Illinois General Assembly - Full Text of HB3813
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Full Text of HB3813  97th General Assembly

HB3813ham003 97TH GENERAL ASSEMBLY

Rep. Tom Cross

Filed: 10/26/2011

 

 


 

 


 
09700HB3813ham003LRB097 13613 JDS 59131 a

1
AMENDMENT TO HOUSE BILL 3813

2    AMENDMENT NO. ______. Amend House Bill 3813, AS AMENDED, by
3replacing everything after the enacting clause with the
4following:
 
5    "Section 5. The Illinois Pension Code is amended by
6changing Sections 1-114, 1-135, 7-132, 8-226, 11-215, 17-134,
7and 17-134.1 and by adding 3-110.12, 3-110.13, 3-110.14,
84-108.7, 4-108.8, 4-108.9, 5-212.1, 5-212.2, 5-212.3, 6-209.2,
96-209.3, 6-209.4, 8-117.1, 8-226.8, 11-116.1, 11-215.2,
1015-113.12, 15-113.13, 15-113.14, 16-110.1, 16-110.2, 16-110.3,
1117-109.3, and 17-134.2 as follows:
 
12    (40 ILCS 5/1-114)  (from Ch. 108 1/2, par. 1-114)
13    Sec. 1-114. Liability for Breach of Fiduciary Duty. (a) Any
14person who is a fiduciary with respect to a retirement system
15or pension fund established under this Code who breaches any
16duty imposed upon fiduciaries by this Code, including, but not

 

 

09700HB3813ham003- 2 -LRB097 13613 JDS 59131 a

1limited to, a failure to report a reasonable suspicion of a
2false statement specified in Section 1-135 of this Code, shall
3be personally liable to make good to such retirement system or
4pension fund any losses to it resulting from each such breach,
5and to restore to such retirement system or pension fund any
6profits of such fiduciary which have been made through use of
7assets of the retirement system or pension fund by the
8fiduciary, and shall be subject to such equitable or remedial
9relief as the court may deem appropriate, including the removal
10of such fiduciary.
11    (b) No person shall be liable with respect to a breach of
12fiduciary duty under this Code if such breach occurred before
13such person became a fiduciary or after such person ceased to
14be a fiduciary.
15(Source: P.A. 82-960.)
 
16    (40 ILCS 5/1-135)
17    Sec. 1-135. Fraud. Any person who knowingly makes any false
18statement or falsifies or permits to be falsified any record of
19a retirement system or pension fund created under this Code or
20the Illinois State Board of Investment in an attempt to defraud
21the retirement system or pension fund created under this Code
22or the Illinois State Board of Investment is guilty of a Class
233 felony. Any reasonable suspicion by any appointed or elected
24commissioner, trustee, director, board member, or employee of a
25retirement system or pension fund created under this Code or

 

 

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1the State Board of Investment of a false statement or falsified
2record being submitted or permitted by a person under this Code
3shall be immediately referred to the board of trustees of a
4retirement system or pension fund created under this Code or
5the State Board of Investment or the State's Attorney of the
6jurisdiction where the alleged fraudulent activity occurred.
7The board of trustees of a retirement system or pension fund
8created under this Code or the State Board of Investment shall
9immediately notify the State's Attorney of the jurisdiction
10where any alleged fraudulent activity occurred for
11investigation.
12(Source: P.A. 96-6, eff. 4-3-09.)
 
13    (40 ILCS 5/3-110.12 new)
14    Sec. 3-110.12. Leaves of absence. For any leave of absence
15that is covered under subsection (c) of Section 3-110 and that
16is granted after the effective date of this amendatory Act of
17the 97th General Assembly, any pension credit earned in this
18Article shall be based on the participant's salary immediately
19before the leave of absence. The participant must contribute an
20amount equal to the actuarially determined normal cost of the
21benefit as calculated by the fund. The employer of the
22participant may elect to contribute all or a portion of the
23participant's required contribution.
 
24    (40 ILCS 5/3-110.13 new)

 

 

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1    Sec. 3-110.13. Leave of absence benefit recalculation.
2Every 3 years, beginning on or as soon as practical after the
3effective date of this amendatory Act of the 97th General
4Assembly, each fund shall determine if any benefit earned by a
5participant who first earns credit on or after the effective
6date of this Section as a result of subsection (c) of Section
73-110 has created any additional unfunded liability to the
8fund. If it is determined by the fund that additional unfunded
9liability has been created, then the participant must remit the
10total cost to the fund, as determined by the fund, within one
11year.
 
12    (40 ILCS 5/3-110.14 new)
13    Sec. 3-110.14. Leaves of absence; computation of salary.
14For any participant who, on or after the effective date of this
15amendatory Act of the 97th General Assembly, takes a leave of
16absence covered by subsection (c) of Section 3-110, his or her
17average salary shall be based upon the regular salary rate
18received by the participant for his or her municipal employment
19immediately prior to that leave of absence.
 
20    (40 ILCS 5/4-108.7 new)
21    Sec. 4-108.7. Leaves of absence. For any leave of absence
22that is covered under subdivision (c)(3) of Section 4-108 and
23that is granted after the effective date of this amendatory Act
24of the 97th General Assembly, any pension credit earned in this

 

 

09700HB3813ham003- 5 -LRB097 13613 JDS 59131 a

1Article shall be based on the participant's salary immediately
2before the leave of absence. The participant must contribute an
3amount equal to the actuarially determined normal cost of the
4benefit as calculated by the fund. The employer of the
5participant may elect to contribute all or a portion of the
6participant's required contribution.
 
7    (40 ILCS 5/4-108.8 new)
8    Sec. 4-108.8. Leave of absence benefit recalculation.
9Every 3 years, beginning on or as soon as practical after the
10effective date of this amendatory Act of the 97th General
11Assembly, each fund shall determine if any benefit earned by a
12participant who first earns credit on or after the effective
13date of this Section as a result of subdivision (c)(3) of
14Section 4-108 has created any additional unfunded liability to
15the fund. If it is determined by the fund that additional
16unfunded liability has been created, then the participant must
17remit the total cost to the fund, as determined by the fund,
18within one year.
 
19    (40 ILCS 5/4-108.9 new)
20    Sec. 4-108.9. Leaves of absence; computation of salary. For
21any participant who, on or after the effective date of this
22amendatory Act of the 97th General Assembly, takes a leave of
23absence covered by subdivision (c)(3) of Section 4-108, his or
24her average salary shall be based upon the regular salary rate

 

 

09700HB3813ham003- 6 -LRB097 13613 JDS 59131 a

1received by the participant for his or her municipal employment
2immediately prior to that leave of absence.
 
