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

HB3813ham004 97TH GENERAL ASSEMBLY

Rep. Tom Cross

Filed: 10/26/2011

 

 


 

 


 
09700HB3813ham004LRB097 13613 AMC 59150 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, 8-226, 11-215, 17-134, and
717-134.1 and by adding 3-110.12, 3-110.13, 3-110.14, 4-108.7,
84-108.8, 4-108.9, 5-212.1, 5-212.2, 5-212.3, 6-209.2, 6-209.3,
96-209.4, 8-117.1, 8-226.8, 11-116.1, 11-215.2, 15-113.12,
1015-113.13, 15-113.14, 16-110.1, 16-110.2, 16-110.3, 17-109.3,
11and 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

 

 

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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

 

 

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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

 

 

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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 5/8-117.1 new)
20    Sec. 8-117.1. 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 under subdivision (c) of Section 8-226, his or her
24highest average annual salary shall be based upon the regular

 

 

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1salary rate received by the participant for his or her
2municipal employment immediately prior to that leave of
3absence.
 
4    (40 ILCS 5/8-226)  (from Ch. 108 1/2, par. 8-226)
5    Sec. 8-226. Computation of service. In computing the term
6of service of an employee prior to the effective date, the
7entire period beginning on the date he was first appointed and
8ending on the day before the effective date, except any
9intervening period during which he was separated by withdrawal
10from service, shall be counted for all purposes of this
11Article, except that for any employee who was not in service on
12the day before the effective date, service rendered prior to
13such date shall not be considered for the purposes of Section
148-138.
15    For a person employed by an employer for whom this Article
16was in effect prior to January 1, 1950, from whose salary
17deductions are first made under this Article after December 31,
181949, any period of service rendered prior to the effective
19date, unless he was in service on the day before the effective
20date, shall not be counted as service.
21    The time a person was an employee of any territory annexed
22to the city prior to the effective date shall be counted as a
23period of service.
24    In computing the term of service of any employee subsequent
25to the day before the effective date, the following periods

 

 

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1shall be counted as periods of service for age and service,
2widow's and child's annuity purposes:
3        (a) The time during which he performed the duties of
4    his position;
5        (b) Vacations, leaves of absence with whole or part
6    pay, and leaves of absence without pay not longer than 90
7    days;
8        (c) Leaves of absence without pay during which a
9    participant is employed full-time by a local labor
10    organization that represents municipal employees, provided
11    that (1) the participant continues to make employee
12    contributions to the Fund as though he were an active
13    employee, based on the regular salary rate received by the
14    participant for his municipal employment immediately prior
15    to such leave of absence (and in the case of such
16    employment prior to December 9, 1987, pays to the Fund an
17    amount equal to the employee contributions for such
18    employment plus regular interest thereon as calculated by
19    the board), and based on his current salary with such labor
20    organization after the effective date of this amendatory
21    Act of 1991 for leaves of absence before the effective date
22    of this amendatory Act of the 97th General Assembly, and,
23    for leaves of absence after the effective date of this
24    amendatory Act of the 97th General Assembly, based on the
25    regular salary rate received by the participant for his
26    municipal employment immediately prior to such leave of

 

 

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1    absence, (2) after January 1, 1989 the participant, or the
2    labor organization on the participant's behalf, makes
3    contributions to the Fund as though it were the employer,
4    in the same amount and same manner as specified under this
5    Article, based on the regular salary rate received by the
6    participant for his municipal employment immediately prior
7    to such leave of absence, and based on his current salary
8    with such labor organization after the effective date of
9    this amendatory Act of 1991 for leaves of absence before
10    the effective date of this amendatory Act of the 97th
11    General Assembly, and, for leaves of absence after the
12    effective date of this amendatory Act of the 97th General
13    Assembly, based on the regular salary rate received by the
14    participant for his municipal employment immediately prior
15    to such leave of absence, and (3) the participant does not
16    receive credit in any pension plan established by the local
17    labor organization based on his employment by the
18    organization, including, but not limited to, pension plans
19    established by the local labor organization, the national
20    labor organization, or the international labor
21    organization;
22        (d) Any period of disability for which he received (i)
23    a disability benefit under this Article, or (ii) a
24    temporary total disability benefit under the Workers'
25    Compensation Act if the disability results from a condition
26    commonly termed heart attack or stroke or any other

 

 

