SB0001sam003 98TH GENERAL ASSEMBLY

Sen. John J. Cullerton

Filed: 3/20/2013

 

 


 

 


 
09800SB0001sam003LRB098 05457 JDS 43663 a

1
AMENDMENT TO SENATE BILL 1

2    AMENDMENT NO. ______. Amend Senate Bill 1, AS AMENDED, by
3replacing everything after the enacting clause with the
4following:
 
5    "Section 5. The Illinois Public Labor Relations Act is
6amended by changing Sections 4 and 15 as follows:
 
7    (5 ILCS 315/4)  (from Ch. 48, par. 1604)
8    Sec. 4. Management Rights. Employers shall not be required
9to bargain over matters of inherent managerial policy, which
10shall include such areas of discretion or policy as the
11functions of the employer, standards of services, its overall
12budget, the organizational structure and selection of new
13employees, examination techniques and direction of employees.
14Employers, however, shall be required to bargain collectively
15with regard to policy matters directly affecting wages (but
16subject to any applicable restrictions in Section 16-122.9 of

 

 

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1the Illinois Pension Code), hours and terms and conditions of
2employment as well as the impact thereon upon request by
3employee representatives, but excluding the changes, the
4impact of changes, and the implementation of the changes set
5forth in this amendatory Act of the 98th General Assembly.
6    To preserve the rights of employers and exclusive
7representatives which have established collective bargaining
8relationships or negotiated collective bargaining agreements
9prior to the effective date of this Act, employers shall be
10required to bargain collectively with regard to any matter
11concerning wages (but subject to any applicable restrictions in
12Section 16-122.9 of the Illinois Pension Code), hours or
13conditions of employment about which they have bargained for
14and agreed to in a collective bargaining agreement prior to the
15effective date of this Act, but excluding the changes, the
16impact of changes, and the implementation of the changes set
17forth in this amendatory Act of the 98th General Assembly.
18    The chief judge of the judicial circuit that employs a
19public employee who is a court reporter, as defined in the
20Court Reporters Act, has the authority to hire, appoint,
21promote, evaluate, discipline, and discharge court reporters
22within that judicial circuit.
23    Nothing in this amendatory Act of the 94th General Assembly
24shall be construed to intrude upon the judicial functions of
25any court. This amendatory Act of the 94th General Assembly
26applies only to nonjudicial administrative matters relating to

 

 

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1the collective bargaining rights of court reporters.
2(Source: P.A. 94-98, eff. 7-1-05.)
 
3    (5 ILCS 315/15)  (from Ch. 48, par. 1615)
4    Sec. 15. Act Takes Precedence.
5    (a) In case of any conflict between the provisions of this
6Act and any other law (other than Section 5 of the State
7Employees Group Insurance Act of 1971 and other than the
8changes made to the Illinois Pension Code by Public Act 96-889
9and the changes, impact of changes, and the implementation of
10the changes made to the Illinois Pension Code and the State
11Employees Group Insurance Act of 1971 by this amendatory Act of
12the 98th 96th General Assembly), executive order or
13administrative regulation relating to wages, hours and
14conditions of employment and employment relations, the
15provisions of this Act or any collective bargaining agreement
16negotiated thereunder shall prevail and control. Nothing in
17this Act shall be construed to replace or diminish the rights
18of employees established by Sections 28 and 28a of the
19Metropolitan Transit Authority Act, Sections 2.15 through 2.19
20of the Regional Transportation Authority Act. The provisions of
21this Act are subject to the changes made by this amendatory Act
22of the 98th General Assembly, including Section 16-122.9 of the
23Illinois Pension Code, and Section 5 of the State Employees
24Group Insurance Act of 1971. Nothing in this Act shall be
25construed to replace the necessity of complaints against a

 

 

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1sworn peace officer, as defined in Section 2(a) of the Uniform
2Peace Officer Disciplinary Act, from having a complaint
3supported by a sworn affidavit.
4    (b) Except as provided in subsection (a) above, any
5collective bargaining contract between a public employer and a
6labor organization executed pursuant to this Act shall
7supersede any contrary statutes, charters, ordinances, rules
8or regulations relating to wages, hours and conditions of
9employment and employment relations adopted by the public
10employer or its agents. Any collective bargaining agreement
11entered into prior to the effective date of this Act shall
12remain in full force during its duration.
13    (c) It is the public policy of this State, pursuant to
14paragraphs (h) and (i) of Section 6 of Article VII of the
15Illinois Constitution, that the provisions of this Act are the
16exclusive exercise by the State of powers and functions which
17might otherwise be exercised by home rule units. Such powers
18and functions may not be exercised concurrently, either
19directly or indirectly, by any unit of local government,
20including any home rule unit, except as otherwise authorized by
21this Act.
22(Source: P.A. 95-331, eff. 8-21-07; 96-889, eff. 1-1-11.)
 
23    Section 12. The State Employees Group Insurance Act of 1971
24is amended by adding Section 6.16 as follows:
 

 

 

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1    (5 ILCS 375/6.16 new)
2    Sec. 6.16. Health benefit election for Tier I employees and
3Tier I retirees.
4    (a) For purposes of this Section:
5    "Eligible Tier I employee" means, except as provided in
6subsection (g) of this Section, an individual who makes or is
7deemed to have made an election under paragraph (1) of
8subsection (a) of Section 16-122.9 of the Illinois Pension
9Code.
10    "Program of health benefits" means (i) a health plan, as
11defined in subsection (o) of Section 3 of this Act, that is
12designed and contracted for by the Director under this Act or
13any successor Act or (ii) if administration of that health plan
14is transferred to a trust established by the State or an
15independent Board in order to provide health benefits to a
16class of persons that includes eligible Tier I retirees, then
17the plan of health benefits provided through that trust.
18    (b) As adequate and legal consideration for making the
19election under paragraph (1) of subsection (a) of Section
2016-122.9 of the Illinois Pension Code each eligible Tier I
21employee shall receive a vested and enforceable contractual
22right to participate in a program of health benefits while he
23or she qualifies as an annuitant or retired employee. That
24right also extends to such a person's dependents and survivors
25who are eligible under the applicable program of health
26benefits.

 

 

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1    (c) Notwithstanding subsection (b), eligible Tier I
2employees may be required to make contributions toward the cost
3of coverage under a program of health benefits.
4    (d) The vested and enforceable contractual right to a
5program of health benefits is not offered as, and shall not be
6considered, a pension or retirement benefit under Article XIII,
7Section 5 of the Illinois Constitution, the Illinois Pension
8Code, or any subsequent or successor enactment providing
9pension benefits.
10    (e) Notwithstanding any other provision of this Act to the
11contrary, except subsection (g) of this Section, a Tier I
12employee who has made an election under paragraph (2) of
13subsection (a) of Section 16-122.9 of the Illinois Pension Code
14shall not be entitled to participate in any program of health
15benefits under this Act as an annuitant or retired employee
16receiving a retirement annuity, regardless of any contrary
17election under any other retirement system.
18    Notwithstanding any other provision of this Act to the
19contrary, except subsection (g) of this Section, a Tier I
20employee who is not entitled to participate in the program of
21health benefits as an annuitant or retired employee receiving a
22retirement annuity, due to an election under paragraph (2) of
23subsection (a) of Section 16-122.9 of the Illinois Pension Code
24shall not be required to make contributions toward the program
25of health benefits while he or she is an employee or active
26contributor. However, an active employee may be required to

 

 

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1make contributions toward health benefits he or she receives
2during active service.
3    (f) The Department shall coordinate with each retirement
4system administering an election in accordance with this
5amendatory Act of the 98th General Assembly to provide
6information concerning the impact of the election of health
7benefits. Each System shall include information prepared by the
8Department in the required election packet. The Department
9shall make information available to Tier I employees through
10video materials, group presentations, consultation by
11telephone or other electronic means, or any combination of
12these methods. The information in the election packet shall
13include a notice that states: "YOU ARE HEREBY ADVISED THAT THE
14PROGRAM OF HEALTH BENEFITS OFFERED IS FOR ACCESS TO A GROUP
15HEALTHCARE PLAN ADMINISTERED BY THE DEPARTMENT, AND YOU MAY BE
16REQUIRED TO PAY FOR THE FULL COST OF COVERAGE PROVIDED BY THE
17PLAN, INCLUDING ALL PREMIUM, DEDUCTIBLE, AND COPAY AMOUNTS."
18    (g) Nothing in this Section shall be construed as applying
19to a person who qualifies as a Tier I retiree under Section
2016-107.2 of the Illinois Pension Code or to a retiree who, as a
21consequence of returning to active service, qualifies as a Tier
22I employee under Section 16-107.1.
 
23    Section 22. The Budget Stabilization Act is amended by
24changing Sections 20 and 25 as follows:
 

 

 

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1    (30 ILCS 122/20)
2    Sec. 20. Pension Stabilization Fund.
3    (a) The Pension Stabilization Fund is hereby created as a
4special fund in the State treasury. Moneys in the fund shall be
5used for the sole purpose of making payments to the designated
6retirement systems as provided in Section 25.
7    (b) For each fiscal year when the General Assembly's
8appropriations and transfers or diversions as required by law
9from general funds do not exceed 99% of the estimated general
10funds revenues pursuant to subsection (a) of Section 10, the
11Comptroller shall transfer from the General Revenue Fund as
12provided by this Section a total amount equal to 0.5% of the
13estimated general funds revenues to the Pension Stabilization
14Fund.
15    (c) For each fiscal year through State fiscal year 2013,
16when the General Assembly's appropriations and transfers or
17diversions as required by law from general funds do not exceed
1898% of the estimated general funds revenues pursuant to
19subsection (b) of Section 10, the Comptroller shall transfer
20from the General Revenue Fund as provided by this Section a
21total amount equal to 1.0% of the estimated general funds
22revenues to the Pension Stabilization Fund.
23    (c-10) In State fiscal year 2020 and each fiscal year
24thereafter, the State Comptroller shall order transferred and
25the State Treasurer shall transfer $1,000,000,000 from the
26General Revenue Fund to the Pension Stabilization Fund.