3    (40 ILCS 5/5-212.1 new)
4    Sec. 5-212.1. Pension credit earned for other service. Any
5credit for other service that is covered under subdivision (b)
6of Section 5-214 and that is granted after the effective date
7of this amendatory Act of the 97th General Assembly shall be
8based on the participant's salary immediately before engaging
9in the type of employment specified in that provision. The
10participant must contribute an amount equal to the actuarially
11determined normal cost of the benefit as calculated by the
12fund. The employer of the participant may elect to contribute
13all or a portion of the participant's required contribution.
 
14    (40 ILCS 5/5-212.2 new)
15    Sec. 5-212.2. Credit for other service; recalculation.
16Every 3 years, beginning on or as soon as practical after the
17effective date of this amendatory Act of the 97th General
18Assembly, the fund shall determine if any benefit earned by a
19participant who first earns credit on or after the effective
20date of this Section as a result of subdivision (b) of Section
215-214 has created any additional unfunded liability to the
22fund. If it is determined by the fund that additional unfunded
23liability has been created, then the participant must remit the
24total cost to the fund, as determined by the fund, within one

 

 

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1year.
 
2    (40 ILCS 5/5-212.3 new)
3    Sec. 5-212.3. Salary for credit earned for other service.
4For any participant who, on or after the effective date of this
5amendatory Act of the 97th General Assembly, earns credit under
6subdivision (b) of Section 5-214, his or her average salary
7shall be based upon the regular salary rate received by the
8participant for his or her municipal employment immediately
9prior to that engaging in the type of employment specified in
10that provision.
 
11    (40 ILCS 5/6-209.2 new)
12    Sec. 6-209.2. Pension credit earned for other service. Any
13credit earned under item (f) of the second paragraph of Section
146-209 and that is granted after the effective date of this
15amendatory Act of the 97th General Assembly shall be based on
16the participant's salary immediately before engaging in the
17type of employment specified in that provision. The participant
18must contribute an amount equal to the actuarially determined
19normal cost of the benefit as calculated by the fund. The
20employer of the participant may elect to contribute all or a
21portion of the participant's required contribution.
 
22    (40 ILCS 5/6-209.3 new)
23    Sec. 6-209.3. Credit for other service; recalculation.

 

 

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1Every 3 years, beginning on or as soon as practical after the
2effective date of this amendatory Act of the 97th General
3Assembly, the fund shall determine if any benefit earned by a
4participant who first earns credit on or after the effective
5date of this Section as a result of item (f) of the second
6paragraph of Section 6-209 has created any additional unfunded
7liability to the fund. If it is determined by the fund that
8additional unfunded liability has been created, then the
9participant must remit the total cost to the fund, as
10determined by the fund, within one year.
 
11    (40 ILCS 5/6-209.4 new)
12    Sec. 6-209.4. Salary for credit earned for other service.
13For any participant who, on or after the effective date of this
14amendatory Act of the 97th General Assembly, has earned credit
15under item (f) of the second paragraph of Section 6-209, his or
16her average salary shall be based upon the regular salary rate
17received by the participant for his or her municipal employment
18immediately prior to that leave of absence.
 
19    (40 ILCS 5/7-132)   (from Ch. 108 1/2, par. 7-132)
20    Sec. 7-132. Municipalities, instrumentalities and
21participating instrumentalities included and effective dates.
 
22(A) Municipalities and their instrumentalities.
23    (a) The following described municipalities, but not

 

 

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1including any with more than 1,000,000 inhabitants, and the
2instrumentalities thereof, shall be included within and be
3subject to this Article beginning upon the effective dates
4specified by the Board:
5        (1) Except as to the municipalities and
6    instrumentalities thereof specifically excluded under this
7    Article, every county shall be subject to this Article, and
8    all cities, villages and incorporated towns having a
9    population in excess of 5,000 inhabitants as determined by
10    the last preceding decennial or subsequent federal census,
11    shall be subject to this Article following publication of
12    the census by the Bureau of the Census. Within 90 days
13    after publication of the census, the Board shall notify any
14    municipality that has become subject to this Article as a
15    result of that census, and shall provide information to the
16    corporate authorities of the municipality explaining the
17    duties and consequences of participation. The notification
18    shall also include a proposed date upon which participation
19    by the municipality will commence.
20        However, for any city, village or incorporated town
21    that attains a population over 5,000 inhabitants after
22    having provided social security coverage for its employees
23    under the Social Security Enabling Act, participation
24    under this Article shall not be mandatory but may be
25    elected in accordance with subparagraph (3) or (4) of this
26    paragraph (a), whichever is applicable.

 

 

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1        (2) School districts, other than those specifically
2    excluded under this Article, shall be subject to this
3    Article, without election, with respect to all employees
4    thereof.
5        (3) Towns and all other bodies politic and corporate
6    which are formed by vote of, or are subject to control by,
7    the electors in towns and are located in towns which are
8    not participating municipalities on the effective date of
9    this Act, may become subject to this Article by election
10    pursuant to Section 7-132.1.
11        (4) Any other municipality (together with its
12    instrumentalities), other than those specifically excluded
13    from participation and those described in paragraph (3)
14    above, may elect to be included either by referendum under
15    Section 7-134 or by the adoption of a resolution or
16    ordinance by its governing body. A copy of such resolution
17    or ordinance duly authenticated and certified by the clerk
18    of the municipality or other appropriate official of its
19    governing body shall constitute the required notice to the
20    board of such action.
21    (b) A municipality that is about to begin participation
22shall submit to the Board an application to participate, in a
23form acceptable to the Board, not later than 90 days prior to
24the proposed effective date of participation. The Board shall
25act upon the application within 90 days, and if it finds that
26the application is in conformity with its requirements and the

 

 

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1requirements of this Article, participation by the applicant
2shall commence on a date acceptable to the municipality and
3specified by the Board, but in no event more than one year from
4the date of application.
5    (c) A participating municipality which succeeds to the
6functions of a participating municipality which is dissolved or
7terminates its existence shall assume and be transferred the
8net accumulation balance in the municipality reserve and the
9municipality account receivable balance of the terminated
10municipality.
11    (d) In the case of a Veterans Assistance Commission whose
12employees were being treated by the Fund on January 1, 1990 as
13employees of the county served by the Commission, the Fund may
14continue to treat the employees of the Veterans Assistance
15Commission as county employees for the purposes of this
16Article, unless the Commission becomes a participating
17instrumentality in accordance with subsection (B) of this
18Section.
 
