 JDS 36142 b

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

 

 

SB1224- 19 -LRB098 06102 JDS 36142 b

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

 

 

SB1224- 20 -LRB098 06102 JDS 36142 b

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

 

 

SB1224- 21 -LRB098 06102 JDS 36142 b

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

 

 

SB1224- 22 -LRB098 06102 JDS 36142 b

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

 

 

SB1224- 23 -LRB098 06102 JDS 36142 b

1    from the date of service to the date of payment. However,
2    if the former member of the county police department
3    retires on or after January 1, 1993 but no later than March
4    1, 1993, the amount representing employer contributions
5    specified in item (2) shall be waived.
6        For leaves of absence to which this item (c) applies
7    and for other periods to which this item (c) applies,
8    including those leaves of absence and other periods of
9    service beginning before January 5, 2012 (the effective
10    date of Public Act 97-651) this amendatory Act of the 97th
11    General Assembly, the employee or former member must
12    continue to remain in sworn status, subject to the
13    professional standards of the public employer or those
14    terms established in statute.
15        (d) Any period of disability for which he received
16    disability benefit or whole or part pay.
17        (e) For a person who first becomes an employee before
18    the effective date of this amendatory Act of the 98th
19    General Assembly, accumulated Accumulated vacation or
20    other time for which an employee who retires on or after
21    November 1, 1990 receives a lump sum payment at the time of
22    retirement, provided that contributions were made to the
23    fund at the time such lump sum payment was received. The
24    service granted for the lump sum payment shall not change
25    the employee's date of withdrawal for computing the
26    effective date of the annuity.

 

 

SB1224- 24 -LRB098 06102 JDS 36142 b

1        (f) An employee who first becomes an employee before
2    the effective date of this amendatory Act of the 98th
3    General Assembly may receive service credit for annuity
4    purposes for accumulated sick leave as of the date of the
5    employee's withdrawal from service, not to exceed a total
6    of 180 days, provided that the amount of such accumulated
7    sick leave is certified by the County Comptroller to the
8    Board and the employee pays an amount equal to 8.5% (9% for
9    members of the County Police Department who are eligible to
10    receive an annuity under Section 9-128.1) of the amount
11    that would have been paid had such accumulated sick leave
12    been paid at the employee's final rate of salary. Such
13    payment shall be made within 30 days after the date of
14    withdrawal and prior to receipt of the first annuity check.
15    The service credit granted for such accumulated sick leave
16    shall not change the employee's date of withdrawal for the
17    purpose of computing the effective date of the annuity.
18    (3) In computing the term of service of an employee on or
19after the effective date for ordinary disability benefit
20purposes, the following periods of time shall be counted as
21periods of service:
22        (a) Unless otherwise specified in Section 9-157, the
23    time during which he performed the duties of his position.
24        (b) Paid vacations and leaves of absence with whole or
25    part pay.
26        (c) Any period for which he received duty disability

 

 

SB1224- 25 -LRB098 06102 JDS 36142 b

1    benefit.
2        (d) Any period of disability for which he received
3    whole or part pay.
4    (4) For an employee who on January 1, 1958, was transferred
5by Act of the 70th General Assembly from his position in a
6department of welfare of any city located in the county in
7which this Article is in force and effect to a similar position
8in a department of such county, service shall also be credited
9for ordinary disability benefit and child's annuity for such
10period of department of welfare service during which period he
11was a contributor to a statutory annuity and benefit fund in
12such city and for which purposes service credit would otherwise
13not be credited by virtue of such involuntary transfer.
14    (5) An employee described in subsection (e) of Section
159-108 shall receive credit for child's annuity and ordinary
16disability benefit for the period of time for which he was
17credited with service in the fund from which he was
18involuntarily separated through class or group transfer;
19provided, that no such credit shall be allowed to the extent
20that it results in a duplication of credits or benefits, and
21neither shall such credit be allowed to the extent that it was
22or may be forfeited by the application for and acceptance of a
23refund from the fund from which the employee was transferred.
24    (6) Overtime or extra service shall not be included in
25computing service. Not more than 1 year of service shall be
26allowed for service rendered during any calendar year.

 

 

SB1224- 26 -LRB098 06102 JDS 36142 b

1    (7) Unused sick or vacation time shall not be used to
2compute the service of an employee who first becomes an
3employee on or after the effective date of this amendatory Act
4of the 98th General Assembly.
5(Source: P.A. 97-651, eff. 1-5-12.)
 