 

 

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1    (c-15) The transfers made pursuant to subsection (c-10) of
2this Section shall continue through State fiscal year 2045 or
3until each of the designated retirement systems, as defined in
4Section 25, has achieved the funding ratio prescribed by law
5for that retirement system, whichever occurs first.
6    (d) The Comptroller shall transfer 1/12 of the total amount
7to be transferred each fiscal year under this Section into the
8Pension Stabilization Fund on the first day of each month of
9that fiscal year or as soon thereafter as possible; except that
10the final transfer of the fiscal year shall be made as soon as
11practical after the August 31 following the end of the fiscal
12year.
13    Until State fiscal year 2014, before Before the final
14transfer for a fiscal year is made, the Comptroller shall
15reconcile the estimated general funds revenues used in
16calculating the other transfers under this Section for that
17fiscal year with the actual general funds revenues for that
18fiscal year. The final transfer for the fiscal year shall be
19adjusted so that the total amount transferred under this
20Section for that fiscal year is equal to the percentage
21specified in subsection (b) or (c) of this Section, whichever
22is applicable, of the actual general funds revenues for that
23fiscal year. The actual general funds revenues for the fiscal
24year shall be calculated in a manner consistent with subsection
25(c) of Section 10 of this Act.
26(Source: P.A. 94-839, eff. 6-6-06.)
 

 

 

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1    (30 ILCS 122/25)
2    Sec. 25. Transfers from the Pension Stabilization Fund.
3    (a) As used in this Section, "designated retirement
4systems" means:
5        (1) the State Employees' Retirement System of
6    Illinois;
7        (2) the Teachers' Retirement System of the State of
8    Illinois;
9        (3) the State Universities Retirement System;
10        (4) the Judges Retirement System of Illinois; and
11        (5) the General Assembly Retirement System.
12    (b) As soon as may be practical after any money is
13deposited into the Pension Stabilization Fund, the State
14Comptroller shall apportion the deposited amount among the
15designated retirement systems and the State Comptroller and
16State Treasurer shall pay the apportioned amounts to the
17designated retirement systems. The amount deposited shall be
18apportioned among the designated retirement systems in the same
19proportion as their respective portions of the total actuarial
20reserve deficiency of the designated retirement systems, as
21most recently determined by the Governor's Office of Management
22and Budget. Amounts received by a designated retirement system
23under this Section shall be used for funding the unfunded
24liabilities of the retirement system. Payments under this
25Section are authorized by the continuing appropriation under

 

 

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1Section 1.7 of the State Pension Funds Continuing Appropriation
2Act.
3    (c) At the request of the State Comptroller, the Governor's
4Office of Management and Budget shall determine the individual
5and total actuarial reserve deficiencies of the designated
6retirement systems. For this purpose, the Governor's Office of
7Management and Budget shall consider the latest available audit
8and actuarial reports of each of the retirement systems and the
9relevant reports and statistics of the Public Pension Division
10of the Department of Financial and Professional Regulation.
11    (d) Payments to the designated retirement systems under
12this Section shall be in addition to, and not in lieu of, any
13State contributions required under Section 2-124, 14-131,
1415-155, 16-158, or 18-131 of the Illinois Pension Code.
15    Payments to the designated retirement systems under this
16Section, transferred after the effective date of this
17amendatory Act of the 98th General Assembly, do not reduce and
18do not constitute payment of any portion of the required State
19contribution under Article 2, 14, 15, 16, or 18 of the Illinois
20Pension Code in that fiscal year. Such amounts shall not
21reduce, and shall not be included in the calculation of, the
22required State contribution under Article 2, 14, 15, 16, or 18
23of the Illinois Pension Code in any future year, until the
24designated retirement system has received payment of
25contributions pursuant to this Act.
26(Source: P.A. 94-839, eff. 6-6-06.)
 

 

 

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1    Section 25. The Illinois Pension Code is amended by
2changing Sections 16-106, 16-121, 16-127, 16-133.1, 16-133.6,
316-136.1, 16-152, and 16-203 and by adding Section 1-162,
416-107.1, 16-107.2, 16-121.1, 16-122.9, 16-133.6, and 16-158.2
5as follows:
 
6    (40 ILCS 5/1-162 new)
7    Sec. 1-162. Optional cash balance plan.
8    (a) Participation and Applicability. Beginning 12 months
9after the effective date of this Section, any Tier I employee
10who has made the election under paragraph (1) of subsection (a)
11of Section 16-122.9 may elect to participate in the optional
12cash balance plan created under this Section.
13    The Board of Trustees of the applicable retirement system
14shall promulgate rules to create an annual election wherein a
15person eligible to participate in the optional cash balance
16plan may elect to participate, and an active employee who is a
17participant in the plan may elect to cease active
18participation. The election to cease active participation
19shall not disqualify the employee from eligibility to receive
20an interest credit under subsection (f), a distribution upon
21termination under subsection (f-10), a refund under subsection
22(f-15), a retirement annuity under subsection (g), or a
23survivor's annuity under subsection (k), or from eligibility to
24resume active participation in the optional cash balance plan

 

 

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1in a subsequent year.
2    (b) Title. The package of benefits provided under this
3Section may be referred to as the "optional cash balance plan".
4Persons subject to the provisions of this Section may be
5referred to as "participants in the optional cash balance
6plan".
7    (b-5) Definitions. As used in this Section:
8    "Account" means the notional cash balance account
9established under this Section for a participant in the
10optional cash balance plan.
11    "Salary" means "salary" as defined in Article 16, without
12regard to the limitation in subsection (b-5) of Section 1-160.
13    "Tier I employee" means a person who is a Tier I employee
14under the applicable Article of this Code.
15    (c) Cash Balance Account. A notional cash balance account
16shall be established by the applicable retirement system for
17each participant in the optional cash balance plan. The account
18is notional and does not contain any actual money segregated
19from the commingled assets of the retirement system. The cash
20balance in the account is to be used in calculating benefits as
21provided in this Section, but is not to be used in the
22calculation of any refund, transfer, or other benefit under the
23applicable Article of this Code.
24    The amounts to be credited to the cash balance account
25shall consist of (i) amounts contributed by or on behalf of the
26participant as employee contributions, (ii) notional employer

 

 

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1contributions, and (iii) interest credit that is attributable
2to the account, all as provided in this Section.
3    Whenever necessary for the prompt calculation or
4administration, or when the System lacks information necessary
5to the calculation or administration otherwise required of or
6for a benefit under this Section, the applicable retirement
7system may estimate an amount to be credited to or debited from
8a participant's cash balance account and then adjust the amount
9so credited or debited when more accurate information becomes
10available.
11    The applicable retirement system shall give to each
12participant in the optional cash balance plan who has not yet
13retired annual notice of (1) the balance in the participant's
14cash balance account and (2) an estimate of the retirement
15annuity that will be payable to the participant if he or she
16retires at age 59 1/2.
17    (d) Employee Contributions. In addition to the other
18contributions required under the applicable Article, each
19participant shall make contributions to the applicable
20retirement system at the rate of 2% of each payment of salary.
21The amount of each contribution shall be credited to the
22participant's cash balance account upon receipt and after the
23retirement system's reconciliation of the contribution.
24    (e) Optional Employer Contributions. Employers may make
25optional additional contributions to the applicable retirement
26system on behalf of their employees who are participants in the

 

 

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1optional cash balance plan in accordance with procedures
2prescribed by the retirement system to the extent permitted by
3federal law and the rules prescribed by the retirement system.
4The optional additional contributions under this subsection
5are actual monetary contributions to the retirement system, and
6the amount of each optional additional contribution shall be
7credited to the participant's cash balance account upon receipt
8and after the retirement system's reconciliation of the
9contribution.
10    (f) Interest Credit. An amount representing earnings on
11investments shall be determined by the retirement system in
12accordance with this Section and credited to the participant's
13cash balance account for each fiscal year in which there is a
14positive balance in that account; except that no additional
15interest credit shall be credited while an annuity based on the
16account is being paid. The interest credit amount shall be a
17percentage of the average quarterly balance in the cash balance
18account during that fiscal year and shall be calculated on June
1930.
20    The percentage shall be the assumed treasury rate for the
21previous fiscal year, unless neither the retirement system's
22actual rate of investment earnings for the previous fiscal year
23nor the retirement system's actual rate of investment earnings
24for the five-year period ending at the end of the previous
25fiscal year is less than the assumed treasury rate.
26    If both the retirement system's actual rate of investment

 

 

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1earnings for the previous fiscal year and the actual rate of
2investment earnings for the five-year period ending at the end
3of the previous fiscal year are at least the assumed treasury
4rate, then the percentage shall be:
5        (i) the assumed treasury rate, plus
6        (ii) two-thirds of the amount of the actual rate of
7    investment earnings for the previous fiscal year that
8    exceeds the assumed treasury rate.
9However, in no event shall the percentage applied under this
10subsection exceed 10%.
11    For the purposes of this subsection only, "previous fiscal
12year" means the fiscal year ending one year before the interest
13rate is calculated.
14    For the purposes of this subsection only, "assumed treasury
15rate" means the average annual yield of the 30-year U.S.
16Treasury Bond over the previous fiscal year, but not less than
174%.
18    When a person applies for a benefit under this Section, the
19retirement system shall apply an interest credit based on a
20proration of an estimate of what the interest credit will be
21for the relevant year. When the retirement system certifies the
22credit on June 30, it shall adjust the benefit accordingly.
23    (f-10) Distribution upon Termination of Employment. Upon
24termination of active employment with at least 5 years of
25service credit under the applicable retirement system and prior
26to making application for an annuity under this Section, a

 

 

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1participant in the optional cash balance plan may make an
2irrevocable election to distribute an amount not to exceed 40%
3of the balance in the participant's account in the form of a
4direct rollover to another qualified plan, to the extent
5allowed by federal law. If the participant makes such an
6election, then the amount distributed shall be debited from the
7participant's cash balance account. A participant in the
8optional cash balance plan shall be allowed only one
9distribution under this subsection. The remaining balance in
10the participant's account shall be used for the determination
11of other benefits provided under this Section.
12    (f-15) Refund. In lieu of receiving a distribution under
13subsection (f-10), at any time after terminating active
14employment under the applicable retirement system, but before
15receiving a retirement annuity under this Section, a
16participant in the optional cash balance plan may elect to
17receive a refund under this subsection. The refund shall
18consist of an amount equal to the amount of all employee
19contributions credited to the participant's account, but shall
20not include any interest credit or employer contributions. If
21the participant so requests, the refund may be paid in the form
22of a direct rollover to another qualified plan, to the extent
23allowed by federal law and in accordance with the rules of the
24applicable retirement system. Upon payment of the refund, the
25participant's notional cash balance account shall be closed.
26    (g) Retirement Annuity. A participant in the optional cash