19(B) Participating instrumentalities.
20    (a) The participating instrumentalities designated in
21paragraph (b) of this subsection shall be included within and
22be subject to this Article if:
23        (1) an application to participate, in a form acceptable
24    to the Board and adopted by a two-thirds vote of the
25    governing body, is presented to the Board not later than 90

 

 

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1    days prior to the proposed effective date; and
2        (2) the Board finds that the application is in
3    conformity with its requirements, that the applicant has
4    reasonable expectation to continue as a political entity
5    for a period of at least 10 years and has the prospective
6    financial capacity to meet its current and future
7    obligations to the Fund, and that the actuarial soundness
8    of the Fund may be reasonably expected to be unimpaired by
9    approval of participation by the applicant.
10    The Board shall notify the applicant of its findings within
1190 days after receiving the application, and if the Board
12approves the application, participation by the applicant shall
13commence on the effective date specified by the Board.
14    (b) The following participating instrumentalities, so long
15as they meet the requirements of Section 7-108 and the area
16served by them or within their jurisdiction is not located
17entirely within a municipality having more than one million
18inhabitants, may be included hereunder:
19        i. Township School District Trustees.
20        ii. Multiple County and Consolidated Health
21    Departments created under Division 5-25 of the Counties
22    Code or its predecessor law.
23        iii. Public Building Commissions created under the
24    Public Building Commission Act, and located in counties of
25    less than 1,000,000 inhabitants.
26        iv. A multitype, consolidated or cooperative library

 

 

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1    system created under the Illinois Library System Act. Any
2    library system created under the Illinois Library System
3    Act that has one or more predecessors that participated in
4    the Fund may participate in the Fund upon application. The
5    Board shall establish procedures for implementing the
6    transfer of rights and obligations from the predecessor
7    system to the successor system.
8        v. Regional Planning Commissions created under
9    Division 5-14 of the Counties Code or its predecessor law.
10        vi. Local Public Housing Authorities created under the
11    Housing Authorities Act, located in counties of less than
12    1,000,000 inhabitants.
13        vii. Illinois Municipal League, for participants who
14    first become participants before the effective date of this
15    amendatory Act of the 97th General Assembly.
16        viii. Northeastern Illinois Metropolitan Area Planning
17    Commission.
18        ix. Southwestern Illinois Metropolitan Area Planning
19    Commission.
20        x. Illinois Association of Park Districts.
21        xi. Illinois Supervisors, County Commissioners and
22    Superintendents of Highways Association.
23        xii. Tri-City Regional Port District.
24        xiii. An association, or not-for-profit corporation,
25    membership in which is authorized under Section 85-15 of
26    the Township Code.

 

 

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1        xiv. Drainage Districts operating under the Illinois
2    Drainage Code.
3        xv. Local mass transit districts created under the
4    Local Mass Transit District Act.
5        xvi. Soil and water conservation districts created
6    under the Soil and Water Conservation Districts Law.
7        xvii. Commissions created to provide water supply or
8    sewer services or both under Division 135 or Division 136
9    of Article 11 of the Illinois Municipal Code.
10        xviii. Public water districts created under the Public
11    Water District Act.
12        xix. Veterans Assistance Commissions established under
13    Section 9 of the Military Veterans Assistance Act that
14    serve counties with a population of less than 1,000,000.
15        xx. The governing body of an entity, other than a
16    vocational education cooperative, created under an
17    intergovernmental cooperative agreement established
18    between participating municipalities under the
19    Intergovernmental Cooperation Act, which by the terms of
20    the agreement is the employer of the persons performing
21    services under the agreement under the usual common law
22    rules determining the employer-employee relationship. The
23    governing body of such an intergovernmental cooperative
24    entity established prior to July 1, 1988 may make
25    participation retroactive to the effective date of the
26    agreement and, if so, the effective date of participation

 

 

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1    shall be the date the required application is filed with
2    the fund. If any such entity is unable to pay the required
3    employer contributions to the fund, then the participating
4    municipalities shall make payment of the required
5    contributions and the payments shall be allocated as
6    provided in the agreement or, if not so provided, equally
7    among them.
8        xxi. The Illinois Municipal Electric Agency.
9        xxii. The Waukegan Port District.
10        xxiii. The Fox Waterway Agency created under the Fox
11    Waterway Agency Act.
12        xxiv. The Illinois Municipal Gas Agency.
13        xxv. The Kaskaskia Regional Port District.
14        xxvi. The Southwestern Illinois Development Authority.
15        xxvii. The Cairo Public Utility Company.
16        xxviii. Except with respect to employees who elect to
17    participate in the State Employees' Retirement System of
18    Illinois under Section 14-104.13 of this Code, the Chicago
19    Metropolitan Agency for Planning created under the
20    Regional Planning Act, provided that, with respect to the
21    benefits payable pursuant to Sections 7-146, 7-150, and
22    7-164 and the requirement that eligibility for such
23    benefits is conditional upon satisfying a minimum period of
24    service or a minimum contribution, any employee of the
25    Chicago Metropolitan Agency for Planning that was
26    immediately prior to such employment an employee of the

 

 

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1    Chicago Area Transportation Study or the Northeastern
2    Illinois Planning Commission, such employee's service at
3    the Chicago Area Transportation Study or the Northeastern
4    Illinois Planning Commission and contributions to the
5    State Employees' Retirement System of Illinois established
6    under Article 14 and the Illinois Municipal Retirement Fund
7    shall count towards the satisfaction of such requirements.
8        xxix. United Counties Council (formerly the Urban
9    Counties Council), but only if the Council has a ruling
10    from the United States Internal Revenue Service that it is
11    a governmental entity.
12        xxx. The Will County Governmental League, but only if
13    the League has a ruling from the United States Internal
14    Revenue Service that it is a governmental entity and only
15    for participants who first become participants before the
16    effective date of this amendatory Act of the 97th General
17    Assembly.
18    (c) The governing boards of special education joint
19agreements created under Section 10-22.31 of the School Code
20without designation of an administrative district shall be
21included within and be subject to this Article as participating
22instrumentalities when the joint agreement becomes effective.
23However, the governing board of any such special education
24joint agreement in effect before September 5, 1975 shall not be
25subject to this Article unless the joint agreement is modified
26by the school districts to provide that the governing board is

 

 