6    (40 ILCS 5/9-220)  (from Ch. 108 1/2, par. 9-220)
7    Sec. 9-220. Basis of service credit.
8    (a) In computing the period of service of any employee for
9annuity purposes under Section 9-134, the following provisions
10shall govern:
11        (1) All periods prior to the effective date shall be
12    computed in accordance with the provisions governing the
13    computation of such service.
14        (2) Service on or after the effective date shall
15    include:
16            (i) The actual period of time the employee
17        contributes or has contributed to the fund for service
18        rendered to age 65 plus the actual period of time after
19        age 65 for which the employee performs the duties of
20        his position or performs such duties and is given a
21        county contribution for age and service annuity or
22        minimum annuity purposes.
23            (ii) Leaves of absence from duty, or vacation, for
24        which an employee receives all or part of his salary.
25            (iii) For a person who first becomes an employee

 

 

SB1224- 27 -LRB098 06102 JDS 36142 b

1        before the effective date of this amendatory Act of the
2        98th General Assembly, accumulated Accumulated
3        vacation or other time for which an employee who
4        retires on or after November 1, 1990 receives a lump
5        sum payment at the time of retirement, provided that
6        contributions were made to the fund at the time such
7        lump sum payment was received. The service granted for
8        the lump sum payment shall not change the employee's
9        date of withdrawal for computing the effective date of
10        the annuity.
11            (iv) For a person who first becomes an employee
12        before the effective date of this amendatory Act of the
13        98th General Assembly, accumulated Accumulated sick
14        leave as of the date of the employee's withdrawal from
15        service, not to exceed a total of 180 days, provided
16        that the amount of such accumulated sick leave is
17        certified by the County Comptroller to the Board and
18        the employee pays an amount equal to 8.5% (9% for
19        members of the County Police Department who are
20        eligible to receive an annuity under Section 9-128.1)
21        of the amount that would have been paid had such
22        accumulated sick leave been paid at the employee's
23        final rate of salary. Such payment shall be made within
24        30 days after the date of withdrawal and prior to
25        receipt of the first annuity check. The service credit
26        granted for such accumulated sick leave shall not

 

 

SB1224- 28 -LRB098 06102 JDS 36142 b

1        change the employee's date of withdrawal for the
2        purpose of computing the effective date of the annuity.
3            (v) Periods during which the employee has had
4        contributions for annuity purposes made for him in
5        accordance with law while on military leave of absence
6        during World War II.
7            (vi) Periods during which the employee receives a
8        disability benefit under this Article.
9            (vii) For any person who first becomes a member on
10        or after January 1, 2011, the actual period of time the
11        employee contributes or has contributed to the fund for
12        service rendered up to the limitation on salary in
13        subsection (b-5) of Section 1-160 plus the actual
14        period of time thereafter for which the employee
15        performs the duties of his position and ceased
16        contributing due to the salary limitation in
17        subsection (b-5) of Section 1-160.
18        (3) The right to have certain periods of time
19    considered as service as stated in paragraph (2) of Section
20    9-164 shall not apply for annuity purposes unless the
21    refunds shall have been repaid in accordance with this
22    Article.
23        (4) All service shall be computed in whole calendar
24    months, and at least 15 days of service in any one calendar
25    month shall constitute one calendar month of service, and 1
26    year of service shall be equal to the number of months,

 

 

SB1224- 29 -LRB098 06102 JDS 36142 b

1    days or hours for which an appropriation was made in the
2    annual appropriation ordinance for the position held by the
3    employee.
4        (5) Unused sick or vacation time shall not be used to
5    compute the service of an employee who first becomes an
6    employee on or after the effective date of this amendatory
7    Act of the 98th General Assembly.
8    (b) For all other annuity purposes of this Article the
9following schedule shall govern the computation of a year of
10service of an employee whose salary or wages is on the basis
11stated, and any fractional part of a year of service shall be
12determined according to said schedule:
13    Annual or Monthly Basis: Service during 4 months in any 1
14calendar year;
15    Weekly Basis: Service during any 17 weeks of any 1 calendar
16year, and service during any week shall constitute a week of
17service;
18    Daily Basis: Service during 100 days in any 1 calendar
19year, and service during any day shall constitute a day of
20service;
21    Hourly Basis: Service during 800 hours in any 1 calendar
22year, and service during any hour shall constitute an hour of
23service.
24(Source: P.A. 96-1490, eff. 1-1-11.)
 
25    (40 ILCS 5/14-104.3)  (from Ch. 108 1/2, par. 14-104.3)

 

 

SB1224- 30 -LRB098 06102 JDS 36142 b

1    Sec. 14-104.3. Notwithstanding provisions contained in
2Section 14-103.10, any person who first becomes a member before
3the effective date of this amendatory Act of the 98th General
4Assembly and who at the time of retirement and after December
56, 1983 receives compensation in a lump sum for accumulated
6vacation, sickness, or personal business may receive service
7credit for such periods by making contributions within 90 days
8of withdrawal, based on the rate of compensation in effect
9immediately prior to retirement and the contribution rate then
10in effect. Any person who first becomes a member on or after
11the effective date of this amendatory Act of the 98th General
12Assembly and who receives compensation in a lump sum for
13accumulated vacation, sickness, or personal business may not
14receive service credit for such periods. Exercising the option
15provided in this Section shall not change a member's date of
16withdrawal or final average compensation for purposes of
17computing the amount or effective date of a retirement annuity.
18Any annuitant who establishes service credit as herein provided
19shall have his retirement annuity adjusted retroactively to the
20date of retirement.
21(Source: P.A. 83-1362.)
 