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1    condition falling within the broad field of coronary
2    involvement or heart disease, or (iii) whole or part pay;
3        (e) Any period for which contributions and service
4    credit have been transferred to this Fund under subsection
5    (d) of Section 9-121.1 or subsection (d) of Section
6    12-127.1 of this Code.
7    For a person employed by an employer in which the 1921 Act
8was in effect prior to January 1, 1950, from whose salary
9deductions are first made under the 1921 Act or this Article
10after December 31, 1949, any period of service rendered
11subsequent to the effective date and prior to the date he
12became an employee and contributor, shall not be counted as a
13period of service under this Article, except such period for
14which he made payment as provided in Section 8-230 of this
15Article, in which case such period shall be counted as a period
16of service for all annuity purposes hereunder.
17    In computing the term of service of an employee subsequent
18to the day before the effective date for ordinary disability
19benefit purposes, all periods described in the preceding
20paragraph, except any such period for which he receives
21ordinary disability benefit, shall be counted as periods of
22service; provided, that for any person employed by an employer
23in which this Article was in effect prior to January 1, 1950,
24from whose salary deductions are first made under this Article
25after December 31, 1949, any period of service rendered
26subsequent to the effective date and prior to the date he

 

 

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1became an employee and contributor, shall not be counted as a
2period of service for ordinary disability benefit purposes,
3unless the person made payment for the period as provided in
4Section 8-230 of this Article, in which case the period shall
5be counted as a period of service for ordinary disability
6purposes for periods of disability on or after the effective
7date of this amendatory Act of 1997.
8    Overtime or extra service shall not be included in
9computing any term of service. Not more than 1 year of service
10shall be allowed for service rendered during any calendar year.
11(Source: P.A. 90-511, eff. 8-22-97.)
 
12    (40 ILCS 5/8-226.8 new)
13    Sec. 8-226.8. Leave of absence benefit recalculation.
14Every 3 years, beginning on or as soon as practical after the
15effective date of this amendatory Act of the 97th General
16Assembly, the fund shall determine if any benefit earned by a
17participant who first earns credit on or after the effective
18date of this Section as a result of subdivision (c) of Section
198-226 has created any additional unfunded liability to the
20fund. If it is determined by the fund that additional unfunded
21liability has been created, then the participant must remit the
22total cost to the fund, as determined by the fund, within one
23year.
 
24    (40 ILCS 5/11-116.1 new)

 

 

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1    Sec. 11-116.1. Leaves of absence; computation of salary.
2For any participant who, on or after the effective date of this
3amendatory Act of the 97th General Assembly, takes a leave of
4absence under paragraph (3) of subsection (c) of Section
511-215, his or her highest average annual salary shall be based
6upon the regular salary rate received by the participant for
7his or her municipal employment immediately prior to that leave
8of absence.
 
9    (40 ILCS 5/11-215)  (from Ch. 108 1/2, par. 11-215)
10    Sec. 11-215. Computation of service.
11    (a) In computing the term of service of an employee prior
12to the effective date, the entire period beginning on the date
13he was first appointed and ending on the day before the
14effective date, except any intervening period during which he
15was separated by withdrawal from service, shall be counted for
16all purposes of this Article. Only the first year of each
17period of lay-off or leave of absence without pay, continuing
18or extending for a period in excess of one year, shall be
19counted as such service.
20    (b) For a person employed by an employer for whom this
21Article was in effect prior to August 1, 1949, from whose
22salary deductions are first made under this Article after July
2331, 1949, any period of service rendered prior to the effective
24date, unless he was in service on the day before the effective
25date, shall not be counted as service.

 

 

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1    (c) In computing the term of service of an employee
2subsequent to the day before the effective date, the following
3periods of time shall be counted as periods of service for
4annuity purposes:
5        (1) the time during which he performed the duties of
6    his position;
7        (2) leaves of absence with whole or part pay, and
8    leaves of absence without pay not longer than 90 days;
9        (3) leaves of absence without pay during which a
10    participant is employed full-time by a local labor
11    organization that represents municipal employees, provided
12    that (A) the participant continues to make employee
13    contributions to the Fund as though he were an active
14    employee, based on the regular salary rate received by the
15    participant for his municipal employment immediately prior
16    to such leave of absence (and in the case of such
17    employment prior to December 9, 1987, pays to the Fund an
18    amount equal to the employee contributions for such
19    employment plus regular interest thereon as calculated by
20    the board), and based on his current salary with such labor
21    organization after the effective date of this amendatory
22    Act of 1991 for leaves of absence before the effective date
23    of this amendatory Act of the 97th General Assembly, and,
24    for leaves of absence after the effective date of this
25    amendatory Act of the 97th General Assembly, based on the
26    regular salary rate received by the participant for his