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1subject to this Article, except as otherwise provided by this
2Section.
3    The governing board of the Special Education District of
4Lake County shall become subject to this Article as a
5participating instrumentality on July 1, 1997. Notwithstanding
6subdivision (a)1 of Section 7-139, on the effective date of
7participation, employees of the governing board of the Special
8Education District of Lake County shall receive creditable
9service for their prior service with that employer, up to a
10maximum of 5 years, without any employee contribution.
11Employees may establish creditable service for the remainder of
12their prior service with that employer, if any, by applying in
13writing and paying an employee contribution in an amount
14determined by the Fund, based on the employee contribution
15rates in effect at the time of application for the creditable
16service and the employee's salary rate on the effective date of
17participation for that employer, plus interest at the effective
18rate from the date of the prior service to the date of payment.
19Application for this creditable service must be made before
20July 1, 1998; the payment may be made at any time while the
21employee is still in service. The employer may elect to make
22the required contribution on behalf of the employee.
23    The governing board of a special education joint agreement
24created under Section 10-22.31 of the School Code for which an
25administrative district has been designated, if there are
26employees of the cooperative educational entity who are not

 

 

09700HB3813ham003- 18 -LRB097 13613 JDS 59131 a

1employees of the administrative district, may elect to
2participate in the Fund and be included within this Article as
3a participating instrumentality, subject to such application
4procedures and rules as the Board may prescribe.
5    The Boards of Control of cooperative or joint educational
6programs or projects created and administered under Section
73-15.14 of the School Code, whether or not the Boards act as
8their own administrative district, shall be included within and
9be subject to this Article as participating instrumentalities
10when the agreement establishing the cooperative or joint
11educational program or project becomes effective.
12    The governing board of a special education joint agreement
13entered into after June 30, 1984 and prior to September 17,
141985 which provides for representation on the governing board
15by less than all the participating districts shall be included
16within and subject to this Article as a participating
17instrumentality. Such participation shall be effective as of
18the date the joint agreement becomes effective.
19    The governing boards of educational service centers
20established under Section 2-3.62 of the School Code shall be
21included within and subject to this Article as participating
22instrumentalities. The governing boards of vocational
23education cooperative agreements created under the
24Intergovernmental Cooperation Act and approved by the State
25Board of Education shall be included within and be subject to
26this Article as participating instrumentalities. If any such

 

 

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1governing boards or boards of control are unable to pay the
2required employer contributions to the fund, then the school
3districts served by such boards shall make payment of required
4contributions as provided in Section 7-172. The payments shall
5be allocated among the several school districts in proportion
6to the number of students in average daily attendance for the
7last full school year for each district in relation to the
8total number of students in average attendance for such period
9for all districts served. If such educational service centers,
10vocational education cooperatives or cooperative or joint
11educational programs or projects created and administered
12under Section 3-15.14 of the School Code are dissolved, the
13assets and obligations shall be distributed among the districts
14in the same proportions unless otherwise provided.
15    The governing board of Paris Cooperative High School shall
16be included within and be subject to this Article as a
17participating instrumentality on the effective date of this
18amendatory Act of the 96th General Assembly. If the governing
19board of Paris Cooperative High School is unable to pay the
20required employer contributions to the fund, then the school
21districts served shall make payment of required contributions
22as provided in Section 7-172. The payments shall be allocated
23among the several school districts in proportion to the number
24of students in average daily attendance for the last full
25school year for each district in relation to the total number
26of students in average attendance for such period for all

 

 

09700HB3813ham003- 20 -LRB097 13613 JDS 59131 a

1districts served. If Paris Cooperative High School is
2dissolved, then the assets and obligations shall be distributed
3among the districts in the same proportions unless otherwise
4provided.
5    Financial Oversight Panels established under Article 1H of
6the School Code shall be included within and be subject to this
7Article as a participating instrumentality on the effective
8date of this amendatory Act of the 97th General Assembly. If
9the Financial Oversight Panel is unable to pay the required
10employer contributions to the fund, then the school districts
11served shall make payment of required contributions as provided
12in Section 7-172. If the Financial Oversight Panel is
13dissolved, then the assets and obligations shall be distributed
14to the district served.
15    (d) The governing boards of special recreation joint
16agreements created under Section 8-10b of the Park District
17Code, operating without designation of an administrative
18district or an administrative municipality appointed to
19administer the program operating under the authority of such
20joint agreement shall be included within and be subject to this
21Article as participating instrumentalities when the joint
22agreement becomes effective. However, the governing board of
23any such special recreation joint agreement in effect before
24January 1, 1980 shall not be subject to this Article unless the
25joint agreement is modified, by the districts and
26municipalities which are parties to the agreement, to provide

 

 

09700HB3813ham003- 21 -LRB097 13613 JDS 59131 a

1that the governing board is subject to this Article.
2    If the Board returns any employer and employee
3contributions to any employer which erroneously submitted such
4contributions on behalf of a special recreation joint
5agreement, the Board shall include interest computed from the
6end of each year to the date of payment, not compounded, at the
7rate of 7% per annum.
8    (e) Each multi-township assessment district, the board of
9trustees of which has adopted this Article by ordinance prior
10to April 1, 1982, shall be a participating instrumentality
11included within and subject to this Article effective December
121, 1981. The contributions required under Section 7-172 shall
13be included in the budget prepared under and allocated in
14accordance with Section 2-30 of the Property Tax Code.
15    (f) The Illinois Medical District Commission created under
16the Illinois Medical District Act may be included within and
17subject to this Article as a participating instrumentality,
18notwithstanding that the location of the District is entirely
19within the City of Chicago. To become a participating
20instrumentality, the Commission must apply to the Board in the
21manner set forth in paragraph (a) of this subsection (B). If
22the Board approves the application, under the criteria and
23procedures set forth in paragraph (a) and any other applicable
24rules, criteria, and procedures of the Board, participation by
25the Commission shall commence on the effective date specified
26by the Board.
 

 

 

09700HB3813ham003- 22 -LRB097 13613 JDS 59131 a

1(C) Prospective participants.
2     Beginning January 1, 1992, each prospective participating
3municipality or participating instrumentality shall pay to the
4Fund the cost, as determined by the Board, of a study prepared
5by the Fund or its actuary, detailing the prospective costs of
6participation in the Fund to be expected by the municipality or
7instrumentality.
8(Source: P.A. 96-211, eff. 8-10-09; 96-551, eff. 8-17-09;
996-1000, eff. 7-2-10; 96-1046, eff. 7-14-10; 97-429, eff.
108-16-11.)
 
11    (40 ILCS 5/8-117.1 new)
12    Sec. 8-117.1. Leaves of absence; computation of salary. For
13any participant who, on or after the effective date of this
14amendatory Act of the 97th General Assembly, takes a leave of
15absence under subdivision (c) of Section 8-226, his or her
16highest average annual salary shall be based upon the regular
17salary rate received by the participant for his or her
18municipal employment immediately prior to that leave of
19absence.
 