 

 

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1balance plan may begin collecting a retirement annuity at age
259 1/2, but no earlier than the date of termination of active
3employment under the applicable retirement system.
4    The amount of the retirement annuity shall be calculated by
5the retirement system, based on the balance in the cash balance
6account, the assumption of future investment returns as
7specified in this subsection, the participant's election to
8have a lifetime survivor's annuity as specified in this
9subsection, the annual increase in retirement annuity as
10specified in subsection (h), the annual increase in survivor's
11annuity as specified in subsection (l), and any actuarial
12assumptions and tables adopted by the board of the retirement
13system for this purpose. The calculation shall determine the
14amount of retirement annuity, on an actuarially equivalent
15basis, that shall be designed to result in the balance in the
16participant's account arriving at zero on the date when the
17last payment of the retirement annuity (or survivor's annuity,
18if the participant elects to provide for a survivor's annuity
19pursuant to this subsection) is anticipated to be paid under
20the relevant actuarial assumptions. A retirement annuity or a
21survivor's annuity provided under this Section shall be a life
22annuity and shall not expire if the account balance equals
23zero.
24    The annuity payment shall begin on the date specified by
25the participant submitting a written application, which date
26shall not be prior to termination of employment or more than

 

 

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1one year before the application is received by the board;
2however, if the participant is not an employee of an employer
3participating in this System or in a participating system as
4defined in Article 20 of this Code on April 1 of the calendar
5year next following the calendar year in which the participant
6attains age 70 1/2, the annuity payment period shall begin on
7that date regardless of whether an application has been filed.
8    The participant may elect, under the participant's written
9application for retirement, to receive a reduced annuity
10payable for his or her life and to have a lifetime survivor's
11annuity in a monthly amount equal to 50%, 75%, or 100% of that
12reduced monthly amount, to be paid after the participant's
13death to his or her eligible survivor. Eligibility for a
14survivor's annuity shall be determined under the applicable
15Article of this Code.
16    For the purpose of calculating retirement annuities,
17future investment returns shall be assumed to be a percentage
18equal to the average yield of the 30-year U.S. Treasury Bond
19over the 5 fiscal years prior to the calculation of the initial
20retirement annuity, plus 250 basis points, but not less than 4%
21nor more than 8%.
22    (h) Annual Increase in Retirement Annuity. The retirement
23annuity shall be subject to an automatic annual increase in an
24amount equal to 3% of the originally granted annuity on each
25January 1 occurring on or after the first anniversary of the
26annuity start date.

 

 

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1    (i) Disability Benefits. There are no disability benefits
2provided under the optional cash balance plan, and no amounts
3for disability shall be deducted from the account of a
4participant in the optional cash balance plan. The disability
5benefits provided under the applicable retirement system apply
6to participants in the optional cash balance plan.
7    (j) Return to Service. Upon a return to service under the
8same retirement system after beginning to receive a retirement
9annuity under the optional cash balance plan, the retirement
10annuity shall be suspended and active participation in the
11optional cash balance plan shall resume. Upon termination of
12the employment, the retirement annuity shall resume in an
13amount to be recalculated in accordance with subsection (g),
14taking into consideration the changes in the cash balance
15account. If a retired annuitant returns to service, his or her
16notional cash balance account shall be decreased by each
17payment of retirement annuity prior to the return to service.
18    (k) Survivor's Annuity - Death before Retirement. In the
19case of a participant in the optional cash balance plan who had
20less than 5 years of service under the applicable Article and
21had not begun receiving a retirement annuity, the eligible
22survivor shall be entitled only to a refund of employee
23contributions under subsection (f-15).
24    In the case of a participant in the optional cash balance
25plan who had at least 5 years of service under the applicable
26Article and had not begun receiving a retirement annuity, the

 

 

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1eligible survivor shall be entitled to receive a survivor's
2annuity beginning at age 59 1/2 upon written application. The
3survivor's annuity shall be calculated in the same manner as a
4retirement annuity under subsection (g). At any time before
5receiving a survivor's annuity, the eligible survivor may claim
6a distribution under subsection (f-10) or a refund under
7subsection (f-15). The deceased participant's account shall
8continue to receive interest credit until the eligible survivor
9begins to receive a survivor's annuity or receives a refund of
10employee contributions under subsection (f-15).
11    Eligibility for a survivor's annuity shall be determined
12under the applicable Article of this Code. A child's or
13parent's annuity for an otherwise eligible child or dependent
14parent shall be in the same amount, if any, prescribed under
15the applicable Article.
16    (l) Annual Increase in Survivor's Annuity. A survivor's
17annuity granted under subsection (g) or (k) shall be subject to
18an automatic annual increase in an amount equal to 3% of the
19originally granted annuity on each January 1 occurring on or
20after the first anniversary of the annuity start date.
21    (m) Applicability of Provisions. The following provisions,
22if and as they exist in this Code, do not apply to participants
23in the optional cash balance plan with respect to participation
24in the optional cash balance plan, except as they are
25specifically provided for in this Section:
26        (1) minimum service or vesting requirements (other

 

 

09800SB0001sam003- 22 -LRB098 05457 JDS 43663 a

1    than as provided in this Section);
2        (2) provisions limiting a retirement annuity to a
3    specified percentage of salary;
4        (3) provisions authorizing a minimum retirement or
5    survivor's annuity or a supplemental annuity;
6        (4) provisions authorizing any form of retirement
7    annuity or survivor's annuity not authorized under this
8    Section;
9        (5) provisions authorizing a reversionary annuity
10    (other than the survivor's annuity under subsection (g));
11        (6) provisions authorizing a refund of employee
12    contributions upon termination of service (other than upon
13    the death of the participant without an eligible survivor)
14    or any lump-sum payout in lieu of a retirement or
15    survivor's annuity (other than the distribution under
16    subsection (f-10) or the refund under subsection (f-15) of
17    this Section);
18        (7) provisions authorizing optional service credits or
19    the payment of optional additional contributions (other
20    than the optional employer contributions specifically
21    authorized in this Section); or
22        (8) a level income option.
23    The Retirement Systems Reciprocal Act (Article 20 of this
24Code) does not apply to participation in the optional cash
25balance plan and does not affect the calculation of benefits
26payable under this Section.

 

 

09800SB0001sam003- 23 -LRB098 05457 JDS 43663 a

1    The other provisions of this Code continue to apply to
2participants in the optional cash balance plan to the extent
3that they do not conflict with this Section. In the case of a
4conflict between the provisions of this Section and any other
5provision of this Code, the provisions of this Section control.
6    (n) Rules. The Board of Trustees of the applicable
7retirement system may adopt rules and procedures for the
8implementation of this Section, including but not limited to
9determinations of how to integrate the administration of this
10Section with the requirements of the applicable Article and any
11other applicable provisions of this Code.
12    (o) Actual Employer Contributions. Payment of employer
13contributions with respect to participants in the optional cash
14balance plan shall be the responsibility of the actual
15employer. Optional additional contributions by employers may
16be paid in any amount, but must be paid in the manner specified
17by the applicable retirement system.
18    (p) Prospective Modification. The provisions set forth in
19this Section are subject to prospective changes made by law
20provided that any such changes shall not apply to any benefits
21accrued under this Section prior to the effective date of any
22amendatory Act of the General Assembly.
23    (q) Qualified Plan Status. No provision of this Section
24shall be interpreted in a way that would cause the applicable
25retirement system to cease to be a qualified plan under Section
26401(a) of the Internal Revenue Code of 1986.
 

 

 

09800SB0001sam003- 24 -LRB098 05457 JDS 43663 a

1    (40 ILCS 5/16-106)  (from Ch. 108 1/2, par. 16-106)
2    Sec. 16-106. Teacher. "Teacher": The following
3individuals, provided that, for employment prior to July 1,
41990, they are employed on a full-time basis, or if not
5full-time, on a permanent and continuous basis in a position in
6which services are expected to be rendered for at least one
7school term:
8        (1) Any educational, administrative, professional or
9    other staff employed in the public common schools included
10    within this system in a position requiring certification
11    under the law governing the certification of teachers;
12        (2) Any educational, administrative, professional or
13    other staff employed in any facility of the Department of
14    Children and Family Services or the Department of Human
15    Services, in a position requiring certification under the
16    law governing the certification of teachers, and any person
17    who (i) works in such a position for the Department of
18    Corrections, (ii) was a member of this System on May 31,
19    1987, and (iii) did not elect to become a member of the
20    State Employees' Retirement System pursuant to Section
21    14-108.2 of this Code; except that "teacher" does not
22    include any person who (A) becomes a security employee of
23    the Department of Human Services, as defined in Section
24    14-110, after June 28, 2001 (the effective date of Public
25    Act 92-14), or (B) becomes a member of the State Employees'

 

 

09800SB0001sam003- 25 -LRB098 05457 JDS 43663 a

1    Retirement System pursuant to Section 14-108.2c of this
2    Code;
3        (3) Any regional superintendent of schools, assistant
4    regional superintendent of schools, State Superintendent
5    of Education; any person employed by the State Board of
6    Education as an executive; any executive of the boards
7    engaged in the service of public common school education in
8    school districts covered under this system of which the
9    State Superintendent of Education is an ex-officio member;
10        (4) Any employee of a school board association
11    operating in compliance with Article 23 of the School Code
12    who is certificated under the law governing the
13    certification of teachers, provided that he or she becomes
14    such an employee before the effective date of this
15    amendatory Act of the 98th General Assembly;
16        (5) Any person employed by the retirement system who:
17            (i) was an employee of and a participant in the
18        system on August 17, 2001 (the effective date of Public
19        Act 92-416), or
20            (ii) becomes an employee of the system on or after
21        August 17, 2001;
22        (6) Any educational, administrative, professional or
23    other staff employed by and under the supervision and
24    control of a regional superintendent of schools, provided
25    such employment position requires the person to be
26    certificated under the law governing the certification of

 

 

09800SB0001sam003- 26 -LRB098 05457 JDS 43663 a

1    teachers and is in an educational program serving 2 or more
2    districts in accordance with a joint agreement authorized
3    by the School Code or by federal legislation;
4        (7) Any educational, administrative, professional or
5    other staff employed in an educational program serving 2 or
6    more school districts in accordance with a joint agreement
7    authorized by the School Code or by federal legislation and
8    in a position requiring certification under the laws
9    governing the certification of teachers;
10        (8) Any officer or employee of a statewide teacher
11    organization or officer of a national teacher organization
12    who is certified under the law governing certification of
13    teachers, provided: (i) the individual had previously
14    established creditable service under this Article, (ii)
15    the individual files with the system an irrevocable
16    election to become a member before the effective date of
17    this amendatory Act of the 97th General Assembly, (iii) the
18    individual does not receive credit for such service under
19    any other Article of this Code, and (iv) the individual
20    first became an officer or employee of the teacher
21    organization and becomes a member before the effective date
22    of this amendatory Act of the 97th General Assembly;
23        (9) Any educational, administrative, professional, or
24    other staff employed in a charter school operating in
25    compliance with the Charter Schools Law who is certificated
26    under the law governing the certification of teachers; .