 

 

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1    municipal employment immediately prior to such leave of
2    absence, (B) after January 1, 1989 the participant, or the
3    labor organization on the participant's behalf, makes
4    contributions to the Fund as though it were the employer,
5    in the same amount and same manner as specified under this
6    Article, based on the regular salary rate received by the
7    participant for his municipal employment immediately prior
8    to such leave of absence, and based on his current salary
9    with such labor organization after the effective date of
10    this amendatory Act of 1991 and for leaves of absence
11    before the effective date of this amendatory Act of the
12    97th General Assembly, and, for leaves of absence after the
13    effective date of this amendatory Act of the 97th General
14    Assembly, based on the regular salary rate received by the
15    participant for his municipal employment immediately prior
16    to such leave of absence, and (C) the participant does not
17    receive credit in any pension plan established by the local
18    labor organization based on his employment by the
19    organization, including, but not limited to, pension plans
20    established by the local labor organization, the national
21    labor organization, or the international labor
22    organization;
23        (4) any period of disability for which he received (i)
24    a disability benefit under this Article, or (ii) a
25    temporary total disability benefit under the Workers'
26    Compensation Act if the disability results from a condition

 

 

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1    commonly termed heart attack or stroke or any other
2    condition falling within the broad field of coronary
3    involvement or heart disease, or (iii) whole or part pay.
4    (d) For a person employed by an employer, or the retirement
5board, in which "The 1935 Act" was in effect prior to August 1,
61949, from whose salary deductions are first made under "The
71935 Act" or this Article after July 31, 1949, any period of
8service rendered subsequent to the effective date and prior to
9August 1, 1949, shall not be counted as a period of service
10under this Article, except such period for which he made
11payment, as provided in Section 11-221 of this Article, in
12which case such period shall be counted as a period of service
13for all annuity purposes hereunder.
14    (e) In computing the term of service of an employee
15subsequent to the day before the effective date for ordinary
16disability benefit purposes, the following periods of time
17shall be counted as periods of service:
18        (1) any period during which he performed the duties of
19    his position;
20        (2) leaves of absence with whole or part pay;
21        (3) any period of disability for which he received (i)
22    a duty disability benefit under this Article, or (ii) a
23    temporary total disability benefit under the Workers'
24    Compensation Act if the disability results from a condition
25    commonly termed heart attack or stroke or any other
26    condition falling within the broad field of coronary

 

 

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1    involvement or heart disease, or (iii) whole or part pay.
2    However, any period of service rendered by an employee
3contributor prior to the date he became a contributor to the
4fund shall not be counted as a period of service for ordinary
5disability purposes, unless the person made payment for the
6period as provided in Section 11-221 of this Article, in which
7case the period shall be counted as a period of service for
8ordinary disability purposes for periods of disability on or
9after the effective date of this amendatory Act of 1997.
10    Overtime or extra service shall not be included in
11computing any term of service. Not more than 1 year of service
12shall be allowed for service rendered during any calendar year.
13(Source: P.A. 90-511, eff. 8-22-97.)
 
14    (40 ILCS 5/11-215.2 new)
15    Sec. 11-215.2. Leave of absence benefit 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 (c)(3) of
21Section 11-215 has created any additional unfunded liability to
22the fund. If it is determined by the fund that additional
23unfunded liability has been created, then the participant must
24remit the total cost to the fund, as determined by the fund,
25within one year.
 

 

 

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1    (40 ILCS 5/15-113.12 new)
2    Sec. 15-113.12. Pension credit earned for employment with a
3teacher organization. Any credit earned under subsection (i) of
4Section 15-107 and that is granted after the effective date of
5this amendatory Act of the 97th General Assembly shall be based
6on the participant's salary immediately before engaging in the
7type of employment specified in that provision. The participant
8must contribute an amount equal to the actuarially determined
9normal cost of the benefit as calculated by the System. The
10employer of the participant may elect to contribute all or a
11portion of the participant's required contribution.
 
