Sen. John J. Cullerton

Filed: 5/30/2012





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2    AMENDMENT NO. ______. Amend House Bill 1447, AS AMENDED,
3with reference to page and line numbers of Senate Amendment No.
42, as follows:
5on page 13, in line 16, immediately after "14-152.1," by
6inserting "15-106, 15-107, 15-113.2, 15-163, 15-165, 16-106,
716-107"; and
8on page 29, in line 6, by replacing "Section Section" with
9"Section"; and
10by replacing line 5 on page 49 through line 25 on page 53 with
11the following:
12    "(40 ILCS 5/7-109)  (from Ch. 108 1/2, par. 7-109)
13    Sec. 7-109. Employee.
14    (1) "Employee" means any person who:



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1        (a) 1. Receives earnings as payment for the performance
2        of personal services or official duties out of the
3        general fund of a municipality, or out of any special
4        fund or funds controlled by a municipality, or by an
5        instrumentality thereof, or a participating
6        instrumentality, including, in counties, the fees or
7        earnings of any county fee office; and
8            2. Under the usual common law rules applicable in
9        determining the employer-employee relationship, has
10        the status of an employee with a municipality, or any
11        instrumentality thereof, or a participating
12        instrumentality, including aldermen, county
13        supervisors and other persons (excepting those
14        employed as independent contractors) who are paid
15        compensation, fees, allowances or other emolument for
16        official duties, and, in counties, the several county
17        fee offices.
18        (b) Serves as a township treasurer appointed under the
19    School Code, as heretofore or hereafter amended, and who
20    receives for such services regular compensation as
21    distinguished from per diem compensation, and any regular
22    employee in the office of any township treasurer whether or
23    not his earnings are paid from the income of the permanent
24    township fund or from funds subject to distribution to the
25    several school districts and parts of school districts as
26    provided in the School Code, or from both such sources; or



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1    is the chief executive officer, chief educational officer,
2    chief fiscal officer, or other employee of a Financial
3    Oversight Panel established pursuant to Article 1H of the
4    School Code, other than a superintendent or certified
5    school business official, except that such person shall not
6    be treated as an employee under this Section if that person
7    has negotiated with the Financial Oversight Panel, in
8    conjunction with the school district, a contractual
9    agreement for exclusion from this Section.
10        (c) Holds an elective office in a municipality,
11    instrumentality thereof or participating instrumentality.
12    (2) "Employee" does not include persons who:
13        (a) Are eligible for inclusion under any of the
14    following laws:
15            1. "An Act in relation to an Illinois State
16        Teachers' Pension and Retirement Fund", approved May
17        27, 1915, as amended;
18            2. Articles 15 and 16 of this Code.
19        However, such persons shall be included as employees to
20    the extent of earnings that are not eligible for inclusion
21    under the foregoing laws for services not of an
22    instructional nature of any kind.
23        However, any member of the armed forces who is employed
24    as a teacher of subjects in the Reserve Officers Training
25    Corps of any school and who is not certified under the law
26    governing the certification of teachers shall be included



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1    as an employee.
2        (b) Are designated by the governing body of a
3    municipality in which a pension fund is required by law to
4    be established for policemen or firemen, respectively, as
5    performing police or fire protection duties, except that
6    when such persons are the heads of the police or fire
7    department and are not eligible to be included within any
8    such pension fund, they shall be included within this
9    Article; provided, that such persons shall not be excluded
10    to the extent of concurrent service and earnings not
11    designated as being for police or fire protection duties.
12    However, (i) any head of a police department who was a
13    participant under this Article immediately before October
14    1, 1977 and did not elect, under Section 3-109 of this Act,
15    to participate in a police pension fund shall be an
16    "employee", and (ii) any chief of police who elects to
17    participate in this Fund under Section 3-109.1 of this
18    Code, regardless of whether such person continues to be
19    employed as chief of police or is employed in some other
20    rank or capacity within the police department, shall be an
21    employee under this Article for so long as such person is
22    employed to perform police duties by a participating
23    municipality and has not lawfully rescinded that election.
24        (c) After August 26, 2011 (the effective date of Public
25    Act 97-609) this amendatory Act of the 97th General
26    Assembly, are contributors to or eligible to contribute to