 

 

09800SB0001sam003- 27 -LRB098 05457 JDS 43663 a

1        (10) Any person employed, on the effective date of this
2    amendatory Act of the 94th General Assembly, by the
3    Macon-Piatt Regional Office of Education in a
4    birth-through-age-three pilot program receiving funds
5    under Section 2-389 of the School Code who is required by
6    the Macon-Piatt Regional Office of Education to hold a
7    teaching certificate, provided that the Macon-Piatt
8    Regional Office of Education makes an election, within 6
9    months after the effective date of this amendatory Act of
10    the 94th General Assembly, to have the person participate
11    in the system. Any service established prior to the
12    effective date of this amendatory Act of the 94th General
13    Assembly for service as an employee of the Macon-Piatt
14    Regional Office of Education in a birth-through-age-three
15    pilot program receiving funds under Section 2-389 of the
16    School Code shall be considered service as a teacher if
17    employee and employer contributions have been received by
18    the system and the system has not refunded those
19    contributions.
20    An annuitant receiving a retirement annuity under this
21Article or under Article 17 of this Code who is employed by a
22board of education or other employer as permitted under Section
2316-118 or 16-150.1 is not a "teacher" for purposes of this
24Article. A person who has received a single-sum retirement
25benefit under Section 16-136.4 of this Article is not a
26"teacher" for purposes of this Article.

 

 

09800SB0001sam003- 28 -LRB098 05457 JDS 43663 a

1(Source: P.A. 97-651, eff. 1-5-12; revised 8-3-12.)
 
2    (40 ILCS 5/16-107.1 new)
3    Sec. 16-107.1. Tier I employee. "Tier I employee": An
4employee under this Article (i) who first became a member or
5participant before January 1, 2011 under any reciprocal
6retirement system or pension fund established under this Code
7other than a retirement system or pension fund established
8under Article 2, 3, 4, 5, 6, or 18 of this Code and (ii) who has
9not made an irrevocable election on or before January 1, 2013
10to retire from service pursuant to the terms of a collective
11bargaining agreement in effect on that date, excluding any
12extension, amendment, or renewal of that agreement on or after
13that date.
 
14    (40 ILCS 5/16-107.2 new)
15    Sec. 16-107.2. Tier I retiree. "Tier I retiree": A former
16Tier I employee who is receiving a retirement annuity.
 
17    (40 ILCS 5/16-121)  (from Ch. 108 1/2, par. 16-121)
18    Sec. 16-121. Salary. "Salary": The actual compensation
19received by a teacher during any school year and recognized by
20the system in accordance with rules of the board. For purposes
21of this Section, "school year" includes the regular school term
22plus any additional period for which a teacher is compensated
23and such compensation is recognized by the rules of the board.

 

 

09800SB0001sam003- 29 -LRB098 05457 JDS 43663 a

1    Notwithstanding any other provision of this Section,
2"salary" does not include any future increase in income offered
3by an employer under this Article pursuant to the requirements
4of subsection (c) of Section 16-122.9 that is accepted by a
5Tier I employee who has made an election under paragraph (2) of
6subsection (a) of Section 16-122.9.
7(Source: P.A. 84-1028.)
 
8    (40 ILCS 5/16-121.1 new)
9    Sec. 16-121.1. Future increase in income. "Future increase
10in income": Any increase in income in any form offered by an
11employer to a teacher under this Article after the end of the
12election period in Section 16-122.9 that would qualify as
13"salary", as defined in Section 16-121, but for the fact that
14the employer offered the increase in income to the employee on
15the condition that it not qualify as salary and the employee
16accepted the increase in income subject to that condition. The
17term "future increase in income" does not include an increase
18in income in any form that is paid to a Tier I employee under an
19employment contract or collective bargaining agreement that is
20in effect on the effective date of this Section but does
21include an increase in income in any form pursuant to an
22extension, amendment, or renewal of any such employment
23contract or collective bargaining agreement on or after the
24effective date of this amendatory Act of the 98th General
25Assembly.
 

 

 

09800SB0001sam003- 30 -LRB098 05457 JDS 43663 a

1    (40 ILCS 5/16-122.9 new)
2    Sec. 16-122.9. Election by Tier I employees.
3    (a) Each Tier I employee shall make an irrevocable election
4either:
5        (1) to agree to the following:
6            (i) to have the amount of the automatic annual
7        increases in his or her retirement annuity that are
8        otherwise provided for in this Article calculated,
9        instead, as provided in subsection (a-1) of Section
10        16-133.1 or subsection (b-1) of Section 16-136.1,
11        whichever is applicable; and
12            (ii) to have his or her eligibility for automatic
13        annual increases in retirement annuity postponed as
14        provided in subsection (a-2) of Section 16-133.1 or
15        subsection (b-2) of Section 16-136.1, whichever is
16        applicable; or
17        (2) to not agree to items (i) and (ii) as set forth in
18    paragraph (1) of this subsection.
19    The election required under this subsection (a) shall be
20made by each Tier I employee no earlier than January 1, 2014
21and no later than May 31, 2014, except that:
22        (i) a person who becomes a Tier I employee under this
23    Article after January 1, 2014 must make the election under
24    this subsection (a) within 60 days after becoming a Tier I
25    employee; and

 

 

09800SB0001sam003- 31 -LRB098 05457 JDS 43663 a

1        (ii) a person who returns to active service as a Tier I
2    employee under this Article, including a Tier I retiree
3    returning to service as a Tier I employee, after January 1,
4    2014 and has not yet made an election under this Section
5    must make the election under this subsection (a) within 60
6    days after returning to active service as a Tier I
7    employee.
8    If a Tier I employee fails for any reason to make a
9required election under this subsection within the time
10specified, then the employee shall be deemed to have made the
11election under paragraph (2) of this subsection.
12    (a-10) All elections under subsection (a) that are made or
13deemed to be made by June 1, 2014 shall take effect July 1,
142014. Elections that are made or deemed to be on or after June
151, 2014 shall take effect on the first day of the month
16following the month in which the election is made or deemed to
17be made.
18    (b) As adequate and legal consideration provided under this
19amendatory Act of the 98th General Assembly for making the
20election under paragraph (1) of subsection (a) of this Section,
21any future increases in income offered by an employer under
22this Article to a Tier I employee who has made the election
23under paragraph (1) of subsection (a) of this Section shall be
24offered expressly and irrevocably as constituting salary under
25Section 16-121. In addition, a Tier I employee who has made the
26election under paragraph (1) of subsection (a) of this Section

 

 

09800SB0001sam003- 32 -LRB098 05457 JDS 43663 a

1shall receive the right to also participate in the optional
2cash balance plan established under Section 1-162. Finally, a
3Tier I employee, other than a Tier I retiree returning to
4active service as a Tier I employee, who has made the election
5under paragraph (1) of subsection (a) of this Section shall
6receive the right to the early retirement without discount
7option under Section 16-133.6.
8    (c) A Tier I employee who makes the election under
9paragraph (2) of subsection (a) of this Section shall not be
10subject to items (i) and (ii) set forth in paragraph (1) of
11subsection (a) of this Section. However, any future increases
12in income offered by an employer under this Article to a Tier I
13employee who has made the election under paragraph (2) of
14subsection (a) of this Section shall be offered by the employer
15expressly and irrevocably as not constituting salary under
16Section 16-121, and the employee may not accept any future
17increase in income that is offered in violation of this
18requirement. In addition, a Tier I employee who has made the
19election under paragraph (2) of subsection (a) of this Section
20shall not receive the right to participate in the optional cash
21balance plan established under Section 1-162. Finally, a Tier I
22employee who has made the election under paragraph (2) of
23subsection (a) of this Section shall not receive the right to
24the early retirement without discount option under Section
2516-133.6.
26    (d) The System shall make a good faith effort to contact

 

 

09800SB0001sam003- 33 -LRB098 05457 JDS 43663 a

1each Tier I employee subject to this Section. The System shall
2mail information describing the required election to each Tier
3I employee by United States Postal Service mail to his or her
4last known address on file with the System. If the Tier I
5employee is not responsive to other means of contact, it is
6sufficient for the System to publish the details of any
7required elections on its website or to publish those details
8in a regularly published newsletter or other existing public
9forum.
10    Tier I employees who are subject to this Section shall be
11provided with an election packet containing information
12regarding their options, as well as the forms necessary to make
13the required election. Upon request, the System shall offer
14Tier I employees an opportunity to receive information from the
15System before making the required election. The information may
16consist of video materials, group presentations, individual
17consultation with a member or authorized representative of the
18System in person or by telephone or other electronic means, or
19any combination of those methods. The System shall not provide
20advice or counseling with respect to which election a Tier I
21employee should make or specific to the legal or tax
22circumstances of or consequences to the Tier I employee.
23    The System shall inform Tier I employees in the election
24packet required under this subsection that the Tier I employee
25may also wish to obtain information and counsel relating to the
26election required under this Section from any other available

 

 