22    (40 ILCS 5/14-106)  (from Ch. 108 1/2, par. 14-106)
23    Sec. 14-106. Membership service credit.
24    (a) After January 1, 1944, all service of a member since he
25last became a member with respect to which contributions are

 

 

SB1224- 31 -LRB098 06102 JDS 36142 b

1made shall count as membership service; provided, that for
2service on and after July 1, 1950, 12 months of service shall
3constitute a year of membership service, the completion of 15
4days or more of service during any month shall constitute 1
5month of membership service, 8 to 15 days shall constitute 1/2
6month of membership service and less than 8 days shall
7constitute 1/4 month of membership service. The payroll record
8of each department shall constitute conclusive evidence of the
9record of service rendered by a member.
10    (b) For a member who is employed and paid on an
11academic-year basis rather than on a 12-month annual basis,
12employment for a full academic year shall constitute a full
13year of membership service, except that the member shall not
14receive more than one year of membership service credit (plus
15any additional service credit granted for unused sick leave)
16for service during any 12-month period. This subsection (b)
17applies to all such service for which the member has not begun
18to receive a retirement annuity before January 1, 2001.
19    (c) A person who first becomes a member before the
20effective date of this amendatory Act of the 98th General
21Assembly shall be entitled to additional service credit, under
22rules prescribed by the Board, for accumulated unused sick
23leave credited to his account in the last Department on the
24date of withdrawal from service or for any period for which he
25would have been eligible to receive benefits under a sick pay
26plan authorized by law, if he had suffered a sickness or

 

 

SB1224- 32 -LRB098 06102 JDS 36142 b

1accident on the date of withdrawal from service. It shall be
2the responsibility of the last Department to certify to the
3Board the length of time salary or benefits would have been
4paid to the member based upon the accumulated unused sick leave
5or the applicable sick pay plan if he had become entitled
6thereto because of sickness on the date that his status as an
7employee terminated. This period of service credit granted
8under this paragraph shall not be considered in determining the
9date the retirement annuity is to begin, or final average
10compensation.
11    (d) A person who first becomes a member on or after the
12effective date of this amendatory Act of the 98th General
13Assembly shall not be entitled to additional service credit for
14accumulated unused sick leave.
15(Source: P.A. 92-14, eff. 6-28-01.)
 
16    (40 ILCS 5/15-112)  (from Ch. 108 1/2, par. 15-112)
17    Sec. 15-112. Final rate of earnings.
18    "Final rate of earnings":
19    (a) This subsection (a) applies only to a person who first
20becomes a participant of any system before January 1, 2011.
21     For an employee who is paid on an hourly basis or who
22receives an annual salary in installments during 12 months of
23each academic year, the average annual earnings during the 48
24consecutive calendar month period ending with the last day of
25final termination of employment or the 4 consecutive academic

 

 

SB1224- 33 -LRB098 06102 JDS 36142 b

1years of service in which the employee's earnings were the
2highest, whichever is greater. For any other employee, the
3average annual earnings during the 4 consecutive academic years
4of service in which his or her earnings were the highest. For
5an employee with less than 48 months or 4 consecutive academic
6years of service, the average earnings during his or her entire
7period of service. The earnings of an employee with more than
836 months of service prior to the date of becoming a
9participant are, for such period, considered equal to the
10average earnings during the last 36 months of such service.
11    (b) This subsection (b) applies to a person to whom
12subsection (a) does not apply.
13    For an employee who is paid on an hourly basis or who
14receives an annual salary in installments during 12 months of
15each academic year, the average annual earnings obtained by
16dividing by 8 the total earnings of the employee during the 96
17consecutive months in which the total earnings were the highest
18within the last 120 months prior to termination.
19    For any other employee, the average annual earnings during
20the 8 consecutive academic years within the 10 years prior to
21termination in which the employee's earnings were the highest.
22For an employee with less than 96 consecutive months or 8
23consecutive academic years of service, whichever is necessary,
24the average earnings during his or her entire period of
25service.
26    (c) For an employee on leave of absence with pay, or on

 

 

SB1224- 34 -LRB098 06102 JDS 36142 b

1leave of absence without pay who makes contributions during
2such leave, earnings are assumed to be equal to the basic
3compensation on the date the leave began.
4    (d) For an employee on disability leave, earnings are
5assumed to be equal to the basic compensation on the date
6disability occurs or the average earnings during the 24 months
7immediately preceding the month in which disability occurs,
8whichever is greater.
9    (e) For a participant who retires on or after the effective
10date of this amendatory Act of 1997 with at least 20 years of
11service as a firefighter or police officer under this Article,
12the final rate of earnings shall be the annual rate of earnings
13received by the participant on his or her last day as a
14firefighter or police officer under this Article, if that is
15greater than the final rate of earnings as calculated under the
16other provisions of this Section.
17    (f) If a participant to whom subsection (a) of this Section
18applies is an employee for at least 6 months during the
19academic year in which his or her employment is terminated, the
20annual final rate of earnings shall be 25% of the sum of (1)
21the annual basic compensation for that year, and (2) the amount
22earned during the 36 months immediately preceding that year, if
23this is greater than the final rate of earnings as calculated
24under the other provisions of this Section.
25    (g) In the determination of the final rate of earnings for
26an employee, that part of an employee's earnings for any