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1    a Taft-Hartley pension plan established on or before June
2    1, 2011 and are employees of a theatre, arena, or
3    convention center that is located in a municipality located
4    in a county with a population greater than 5,000,000, and
5    to which the participating municipality is required to
6    contribute as the person's employer based on earnings from
7    the municipality. Nothing in this paragraph shall affect
8    service credit or creditable service for any period of
9    service prior to August 26, 2011 the effective date of this
10    amendatory Act of the 97th General Assembly, and this
11    paragraph shall not apply to individuals who are
12    participating in the Fund prior to August 26, 2011 the
13    effective date of this amendatory Act of the 97th General
14    Assembly.
15        (d) Become an employee of any of the following
16    participating instrumentalities on or after the effective
17    date of this amendatory Act of the 97th General Assembly:
18    the Illinois Municipal League; the Illinois Association of
19    Park Districts; the Illinois Supervisors, County
20    Commissioners and Superintendents of Highways Association;
21    an association, or not-for-profit corporation, membership
22    in which is authorized under Section 85-15 of the Township
23    Code; the United Counties Council; or the Will County
24    Governmental League.
25    (3) All persons, including, without limitation, public
26defenders and probation officers, who receive earnings from



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1general or special funds of a county for performance of
2personal services or official duties within the territorial
3limits of the county, are employees of the county (unless
4excluded by subsection (2) of this Section) notwithstanding
5that they may be appointed by and are subject to the direction
6of a person or persons other than a county board or a county
7officer. It is hereby established that an employer-employee
8relationship under the usual common law rules exists between
9such employees and the county paying their salaries by reason
10of the fact that the county boards fix their rates of
11compensation, appropriate funds for payment of their earnings
12and otherwise exercise control over them. This finding and this
13amendatory Act shall apply to all such employees from the date
14of appointment whether such date is prior to or after the
15effective date of this amendatory Act and is intended to
16clarify existing law pertaining to their status as
17participating employees in the Fund.
18(Source: P.A. 97-429, eff. 8-16-11; 97-609, eff. 8-26-11;
19revised 9-28-11.)"; and
20on page 91, immediately below line 14, by inserting the
22    "(40 ILCS 5/15-106)  (from Ch. 108 1/2, par. 15-106)
23    Sec. 15-106. Employer. "Employer": The University of
24Illinois, Southern Illinois University, Chicago State



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1University, Eastern Illinois University, Governors State
2University, Illinois State University, Northeastern Illinois
3University, Northern Illinois University, Western Illinois
4University, the State Board of Higher Education, the Illinois
5Mathematics and Science Academy, the University Civil Service
6Merit Board, the Board of Trustees of the State Universities
7Retirement System, the Illinois Community College Board,
8community college boards, any association of community college
9boards organized under Section 3-55 of the Public Community
10College Act, the Board of Examiners established under the
11Illinois Public Accounting Act, and, only during the period for
12which employer contributions required under Section 15-155 are
13paid, the following organizations: the alumni associations,
14the foundations and the athletic associations which are
15affiliated with the universities and colleges included in this
16Section as employers. An individual that begins employment
17after the effective date of this amendatory Act of the 97th
18General Assembly with an entity not defined as an employer in
19this Section shall not be deemed an employee for the purposes
20of this Article with respect to that employment and shall not
21be eligible to participate in the System with respect to that
22employment; provided, however, that those individuals who are
23both employed and already participants in the System on the
24effective date of this amendatory Act of the 97th General
25Assembly shall be allowed to continue as participants in the
26System for the duration of that employment.