20    (40 ILCS 5/8-226)  (from Ch. 108 1/2, par. 8-226)
21    Sec. 8-226. Computation of service. In computing the term
22of service of an employee prior to the effective date, the
23entire period beginning on the date he was first appointed and

 

 

09700HB3813ham003- 23 -LRB097 13613 JDS 59131 a

1ending on the day before the effective date, except any
2intervening period during which he was separated by withdrawal
3from service, shall be counted for all purposes of this
4Article, except that for any employee who was not in service on
5the day before the effective date, service rendered prior to
6such date shall not be considered for the purposes of Section
78-138.
8    For a person employed by an employer for whom this Article
9was in effect prior to January 1, 1950, from whose salary
10deductions are first made under this Article after December 31,
111949, any period of service rendered prior to the effective
12date, unless he was in service on the day before the effective
13date, shall not be counted as service.
14    The time a person was an employee of any territory annexed
15to the city prior to the effective date shall be counted as a
16period of service.
17    In computing the term of service of any employee subsequent
18to the day before the effective date, the following periods
19shall be counted as periods of service for age and service,
20widow's and child's annuity purposes:
21        (a) The time during which he performed the duties of
22    his position;
23        (b) Vacations, leaves of absence with whole or part
24    pay, and leaves of absence without pay not longer than 90
25    days;
26        (c) Leaves of absence without pay during which a

 

 

09700HB3813ham003- 24 -LRB097 13613 JDS 59131 a

1    participant is employed full-time by a local labor
2    organization that represents municipal employees, provided
3    that (1) the participant continues to make employee
4    contributions to the Fund as though he were an active
5    employee, based on the regular salary rate received by the
6    participant for his municipal employment immediately prior
7    to such leave of absence (and in the case of such
8    employment prior to December 9, 1987, pays to the Fund an
9    amount equal to the employee contributions for such
10    employment plus regular interest thereon as calculated by
11    the board), and based on his current salary with such labor
12    organization after the effective date of this amendatory
13    Act of 1991 for leaves of absence before the effective date
14    of this amendatory Act of the 97th General Assembly, and,
15    for leaves of absence after the effective date of this
16    amendatory Act of the 97th General Assembly, based on the
17    regular salary rate received by the participant for his
18    municipal employment immediately prior to such leave of
19    absence, (2) after January 1, 1989 the participant, or the
20    labor organization on the participant's behalf, makes
21    contributions to the Fund as though it were the employer,
22    in the same amount and same manner as specified under this
23    Article, based on the regular salary rate received by the
24    participant for his municipal employment immediately prior
25    to such leave of absence, and based on his current salary
26    with such labor organization after the effective date of

 

 

09700HB3813ham003- 25 -LRB097 13613 JDS 59131 a

1    this amendatory Act of 1991 for leaves of absence before
2    the effective date of this amendatory Act of the 97th
3    General Assembly, and, for leaves of absence after the
4    effective date of this amendatory Act of the 97th General
5    Assembly, based on the regular salary rate received by the
6    participant for his municipal employment immediately prior
7    to such leave of absence, and (3) the participant does not
8    receive credit in any pension plan established by the local
9    labor organization based on his employment by the
10    organization, including, but not limited to, pension plans
11    established by the local labor organization, the national
12    labor organization, or the international labor
13    organization;
14        (d) Any period of disability for which he received (i)
15    a disability benefit under this Article, or (ii) a
16    temporary total disability benefit under the Workers'
17    Compensation Act if the disability results from a condition
18    commonly termed heart attack or stroke or any other
19    condition falling within the broad field of coronary
20    involvement or heart disease, or (iii) whole or part pay;
21        (e) Any period for which contributions and service
22    credit have been transferred to this Fund under subsection
23    (d) of Section 9-121.1 or subsection (d) of Section
24    12-127.1 of this Code.
25    For a person employed by an employer in which the 1921 Act
26was in effect prior to January 1, 1950, from whose salary

 

 

09700HB3813ham003- 26 -LRB097 13613 JDS 59131 a

1deductions are first made under the 1921 Act or this Article
2after December 31, 1949, any period of service rendered
3subsequent to the effective date and prior to the date he
4became an employee and contributor, shall not be counted as a
5period of service under this Article, except such period for
6which he made payment as provided in Section 8-230 of this
7Article, in which case such period shall be counted as a period
8of service for all annuity purposes hereunder.
9    In computing the term of service of an employee subsequent
10to the day before the effective date for ordinary disability
11benefit purposes, all periods described in the preceding
12paragraph, except any such period for which he receives
13ordinary disability benefit, shall be counted as periods of
14service; provided, that for any person employed by an employer
15in which this Article was in effect prior to January 1, 1950,
16from whose salary deductions are first made under this Article
17after December 31, 1949, any period of service rendered
18subsequent to the effective date and prior to the date he
19became an employee and contributor, shall not be counted as a
20period of service for ordinary disability benefit purposes,
21unless the person made payment for the period as provided in
22Section 8-230 of this Article, in which case the period shall
23be counted as a period of service for ordinary disability
24purposes for periods of disability on or after the effective
25date of this amendatory Act of 1997.
26    Overtime or extra service shall not be included in

 

 

09700HB3813ham003- 27 -LRB097 13613 JDS 59131 a

1computing any term of service. Not more than 1 year of service
2shall be allowed for service rendered during any calendar year.
3(Source: P.A. 90-511, eff. 8-22-97.)
 
4    (40 ILCS 5/8-226.8 new)
5    Sec. 8-226.8. Leave of absence benefit recalculation.
6Every 3 years, beginning on or as soon as practical after the
7effective date of this amendatory Act of the 97th General
8Assembly, the fund shall determine if any benefit earned by a
9participant who first earns credit on or after the effective
10date of this Section as a result of subdivision (c) of Section
118-226 has created any additional unfunded liability to the
12fund. If it is determined by the fund that additional unfunded
13liability has been created, then the participant must remit the
14total cost to the fund, as determined by the fund, within one
15year.
 
16    (40 ILCS 5/11-116.1 new)
17    Sec. 11-116.1. Leaves of absence; computation of salary.
18For any participant who, on or after the effective date of this
19amendatory Act of the 97th General Assembly, takes a leave of
20absence under paragraph (3) of subsection (c) of Section
2111-215, his or her highest average annual salary shall be based
22upon the regular salary rate received by the participant for
23his or her municipal employment immediately prior to that leave
24of absence.
 