 

 

SB1224- 35 -LRB098 06102 JDS 36142 b

1academic year beginning after June 30, 1997, which exceeds the
2employee's earnings with that employer for the preceding year
3by more than 20 percent shall be excluded; in the event that an
4employee has more than one employer this limitation shall be
5calculated separately for the earnings with each employer. In
6making such calculation, only the basic compensation of
7employees shall be considered, without regard to vacation or
8overtime or to contracts for summer employment.
9    (h) The following are not considered as earnings in
10determining final rate of earnings: (1) severance or separation
11pay, (2) retirement pay, (3) payment for unused sick leave, and
12(4) payments from an employer for the period used in
13determining final rate of earnings for any purpose other than
14(i) services rendered, (ii) leave of absence or vacation
15granted during that period, and (iii) vacation of up to 56 work
16days allowed upon termination of employment; except that, if
17the benefit has been collectively bargained between the
18employer and the recognized collective bargaining agent
19pursuant to the Illinois Educational Labor Relations Act,
20payment received during a period of up to 2 academic years for
21unused sick leave may be considered as earnings in accordance
22with the applicable collective bargaining agreement, subject
23to the 20% increase limitation of this Section, and if the
24person first becomes a participant on or after the effective
25date of this amendatory Act of the 98th General Assembly,
26payments for unused sick or vacation time shall not be

 

 

SB1224- 36 -LRB098 06102 JDS 36142 b

1considered as earnings. Any unused sick leave considered as
2earnings under this Section shall not be taken into account in
3calculating service credit under Section 15-113.4.
4    (i) Intermittent periods of service shall be considered as
5consecutive in determining final rate of earnings.
6(Source: P.A. 96-1490, eff. 1-1-11.)
 
7    (40 ILCS 5/15-113.4)  (from Ch. 108 1/2, par. 15-113.4)
8    Sec. 15-113.4. Service for unused sick leave. "Service for
9unused sick leave": A person who first becomes a participant
10before the effective date of this amendatory Act of the 98th
11General Assembly and who is an employee under this System or
12one of the other systems subject to Article 20 of this Code
13within 60 days immediately preceding the date on which his or
14her retirement annuity begins, is entitled to credit for
15service for that portion of unused sick leave earned in the
16course of employment with an employer and credited on the date
17of termination of employment by an employer for which payment
18is not received, in accordance with the following schedule: 30
19through 90 full calendar days and 20 through 59 full work days
20of unused sick leave, 1/4 of a year of service; 91 through 180
21full calendar days and 60 through 119 full work days, 1/2 of a
22year of service; 181 through 270 full calendar days and 120
23through 179 full work days, 3/4 of a year of service; 271
24through 360 full calendar days and 180 through 240 full work
25days, one year of service. Only uncompensated, unused sick

 

 

SB1224- 37 -LRB098 06102 JDS 36142 b

1leave earned in accordance with an employer's sick leave
2accrual policy generally applicable to employees or a class of
3employees shall be taken into account in calculating service
4credit under this Section. Any uncompensated, unused sick leave
5granted by an employer to facilitate the hiring, retirement,
6termination, or other special circumstances of an employee
7shall not be taken into account in calculating service credit
8under this Section. If a participant transfers from one
9employer to another, the unused sick leave credited by the
10previous employer shall be considered in determining service to
11be credited under this Section, even if the participant
12terminated service prior to the effective date of P.A. 86-272
13(August 23, 1989); if necessary, the retirement annuity shall
14be recalculated to reflect such sick leave credit. Each
15employer shall certify to the board the number of days of
16unused sick leave accrued to the participant's credit on the
17date that the participant's status as an employee terminated.
18This period of unused sick leave shall not be considered in
19determining the date the retirement annuity begins. A person
20who first becomes a participant on or after the effective date
21of this amendatory Act of the 98th General Assembly shall not
22receive service credit for unused sick leave.
23(Source: P.A. 90-65, eff. 7-7-97; 90-511, eff. 8-22-97.)
 
24    (40 ILCS 5/16-121)  (from Ch. 108 1/2, par. 16-121)
25    Sec. 16-121. Salary. "Salary": The actual compensation

 

 

SB1224- 38 -LRB098 06102 JDS 36142 b

1received by a teacher during any school year and recognized by
2the system in accordance with rules of the board. For purposes
3of this Section, "school year" includes the regular school term
4plus any additional period for which a teacher is compensated
5and such compensation is recognized by the rules of the board.
6In the case of a person who first becomes a member on or after
7the effective date of this amendatory Act of the 98th General
8Assembly, "salary" shall not include any payment for unused
9sick or vacation time.
10(Source: P.A. 84-1028.)
 