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1    Notwithstanding any provision of law to the contrary, an
2individual who begins employment with any of the following
3employers on or after the effective date of this amendatory Act
4of the 97th General Assembly shall not be deemed an employee
5and shall not be eligible to participate in the System with
6respect to that employment: any association of community
7college boards organized under Section 3-55 of the Public
8Community College Act, the Association of Illinois
9Middle-Grade Schools, the Illinois Association of School
10Administrators, the Illinois Association for Supervision and
11Curriculum Development, the Illinois Principals Association,
12the Illinois Association of School Business Officials, or the
13Illinois Special Olympics; provided, however, that those
14individuals who are both employed and already participants in
15the System on the effective date of this amendatory Act of the
1697th General Assembly shall be allowed to continue as
17participants in the System for the duration of that employment.
18    A department as defined in Section 14-103.04 is an employer
19for any person appointed by the Governor under the Civil
20Administrative Code of Illinois who is a participating employee
21as defined in Section 15-109. The Department of Central
22Management Services is an employer with respect to persons
23employed by the State Board of Higher Education in positions
24with the Illinois Century Network as of June 30, 2004 who
25remain continuously employed after that date by the Department
26of Central Management Services in positions with the Illinois



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1Century Network, the Bureau of Communication and Computer
2Services, or, if applicable, any successor bureau.
3    The cities of Champaign and Urbana shall be considered
4employers, but only during the period for which contributions
5are required to be made under subsection (b-1) of Section
615-155 and only with respect to individuals described in
7subsection (h) of Section 15-107.
8(Source: P.A. 95-369, eff. 8-23-07; 95-728, eff. 7-1-08 - See
9Sec. 999.)
10    (40 ILCS 5/15-107)  (from Ch. 108 1/2, par. 15-107)
11    Sec. 15-107. Employee.
12    (a) "Employee" means any member of the educational,
13administrative, secretarial, clerical, mechanical, labor or
14other staff of an employer whose employment is permanent and
15continuous or who is employed in a position in which services
16are expected to be rendered on a continuous basis for at least
174 months or one academic term, whichever is less, who (A)
18receives payment for personal services on a warrant issued
19pursuant to a payroll voucher certified by an employer and
20drawn by the State Comptroller upon the State Treasurer or by
21an employer upon trust, federal or other funds, or (B) is on a
22leave of absence without pay. Employment which is irregular,
23intermittent or temporary shall not be considered continuous
24for purposes of this paragraph.
25    However, a person is not an "employee" if he or she:



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1        (1) is a student enrolled in and regularly attending
2    classes in a college or university which is an employer,
3    and is employed on a temporary basis at less than full
4    time;
5        (2) is currently receiving a retirement annuity or a
6    disability retirement annuity under Section 15-153.2 from
7    this System;
8        (3) is on a military leave of absence;
9        (4) is eligible to participate in the Federal Civil
10    Service Retirement System and is currently making
11    contributions to that system based upon earnings paid by an
12    employer;
13        (5) is on leave of absence without pay for more than 60
14    days immediately following termination of disability
15    benefits under this Article;
16        (6) is hired after June 30, 1979 as a public service
17    employment program participant under the Federal
18    Comprehensive Employment and Training Act and receives
19    earnings in whole or in part from funds provided under that
20    Act; or
21        (7) is employed on or after July 1, 1991 to perform
22    services that are excluded by subdivision (a)(7)(f) or
23    (a)(19) of Section 210 of the federal Social Security Act
24    from the definition of employment given in that Section (42
25    U.S.C. 410).
26    (b) Any employer may, by filing a written notice with the



