Illinois General Assembly - Full Text of HB2465
Illinois General Assembly

Previous General Assemblies

Full Text of HB2465  93rd General Assembly

HB2465 93rd General Assembly


093_HB2465

 
                                     LRB093 06621 EFG 06753 b

 1        AN ACT in relation to public employee benefits.

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

 4        Section  5.   The  Illinois  Pension  Code  is amended by
 5    changing Sections 17-133 and 17-134 as follows:

 6        (40 ILCS 5/17-133) (from Ch. 108 1/2, par. 17-133)
 7        Sec. 17-133. Contributions for  periods  of  outside  and
 8    other service.
 9        Regularly  certified and appointed teachers who desire to
10    have the following described services  credited  for  pension
11    purposes  shall  submit to the Board evidence thereof and pay
12    into the Fund the amounts prescribed herein:
13             1.  For teaching service by a certified  teacher  in
14        the  public  schools  of the several states or in schools
15        operated by or under the auspices of the United States, a
16        teacher shall pay the contributions at the rates in force
17        (a) on the date of appointment as a  regularly  certified
18        teacher after salary adjustments are completed, or (b) at
19        the  time  of  reappointment after salary adjustments are
20        completed, whichever is later, but not less than $450 per
21        year of service.   Upon  the  Board's  approval  of  such
22        service  and  the  payment of the required contributions,
23        service credit  of  not  more  than  10  years  shall  be
24        granted.
25             2.  For service as a playground instructor in public
26        school  playgrounds, teachers shall pay the contributions
27        prescribed  in  this  Article  (a)   at   the   time   of
28        appointment,  as  a  regularly  certified  teacher  after
29        salary  adjustments  are  completed,  or (b) on return to
30        service as a full time regularly  certified  teacher,  as
31        the case may be, provided such rates or amounts shall not
 
                            -2-      LRB093 06621 EFG 06753 b
 1        be less than $450 per year.
 2             3.  For  service  prior to September 1, 1955, in the
 3        public schools of  the  City  as  a  substitute,  evening
 4        school  or  temporary  teacher,  or  for  service  as  an
 5        Americanization  teacher  prior  to  December  31,  1955,
 6        teachers   shall pay the contributions prescribed in this
 7        Article (a) at the time of appointment,  as  a  regularly
 8        certified teacher after salary adjustments are completed,
 9        (b)  on  return  to  service  as  a  full  time regularly
10        certified teacher, as the  case  may  be,  provided  such
11        rates  or  amounts  shall not be less than $450 per year;
12        and provided further that for  teachers  employed  on  or
13        after   September   1,  1953,  rates  shall  not  include
14        contributions  for  widows'  pensions  if   the   service
15        described  in  this  sub-paragraph  3 was rendered before
16        that date.  Any teacher entitled to  repay  a  refund  of
17        contributions  under  Section 17-126 may validate service
18        described in this paragraph by  payment  of  the  amounts
19        prescribed  herein,  together  with  the repayment of the
20        refund, provided that if such creditable service was  the
21        last  service  rendered in the public schools of the City
22        and is not automatically reinstated by repayment  of  the
23        refund,  the rates or amounts shall not be less than $450
24        per year.
25             4.  For service after June 30, 1982 as a  member  of
26        the  Board  of  Education,  if required to resign from an
27        administrative or teaching position in order  to  qualify
28        as a member of the Board of Education.
29             5.  For  service during the 1986-87 school year as a
30        teacher on a special leave of absence with full  loss  of
31        salary,  teaching  for  an  agency  under contract to the
32        Board of Education, if the teacher returned to employment
33        in September, 1987.  For service under this item  5,  the
34        teacher  must pay the contributions at the rates in force
 
                            -3-      LRB093 06621 EFG 06753 b
 1        at the completion of the leave period.
 2             6.  For up to 2 years of service  as  a  teacher  or
 3        administrator  employed  by  a  private school registered
 4        with  or  recognized  by  the  Illinois  State  Board  of
 5        Education, provided that the teacher  (i)  was  certified
 6        under  the law governing the certification of teachers at
 7        the time  the  service  was  rendered,  (ii)  applies  in
 8        writing on or after June 1, 2003 and on or before June 1,
 9        2006,   (iii)   supplies  satisfactory  evidence  of  the
10        employment,  (iv)  completes  at  least   10   years   of
11        contributing  service  as a teacher as defined in Section
12        17-106,  (v)  pays  the  contribution  required  in  this
13        Section, and  (vi)  does  not  receive  credit  for  that
14        service  under  any  other  provision  of this Code.  The
15        member may apply for credit under this subsection and pay
16        the required contribution before completing the 10  years
17        of contributing service required under item (iv), but the
18        credit  may  not be used until the item (iv) contributing
19        service requirement has been met.
20             For each year of service credit  to  be  established
21        under  this  subparagraph  6,  a  member  is  required to
22        contribute to the System an amount to  be  determined  by
23        the  Fund, consisting of (i) employee contributions based
24        on the annual  salary  rate  during  the  first  year  of
25        full-time  employment  as  a  teacher  under this Article
26        following the  private  school  service,  plus  (ii)  the
27        employer's normal cost of the benefits to be established,
28        plus  (iii)  interest  thereon  from  the  date  of first
29        full-time employment as  a  teacher  under  this  Article
30        following  the  private  school  service  to  the date of
31        payment, compounded annually, at the  rate  of  8.0%  per
32        year.
33        For  service  described  in  sub-paragraphs 1, 2 and 3 of
34    this Section, interest shall be charged  beginning  one  year
 