11    (40 ILCS 5/16-127)  (from Ch. 108 1/2, par. 16-127)
12    Sec. 16-127. Computation of creditable service.
13    (a) Each member shall receive regular credit for all
14service as a teacher from the date membership begins, for which
15satisfactory evidence is supplied and all contributions have
16been paid.
17    (b) The following periods of service shall earn optional
18credit and each member shall receive credit for all such
19service for which satisfactory evidence is supplied and all
20contributions have been paid as of the date specified:
21        (1) Prior service as a teacher.
22        (2) Service in a capacity essentially similar or
23    equivalent to that of a teacher, in the public common
24    schools in school districts in this State not included
25    within the provisions of this System, or of any other

 

 

SB1224- 39 -LRB098 06102 JDS 36142 b

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

 

 

SB1224- 40 -LRB098 06102 JDS 36142 b

1    subdivision (b)(2) made by Public Act 86-272 shall apply
2    not only to persons who on or after its effective date
3    (August 23, 1989) are in service as a teacher under the
4    System, but also to persons whose status as such a teacher
5    terminated prior to such effective date, whether or not
6    such person is an annuitant on that date.
7        (3) Any periods immediately following teaching
8    service, under this System or under Article 17, (or
9    immediately following service prior to February 1, 1951 as
10    a recreation worker for the Illinois Department of Public
11    Safety) spent in active service with the military forces of
12    the United States; periods spent in educational programs
13    that prepare for return to teaching sponsored by the
14    federal government following such active military service;
15    if a teacher returns to teaching service within one
16    calendar year after discharge or after the completion of
17    the educational program, a further period, not exceeding
18    one calendar year, between time spent in military service
19    or in such educational programs and the return to
20    employment as a teacher under this System; and a period of
21    up to 2 years of active military service not immediately
22    following employment as a teacher.
23        The changes to this Section and Section 16-128 relating
24    to military service made by P.A. 87-794 shall apply not
25    only to persons who on or after its effective date are in
26    service as a teacher under the System, but also to persons

 

 

SB1224- 41 -LRB098 06102 JDS 36142 b

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

 

 

SB1224- 42 -LRB098 06102 JDS 36142 b

1    credit shall be granted from July 1 of such year. In all
2    other cases where credit for military service is allowed,
3    credit shall be granted from the date of entry into the
4    service.
5        The total period of military service for which credit
6    is granted shall not exceed 5 years for any member unless
7    the service: (A) is validated before July 1, 1964, and (B)
8    does not extend beyond July 1, 1963. Credit for military
9    service shall be granted under this Section only if not
10    more than 5 years of the military service for which credit
11    is granted under this Section is used by the member to
12    qualify for a military retirement allotment from any branch
13    of the armed forces of the United States. The changes to
14    this subdivision (b)(3) made by Public Act 86-272 shall
15    apply not only to persons who on or after its effective
16    date (August 23, 1989) are in service as a teacher under
17    the System, but also to persons whose status as such a
18    teacher terminated prior to such effective date, whether or
19    not such person is an annuitant on that date.
20        (4) Any periods served as a member of the General
21    Assembly.
22        (5)(i) Any periods for which a teacher, as defined in
23    Section 16-106, is granted a leave of absence, provided he
24    or she returns to teaching service creditable under this
25    System or the State Universities Retirement System
26    following the leave; (ii) periods during which a teacher is

 

 

SB1224- 43 -LRB098 06102 JDS 36142 b

1    involuntarily laid off from teaching, provided he or she
2    returns to teaching following the lay-off; (iii) periods
3    prior to July 1, 1983 during which a teacher ceased covered
4    employment due to pregnancy, provided that the teacher
5    returned to teaching service creditable under this System
6    or the State Universities Retirement System following the
7    pregnancy and submits evidence satisfactory to the Board
8    documenting that the employment ceased due to pregnancy;
9    and (iv) periods prior to July 1, 1983 during which a
10    teacher ceased covered employment for the purpose of
11    adopting an infant under 3 years of age or caring for a
12    newly adopted infant under 3 years of age, provided that
13    the teacher returned to teaching service creditable under
14    this System or the State Universities Retirement System
15    following the adoption and submits evidence satisfactory
16    to the Board documenting that the employment ceased for the
17    purpose of adopting an infant under 3 years of age or
18    caring for a newly adopted infant under 3 years of age.
19    However, total credit under this paragraph (5) may not
20    exceed 3 years.
21        Any qualified member or annuitant may apply for credit
22    under item (iii) or (iv) of this paragraph (5) without
23    regard to whether service was terminated before the
24    effective date of this amendatory Act of 1997. In the case
25    of an annuitant who establishes credit under item (iii) or
26    (iv), the annuity shall be recalculated to include the

 

 

SB1224- 44 -LRB098 06102 JDS 36142 b

1    additional service credit. The increase in annuity shall
2    take effect on the date the System receives written
3    notification of the annuitant's intent to purchase the
4    credit, if the required evidence is submitted and the
5    required contribution paid within 60 days of that
6    notification, otherwise on the first annuity payment date
7    following the System's receipt of the required evidence and
8    contribution. The increase in an annuity recalculated
9    under this provision shall be included in the calculation
10    of automatic annual increases in the annuity accruing after
11    the effective date of the recalculation.
12        Optional credit may be purchased under this subsection
13    (b)(5) for periods during which a teacher has been granted
14    a leave of absence pursuant to Section 24-13 of the School
15    Code. A teacher whose service under this Article terminated
16    prior to the effective date of P.A. 86-1488 shall be
17    eligible to purchase such optional credit. If a teacher who
18    purchases this optional credit is already receiving a
19    retirement annuity under this Article, the annuity shall be
20    recalculated as if the annuitant had applied for the leave
21    of absence credit at the time of retirement. The difference
22    between the entitled annuity and the actual annuity shall
23    be credited to the purchase of the optional credit. The
24    remainder of the purchase cost of the optional credit shall
25    be paid on or before April 1, 1992.
26        The change in this paragraph made by Public Act 86-273