 

 

09700HB3813ham003- 28 -LRB097 13613 JDS 59131 a

1    (40 ILCS 5/11-215)  (from Ch. 108 1/2, par. 11-215)
2    Sec. 11-215. Computation of service.
3    (a) In computing the term of service of an employee prior
4to the effective date, the entire period beginning on the date
5he was first appointed and ending on the day before the
6effective date, except any intervening period during which he
7was separated by withdrawal from service, shall be counted for
8all purposes of this Article. Only the first year of each
9period of lay-off or leave of absence without pay, continuing
10or extending for a period in excess of one year, shall be
11counted as such service.
12    (b) For a person employed by an employer for whom this
13Article was in effect prior to August 1, 1949, from whose
14salary deductions are first made under this Article after July
1531, 1949, any period of service rendered prior to the effective
16date, unless he was in service on the day before the effective
17date, shall not be counted as service.
18    (c) In computing the term of service of an employee
19subsequent to the day before the effective date, the following
20periods of time shall be counted as periods of service for
21annuity purposes:
22        (1) the time during which he performed the duties of
23    his position;
24        (2) leaves of absence with whole or part pay, and
25    leaves of absence without pay not longer than 90 days;

 

 

09700HB3813ham003- 29 -LRB097 13613 JDS 59131 a

1        (3) leaves of absence without pay during which a
2    participant is employed full-time by a local labor
3    organization that represents municipal employees, provided
4    that (A) the participant continues to make employee
5    contributions to the Fund as though he were an active
6    employee, based on the regular salary rate received by the
7    participant for his municipal employment immediately prior
8    to such leave of absence (and in the case of such
9    employment prior to December 9, 1987, pays to the Fund an
10    amount equal to the employee contributions for such
11    employment plus regular interest thereon as calculated by
12    the board), and based on his current salary with such labor
13    organization after the effective date of this amendatory
14    Act of 1991 for leaves of absence before the effective date
15    of this amendatory Act of the 97th General Assembly, and,
16    for leaves of absence after the effective date of this
17    amendatory Act of the 97th General Assembly, based on the
18    regular salary rate received by the participant for his
19    municipal employment immediately prior to such leave of
20    absence, (B) after January 1, 1989 the participant, or the
21    labor organization on the participant's behalf, makes
22    contributions to the Fund as though it were the employer,
23    in the same amount and same manner as specified under this
24    Article, based on the regular salary rate received by the
25    participant for his municipal employment immediately prior
26    to such leave of absence, and based on his current salary

 

 

09700HB3813ham003- 30 -LRB097 13613 JDS 59131 a

1    with such labor organization after the effective date of
2    this amendatory Act of 1991 and for leaves of absence
3    before the effective date of this amendatory Act of the
4    97th General Assembly, and, for leaves of absence after the
5    effective date of this amendatory Act of the 97th General
6    Assembly, based on the regular salary rate received by the
7    participant for his municipal employment immediately prior
8    to such leave of absence, and (C) the participant does not
9    receive credit in any pension plan established by the local
10    labor organization based on his employment by the
11    organization, including, but not limited to, pension plans
12    established by the local labor organization, the national
13    labor organization, or the international labor
14    organization;
15        (4) any period of disability for which he received (i)
16    a disability benefit under this Article, or (ii) a
17    temporary total disability benefit under the Workers'
18    Compensation Act if the disability results from a condition
19    commonly termed heart attack or stroke or any other
20    condition falling within the broad field of coronary
21    involvement or heart disease, or (iii) whole or part pay.
22    (d) For a person employed by an employer, or the retirement
23board, in which "The 1935 Act" was in effect prior to August 1,
241949, from whose salary deductions are first made under "The
251935 Act" or this Article after July 31, 1949, any period of
26service rendered subsequent to the effective date and prior to

 

 

09700HB3813ham003- 31 -LRB097 13613 JDS 59131 a

1August 1, 1949, shall not be counted as a period of service
2under this Article, except such period for which he made
3payment, as provided in Section 11-221 of this Article, in
4which case such period shall be counted as a period of service
5for all annuity purposes hereunder.
6    (e) In computing the term of service of an employee
7subsequent to the day before the effective date for ordinary
8disability benefit purposes, the following periods of time
9shall be counted as periods of service:
10        (1) any period during which he performed the duties of
11    his position;
12        (2) leaves of absence with whole or part pay;
13        (3) any period of disability for which he received (i)
14    a duty disability benefit under this Article, or (ii) a
15    temporary total disability benefit under the Workers'
16    Compensation Act if the disability results from a condition
17    commonly termed heart attack or stroke or any other
18    condition falling within the broad field of coronary
19    involvement or heart disease, or (iii) whole or part pay.
20    However, any period of service rendered by an employee
21contributor prior to the date he became a contributor to the
22fund shall not be counted as a period of service for ordinary
23disability purposes, unless the person made payment for the
24period as provided in Section 11-221 of this Article, in which
25case the period shall be counted as a period of service for
26ordinary disability purposes for periods of disability on or

 

 

09700HB3813ham003- 32 -LRB097 13613 JDS 59131 a

1after the effective date of this amendatory Act of 1997.
2    Overtime or extra service shall not be included in
3computing any term of service. Not more than 1 year of service
4shall be allowed for service rendered during any calendar year.
5(Source: P.A. 90-511, eff. 8-22-97.)
 
6    (40 ILCS 5/11-215.2 new)
7    Sec. 11-215.2. Leave of absence benefit recalculation.
8Every 3 years, beginning on or as soon as practical after the
9effective date of this amendatory Act of the 97th General
10Assembly, the fund shall determine if any benefit earned by a
11participant who first earns credit on or after the effective
12date of this Section as a result of subdivision (c)(3) of
13Section 11-215 has created any additional unfunded liability to
14the fund. If it is determined by the fund that additional
15unfunded liability has been created, then the participant must
16remit the total cost to the fund, as determined by the fund,
17within one year.
 
18    (40 ILCS 5/15-113.12 new)
19    Sec. 15-113.12. Pension credit earned for employment with a
20teacher organization. Any credit earned under subsection (i) of
21Section 15-107 and that is granted after the effective date of
22this amendatory Act of the 97th General Assembly shall be based
23on the participant's salary immediately before engaging in the
24type of employment specified in that provision. The participant

 

 

09700HB3813ham003- 33 -LRB097 13613 JDS 59131 a

1must contribute an amount equal to the actuarially determined
2normal cost of the benefit as calculated by the System. The
3employer of the participant may elect to contribute all or a
4portion of the participant's required contribution.
 