12    (40 ILCS 5/15-113.13 new)
13    Sec. 15-113.13. Credit recalculation. Every 3 years,
14beginning on or as soon as practical after the effective date
15of this amendatory Act of the 97th General Assembly, the System
16shall determine if any benefit earned by a participant who
17first becomes a participant on or after the effective date of
18this Section as a result of subsection (i) of Section 15-107
19has created any additional unfunded liability to the System. If
20it is determined by the System that additional unfunded
21liability has been created, then the participant must remit the
22total cost to the System, as determined by the System, within
23one year.
 

 

 

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1    (40 ILCS 5/15-113.14 new)
2    Sec. 15-113.14. Salary for credit earned for service to a
3teacher organization. For any participant who, on or after the
4effective date of this amendatory Act of the 97th General
5Assembly, earned credit under subsection (i) of Section 15-107,
6his or her average salary shall be based upon the regular
7salary rate received by the participant for his or her
8employment immediately prior to engaging in the type of
9employment specified in that provision.
 
10    (40 ILCS 5/16-110.1 new)
11    Sec. 16-110.1. Pension credit earned for employment with a
12teacher organization or a school board association. Any credit
13earned under item (4) or (8) of Section 16-106 and that is
14granted after the effective date of this amendatory Act of the
1597th General Assembly shall be based on the participant's
16salary immediately before engaging in the type of employment
17specified in that provision. The participant must contribute an
18amount equal to the actuarially determined normal cost of the
19benefit as calculated by the System. The employer of the
20participant may elect to contribute all or a portion of the
21participant's required contribution.
 
22    (40 ILCS 5/16-110.2 new)
23    Sec. 16-110.2. Credit recalculation. Every 3 years,
24beginning on or as soon as practical after the effective date

 

 

09700HB3813ham004- 21 -LRB097 13613 AMC 59150 a

1of this amendatory Act of the 97th General Assembly, the System
2shall determine if any benefit earned by a participant who
3first earns credit on or after the effective date of this
4Section as a result of item (4) or (8) of Section 16-106 has
5created any additional unfunded liability to the System. If it
6is determined by the System that additional unfunded liability
7has been created, then the participant must remit the total
8cost to the System, as determined by the System, within one
9year.
 
10    (40 ILCS 5/16-110.3 new)
11    Sec. 16-110.3. Leaves of absence; computation of salary.
12For any participant who, on or after the effective date of this
13amendatory Act of the 97th General Assembly, has earned credit
14under item (4) or (8) of Section 16-106, his or her average
15salary shall be based upon the regular salary rate received by
16the participant for his or her employment immediately prior to
17that leave of absence.
 
18    (40 ILCS 5/17-109.3 new)
19    Sec. 17-109.3. Salary for credit earned for employment with
20a teacher organization or school board association. Any credit
21earned, on or after the effective date of this amendatory Act
22of the 97th General Assembly, under subdivision (4) of Section
2317-134 or subsection (b) of Section 17-134.1, shall be based
24upon the regular salary rate received by the participant for

 

 

09700HB3813ham004- 22 -LRB097 13613 AMC 59150 a

1his or her employment immediately before engaging in the type
2of employment specified in that provision.
 
3    (40 ILCS 5/17-134)  (from Ch. 108 1/2, par. 17-134)
4    Sec. 17-134. Contributions for leaves of absence; military
5service; computing service. In computing service for pension
6purposes the following periods of service shall stand in lieu
7of a like number of years of teaching service upon payment
8therefor in the manner hereinafter provided: (a) time spent on
9a leave of absence granted by the employer; (b) service with
10teacher or labor organizations based upon special leaves of
11absence therefor granted by an Employer; (c) a maximum of 5
12years spent in the military service of the United States, of
13which up to 2 years may have been served outside the pension
14period; (d) unused sick days at termination of service to a
15maximum of 244 days; (e) time lost due to layoff and
16curtailment of the school term from June 6 through June 21,
171976; and (f) time spent after June 30, 1982 as a member of the
18Board of Education, if required to resign from an
19administrative or teaching position in order to qualify as a
20member of the Board of Education.
21        (1) For time spent on or after September 6, 1948 on
22    sabbatical leaves of absence or sick leaves, for which
23    salaries are paid, an Employer shall make payroll
24    deductions at the applicable rates in effect during such
25    periods.