09800SB0001sam003- 34 -LRB098 05457 JDS 43663 a

1source, including but not limited to labor organizations and
2private counsel.
3    In no event shall the System, its staff, or the Board be
4held liable for any information given to a member, beneficiary,
5or annuitant regarding the elections under this Section. The
6System shall coordinate with the Illinois Department of Central
7Management Services and each other retirement system
8administering an election in accordance with this amendatory
9Act of the 98th General Assembly to provide information
10concerning the impact of the election set forth in this
11Section.
12    (e) Notwithstanding any other provision of law, an employer
13under this Article is required to offer any future increases in
14income expressly and irrevocably as not constituting "salary"
15under Section 16-121 to any Tier I employee who has made an
16election under paragraph (2) of subsection (a) of Section
1716-122.9. A Tier I employee who has made an election under
18paragraph (2) of subsection (a) of Section 16-122.9 shall not
19accept any future increase in income that is offered by an
20employer under this Article in violation of the requirement set
21forth in this subsection.
22    (f) A member's election under this Section is not a
23prohibited election under subdivision (j)(1) of Section 1-119
24of this Code.
25    (g) An employee who has made the election under paragraph
26(1) of subsection (a) of this Section may elect to participate

 

 

09800SB0001sam003- 35 -LRB098 05457 JDS 43663 a

1in the optional cash balance plan under Section 1-162.
2    The election to participate in the optional cash balance
3plan shall be made in writing, in the manner provided by the
4applicable retirement system.
5    (h) No provision of this Section shall be interpreted in a
6way that would cause the System to cease to be a qualified plan
7under Section 401(a) of the Internal Revenue Code of 1986.
8    (i) If this Section is determined to be unconstitutional or
9otherwise invalid by a final unappealable decision of an
10Illinois court or a court of competent jurisdiction as applied
11to Tier I employees but not as applied to Tier I retirees
12returning to active service, then this Section and the changes
13deriving from the election required under this Section shall be
14null and void as applied to Tier I employees but shall remain
15in full effect for Tier I retirees returning to active service.
16    (j) If this Section is determined to be unconstitutional or
17otherwise invalid by a final unappealable decision of an
18Illinois court or a court of competent jurisdiction as applied
19to Tier I retirees returning to active service but not as
20applied to Tier I employees, then this Section and the changes
21deriving from the election required under this Section shall be
22null and void as applied to Tier I retirees returning to active
23service but shall remain in full effect for Tier I employees.
 
24    (40 ILCS 5/16-127)  (from Ch. 108 1/2, par. 16-127)
25    Sec. 16-127. Computation of creditable service.

 

 

09800SB0001sam003- 36 -LRB098 05457 JDS 43663 a

1    (a) Each member shall receive regular credit for all
2service as a teacher from the date membership begins, for which
3satisfactory evidence is supplied and all contributions have
4been paid.
5    (b) The following periods of service shall earn optional
6credit and each member shall receive credit for all such
7service for which satisfactory evidence is supplied and all
8contributions have been paid as of the date specified:
9        (1) Prior service as a teacher.
10        (2) Service in a capacity essentially similar or
11    equivalent to that of a teacher, in the public common
12    schools in school districts in this State not included
13    within the provisions of this System, or of any other
14    State, territory, dependency or possession of the United
15    States, or in schools operated by or under the auspices of
16    the United States, or under the auspices of any agency or
17    department of any other State, and service during any
18    period of professional speech correction or special
19    education experience for a public agency within this State
20    or any other State, territory, dependency or possession of
21    the United States, and service prior to February 1, 1951 as
22    a recreation worker for the Illinois Department of Public
23    Safety, for a period not exceeding the lesser of 2/5 of the
24    total creditable service of the member or 10 years. The
25    maximum service of 10 years which is allowable under this
26    paragraph shall be reduced by the service credit which is

 

 

09800SB0001sam003- 37 -LRB098 05457 JDS 43663 a

1    validated by other retirement systems under paragraph (i)
2    of Section 15-113 and paragraph 1 of Section 17-133. Credit
3    granted under this paragraph may not be used in
4    determination of a retirement annuity or disability
5    benefits unless the member has at least 5 years of
6    creditable service earned subsequent to this employment
7    with one or more of the following systems: Teachers'
8    Retirement System of the State of Illinois, State
9    Universities Retirement System, and the Public School
10    Teachers' Pension and Retirement Fund of Chicago. Whenever
11    such service credit exceeds the maximum allowed for all
12    purposes of this Article, the first service rendered in
13    point of time shall be considered. The changes to this
14    subdivision (b)(2) made by Public Act 86-272 shall apply
15    not only to persons who on or after its effective date
16    (August 23, 1989) are in service as a teacher under the
17    System, but also to persons whose status as such a teacher
18    terminated prior to such effective date, whether or not
19    such person is an annuitant on that date.
20        (3) Any periods immediately following teaching
21    service, under this System or under Article 17, (or
22    immediately following service prior to February 1, 1951 as
23    a recreation worker for the Illinois Department of Public
24    Safety) spent in active service with the military forces of
25    the United States; periods spent in educational programs
26    that prepare for return to teaching sponsored by the

 

 

09800SB0001sam003- 38 -LRB098 05457 JDS 43663 a

1    federal government following such active military service;
2    if a teacher returns to teaching service within one
3    calendar year after discharge or after the completion of
4    the educational program, a further period, not exceeding
5    one calendar year, between time spent in military service
6    or in such educational programs and the return to
7    employment as a teacher under this System; and a period of
8    up to 2 years of active military service not immediately
9    following employment as a teacher.
10        The changes to this Section and Section 16-128 relating
11    to military service made by P.A. 87-794 shall apply not
12    only to persons who on or after its effective date are in
13    service as a teacher under the System, but also to persons
14    whose status as a teacher terminated prior to that date,
15    whether or not the person is an annuitant on that date. In
16    the case of an annuitant who applies for credit allowable
17    under this Section for a period of military service that
18    did not immediately follow employment, and who has made the
19    required contributions for such credit, the annuity shall
20    be recalculated to include the additional service credit,
21    with the increase taking effect on the date the System
22    received written notification of the annuitant's intent to
23    purchase the credit, if payment of all the required
24    contributions is made within 60 days of such notice, or
25    else on the first annuity payment date following the date
26    of payment of the required contributions. In calculating

 

 

09800SB0001sam003- 39 -LRB098 05457 JDS 43663 a

1    the automatic annual increase for an annuity that has been
2    recalculated under this Section, the increase attributable
3    to the additional service allowable under P.A. 87-794 shall
4    be included in the calculation of automatic annual
5    increases accruing after the effective date of the
6    recalculation.
7        Credit for military service shall be determined as
8    follows: if entry occurs during the months of July, August,
9    or September and the member was a teacher at the end of the
10    immediately preceding school term, credit shall be granted
11    from July 1 of the year in which he or she entered service;
12    if entry occurs during the school term and the teacher was
13    in teaching service at the beginning of the school term,
14    credit shall be granted from July 1 of such year. In all
15    other cases where credit for military service is allowed,
16    credit shall be granted from the date of entry into the
17    service.
18        The total period of military service for which credit
19    is granted shall not exceed 5 years for any member unless
20    the service: (A) is validated before July 1, 1964, and (B)
21    does not extend beyond July 1, 1963. Credit for military
22    service shall be granted under this Section only if not
23    more than 5 years of the military service for which credit
24    is granted under this Section is used by the member to
25    qualify for a military retirement allotment from any branch
26    of the armed forces of the United States. The changes to

 

 

09800SB0001sam003- 40 -LRB098 05457 JDS 43663 a

1    this subdivision (b)(3) made by Public Act 86-272 shall
2    apply not only to persons who on or after its effective
3    date (August 23, 1989) are in service as a teacher under
4    the System, but also to persons whose status as such a
5    teacher terminated prior to such effective date, whether or
6    not such person is an annuitant on that date.
7        (4) Any periods served as a member of the General
8    Assembly.
9        (5)(i) Any periods for which a teacher, as defined in
10    Section 16-106, is granted a leave of absence, provided he
11    or she returns to teaching service creditable under this
12    System or the State Universities Retirement System
13    following the leave; (ii) periods during which a teacher is
14    involuntarily laid off from teaching, provided he or she
15    returns to teaching following the lay-off; (iii) periods
16    prior to July 1, 1983 during which a teacher ceased covered
17    employment due to pregnancy, provided that the teacher
18    returned to teaching service creditable under this System
19    or the State Universities Retirement System following the
20    pregnancy and submits evidence satisfactory to the Board
21    documenting that the employment ceased due to pregnancy;
22    and (iv) periods prior to July 1, 1983 during which a
23    teacher ceased covered employment for the purpose of
24    adopting an infant under 3 years of age or caring for a
25    newly adopted infant under 3 years of age, provided that
26    the teacher returned to teaching service creditable under

 

 

09800SB0001sam003- 41 -LRB098 05457 JDS 43663 a

1    this System or the State Universities Retirement System
2    following the adoption and submits evidence satisfactory
3    to the Board documenting that the employment ceased for the
4    purpose of adopting an infant under 3 years of age or
5    caring for a newly adopted infant under 3 years of age.
6    However, total credit under this paragraph (5) may not
7    exceed 3 years.
8        Any qualified member or annuitant may apply for credit
9    under item (iii) or (iv) of this paragraph (5) without
10    regard to whether service was terminated before the
11    effective date of this amendatory Act of 1997. In the case
12    of an annuitant who establishes credit under item (iii) or
13    (iv), the annuity shall be recalculated to include the
14    additional service credit. The increase in annuity shall
15    take effect on the date the System receives written
16    notification of the annuitant's intent to purchase the
17    credit, if the required evidence is submitted and the
18    required contribution paid within 60 days of that
19    notification, otherwise on the first annuity payment date
20    following the System's receipt of the required evidence and
21    contribution. The increase in an annuity recalculated
22    under this provision shall be included in the calculation
23    of automatic annual increases in the annuity accruing after
24    the effective date of the recalculation.
25        Optional credit may be purchased under this subsection
26    (b)(5) for periods during which a teacher has been granted

 

 