5    (40 ILCS 5/15-113.13 new)
6    Sec. 15-113.13. Credit recalculation. Every 3 years,
7beginning on or as soon as practical after the effective date
8of this amendatory Act of the 97th General Assembly, the System
9shall determine if any benefit earned by a participant who
10first becomes a participant on or after the effective date of
11this Section as a result of subsection (i) of Section 15-107
12has created any additional unfunded liability to the System. If
13it is determined by the System that additional unfunded
14liability has been created, then the participant must remit the
15total cost to the System, as determined by the System, within
16one year.
 
17    (40 ILCS 5/15-113.14 new)
18    Sec. 15-113.14. Salary for credit earned for service to a
19teacher organization. For any participant who, on or after the
20effective date of this amendatory Act of the 97th General
21Assembly, earned credit under subsection (i) of Section 15-107,
22his or her average salary shall be based upon the regular
23salary rate received by the participant for his or her
24employment immediately prior to engaging in the type of

 

 

09700HB3813ham003- 34 -LRB097 13613 JDS 59131 a

1employment specified in that provision.
 
2    (40 ILCS 5/16-110.1 new)
3    Sec. 16-110.1. Pension credit earned for employment with a
4teacher organization or a school board association. Any credit
5earned under item (4) or (8) of Section 16-106 and that is
6granted after the effective date of this amendatory Act of the
797th General Assembly shall be based on the participant's
8salary immediately before engaging in the type of employment
9specified in that provision. The participant must contribute an
10amount equal to the actuarially determined normal cost of the
11benefit as calculated by the System. The employer of the
12participant may elect to contribute all or a portion of the
13participant's required contribution.
 
14    (40 ILCS 5/16-110.2 new)
15    Sec. 16-110.2. Credit recalculation. Every 3 years,
16beginning on or as soon as practical after the effective date
17of this amendatory Act of the 97th General Assembly, the System
18shall determine if any benefit earned by a participant who
19first earns credit on or after the effective date of this
20Section as a result of item (4) or (8) of Section 16-106 has
21created any additional unfunded liability to the System. If it
22is determined by the System that additional unfunded liability
23has been created, then the participant must remit the total
24cost to the System, as determined by the System, within one

 

 

09700HB3813ham003- 35 -LRB097 13613 JDS 59131 a

1year.
 
2    (40 ILCS 5/16-110.3 new)
3    Sec. 16-110.3. Leaves of absence; computation of salary.
4For any participant who, on or after the effective date of this
5amendatory Act of the 97th General Assembly, has earned credit
6under item (4) or (8) of Section 16-106, his or her average
7salary shall be based upon the regular salary rate received by
8the participant for his or her employment immediately prior to
9that leave of absence.
 
10    (40 ILCS 5/17-109.3 new)
11    Sec. 17-109.3. Salary for credit earned for employment with
12a teacher organization or school board association. Any credit
13earned, on or after the effective date of this amendatory Act
14of the 97th General Assembly, under subdivision (4) of Section
1517-134 or subsection (b) of Section 17-134.1, shall be based
16upon the regular salary rate received by the participant for
17his or her employment immediately before engaging in the type
18of employment specified in that provision.
 
19    (40 ILCS 5/17-134)  (from Ch. 108 1/2, par. 17-134)
20    Sec. 17-134. Contributions for leaves of absence; military
21service; computing service. In computing service for pension
22purposes the following periods of service shall stand in lieu
23of a like number of years of teaching service upon payment

 

 

09700HB3813ham003- 36 -LRB097 13613 JDS 59131 a

1therefor in the manner hereinafter provided: (a) time spent on
2a leave of absence granted by the employer; (b) service with
3teacher or labor organizations based upon special leaves of
4absence therefor granted by an Employer; (c) a maximum of 5
5years spent in the military service of the United States, of
6which up to 2 years may have been served outside the pension
7period; (d) unused sick days at termination of service to a
8maximum of 244 days; (e) time lost due to layoff and
9curtailment of the school term from June 6 through June 21,
101976; and (f) time spent after June 30, 1982 as a member of the
11Board of Education, if required to resign from an
12administrative or teaching position in order to qualify as a
13member of the Board of Education.
14        (1) For time spent on or after September 6, 1948 on
15    sabbatical leaves of absence or sick leaves, for which
16    salaries are paid, an Employer shall make payroll
17    deductions at the applicable rates in effect during such
18    periods.
19        (2) For time spent on a leave of absence granted by the
20    employer for which no salaries are paid, teachers desiring
21    credit therefor shall pay the required contributions at the
22    rates in effect during such periods as though they were in
23    teaching service. If an Employer pays salary for vacations
24    which occur during a teacher's sick leave or maternity or
25    paternity leave without salary, vacation pay for which the
26    teacher would have qualified while in active service shall

 

 

09700HB3813ham003- 37 -LRB097 13613 JDS 59131 a

1    be considered part of the teacher's total salary for
2    pension purposes. No more than 36 months of leave credit
3    may be allowed any person during the entire term of
4    service. Sabbatical leave credit shall be limited to the
5    time the person on leave without salary under an Employer's
6    rules is allowed to engage in an activity for which he
7    receives salary or compensation.
8        (3) For time spent prior to September 6, 1948, on
9    sabbatical leaves of absence or sick leaves for which
10    salaries were paid, teachers desiring service credit
11    therefor shall pay the required contributions at the
12    maximum applicable rates in effect during such periods.
13        (4) For service with teacher or labor organizations
14    authorized by special leaves of absence, for which no
15    payroll deductions are made by an Employer, teachers
16    desiring service credit therefor shall contribute to the
17    Fund upon the basis of the actual salary received from such
18    organizations at the percentage rates in effect during such
19    periods for certified positions with such Employer. To the
20    extent the actual salary exceeds the regular salary, which
21    shall be defined as the salary rate, as calculated by the
22    Board, in effect for the teacher's regular position in
23    teaching service on September 1, 1983 or on the effective
24    date of the leave with the organization, whichever is
25    later, the organization shall pay to the Fund the
26    employer's normal cost as set by the Board on the

 

 