 

 

09700HB3813ham004- 23 -LRB097 13613 AMC 59150 a

1        (2) For time spent on a leave of absence granted by the
2    employer for which no salaries are paid, teachers desiring
3    credit therefor shall pay the required contributions at the
4    rates in effect during such periods as though they were in
5    teaching service. If an Employer pays salary for vacations
6    which occur during a teacher's sick leave or maternity or
7    paternity leave without salary, vacation pay for which the
8    teacher would have qualified while in active service shall
9    be considered part of the teacher's total salary for
10    pension purposes. No more than 36 months of leave credit
11    may be allowed any person during the entire term of
12    service. Sabbatical leave credit shall be limited to the
13    time the person on leave without salary under an Employer's
14    rules is allowed to engage in an activity for which he
15    receives salary or compensation.
16        (3) For time spent prior to September 6, 1948, on
17    sabbatical leaves of absence or sick leaves for which
18    salaries were paid, teachers desiring service credit
19    therefor shall pay the required contributions at the
20    maximum applicable rates in effect during such periods.
21        (4) For service with teacher or labor organizations
22    authorized by special leaves of absence, for which no
23    payroll deductions are made by an Employer, teachers
24    desiring service credit therefor shall contribute to the
25    Fund upon the basis of the actual salary received from such
26    organizations at the percentage rates in effect during such

 

 

09700HB3813ham004- 24 -LRB097 13613 AMC 59150 a

1    periods for certified positions with such Employer. To the
2    extent the actual salary exceeds the regular salary, which
3    shall be defined as the salary rate, as calculated by the
4    Board, in effect for the teacher's regular position in
5    teaching service on September 1, 1983 or on the effective
6    date of the leave with the organization, whichever is
7    later, the organization shall pay to the Fund the
8    employer's normal cost as set by the Board on the
9    increment. For leaves of absence after the effective date
10    of this amendatory Act of the 97th General Assembly,
11    contributions to the Fund under this subdivision (4) shall
12    be based upon the teacher's regular salary as defined in
13    this subdivision (4).
14        (5) For time spent in the military service, teachers
15    entitled to and desiring credit therefor shall contribute
16    the amount required for each year of service or fraction
17    thereof at the rates in force (a) at the date of
18    appointment, or (b) on return to teaching service as a
19    regularly certified teacher, as the case may be; provided
20    such rates shall not be less than $450 per year of service.
21    These conditions shall apply unless an Employer elects to
22    and does pay into the Fund the amount which would have been
23    due from such person had he been employed as a teacher
24    during such time. In the case of credit for military
25    service not during the pension period, the teacher must
26    also pay to the Fund an amount determined by the Board to

 

 

09700HB3813ham004- 25 -LRB097 13613 AMC 59150 a

1    be equal to the employer's normal cost of the benefits
2    accrued from such service, plus interest thereon at 5% per
3    year, compounded annually, from the date of appointment to
4    the date of payment.
5        The changes to this Section made by Public Act 87-795
6    shall apply not only to persons who on or after its
7    effective date are in service under the Fund, but also to
8    persons whose status as a teacher terminated prior to that
9    date, whether or not the person is an annuitant on that
10    date. In the case of an annuitant who applies for credit
11    allowable under this Section for a period of military
12    service that did not immediately follow employment, and who
13    has made the required contributions for such credit, the
14    annuity shall be recalculated to include the additional
15    service credit, with the increase taking effect on the date
16    the Fund received written notification of the annuitant's
17    intent to purchase the credit, if payment of all the
18    required contributions is made within 60 days of such
19    notice, or else on the first annuity payment date following
20    the date of payment of the required contributions. In
21    calculating the automatic annual increase for an annuity
22    that has been recalculated under this Section, the increase
23    attributable to the additional service allowable under
24    this amendatory Act of 1991 shall be included in the
25    calculation of automatic annual increases accruing after
26    the effective date of the recalculation.

 

 

09700HB3813ham004- 26 -LRB097 13613 AMC 59150 a

1        The total credit for military service shall not exceed
2    5 years, except that any teacher who on July 1, 1963, had
3    validated credit for more than 5 years of military service
4    shall be entitled to the total amount of such credit.
5        (6) A maximum of 244 unused sick days credited to his
6    account by an Employer on the date of termination of
7    employment. Members, upon verification of unused sick
8    days, may add this service time to total creditable
9    service.
10        (7) In all cases where time spent on leave is
11    creditable and no payroll deductions therefor are made by
12    an Employer, persons desiring service credit shall make the
13    required contributions directly to the Fund.
14        (8) For time lost without pay due to layoff and
15    curtailment of the school term from June 6 through June 21,
16    1976, as provided in item (e) of the first paragraph of
17    this Section, persons who were contributors on the days
18    immediately preceding such layoff shall receive credit
19    upon paying to the Fund a contribution based on the rates
20    of compensation and employee contributions in effect at the
21    time of such layoff, together with an additional amount
22    equal to 12.2% of the compensation computed for such period
23    of layoff, plus interest on the entire amount at 5% per
24    annum from January 1, 1978 to the date of payment. If such
25    contribution is paid, salary for pension purposes for any
26    year in which such a layoff occurred shall include the