09800SB0001sam003- 42 -LRB098 05457 JDS 43663 a

1    a leave of absence pursuant to Section 24-13 of the School
2    Code. A teacher whose service under this Article terminated
3    prior to the effective date of P.A. 86-1488 shall be
4    eligible to purchase such optional credit. If a teacher who
5    purchases this optional credit is already receiving a
6    retirement annuity under this Article, the annuity shall be
7    recalculated as if the annuitant had applied for the leave
8    of absence credit at the time of retirement. The difference
9    between the entitled annuity and the actual annuity shall
10    be credited to the purchase of the optional credit. The
11    remainder of the purchase cost of the optional credit shall
12    be paid on or before April 1, 1992.
13        The change in this paragraph made by Public Act 86-273
14    shall be applicable to teachers who retire after June 1,
15    1989, as well as to teachers who are in service on that
16    date.
17        (6) Any days of unused and uncompensated accumulated
18    sick leave earned by a teacher who first became a
19    participant in the System before the effective date of this
20    amendatory Act of the 98th General Assembly. The service
21    credit granted under this paragraph shall be the ratio of
22    the number of unused and uncompensated accumulated sick
23    leave days to 170 days, subject to a maximum of 2 years of
24    service credit. Prior to the member's retirement, each
25    former employer shall certify to the System the number of
26    unused and uncompensated accumulated sick leave days

 

 

09800SB0001sam003- 43 -LRB098 05457 JDS 43663 a

1    credited to the member at the time of termination of
2    service. The period of unused sick leave shall not be
3    considered in determining the effective date of
4    retirement. A member is not required to make contributions
5    in order to obtain service credit for unused sick leave.
6        Credit for sick leave shall, at retirement, be granted
7    by the System for any retiring regional or assistant
8    regional superintendent of schools who first became a
9    participant in this System before the effective date of
10    this amendatory Act of the 98th General Assembly at the
11    rate of 6 days per year of creditable service or portion
12    thereof established while serving as such superintendent
13    or assistant superintendent.
14    Service credit is not available for unused sick leave
15accumulated by a teacher who first becomes a participant in
16this System on or after the effective date of this amendatory
17Act of the 98th General Assembly.
18        (7) Periods prior to February 1, 1987 served as an
19    employee of the Illinois Mathematics and Science Academy
20    for which credit has not been terminated under Section
21    15-113.9 of this Code.
22        (8) Service as a substitute teacher for work performed
23    prior to July 1, 1990.
24        (9) Service as a part-time teacher for work performed
25    prior to July 1, 1990.
26        (10) Up to 2 years of employment with Southern Illinois

 

 

09800SB0001sam003- 44 -LRB098 05457 JDS 43663 a

1    University - Carbondale from September 1, 1959 to August
2    31, 1961, or with Governors State University from September
3    1, 1972 to August 31, 1974, for which the teacher has no
4    credit under Article 15. To receive credit under this item
5    (10), a teacher must apply in writing to the Board and pay
6    the required contributions before May 1, 1993 and have at
7    least 12 years of service credit under this Article.
8    (b-1) A member may establish optional credit for up to 2
9years of service as a teacher or administrator employed by a
10private school recognized by the Illinois State Board of
11Education, provided that the teacher (i) was certified under
12the law governing the certification of teachers at the time the
13service was rendered, (ii) applies in writing on or after
14August 1, 2009 and on or before August 1, 2012, (iii) supplies
15satisfactory evidence of the employment, (iv) completes at
16least 10 years of contributing service as a teacher as defined
17in Section 16-106, and (v) pays the contribution required in
18subsection (d-5) of Section 16-128. The member may apply for
19credit under this subsection and pay the required contribution
20before completing the 10 years of contributing service required
21under item (iv), but the credit may not be used until the item
22(iv) contributing service requirement has been met.
23    (c) The service credits specified in this Section shall be
24granted only if: (1) such service credits are not used for
25credit in any other statutory tax-supported public employee
26retirement system other than the federal Social Security

 

 

09800SB0001sam003- 45 -LRB098 05457 JDS 43663 a

1program; and (2) the member makes the required contributions as
2specified in Section 16-128. Except as provided in subsection
3(b-1) of this Section, the service credit shall be effective as
4of the date the required contributions are completed.
5    Any service credits granted under this Section shall
6terminate upon cessation of membership for any cause.
7    Credit may not be granted under this Section covering any
8period for which an age retirement or disability retirement
9allowance has been paid.
10(Source: P.A. 96-546, eff. 8-17-09.)
 
11    (40 ILCS 5/16-133.1)  (from Ch. 108 1/2, par. 16-133.1)
12    Sec. 16-133.1. Automatic annual increase in annuity.
13    (a) Each member with creditable service and retiring on or
14after August 26, 1969 is entitled to the automatic annual
15increases in annuity provided under this Section while
16receiving a retirement annuity or disability retirement
17annuity from the system.
18    An annuitant shall first be entitled to an initial increase
19under this Section on the January 1 next following the first
20anniversary of retirement, or January 1 of the year next
21following attainment of age 61, whichever is later. At such
22time, the system shall pay an initial increase determined as
23follows or as provided in subsections (a-1) and (a-2):
24        (1) 1.5% of the originally granted retirement annuity
25    or disability retirement annuity multiplied by the number

 

 

09800SB0001sam003- 46 -LRB098 05457 JDS 43663 a

1    of years elapsed, if any, from the date of retirement until
2    January 1, 1972, plus
3        (2) 2% of the originally granted annuity multiplied by
4    the number of years elapsed, if any, from the date of
5    retirement or January 1, 1972, whichever is later, until
6    January 1, 1978, plus
7        (3) 3% of the originally granted annuity multiplied by
8    the number of years elapsed from the date of retirement or
9    January 1, 1978, whichever is later, until the effective
10    date of the initial increase.
11However, the initial annual increase calculated under this
12Section for the recipient of a disability retirement annuity
13granted under Section 16-149.2 shall be reduced by an amount
14equal to the total of all increases in that annuity received
15under Section 16-149.5 (but not exceeding 100% of the amount of
16the initial increase otherwise provided under this Section).
17    Following the initial increase, automatic annual increases
18in annuity shall be payable on each January 1 thereafter during
19the lifetime of the annuitant, determined as a percentage of
20the originally granted retirement annuity or disability
21retirement annuity for increases granted prior to January 1,
221990, and calculated as a percentage of the total amount of
23annuity, including previous increases under this Section, for
24increases granted on or after January 1, 1990, as follows: 1.5%
25for periods prior to January 1, 1972, 2% for periods after
26December 31, 1971 and prior to January 1, 1978, and 3% for

 

 

09800SB0001sam003- 47 -LRB098 05457 JDS 43663 a

1periods after December 31, 1977, or as provided in subsections
2(a-1) and (a-2).
3    (a-1) Notwithstanding any other provision of this Article,
4for a Tier I employee who made the election under paragraph (1)
5of subsection (a) of Section 16-122.9, the amount of each
6automatic annual increase in retirement annuity occurring on or
7after the effective date of that election shall be 3% or
8one-half of the annual unadjusted percentage increase, if any,
9in the Consumer Price Index-U for the 12 months ending with the
10preceding September, whichever is less, of the originally
11granted retirement annuity. For the purposes of this Section,
12"Consumer Price Index-U" means the index published by the
13Bureau of Labor Statistics of the United States Department of
14Labor that measures the average change in prices of goods and
15services purchased by all urban consumers, United States city
16average, all items, 1982-84 = 100.
17    (a-2) Notwithstanding any other provision of this Article,
18for a Tier I employee who made the election under paragraph (1)
19of subsection (a) of Section 16-122.9, the monthly retirement
20annuity shall first be subject to annual increases on the
21January 1 occurring on or next after either the attainment of
22age 67 or the January 1 occurring on or next after the fifth
23anniversary of the annuity start date, whichever occurs
24earlier.
25    (b) The automatic annual increases in annuity provided
26under this Section shall not be applicable unless a member has

 

 

09800SB0001sam003- 48 -LRB098 05457 JDS 43663 a

1made contributions toward such increases for a period
2equivalent to one full year of creditable service. If a member
3contributes for service performed after August 26, 1969 but the
4member becomes an annuitant before such contributions amount to
5one full year's contributions based on the salary at the date
6of retirement, he or she may pay the necessary balance of the
7contributions to the system and be eligible for the automatic
8annual increases in annuity provided under this Section.
9    (c) Each member shall make contributions toward the cost of
10the automatic annual increases in annuity as provided under
11Section 16-152.
12    (d) An annuitant receiving a retirement annuity or
13disability retirement annuity on July 1, 1969, who subsequently
14re-enters service as a teacher is eligible for the automatic
15annual increases in annuity provided under this Section if he
16or she renders at least one year of creditable service
17following the latest re-entry.
18    (e) In addition to the automatic annual increases in
19annuity provided under this Section, an annuitant who meets the
20service requirements of this Section and whose retirement
21annuity or disability retirement annuity began on or before
22January 1, 1971 shall receive, on January 1, 1981, an increase
23in the annuity then being paid of one dollar per month for each
24year of creditable service. On January 1, 1982, an annuitant
25whose retirement annuity or disability retirement annuity
26began on or before January 1, 1977 shall receive an increase in

 

 

09800SB0001sam003- 49 -LRB098 05457 JDS 43663 a

1the annuity then being paid of one dollar per month for each
2year of creditable service.
3    On January 1, 1987, any annuitant whose retirement annuity
4began on or before January 1, 1977, shall receive an increase
5in the monthly retirement annuity equal to 8 per year of
6creditable service times the number of years that have elapsed
7since the annuity began.
8(Source: P.A. 91-927, eff. 12-14-00.)
 