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1board, exclude from the definition of "employee" all persons
2employed pursuant to a federally funded contract entered into
3after July 1, 1982 with a federal military department in a
4program providing training in military courses to federal
5military personnel on a military site owned by the United
6States Government, if this exclusion is not prohibited by the
7federally funded contract or federal laws or rules governing
8the administration of the contract.
9    (c) Any person appointed by the Governor under the Civil
10Administrative Code of the State is an employee, if he or she
11is a participant in this system on the effective date of the
13    (d) A participant on lay-off status under civil service
14rules is considered an employee for not more than 120 days from
15the date of the lay-off.
16    (e) A participant is considered an employee during (1) the
17first 60 days of disability leave, (2) the period, not to
18exceed one year, in which his or her eligibility for disability
19benefits is being considered by the board or reviewed by the
20courts, and (3) the period he or she receives disability
21benefits under the provisions of Section 15-152, workers'
22compensation or occupational disease benefits, or disability
23income under an insurance contract financed wholly or partially
24by the employer.
25    (f) Absences without pay, other than formal leaves of
26absence, of less than 30 calendar days, are not considered as



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1an interruption of a person's status as an employee. If such
2absences during any period of 12 months exceed 30 work days,
3the employee status of the person is considered as interrupted
4as of the 31st work day.
5    (g) A staff member whose employment contract requires
6services during an academic term is to be considered an
7employee during the summer and other vacation periods, unless
8he or she declines an employment contract for the succeeding
9academic term or his or her employment status is otherwise
10terminated, and he or she receives no earnings during these
12    (h) An individual who was a participating employee employed
13in the fire department of the University of Illinois's
14Champaign-Urbana campus immediately prior to the elimination
15of that fire department and who immediately after the
16elimination of that fire department became employed by the fire
17department of the City of Urbana or the City of Champaign shall
18continue to be considered as an employee for purposes of this
19Article for so long as the individual remains employed as a
20firefighter by the City of Urbana or the City of Champaign. The
21individual shall cease to be considered an employee under this
22subsection (h) upon the first termination of the individual's
23employment as a firefighter by the City of Urbana or the City
24of Champaign.
25    (i) An individual who is employed on a full-time basis as
26an officer or employee of a statewide teacher organization that



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1serves System participants or an officer of a national teacher
2organization that serves System participants may participate
3in the System and shall be deemed an employee, provided that
4(1) the individual has previously earned creditable service
5under this Article, (2) the individual files with the System an
6irrevocable election to become a participant before the
7effective date of this amendatory Act of the 97th General
8Assembly, (3) the individual does not receive credit for that
9employment under any other Article of this Code, and (4) the
10individual first became a full-time employee of the teacher
11organization and becomes a participant before the effective
12date of this amendatory Act of the 97th General Assembly. An
13employee under this subsection (i) is responsible for paying to
14the System both (A) employee contributions based on the actual
15compensation received for service with the teacher
16organization and (B) employer contributions equal to the normal
17costs (as defined in Section 15-155) resulting from that
18service; all or any part of these contributions may be paid on
19the employee's behalf or picked up for tax purposes (if
20authorized under federal law) by the teacher organization.
21    A person who is an employee as defined in this subsection
22(i) may establish service credit for similar employment prior
23to becoming an employee under this subsection by paying to the
24System for that employment the contributions specified in this
25subsection, plus interest at the effective rate from the date
26of service to the date of payment. However, credit shall not be



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1granted under this subsection for any such prior employment for
2which the applicant received credit under any other provision
3of this Code, or during which the applicant was on a leave of
4absence under Section 15-113.2.
5    (j) A person employed by the State Board of Higher
6Education in a position with the Illinois Century Network as of
7June 30, 2004 shall be considered to be an employee for so long
8as he or she remains continuously employed after that date by
9the Department of Central Management Services in a position
10with the Illinois Century Network, the Bureau of Communication
11and Computer Services, or, if applicable, any successor bureau
12and meets the requirements of subsection (a).
13    (k) In the case of doubt as to whether any person is an
14employee within the meaning of this Section, the decision of
15the Board shall be final.
16(Source: P.A. 97-651, eff. 1-5-12.)
17    (40 ILCS 5/15-113.2)  (from Ch. 108 1/2, par. 15-113.2)
18    Sec. 15-113.2. Service for leaves of absence. "Service for
19leaves of absence" includes those periods of leaves of absence
20at less than 50% pay, except military leave and periods of
21disability leave in excess of 60 days, for which the employee
22pays the contributions required under Section 15-157 in
23accordance with rules prescribed by the board based upon the
24employee's basic compensation on the date the leave begins, or
25in the case of leave for service with a teacher organization,