09700HB3813ham003- 38 -LRB097 13613 JDS 59131 a

1    increment. For leaves of absence after the effective date
2    of this amendatory Act of the 97th General Assembly,
3    contributions to the Fund under this subdivision (4) shall
4    be based upon the teacher's regular salary as defined in
5    this subdivision (4).
6        (5) For time spent in the military service, teachers
7    entitled to and desiring credit therefor shall contribute
8    the amount required for each year of service or fraction
9    thereof at the rates in force (a) at the date of
10    appointment, or (b) on return to teaching service as a
11    regularly certified teacher, as the case may be; provided
12    such rates shall not be less than $450 per year of service.
13    These conditions shall apply unless an Employer elects to
14    and does pay into the Fund the amount which would have been
15    due from such person had he been employed as a teacher
16    during such time. In the case of credit for military
17    service not during the pension period, the teacher must
18    also pay to the Fund an amount determined by the Board to
19    be equal to the employer's normal cost of the benefits
20    accrued from such service, plus interest thereon at 5% per
21    year, compounded annually, from the date of appointment to
22    the date of payment.
23        The changes to this Section made by Public Act 87-795
24    shall apply not only to persons who on or after its
25    effective date are in service under the Fund, but also to
26    persons whose status as a teacher terminated prior to that

 

 

09700HB3813ham003- 39 -LRB097 13613 JDS 59131 a

1    date, whether or not the person is an annuitant on that
2    date. In the case of an annuitant who applies for credit
3    allowable under this Section for a period of military
4    service that did not immediately follow employment, and who
5    has made the required contributions for such credit, the
6    annuity shall be recalculated to include the additional
7    service credit, with the increase taking effect on the date
8    the Fund received written notification of the annuitant's
9    intent to purchase the credit, if payment of all the
10    required contributions is made within 60 days of such
11    notice, or else on the first annuity payment date following
12    the date of payment of the required contributions. In
13    calculating the automatic annual increase for an annuity
14    that has been recalculated under this Section, the increase
15    attributable to the additional service allowable under
16    this amendatory Act of 1991 shall be included in the
17    calculation of automatic annual increases accruing after
18    the effective date of the recalculation.
19        The total credit for military service shall not exceed
20    5 years, except that any teacher who on July 1, 1963, had
21    validated credit for more than 5 years of military service
22    shall be entitled to the total amount of such credit.
23        (6) A maximum of 244 unused sick days credited to his
24    account by an Employer on the date of termination of
25    employment. Members, upon verification of unused sick
26    days, may add this service time to total creditable

 

 

09700HB3813ham003- 40 -LRB097 13613 JDS 59131 a

1    service.
2        (7) In all cases where time spent on leave is
3    creditable and no payroll deductions therefor are made by
4    an Employer, persons desiring service credit shall make the
5    required contributions directly to the Fund.
6        (8) For time lost without pay due to layoff and
7    curtailment of the school term from June 6 through June 21,
8    1976, as provided in item (e) of the first paragraph of
9    this Section, persons who were contributors on the days
10    immediately preceding such layoff shall receive credit
11    upon paying to the Fund a contribution based on the rates
12    of compensation and employee contributions in effect at the
13    time of such layoff, together with an additional amount
14    equal to 12.2% of the compensation computed for such period
15    of layoff, plus interest on the entire amount at 5% per
16    annum from January 1, 1978 to the date of payment. If such
17    contribution is paid, salary for pension purposes for any
18    year in which such a layoff occurred shall include the
19    compensation recognized for purposes of computing that
20    contribution.
21        (9) For time spent after June 30, 1982, as a
22    nonsalaried member of the Board of Education, if required
23    to resign from an administrative or teaching position in
24    order to qualify as a member of the Board of Education, an
25    administrator or teacher desiring credit therefor shall
26    pay the required contributions at the rates and salaries in

 

 

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1    effect during such periods as though the member were in
2    service.
3    Effective September 1, 1974, the interest charged for
4validation of service described in paragraphs (2) through (5)
5of this Section shall be compounded annually at a rate of 5%
6commencing one year after the termination of the leave or
7return to service.
8(Source: P.A. 92-599, eff. 6-28-02.)
 
9    (40 ILCS 5/17-134.1)
10    Sec. 17-134.1. Labor organization employees.
11    (a) A former teacher who is employed by a teacher or labor
12organization and is not eligible to participate under
13subdivision (4) of Section 17-134 because he or she is not on a
14special leave of absence may elect to participate in the Fund
15for the duration of that employment by so notifying the Fund in
16writing. Participation shall be subject to the same conditions
17as are applicable to persons participating under that
18subdivision (4), and service credit shall be contingent upon
19the required contributions being received by the Fund.
20    (b) A person who participates in the Fund under subsection
21(a) may establish service credit for periods of such employment
22that took place before beginning participation under this
23Section by submitting a written application to the Fund. Credit
24shall be granted upon payment to the Fund of an amount to be
25determined by the Fund, equal to (i) the employee contributions

 

 

09700HB3813ham003- 42 -LRB097 13613 JDS 59131 a

1that would have been paid if the person had participated under
2subdivision (4) of Section 17-134 during the period for which
3service credit is to be established, based on the actual salary
4received, plus (ii) the employer's normal cost associated with
5that service credit, plus (iii) interest on items (i) and (ii)
6at the rate of 6% per year, compounded annually, from the date
7of the service established to the date of payment. Service
8credit under this subsection shall not be granted until the
9required contribution has been paid in full; the contribution
10may be paid at any time before retirement. For leaves of
11absence after the effective date of this amendatory Act of the
1297th General Assembly, contributions to the Fund under item (i)
13of this subsection (b) shall be based upon the teacher's
14regular salary as defined in subdivision (4) of Section 17-134.
15    (c) A person who participates in the Fund under subsection
16(a) may reestablish any service credits previously forfeited by
17acceptance of a refund by paying to the Fund the amount of the
18refund plus interest thereon at the rate of 5% per annum,
19compounded annually, from the date of the refund to the date of
20payment.
21    (d) Rollover contributions from other retirement plans
22qualified under the Internal Revenue Code of 1986 may be used
23to make the payments required under subsections (b) and (c).
24    (e) No service credit may be established under this Section
25for any period of employment for which the person receives
26service credit under any other provision of this Code.

 

 

09700HB3813ham003- 43 -LRB097 13613 JDS 59131 a

1(Source: P.A. 90-448, eff. 8-16-97.)
 
2    (40 ILCS 5/17-134.2 new)
3    Sec. 17-134.2. Credit recalculation. Every 3 years,
4beginning on or as soon as practical after the effective date
5of this amendatory Act of the 97th General Assembly, the Fund
6shall determine if any benefit earned by a participant who
7first earns credit on or after the effective date of this
8Section as a result of item (4) of Section 17-134 and Section
917-134.1 has created any additional unfunded liability to the
10Fund. If it is determined by the Fund that additional unfunded
11liability has been created, then the participant must remit the
12total cost to the Fund, as determined by the Fund, within one
13year.
 
14    Section 99. Effective date. This Act takes effect upon
15becoming law.".