 

 

SB1224- 45 -LRB098 06102 JDS 36142 b

1    shall be applicable to teachers who retire after June 1,
2    1989, as well as to teachers who are in service on that
3    date.
4        (6) For a person who first becomes a member before the
5    effective date of this amendatory Act of the 98th General
6    Assembly, any Any days of unused and uncompensated
7    accumulated sick leave earned by a teacher. The service
8    credit granted under this paragraph shall be the ratio of
9    the number of unused and uncompensated accumulated sick
10    leave days to 170 days, subject to a maximum of 2 years of
11    service credit. Prior to the member's retirement, each
12    former employer shall certify to the System the number of
13    unused and uncompensated accumulated sick leave days
14    credited to the member at the time of termination of
15    service. The period of unused sick leave shall not be
16    considered in determining the effective date of
17    retirement. A member is not required to make contributions
18    in order to obtain service credit for unused sick leave.
19        Credit for sick leave shall, at retirement, be granted
20    by the System for any retiring regional or assistant
21    regional superintendent of schools who first becomes a
22    member before the effective date of this amendatory Act of
23    the 98th General Assembly at the rate of 6 days per year of
24    creditable service or portion thereof established while
25    serving as such superintendent or assistant
26    superintendent.

 

 

SB1224- 46 -LRB098 06102 JDS 36142 b

1        (7) Periods prior to February 1, 1987 served as an
2    employee of the Illinois Mathematics and Science Academy
3    for which credit has not been terminated under Section
4    15-113.9 of this Code.
5        (8) Service as a substitute teacher for work performed
6    prior to July 1, 1990.
7        (9) Service as a part-time teacher for work performed
8    prior to July 1, 1990.
9        (10) Up to 2 years of employment with Southern Illinois
10    University - Carbondale from September 1, 1959 to August
11    31, 1961, or with Governors State University from September
12    1, 1972 to August 31, 1974, for which the teacher has no
13    credit under Article 15. To receive credit under this item
14    (10), a teacher must apply in writing to the Board and pay
15    the required contributions before May 1, 1993 and have at
16    least 12 years of service credit under this Article.
17    (b-1) A member may establish optional credit for up to 2
18years of service as a teacher or administrator employed by a
19private school recognized by the Illinois State Board of
20Education, provided that the teacher (i) was certified under
21the law governing the certification of teachers at the time the
22service was rendered, (ii) applies in writing on or after
23August 1, 2009 and on or before August 1, 2012, (iii) supplies
24satisfactory evidence of the employment, (iv) completes at
25least 10 years of contributing service as a teacher as defined
26in Section 16-106, and (v) pays the contribution required in

 

 

SB1224- 47 -LRB098 06102 JDS 36142 b

1subsection (d-5) of Section 16-128. The member may apply for
2credit under this subsection and pay the required contribution
3before completing the 10 years of contributing service required
4under item (iv), but the credit may not be used until the item
5(iv) contributing service requirement has been met.
6    (c) The service credits specified in this Section shall be
7granted only if: (1) such service credits are not used for
8credit in any other statutory tax-supported public employee
9retirement system other than the federal Social Security
10program; and (2) the member makes the required contributions as
11specified in Section 16-128. Except as provided in subsection
12(b-1) of this Section, the service credit shall be effective as
13of the date the required contributions are completed.
14    Any service credits granted under this Section shall
15terminate upon cessation of membership for any cause.
16    Credit may not be granted under this Section covering any
17period for which an age retirement or disability retirement
18allowance has been paid.
19(Source: P.A. 96-546, eff. 8-17-09.)
 
20    (40 ILCS 5/17-116)  (from Ch. 108 1/2, par. 17-116)
21    Sec. 17-116. Service retirement pension.
22    (a) Each teacher having 20 years of service upon attainment
23of age 55, or who thereafter attains age 55 shall be entitled
24to a service retirement pension upon or after attainment of age
2555; and each teacher in service on or after July 1, 1971, with

 

 