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1based upon the actual compensation received by the employee for
2such service after January 26, 1988, if the employee so elects
3within 30 days of that date or the date the leave for service
4with a teacher organization begins, whichever is later;
5provided that the employee (1) returns to employment covered by
6this system at the expiration of the leave, or within 30 days
7after the termination of a disability which occurs during the
8leave and continues this employment at a percentage of time
9equal to or greater than the percentage of time immediately
10preceding the leave of absence for at least 8 consecutive
11months or a period equal to the period of the leave, whichever
12is less, or (2) is precluded from meeting the foregoing
13conditions because of disability or death. If service credit is
14denied because the employee fails to meet these conditions, the
15contributions covering the leave of absence shall be refunded
16without interest. The return to employment condition does not
17apply if the leave of absence is for service with a teacher
19    Service credit provided under this Section shall not exceed
203 years in any period of 10 years, unless the employee is on
21special leave granted by the employer for service with a
22teacher organization. Commencing with the fourth year in any
23period of 10 years, a participant on such special leave is also
24required to pay employer contributions equal to the normal cost
25as defined in Section 15-155, based upon the employee's basic
26compensation on the date the leave begins, or based upon the



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1actual compensation received by the employee for service with a
2teacher organization if the employee has so elected.
3    Notwithstanding any other provision of this Article, a
4participant shall not be eligible to make contributions or
5receive service credit for a leave of absence for service with
6a teacher organization if that leave of absence for service
7with a teacher organization begins on or after the effective
8date of this amendatory Act of the 97th General Assembly.
9(Source: P.A. 90-65, eff. 7-7-97; 90-511, eff. 8-22-97.)
10    (40 ILCS 5/15-163)  (from Ch. 108 1/2, par. 15-163)
11    Sec. 15-163. To consider applications and authorize
13    To consider and pass on all certifications of employment
14and applications for annuities and benefits; to authorize the
15granting of annuities and benefits; and to limit or suspend any
16payment or payments, all in accordance with this Article.
17(Source: Laws 1963, p. 161.)
18    (40 ILCS 5/15-165)   (from Ch. 108 1/2, par. 15-165)
19    Sec. 15-165. To certify amounts and submit vouchers.
20    (a) The Board shall certify to the Governor on or before
21November 15 of each year until November 15, 2011 the
22appropriation required from State funds for the purposes of
23this System for the following fiscal year. The certification
24under this subsection (a) shall include a copy of the actuarial



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1recommendations upon which it is based and shall specifically
2identify the System's projected State normal cost for that
3fiscal year and the projected State cost for the self-managed
4plan for that fiscal year.
5    On or before May 1, 2004, the Board shall recalculate and
6recertify to the Governor the amount of the required State
7contribution to the System for State fiscal year 2005, taking
8into account the amounts appropriated to and received by the
9System under subsection (d) of Section 7.2 of the General
10Obligation Bond Act.
11    On or before July 1, 2005, the Board shall recalculate and
12recertify to the Governor the amount of the required State
13contribution to the System for State fiscal year 2006, taking
14into account the changes in required State contributions made
15by this amendatory Act of the 94th General Assembly.
16    On or before April 1, 2011, the Board shall recalculate and
17recertify to the Governor the amount of the required State
18contribution to the System for State fiscal year 2011, applying
19the changes made by Public Act 96-889 to the System's assets
20and liabilities as of June 30, 2009 as though Public Act 96-889
21was approved on that date.
22    (a-5) On or before November 1 of each year, beginning
23November 1, 2012, the Board shall submit to the State Actuary,
24the Governor, and the General Assembly a proposed certification
25of the amount of the required State contribution to the System
26for the next fiscal year, along with all of the actuarial