9    (40 ILCS 5/16-133.6 new)
10    Sec. 16-133.6. Optional teacher early retirement without
11discount. A Tier I employee who makes an election under
12paragraph (1) of subsection (a) of Section 16-122.9, retires on
13or after July 1, 2014, and applies for a retirement annuity
14within 6 months of the last day of teaching for which
15retirement contributions were required may elect, at the time
16of application for a retirement annuity, to make a one-time
17member contribution to the System and, thereby, avoid the
18reduction in the retirement annuity for retirement before age
1960 specified in paragraph (B) of Section 16-133. The exercise
20of the election shall also obligate the last employer to make a
21one-time nonrefundable contribution to the System. Substitute
22teachers wishing to exercise this election must teach 85 or
23more days in one school term with one employer, who shall be
24deemed the last employer for purposes of this Section. The last
25day of teaching with that employer must be within 6 months of

 

 

09800SB0001sam003- 50 -LRB098 05457 JDS 43663 a

1the date of application for retirement. All substitute teaching
2credit applied toward the required 85 days must be earned after
3June 30, 1990.
4    The one-time member and employer contributions shall be a
5percentage of the cost of this benefit as determined by the
6System. However, when determining the one-time member and
7employer contributions, that part of a member's salary with the
8same employer which exceeds the annual salary rate for the
9preceding year by more than 20% shall be excluded. The member
10contribution shall be at the rate of 50% of the cost of the
11benefits as determined by the System. The employer contribution
12shall be at the rate of 50% of the cost of the benefits as
13determined by the System.
14    Upon receipt of the application and election, the System
15shall determine the one-time employee and employer
16contributions required. The member contribution shall be
17credited to the individual account of the member and the
18employer contribution shall be credited to the Benefit Trust
19Reserve. The avoidance of the reduction in retirement annuity
20provided under this Section is not applicable until the
21member's contribution, if any, has been received by the System;
22however, the date that contribution is received shall not be
23considered in determining the effective date of retirement.
24    The number of members working for a single employer who may
25retire under this Section in any year may be limited at the
26option of the employer to a specified percentage of those

 

 

09800SB0001sam003- 51 -LRB098 05457 JDS 43663 a

1eligible, not less than 10%, with the right to participate to
2be allocated among those applying on the basis of seniority in
3the service of the employer.
 
4    (40 ILCS 5/16-136.1)  (from Ch. 108 1/2, par. 16-136.1)
5    Sec. 16-136.1. Annual increase for certain annuitants.
6    (a) Any annuitant receiving a retirement annuity on June
730, 1969 and any member retiring after June 30, 1969 shall be
8eligible for the annual increases provided under this Section
9provided the annuitant is ineligible for the automatic annual
10increase in annuity provided under Section 16-133.1, and
11provided further that (1) retirement occurred at age 55 or over
12and was based on 5 or more years of creditable service or (2)
13if retirement occurred prior to age 55, the retirement annuity
14was based on 20 or more years of creditable service.
15    (b) Subject to the provisions of subsections (b-1) and
16(b-2), an An annuitant entitled to increases under this Section
17shall be entitled to the initial increase as of the later of:
18(1) January 1 following attainment of age 65, (2) January 1
19following the first anniversary of retirement, or (3) the first
20day of the month following receipt of the required qualifying
21contribution from the annuitant. The initial monthly increase
22shall be computed on the basis of the period elapsed between
23the later of the date of last retirement or attainment of age
2450 and the date of qualification for the initial increase, at
25the rate of 1 1/2% of the original monthly retirement annuity

 

 

09800SB0001sam003- 52 -LRB098 05457 JDS 43663 a

1per year for periods prior to September 1, 1971, and at the
2rate of 2% per year for periods between September 1, 1971 and
3September 1, 1978, and at the rate of 3% per year for periods
4thereafter.
5    Subject to the provisions of subsections (b-1) and (b-2),
6an An annuitant who has received an initial increase under this
7Section, shall be entitled, on each January 1 following the
8granting of the initial increase, to an increase of 3% of the
9original monthly retirement annuity for increases granted
10prior to January 1, 1990, and equal to 3% of the total annuity,
11including previous increases under this Section, for increases
12granted on or after January 1, 1990. The original monthly
13retirement annuity for computations under this subsection (b)
14shall be considered to be $83.34 for any annuitant entitled to
15benefits under Section 16-134. The minimum original disability
16retirement annuity for computations under this subsection (b)
17shall be considered to be $33.34 per month for any annuitant
18retired on account of disability.
19    (b-1) Notwithstanding any other provision of this Article,
20for a Tier I employee who made the election under paragraph (1)
21of subsection (a) of Section 16-122.9, the amount of each
22automatic annual increase in retirement annuity occurring on or
23after the effective date of that election shall be 3% or
24one-half of the annual unadjusted percentage increase, if any,
25in the Consumer Price Index-U for the 12 months ending with the
26preceding September, whichever is less, of the originally

 

 

09800SB0001sam003- 53 -LRB098 05457 JDS 43663 a

1granted retirement annuity. For the purposes of this Section,
2"Consumer Price Index-U" means the index published by the
3Bureau of Labor Statistics of the United States Department of
4Labor that measures the average change in prices of goods and
5services purchased by all urban consumers, United States city
6average, all items, 1982-84 = 100.
7    (b-2) Notwithstanding any other provision of this Article,
8for a Tier I employee who made the election under paragraph (1)
9of subsection (a) of Section 16-122.9, the monthly retirement
10annuity shall first be subject to annual increases on the
11January 1 occurring on or next after either the attainment of
12age 67 or the January 1 occurring on or next after the fifth
13anniversary of the annuity start date, whichever occurs
14earlier.
15    (c) An annuitant who otherwise qualifies for annual
16increases under this Section must make a one-time payment of 1%
17of the monthly final average salary for each full year of the
18creditable service forming the basis of the retirement annuity
19or, if the retirement annuity was not computed using final
20average salary, 1% of the original monthly retirement annuity
21for each full year of service forming the basis of the
22retirement annuity.
23    (d) In addition to other increases which may be provided by
24this Section, regardless of creditable service, annuitants not
25meeting the service requirements of Section 16-133.1 and whose
26retirement annuity began on or before January 1, 1971 shall

 

 

09800SB0001sam003- 54 -LRB098 05457 JDS 43663 a

1receive, on January 1, 1981, an increase in the retirement
2annuity then being paid of one dollar per month for each year
3of creditable service forming the basis of the retirement
4allowance. On January 1, 1982, annuitants whose retirement
5annuity began on or before January 1, 1977, shall receive an
6increase in the retirement annuity then being paid of one
7dollar per month for each year of creditable service.
8    On January 1, 1987, any annuitant whose retirement annuity
9began on or before January 1, 1977, shall receive an increase
10in the monthly retirement annuity equal to 8 per year of
11creditable service times the number of years that have elapsed
12since the annuity began.
13(Source: P.A. 86-273.)
 
14    (40 ILCS 5/16-152)  (from Ch. 108 1/2, par. 16-152)
15    Sec. 16-152. Contributions by members.
16    (a) Each member shall make contributions for membership
17service to this System as follows:
18        (1) Effective July 1, 1998, contributions of 7.50% of
19    salary towards the cost of the retirement annuity. Such
20    contributions shall be deemed "normal contributions".
21        (2) Effective July 1, 1969, contributions of 1/2 of 1%
22    of salary toward the cost of the automatic annual increase
23    in retirement annuity provided under Section 16-133.1.
24        (3) Effective July 24, 1959, contributions of 1% of
25    salary towards the cost of survivor benefits. Such

 

 

09800SB0001sam003- 55 -LRB098 05457 JDS 43663 a

1    contributions shall not be credited to the individual
2    account of the member and shall not be subject to refund
3    except as provided under Section 16-143.2.
4        (4) Effective July 1, 2005, contributions of 0.40% of
5    salary toward the cost of the early retirement without
6    discount option provided under Section 16-133.2. This
7    contribution shall cease upon termination of the early
8    retirement without discount option as provided in Section
9    16-176.
10    (a-1) In addition to the contributions required under
11subsection (a), a member who elects to participate in the
12optional cash balance plan under Section 1-162 shall pay to the
13System for the purpose of participating in the optional cash
14balance plan a contribution of 2% of each payment of
15compensation received while he or she is a participant in the
16optional cash balance plan. These contributions shall not be
17used for the purpose of determining any benefit under this
18Article except as provided in the optional cash balance plan.
19    (b) The minimum required contribution for any year of
20full-time teaching service shall be $192.
21    (c) Contributions shall not be required of any annuitant
22receiving a retirement annuity who is given employment as
23permitted under Section 16-118 or 16-150.1.
24    (d) A person who (i) was a member before July 1, 1998, (ii)
25retires with more than 34 years of creditable service, and
26(iii) does not elect to qualify for the augmented rate under

 

 

09800SB0001sam003- 56 -LRB098 05457 JDS 43663 a

1Section 16-129.1 shall be entitled, at the time of retirement,
2to receive a partial refund of contributions made under this
3Section for service occurring after the later of June 30, 1998
4or attainment of 34 years of creditable service, in an amount
5equal to 1.00% of the salary upon which those contributions
6were based.
7    (e) A member's contributions toward the cost of early
8retirement without discount made under item (a)(4) of this
9Section shall not be refunded if the member has elected early
10retirement without discount under Section 16-133.2 and has
11begun to receive a retirement annuity under this Article
12calculated in accordance with that election. Otherwise, a
13member's contributions toward the cost of early retirement
14without discount made under item (a)(4) of this Section shall
15be refunded according to whichever one of the following
16circumstances occurs first:
17        (1) The contributions shall be refunded to the member,
18    without interest, within 120 days after the member's
19    retirement annuity commences, if the member does not elect
20    early retirement without discount under Section 16-133.2.
21        (2) The contributions shall be included, without
22    interest, in any refund claimed by the member under Section
23    16-151.
24        (3) The contributions shall be refunded to the member's
25    designated beneficiary (or if there is no beneficiary, to
26    the member's estate), without interest, if the member dies

 

 

09800SB0001sam003- 57 -LRB098 05457 JDS 43663 a

1    without having begun to receive a retirement annuity under
2    this Article.
3        (4) The contributions shall be refunded to the member,
4    without interest, within 120 days after the early
5    retirement without discount option provided under Section
6    16-133.2 is terminated under Section 16-176.
7(Source: P.A. 93-320, eff. 7-23-03; 94-4, eff. 6-1-05.)
 