SB1224- 48 -LRB098 06102 JDS 36142 b

15 or more but less than 20 years of service shall be entitled
2to receive a service retirement pension upon or after
3attainment of age 62.
4    (b) The service retirement pension for a teacher who
5retires on or after June 25, 1971, at age 60 or over, shall be
6calculated as follows:
7        (1) For creditable service earned before July 1, 1998
8    that has not been augmented under Section 17-119.1: 1.67%
9    for each of the first 10 years of service; 1.90% for each
10    of the next 10 years of service; 2.10% for each year of
11    service in excess of 20 but not exceeding 30; and 2.30% for
12    each year of service in excess of 30, based upon average
13    salary as herein defined.
14        (2) For creditable service earned on or after July 1,
15    1998 by a member who has at least 30 years of creditable
16    service on July 1, 1998 and who does not elect to augment
17    service under Section 17-119.1: 2.3% of average salary for
18    each year of creditable service earned on or after July 1,
19    1998.
20        (3) For all other creditable service: 2.2% of average
21    salary for each year of creditable service.
22    (c) When computing such service retirement pensions, the
23following conditions shall apply:
24        1. Average salary shall consist of the average annual
25    rate of salary for the 4 consecutive years of validated
26    service within the last 10 years of service when such

 

 

SB1224- 49 -LRB098 06102 JDS 36142 b

1    average annual rate was highest. In the determination of
2    average salary for retirement allowance purposes, for
3    members who commenced employment after August 31, 1979,
4    that part of the salary for any year shall be excluded
5    which exceeds the annual full-time salary rate for the
6    preceding year by more than 20%. In the case of a member
7    who commenced employment before August 31, 1979 and who
8    receives salary during any year after September 1, 1983
9    which exceeds the annual full time salary rate for the
10    preceding year by more than 20%, an Employer and other
11    employers of eligible contributors as defined in Section
12    17-106 shall pay to the Fund an amount equal to the present
13    value of the additional service retirement pension
14    resulting from such excess salary. The present value of the
15    additional service retirement pension shall be computed by
16    the Board on the basis of actuarial tables adopted by the
17    Board. If a member elects to receive a pension from this
18    Fund provided by Section 20-121, his salary under the State
19    Universities Retirement System and the Teachers'
20    Retirement System of the State of Illinois shall be
21    considered in determining such average salary. Amounts
22    paid after the effective date of this amendatory Act of
23    1991 for unused vacation time earned after that effective
24    date shall not under any circumstances be included in the
25    calculation of average salary or the annual rate of salary
26    for the purposes of this Article.

 

 

SB1224- 50 -LRB098 06102 JDS 36142 b

1        2. Proportionate credit shall be given for validated
2    service of less than one year.
3        3. For retirement at age 60 or over the pension shall
4    be payable at the full rate.
5        4. For separation from service below age 60 to a
6    minimum age of 55, the pension shall be discounted at the
7    rate of 1/2 of one per cent for each month that the age of
8    the contributor is less than 60, but a teacher may elect to
9    defer the effective date of pension in order to eliminate
10    or reduce this discount. This discount shall not be
11    applicable to any participant who has at least 34 years of
12    service or a retirement pension of at least 74.6% of
13    average salary on the date the retirement annuity begins.
14        5. No additional pension shall be granted for service
15    exceeding 45 years. Beginning June 26, 1971 no pension
16    shall exceed the greater of $1,500 per month or 75% of
17    average salary as herein defined.
18        6. Service retirement pensions shall begin on the
19    effective date of resignation, retirement, the day
20    following the close of the payroll period for which service
21    credit was validated, or the time the person resigning or
22    retiring attains age 55, or on a date elected by the
23    teacher, whichever shall be latest.
24        7. A member who is eligible to receive a retirement
25    pension of at least 74.6% of average salary and will attain
26    age 55 on or before December 31 during the year which

 

 

SB1224- 51 -LRB098 06102 JDS 36142 b

1    commences on July 1 shall be deemed to attain age 55 on the
2    preceding June 1.
3        8. A member retiring after the effective date of this
4    amendatory Act of 1998 shall receive a pension equal to 75%
5    of average salary if the member is qualified to receive a
6    retirement pension equal to at least 74.6% of average
7    salary under this Article or as proportional annuities
8    under Article 20 of this Code.
9        9. In the case of a person who first becomes a
10    participant on or after the effective date of this
11    amendatory Act of the 98th General Assembly, payments for
12    unused sick or vacation time shall not be used in the
13    calculation of average salary.
14(Source: P.A. 90-566, eff. 1-2-98; 90-582, eff. 5-27-98.)
 
15    (40 ILCS 5/17-134)  (from Ch. 108 1/2, par. 17-134)
16    Sec. 17-134. Contributions for leaves of absence; military
17service; computing service. In computing service for pension
18purposes the following periods of service shall stand in lieu
19of a like number of years of teaching service upon payment
20therefor in the manner hereinafter provided: (a) time spent on
21a leave of absence granted by the employer; (b) service with
22teacher or labor organizations based upon special leaves of
23absence therefor granted by an Employer; (c) a maximum of 5
24years spent in the military service of the United States, of
25which up to 2 years may have been served outside the pension

 

 