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1assumptions, calculations, and data upon which that proposed
2certification is based. On or before January 1 of each year,
3beginning January 1, 2013, the State Actuary shall issue a
4preliminary report concerning the proposed certification and
5identifying, if necessary, recommended changes in actuarial
6assumptions that the Board must consider before finalizing its
7certification of the required State contributions. On or before
8January 15, 2013 and each January 15 thereafter, the Board
9shall certify to the Governor and the General Assembly the
10amount of the required State contribution for the next fiscal
11year. The Board's certification must note, in a written
12response to the State Actuary, any deviations from the State
13Actuary's recommended changes, the reason or reasons for not
14following the State Actuary's recommended changes, and the
15fiscal impact of not following the State Actuary's recommended
16changes on the required State contribution.
17    (b) The Board shall certify to the State Comptroller or
18employer, as the case may be, from time to time, by its
19president and secretary, with its seal attached, the amounts
20payable to the System from the various funds.
21    (c) Beginning in State fiscal year 1996, on or as soon as
22possible after the 15th day of each month the Board shall
23submit vouchers for payment of State contributions to the
24System, in a total monthly amount of one-twelfth of the
25required annual State contribution certified under subsection
26(a). From the effective date of this amendatory Act of the 93rd



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1General Assembly through June 30, 2004, the Board shall not
2submit vouchers for the remainder of fiscal year 2004 in excess
3of the fiscal year 2004 certified contribution amount
4determined under this Section after taking into consideration
5the transfer to the System under subsection (b) of Section
66z-61 of the State Finance Act. These vouchers shall be paid by
7the State Comptroller and Treasurer by warrants drawn on the
8funds appropriated to the System for that fiscal year.
9    If in any month the amount remaining unexpended from all
10other appropriations to the System for the applicable fiscal
11year (including the appropriations to the System under Section
128.12 of the State Finance Act and Section 1 of the State
13Pension Funds Continuing Appropriation Act) is less than the
14amount lawfully vouchered under this Section, the difference
15shall be paid from the General Revenue Fund under the
16continuing appropriation authority provided in Section 1.1 of
17the State Pension Funds Continuing Appropriation Act.
18    (d) So long as the payments received are the full amount
19lawfully vouchered under this Section, payments received by the
20System under this Section shall be applied first toward the
21employer contribution to the self-managed plan established
22under Section 15-158.2. Payments shall be applied second toward
23the employer's portion of the normal costs of the System, as
24defined in subsection (f) of Section 15-155. The balance shall
25be applied toward the unfunded actuarial liabilities of the



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1    (e) In the event that the System does not receive, as a
2result of legislative enactment or otherwise, payments
3sufficient to fully fund the employer contribution to the
4self-managed plan established under Section 15-158.2 and to
5fully fund that portion of the employer's portion of the normal
6costs of the System, as calculated in accordance with Section
715-155(a-1), then any payments received shall be applied
8proportionately to the optional retirement program established
9under Section 15-158.2 and to the employer's portion of the
10normal costs of the System, as calculated in accordance with
11Section 15-155(a-1).
12(Source: P.A. 96-1497, eff. 1-14-11; 96-1511, eff. 1-27-11.)
13    (40 ILCS 5/16-106)  (from Ch. 108 1/2, par. 16-106)
14    Sec. 16-106. Teacher. "Teacher": The following
15individuals, provided that, for employment prior to July 1,
161990, they are employed on a full-time basis, or if not
17full-time, on a permanent and continuous basis in a position in
18which services are expected to be rendered for at least one
19school term:
20        (1) Any educational, administrative, professional or
21    other staff employed in the public common schools included
22    within this system in a position requiring certification
23    under the law governing the certification of teachers;
24        (2) Any educational, administrative, professional or
25    other staff employed in any facility of the Department of