                            -4-      LRB093 06621 EFG 06753 b
 1    after the effective date of appointment or reappointment.
 2        Effective  September  1,  1974,  the  interest rate to be
 3    charged  by   the   Fund   on   contributions   provided   in
 4    sub-paragraphs 1, 2, 3 and 4 shall be 5% per annum compounded
 5    annually.
 6    (Source: P.A. 90-566, eff. 1-2-98; 91-887, eff. 7-6-00.)

 7        (40 ILCS 5/17-134) (from Ch. 108 1/2, par. 17-134)
 8        Sec.   17-134.   Contributions  for  leaves  of  absence;
 9    military service; computing service.   In  computing  service
10    for  pension  purposes the following periods of service shall
11    stand in lieu of a like number of years of  teaching  service
12    upon  payment  therefor  in  the manner hereinafter provided:
13    (a) time spent on a leave of absence granted by the employer;
14    (b) service with teacher or labor  organizations  based  upon
15    special  leaves  of  absence therefor granted by an Employer;
16    (c) a maximum of 5 years spent in the military service of the
17    United States, of which up to 2 years may  have  been  served
18    outside   the   pension  period;  (d)  unused  sick  days  at
19    termination of service to a maximum of  the  number  of  days
20    sufficient to provide 2 years of service credit 244 days; (e)
21    time  lost  due  to layoff and curtailment of the school term
22    from June 6 through June 21, 1976; and (f) time  spent  after
23    June  30,  1982  as  a  member  of the Board of Education, if
24    required  to  resign  from  an  administrative  or   teaching
25    position  in  order  to  qualify  as a member of the Board of
26    Education.
27             (1)  For time spent on or after September 6, 1948 on
28        sabbatical leaves of absence or sick  leaves,  for  which
29        salaries   are  paid,  an  Employer  shall  make  payroll
30        deductions at the applicable rates in effect during  such
31        periods.
32             (2)  For time spent on a leave of absence granted by
33        the  employer  for  which  no salaries are paid, teachers
 
                            -5-      LRB093 06621 EFG 06753 b
 1        desiring  credit  therefor   shall   pay   the   required
 2        contributions  at the rates in effect during such periods
 3        as though they were in teaching service.  If an  Employer
 4        pays  salary for vacations which occur during a teacher's
 5        sick  leave  or  maternity  or  paternity  leave  without
 6        salary, vacation pay for which  the  teacher  would  have
 7        qualified  while  in  active  service shall be considered
 8        part of the teacher's total salary for pension  purposes.
 9        No more than 36 months of leave credit may be allowed any
10        person  during  the  entire  term of service.  Sabbatical
11        leave credit shall be limited to the time the  person  on
12        leave without salary under an Employer's rules is allowed
13        to  engage in an activity for which he receives salary or
14        compensation.
15             (3)  For time spent prior to September 6,  1948,  on
16        sabbatical  leaves  of  absence  or sick leaves for which
17        salaries were  paid,  teachers  desiring  service  credit
18        therefor  shall  pay  the  required  contributions at the
19        maximum applicable rates in effect during such periods.
20             (4)  For service with teacher or labor organizations
21        authorized by special leaves of  absence,  for  which  no
22        payroll  deductions  are  made  by  an Employer, teachers
23        desiring service credit therefor shall contribute to  the
24        Fund  upon  the  basis of the actual salary received from
25        such organizations at  the  percentage  rates  in  effect
26        during  such  periods  for  certified positions with such
27        Employer.  To the extent the actual  salary  exceeds  the
28        regular  salary,  which  shall  be  defined as the salary
29        rate, as calculated by  the  Board,  in  effect  for  the
30        teacher's   regular   position  in  teaching  service  on
31        September 1, 1983 or on the effective date of  the  leave
32        with   the   organization,   whichever   is   later,  the
33        organization shall pay to the Fund the employer's  normal
34        cost as set by the Board on the increment.
 