 

 

09700HB3813ham004- 27 -LRB097 13613 AMC 59150 a

1    compensation recognized for purposes of computing that
2    contribution.
3        (9) For time spent after June 30, 1982, as a
4    nonsalaried member of the Board of Education, if required
5    to resign from an administrative or teaching position in
6    order to qualify as a member of the Board of Education, an
7    administrator or teacher desiring credit therefor shall
8    pay the required contributions at the rates and salaries in
9    effect during such periods as though the member were in
10    service.
11    Effective September 1, 1974, the interest charged for
12validation of service described in paragraphs (2) through (5)
13of this Section shall be compounded annually at a rate of 5%
14commencing one year after the termination of the leave or
15return to service.
16(Source: P.A. 92-599, eff. 6-28-02.)
 
17    (40 ILCS 5/17-134.1)
18    Sec. 17-134.1. Labor organization employees.
19    (a) A former teacher who is employed by a teacher or labor
20organization and is not eligible to participate under
21subdivision (4) of Section 17-134 because he or she is not on a
22special leave of absence may elect to participate in the Fund
23for the duration of that employment by so notifying the Fund in
24writing. Participation shall be subject to the same conditions
25as are applicable to persons participating under that

 

 

09700HB3813ham004- 28 -LRB097 13613 AMC 59150 a

1subdivision (4), and service credit shall be contingent upon
2the required contributions being received by the Fund.
3    (b) A person who participates in the Fund under subsection
4(a) may establish service credit for periods of such employment
5that took place before beginning participation under this
6Section by submitting a written application to the Fund. Credit
7shall be granted upon payment to the Fund of an amount to be
8determined by the Fund, equal to (i) the employee contributions
9that would have been paid if the person had participated under
10subdivision (4) of Section 17-134 during the period for which
11service credit is to be established, based on the actual salary
12received, plus (ii) the employer's normal cost associated with
13that service credit, plus (iii) interest on items (i) and (ii)
14at the rate of 6% per year, compounded annually, from the date
15of the service established to the date of payment. Service
16credit under this subsection shall not be granted until the
17required contribution has been paid in full; the contribution
18may be paid at any time before retirement. For leaves of
19absence after the effective date of this amendatory Act of the
2097th General Assembly, contributions to the Fund under item (i)
21of this subsection (b) shall be based upon the teacher's
22regular salary as defined in subdivision (4) of Section 17-134.
23    (c) A person who participates in the Fund under subsection
24(a) may reestablish any service credits previously forfeited by
25acceptance of a refund by paying to the Fund the amount of the
26refund plus interest thereon at the rate of 5% per annum,

 

 

09700HB3813ham004- 29 -LRB097 13613 AMC 59150 a

1compounded annually, from the date of the refund to the date of
2payment.
3    (d) Rollover contributions from other retirement plans
4qualified under the Internal Revenue Code of 1986 may be used
5to make the payments required under subsections (b) and (c).
6    (e) No service credit may be established under this Section
7for any period of employment for which the person receives
8service credit under any other provision of this Code.
9(Source: P.A. 90-448, eff. 8-16-97.)
 
10    (40 ILCS 5/17-134.2 new)
11    Sec. 17-134.2. Credit recalculation. Every 3 years,
12beginning on or as soon as practical after the effective date
13of this amendatory Act of the 97th General Assembly, the Fund
14shall determine if any benefit earned by a participant who
15first earns credit on or after the effective date of this
16Section as a result of item (4) of Section 17-134 and Section
1717-134.1 has created any additional unfunded liability to the
18Fund. If it is determined by the Fund that additional unfunded
19liability has been created, then the participant must remit the
20total cost to the Fund, as determined by the Fund, within one
21year.
 
22    Section 99. Effective date. This Act takes effect upon
23becoming law.".