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



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1    amendatory Act of the 97th General Assembly;
2        (5) Any person employed by the retirement system who:
3            (i) was an employee of and a participant in the
4        system on August 17, 2001 (the effective date of Public
5        Act 92-416), or
6            (ii) becomes an employee of the system on or after
7        August 17, 2001;
8        (6) Any educational, administrative, professional or
9    other staff employed by and under the supervision and
10    control of a regional superintendent of schools, provided
11    such employment position requires the person to be
12    certificated under the law governing the certification of
13    teachers and is in an educational program serving 2 or more
14    districts in accordance with a joint agreement authorized
15    by the School Code or by federal legislation;
16        (7) Any educational, administrative, professional or
17    other staff employed in an educational program serving 2 or
18    more school districts in accordance with a joint agreement
19    authorized by the School Code or by federal legislation and
20    in a position requiring certification under the laws
21    governing the certification of teachers;
22        (8) Any officer or employee of a statewide teacher
23    organization or officer of a national teacher organization
24    who is certified under the law governing certification of
25    teachers, provided: (i) the individual had previously
26    established creditable service under this Article, (ii)



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



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1    pilot program receiving funds under Section 2-389 of the
2    School Code shall be considered service as a teacher if
3    employee and employer contributions have been received by
4    the system and the system has not refunded those
5    contributions.
6    An annuitant receiving a retirement annuity under this
7Article or under Article 17 of this Code who is employed by a
8board of education or other employer as permitted under Section
916-118 or 16-150.1 is not a "teacher" for purposes of this
10Article. A person who has received a single-sum retirement
11benefit under Section 16-136.4 of this Article is not a
12"teacher" for purposes of this Article.
13(Source: P.A. 97-651, eff. 1-5-12.)
14    (40 ILCS 5/16-127)  (from Ch. 108 1/2, par. 16-127)
15    Sec. 16-127. Computation of creditable service.
16    (a) Each member shall receive regular credit for all
17service as a teacher from the date membership begins, for which
18satisfactory evidence is supplied and all contributions have
19been paid.
20    (b) The following periods of service shall earn optional
21credit and each member shall receive credit for all such
22service for which satisfactory evidence is supplied and all
23contributions have been paid as of the date specified:
24        (1) Prior service as a teacher.
25        (2) Service in a capacity essentially similar or



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



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



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



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



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



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1    effective date of this amendatory Act of 1997. In the case
2    of an annuitant who establishes credit under item (iii) or
3    (iv), the annuity shall be recalculated to include the
4    additional service credit. The increase in annuity shall
5    take effect on the date the System receives written
6    notification of the annuitant's intent to purchase the
7    credit, if the required evidence is submitted and the
8    required contribution paid within 60 days of that
9    notification, otherwise on the first annuity payment date
10    following the System's receipt of the required evidence and
11    contribution. The increase in an annuity recalculated
12    under this provision shall be included in the calculation
13    of automatic annual increases in the annuity accruing after
14    the effective date of the recalculation.
15        Optional credit may be purchased under this subsection
16    (b)(5) for periods during which a teacher has been granted
17    a leave of absence pursuant to Section 24-13 of the School
18    Code. A teacher whose service under this Article terminated
19    prior to the effective date of P.A. 86-1488 shall be
20    eligible to purchase such optional credit. If a teacher who
21    purchases this optional credit is already receiving a
22    retirement annuity under this Article, the annuity shall be
23    recalculated as if the annuitant had applied for the leave
24    of absence credit at the time of retirement. The difference
25    between the entitled annuity and the actual annuity shall
26    be credited to the purchase of the optional credit. The