                            -6-      LRB093 06621 EFG 06753 b
 1             (5)  For   time   spent  in  the  military  service,
 2        teachers entitled to and desiring credit  therefor  shall
 3        contribute  the  amount required for each year of service
 4        or fraction thereof at the rates in force (a) at the date
 5        oF 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
 8        service.  These conditions shall apply unless an Employer
 9        elects  to  and  does  pay into the Fund the amount which
10        would have been due from such person had he been employed
11        as a teacher during such time.  In the case of credit for
12        military service  not  during  the  pension  period,  the
13        teacher must also pay to the Fund an amount determined by
14        the  Board  to  be equal to the employer's normal cost of
15        the benefits accrued from  such  service,  plus  interest
16        thereon  at  5%  per  year, compounded annually, from the
17        date of appointment to the date of payment.
18             The changes to  this  Section  made  by  Public  Act
19        87-795  shall  apply  not only to persons who on or after
20        its effective date are in service  under  the  Fund,  but
21        also  to  persons  whose  status  as a teacher terminated
22        prior to that date, whether  or  not  the  person  is  an
23        annuitant  on that date.  In the case of an annuitant who
24        applies for credit allowable under  this  Section  for  a
25        period  of  military  service  that  did  not immediately
26        follow  employment,  and  who  has  made   the   required
27        contributions  for  such  credit,  the  annuity  shall be
28        recalculated to include the  additional  service  credit,
29        with  the  increase  taking  effect  on the date the Fund
30        received written notification of the  annuitant's  intent
31        to  purchase  the  credit, if payment of all the required
32        contributions is made within 60 days of such  notice,  or
33        else on the first annuity payment date following the date
34        of payment of the required contributions.  In calculating
 
                            -7-      LRB093 06621 EFG 06753 b
 1        the  automatic  annual  increase  for an annuity that has
 2        been  recalculated  under  this  Section,  the   increase
 3        attributable  to  the  additional service allowable under
 4        this amendatory Act of 1991  shall  be  included  in  the
 5        calculation  of automatic annual increases accruing after
 6        the effective date of the recalculation.
 7             The total credit  for  military  service  shall  not
 8        exceed  5  years,  except that any teacher who on July 1,
 9        1963, had validated credit  for  more  than  5  years  of
10        military service shall be entitled to the total amount of
11        such credit.
12             (6)  A  maximum  of 244 Unused sick days credited to
13        his account by an Employer on the date of termination  of
14        employment,  up  to  the  number  of  days  sufficient to
15        provide  2  years  of  service  credit.   Members,   upon
16        verification  of  unused  sick days, may add this service
17        time to total creditable service.
18             (7)  In all cases  where  time  spent  on  leave  is
19        creditable and no payroll deductions therefor are made by
20        an  Employer,  persons desiring service credit shall make
21        the required contributions directly to the Fund.
22             (8)  For time lost without pay  due  to  layoff  and
23        curtailment  of  the school term from June 6 through June
24        21, 1976, as provided in item (e) of the first  paragraph
25        of  this  Section,  persons  who were contributors on the
26        days immediately  preceding  such  layoff  shall  receive
27        credit  upon  paying  to the Fund a contribution based on
28        the rates of compensation and employee  contributions  in
29        effect  at  the  time  of  such  layoff, together with an
30        additional amount equal  to  12.2%  of  the  compensation
31        computed  for such period of layoff, plus interest on the
32        entire amount at 5% per annum from January 1, 1978 to the
33        date of payment.  If such contribution  is  paid,  salary
34        for  pension purposes for any year in which such a layoff
 
                            -8-      LRB093 06621 EFG 06753 b
 1        occurred shall include the  compensation  recognized  for
 2        purposes of computing that contribution.
 3             (9)  For  time  spent  after  June  30,  1982,  as a
 4        nonsalaried member of the Board of Education, if required
 5        to resign from an administrative or teaching position  in
 6        order  to  qualify as a member of the Board of Education,
 7        an administrator  or  teacher  desiring  credit  therefor
 8        shall  pay  the  required  contributions at the rates and
 9        salaries in effect during  such  periods  as  though  the
10        member were in service.
11        Effective  September  1,  1974,  the interest charged for
12    validation of service described in paragraphs (2) through (5)
13    of this Section shall be compounded annually at a rate of  5%
14    commencing  one  year  after  the termination of the leave or
15    return to service.
16    (Source: P.A. 92-599, eff. 6-28-02.)

17        Section 90.  The State Mandates Act is amended by  adding
18    Section 8.27 as follows:

19        (30 ILCS 805/8.27 new)
20        Sec.  8.27.  Exempt  mandate.  Notwithstanding Sections 6
21    and 8 of this Act, no reimbursement by the State is  required
22    for  the  implementation  of  any  mandate  created  by  this
23    amendatory Act of the 93rd General Assembly.

24        Section  99.  Effective date.  This Act takes effect upon
25    becoming law.