SB1224- 52 -LRB098 06102 JDS 36142 b

1period; (d) unused sick days at termination of service to a
2maximum of 244 days; (e) time lost due to layoff and
3curtailment of the school term from June 6 through June 21,
41976; and (f) time spent after June 30, 1982 as a member of the
5Board of Education, if required to resign from an
6administrative or teaching position in order to qualify as a
7member of the Board of Education.
8        (1) For time spent on or after September 6, 1948 on
9    sabbatical leaves of absence or sick leaves, for which
10    salaries are paid, an Employer shall make payroll
11    deductions at the applicable rates in effect during such
12    periods.
13        (2) For time spent on a leave of absence granted by the
14    employer for which no salaries are paid, teachers desiring
15    credit therefor shall pay the required contributions at the
16    rates in effect during such periods as though they were in
17    teaching service. If an Employer pays salary for vacations
18    which occur during a teacher's sick leave or maternity or
19    paternity leave without salary, vacation pay for which the
20    teacher would have qualified while in active service shall
21    be considered part of the teacher's total salary for
22    pension purposes. No more than 36 months of leave credit
23    may be allowed any person during the entire term of
24    service. Sabbatical leave credit shall be limited to the
25    time the person on leave without salary under an Employer's
26    rules is allowed to engage in an activity for which he

 

 

SB1224- 53 -LRB098 06102 JDS 36142 b

1    receives salary or compensation.
2        (3) For time spent prior to September 6, 1948, on
3    sabbatical leaves of absence or sick leaves for which
4    salaries were paid, teachers desiring service credit
5    therefor shall pay the required contributions at the
6    maximum applicable rates in effect during such periods.
7        (4) For service with teacher or labor organizations
8    authorized by special leaves of absence, for which no
9    payroll deductions are made by an Employer, teachers
10    desiring service credit therefor shall contribute to the
11    Fund upon the basis of the actual salary received from such
12    organizations at the percentage rates in effect during such
13    periods for certified positions with such Employer. To the
14    extent the actual salary exceeds the regular salary, which
15    shall be defined as the salary rate, as calculated by the
16    Board, in effect for the teacher's regular position in
17    teaching service on September 1, 1983 or on the effective
18    date of the leave with the organization, whichever is
19    later, the organization shall pay to the Fund the
20    employer's normal cost as set by the Board on the
21    increment. Notwithstanding any other provision of this
22    subdivision (4), teachers are only eligible for credit for
23    service under this subdivision (4) if the special leave of
24    absence begins before January 5, 2012 (the effective date
25    of Public Act 97-651) this amendatory Act of the 97th
26    General Assembly.

 

 

SB1224- 54 -LRB098 06102 JDS 36142 b

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

 

 

SB1224- 55 -LRB098 06102 JDS 36142 b

1    annuity shall be recalculated to include the additional
2    service credit, with the increase taking effect on the date
3    the Fund received written notification of the annuitant's
4    intent to purchase the credit, if payment of all the
5    required contributions is made within 60 days of such
6    notice, or else on the first annuity payment date following
7    the date of payment of the required contributions. In
8    calculating the automatic annual increase for an annuity
9    that has been recalculated under this Section, the increase
10    attributable to the additional service allowable under
11    this amendatory Act of 1991 shall be included in the
12    calculation of automatic annual increases accruing after
13    the effective date of the recalculation.
14        The total credit for military service shall not exceed
15    5 years, except that any teacher who on July 1, 1963, had
16    validated credit for more than 5 years of military service
17    shall be entitled to the total amount of such credit.
18        (6) For persons who first become teachers before the
19    effective date of this amendatory Act of the 98th General
20    Assembly, a A maximum of 244 unused sick days credited to
21    his account by an Employer on the date of termination of
22    employment. Members, upon verification of unused sick
23    days, may add this service time to total creditable
24    service.
25        (7) In all cases where time spent on leave is
26    creditable and no payroll deductions therefor are made by

 

 

SB1224- 56 -LRB098 06102 JDS 36142 b

1    an Employer, persons desiring service credit shall make the
2    required contributions directly to the Fund.
3        (8) For time lost without pay due to layoff and
4    curtailment of the school term from June 6 through June 21,
5    1976, as provided in item (e) of the first paragraph of
6    this Section, persons who were contributors on the days
7    immediately preceding such layoff shall receive credit
8    upon paying to the Fund a contribution based on the rates
9    of compensation and employee contributions in effect at the
10    time of such layoff, together with an additional amount
11    equal to 12.2% of the compensation computed for such period
12    of layoff, plus interest on the entire amount at 5% per
13    annum from January 1, 1978 to the date of payment. If such
14    contribution is paid, salary for pension purposes for any
15    year in which such a layoff occurred shall include the
16    compensation recognized for purposes of computing that
17    contribution.
18        (9) For time spent after June 30, 1982, as a
19    nonsalaried member of the Board of Education, if required
20    to resign from an administrative or teaching position in
21    order to qualify as a member of the Board of Education, an
22    administrator or teacher desiring credit therefor shall
23    pay the required contributions at the rates and salaries in
24    effect during such periods as though the member were in
25    service.
26    Effective September 1, 1974, the interest charged for

 

 

SB1224- 57 -LRB098 06102 JDS 36142 b

1validation of service described in paragraphs (2) through (5)
2of this Section shall be compounded annually at a rate of 5%
3commencing one year after the termination of the leave or
4return to service.
5(Source: P.A. 97-651, eff. 1-5-12.)
 
6    Section 99. Effective date. This Act takes effect upon
7becoming law.