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1    remainder of the purchase cost of the optional credit shall
2    be paid on or before April 1, 1992.
3        The change in this paragraph made by Public Act 86-273
4    shall be applicable to teachers who retire after June 1,
5    1989, as well as to teachers who are in service on that
6    date.
7        (6) Any days of unused and uncompensated accumulated
8    sick leave earned by a teacher who first became a
9    participant in the System before the effective date of this
10    amendatory Act of the 97th General Assembly. The service
11    credit granted under this paragraph shall be the ratio of
12    the number of unused and uncompensated accumulated sick
13    leave days to 170 days, subject to a maximum of 2 years of
14    service credit. Prior to the member's retirement, each
15    former employer shall certify to the System the number of
16    unused and uncompensated accumulated sick leave days
17    credited to the member at the time of termination of
18    service. The period of unused sick leave shall not be
19    considered in determining the effective date of
20    retirement. A member is not required to make contributions
21    in order to obtain service credit for unused sick leave.
22        Credit for sick leave shall, at retirement, be granted
23    by the System for any retiring regional or assistant
24    regional superintendent of schools who first became a
25    participant in this System before the effective date of
26    this amendatory Act of the 97th General Assembly at the



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1    rate of 6 days per year of creditable service or portion
2    thereof established while serving as such superintendent
3    or assistant superintendent.
4    Service credit is not available for unused sick leave
5accumulated by a teacher who first becomes a participant in
6this System on or after the effective date of this amendatory
7Act of the 97th General Assembly.
8        (7) Periods prior to February 1, 1987 served as an
9    employee of the Illinois Mathematics and Science Academy
10    for which credit has not been terminated under Section
11    15-113.9 of this Code.
12        (8) Service as a substitute teacher for work performed
13    prior to July 1, 1990.
14        (9) Service as a part-time teacher for work performed
15    prior to July 1, 1990.
16        (10) Up to 2 years of employment with Southern Illinois
17    University - Carbondale from September 1, 1959 to August
18    31, 1961, or with Governors State University from September
19    1, 1972 to August 31, 1974, for which the teacher has no
20    credit under Article 15. To receive credit under this item
21    (10), a teacher must apply in writing to the Board and pay
22    the required contributions before May 1, 1993 and have at
23    least 12 years of service credit under this Article.
24    (b-1) A member may establish optional credit for up to 2
25years of service as a teacher or administrator employed by a
26private school recognized by the Illinois State Board of



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1Education, provided that the teacher (i) was certified under
2the law governing the certification of teachers at the time the
3service was rendered, (ii) applies in writing on or after
4August 1, 2009 and on or before August 1, 2012, (iii) supplies
5satisfactory evidence of the employment, (iv) completes at
6least 10 years of contributing service as a teacher as defined
7in Section 16-106, and (v) pays the contribution required in
8subsection (d-5) of Section 16-128. The member may apply for
9credit under this subsection and pay the required contribution
10before completing the 10 years of contributing service required
11under item (iv), but the credit may not be used until the item
12(iv) contributing service requirement has been met.
13    (c) The service credits specified in this Section shall be
14granted only if: (1) such service credits are not used for
15credit in any other statutory tax-supported public employee
16retirement system other than the federal Social Security
17program; and (2) the member makes the required contributions as
18specified in Section 16-128. Except as provided in subsection
19(b-1) of this Section, the service credit shall be effective as
20of the date the required contributions are completed.
21    Any service credits granted under this Section shall
22terminate upon cessation of membership for any cause.
23    Credit may not be granted under this Section covering any
24period for which an age retirement or disability retirement
25allowance has been paid.
26(Source: P.A. 96-546, eff. 8-17-09.)"; and



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1on page 113, in line 13, by changing "equitable" to "equitable,
2but excluding the changes, the impact of changes, and the
3implementation of the changes set forth in this amendatory Act
4of the 97th General Assembly; and
5on page 123, in line 18, by replacing "35 through 100," with
6"40, 95, 100,"; and
7on page 124, by replacing lines 2 and 3, with the following:
8    "Sections 10, 35, and 45 through 90 of this Act, as well as
9the other provisions of Section 30 of this Act, are mutually
10dependent and inseverable. If any".