8    (40 ILCS 5/16-158.2 new)
9    Sec. 16-158.2. Obligations of State; funding guarantee. If
10at least 30% of Tier I employees making an election under
11Section 16-122.9 before June 1, 2014 choose the option under
12paragraph (1) of subsection (a) of that Section, then the State
13shall be contractually obligated to contribute to the System in
14each State fiscal year an amount not less than the sum required
15in Section 16-158 as that Section existed prior to the
16effective date of this amendatory Act of the 98th General
17Assembly notwithstanding the changes made to Section 16-158 by
18Part A of this amendatory Act of the 98th General Assembly.
19    If at least 30% of Tier I employees making an election
20under Section 16-122.9 before June 1, 2014 choose the option
21under paragraph (1) of subsection (a) of that Section, then the
22State shall be contractually obligated for purposes of this
23Article 16 only (i) to make the transfer identified in
24subsection (c-10) of Section 20 of the Budget Stabilization
25Act, (ii) to apportion the amounts transferred pursuant to

 

 

09800SB0001sam003- 58 -LRB098 05457 JDS 43663 a

1subsection (c-10) of Section 20 of the Budget Stabilization Act
2in accordance with subsection (b) of Section 25 of that Act,
3(iii) to pay the apportioned amounts to the designated
4retirement systems, and (iv) not to use the amounts transferred
5pursuant to subsection (c-10) of Section 20 of the Budget
6Stabilization Act to satisfy any portion of the required State
7contributions due under Article 2, 14, 15, 16, or 18 of the
8Illinois Pension Code.
9    The obligations created under this Section are contractual
10obligations protected and enforceable under Article I, Section
1116 and Article XIII, Section 5 of the Illinois Constitution.
12    Notwithstanding any other provision of law, if the State
13fails to pay in a State fiscal year the amount guaranteed under
14this Section, the System may bring a mandamus action in the
15Circuit Court of Sangamon County to compel the State to make
16that payment, irrespective of other remedies that may be
17available to the System. It shall be the mandatory fiduciary
18obligation of the Board of the System to bring that action if
19the State fails to pay in the fiscal year the amount guaranteed
20under this Section. Before commencing that action, the Board
21shall submit a voucher for monthly contributions as required in
22Section 16-158. If the State fails to pay a vouchered amount
23within 90 days after receiving a voucher for that amount, then
24the Board shall submit a written request to the Comptroller
25seeking payment of that amount. A copy of the request shall be
26filed with the Secretary of State, and the Secretary of State

 

 

09800SB0001sam003- 59 -LRB098 05457 JDS 43663 a

1shall provide copies of the request to the Governor and General
2Assembly. No earlier than the 16th day after filing a request
3with the Secretary, but no later than the 21st day after filing
4that request, the Board may commence such an action in the
5Circuit Court. If the Board fails to commence such action on or
6before the 21st day after filing the request with the Secretary
7of State, then any Tier I employee or Tier I retiree who chose
8the option under paragraph (1) of subsection (a) or (a-5) of
9Section 16-122.9 may file a mandamus action against the Board
10to compel the Board to commence its mandamus action against the
11State. This Section constitutes an express waiver of the
12State's sovereign immunity. In ordering the State to make the
13required payment, the court may order a reasonable payment
14schedule to enable the State to make the required payment. The
15obligations and causes of action created under this subsection
16shall be in addition to any other right or remedy otherwise
17accorded by common law, or State or federal law, and nothing in
18this subsection shall be construed to deny, abrogate, impair,
19or waive any such common law or statutory right or remedy.
20    Any payments required to be made by the State pursuant to
21this Section are expressly subordinated to the payment of the
22principal, interest, and premium, if any, on any bonded debt
23obligation of the State or any other State-created entity,
24either currently outstanding or to be issued, for which the
25source of repayment or security thereon is derived directly or
26indirectly from tax revenues collected by the State or any

 

 

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1other State-created entity. Payments on such bonded
2obligations include any statutory fund transfers or other
3prefunding mechanisms or formulas set forth, now or hereafter,
4in State law or bond indentures, into debt service funds or
5accounts of the State related to such bonded obligations,
6consistent with the payment schedules associated with such
7obligations.
 
8    (40 ILCS 5/16-203)
9    Sec. 16-203. Application and expiration of new benefit
10increases.
11    (a) As used in this Section, "new benefit increase" means
12an increase in the amount of any benefit provided under this
13Article, or an expansion of the conditions of eligibility for
14any benefit under this Article, that results from an amendment
15to this Code that takes effect after June 1, 2005 (the
16effective date of Public Act 94-4). "New benefit increase",
17however, does not include any benefit increase resulting from
18the changes made to this Article by Public Act 95-910 or this
19amendatory Act of the 98th 95th General Assembly.
20    (b) Notwithstanding any other provision of this Code or any
21subsequent amendment to this Code, every new benefit increase
22is subject to this Section and shall be deemed to be granted
23only in conformance with and contingent upon compliance with
24the provisions of this Section.
25    (c) The Public Act enacting a new benefit increase must

 

 

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1identify and provide for payment to the System of additional
2funding at least sufficient to fund the resulting annual
3increase in cost to the System as it accrues.
4    Every new benefit increase is contingent upon the General
5Assembly providing the additional funding required under this
6subsection. The Commission on Government Forecasting and
7Accountability shall analyze whether adequate additional
8funding has been provided for the new benefit increase and
9shall report its analysis to the Public Pension Division of the
10Department of Financial and Professional Regulation. A new
11benefit increase created by a Public Act that does not include
12the additional funding required under this subsection is null
13and void. If the Public Pension Division determines that the
14additional funding provided for a new benefit increase under
15this subsection is or has become inadequate, it may so certify
16to the Governor and the State Comptroller and, in the absence
17of corrective action by the General Assembly, the new benefit
18increase shall expire at the end of the fiscal year in which
19the certification is made.
20    (d) Every new benefit increase shall expire 5 years after
21its effective date or on such earlier date as may be specified
22in the language enacting the new benefit increase or provided
23under subsection (c). This does not prevent the General
24Assembly from extending or re-creating a new benefit increase
25by law.
26    (e) Except as otherwise provided in the language creating

 

 

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1the new benefit increase, a new benefit increase that expires
2under this Section continues to apply to persons who applied
3and qualified for the affected benefit while the new benefit
4increase was in effect and to the affected beneficiaries and
5alternate payees of such persons, but does not apply to any
6other person, including without limitation a person who
7continues in service after the expiration date and did not
8apply and qualify for the affected benefit while the new
9benefit increase was in effect.
10(Source: P.A. 94-4, eff. 6-1-05; 95-910, eff. 8-26-08.)
 
11    Section 50. The School Code is amended by changing Sections
1224-1 and 24-8 as follows:
 
13    (105 ILCS 5/24-1)  (from Ch. 122, par. 24-1)
14    Sec. 24-1. Appointment-Salaries-Payment-School
15month-School term.) School boards shall appoint all teachers,
16determine qualifications of employment and fix the amount of
17their salaries subject to any limitation set forth in this Act
18and subject to any applicable restrictions in Section 16-122.9
19of the Illinois Pension Code. They shall pay the wages of
20teachers monthly, subject, however, to the provisions of
21Section 24-21. The school month shall be the same as the
22calendar month but by resolution the school board may adopt for
23its use a month of 20 days, including holidays. The school term
24shall consist of at least the minimum number of pupil

 

 

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1attendance days required by Section 10-19, any additional legal
2school holidays, days of teachers' institutes, or equivalent
3professional educational experiences, and one or two days at
4the beginning of the school term when used as a teachers'
5workshop.
6(Source: P.A. 80-249.)
 
7    (105 ILCS 5/24-8)  (from Ch. 122, par. 24-8)
8    Sec. 24-8. Minimum salary. In fixing the salaries of
9teachers, school boards shall pay those who serve on a
10full-time basis not less than a rate for the school year that
11is based upon training completed in a recognized institution of
12higher learning, as follows: for the school year beginning July
131, 1980 and thereafter, less than a bachelor's degree, $9,000;
14120 semester hours or more and a bachelor's degree, $10,000;
15150 semester hours or more and a master's degree, $11,000.
16    Based upon previous public school experience in this State
17or any other State, territory, dependency or possession of the
18United States, or in schools operated by or under the auspices
19of the United States, teachers who serve on a full-time basis
20shall have their salaries increased to at least the following
21amounts above the starting salary for a teacher in such
22district in the same classification: with less than a
23bachelor's degree, $750 after 5 years; with 120 semester hours
24or more and a bachelor's degree, $1,000 after 5 years and
25$1,600 after 8 years; with 150 semester hours or more and a

 

 

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1master's degree, $1,250 after 5 years, $2,000 after 8 years and
2$2,750 after 13 years. However, any salary increase is subject
3to any applicable restrictions in Section 16-122.9 of the
4Illinois Pension Code.
5    For the purpose of this Section a teacher's salary shall
6include any amount paid by the school district on behalf of the
7teacher, as teacher contributions, to the Teachers' Retirement
8System of the State of Illinois.
9    If a school board establishes a schedule for teachers'
10salaries based on education and experience, not inconsistent
11with this Section, all certificated nurses employed by that
12board shall be paid in accordance with the provisions of such
13schedule (subject to any applicable restrictions in Section
1416-122.9 of the Illinois Pension Code).
15    For purposes of this Section, a teacher who submits a
16certificate of completion to the school office prior to the
17first day of the school term shall be considered to have the
18degree stated in such certificate.
19(Source: P.A. 83-913.)
 
20    Section 60. The Illinois Educational Labor Relations Act is
21amended by changing Sections 4 and 17 as follows:
 
22    (115 ILCS 5/4)  (from Ch. 48, par. 1704)
23    Sec. 4. Employer rights. Employers shall not be required to
24bargain over matters of inherent managerial policy, which shall

 

 

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1include such areas of discretion or policy as the functions of
2the employer, standards of services, its overall budget, the
3organizational structure and selection of new employees and
4direction of employees. Employers, however, shall be required
5to bargain collectively with regard to policy matters directly
6affecting wages (but subject to any applicable restrictions in
7Section 16-122.9 of the Illinois Pension Code), hours and terms
8and conditions of employment as well as the impact thereon upon
9request by employee representatives, but excluding the
10changes, the impact of changes, and the implementation of the
11changes set forth in this amendatory Act of the 98th General
12Assembly. To preserve the rights of employers and exclusive
13representatives which have established collective bargaining
14relationships or negotiated collective bargaining agreements
15prior to the effective date of this Act, employers shall be
16required to bargain collectively with regard to any matter
17concerning wages (but subject to any applicable restrictions in
18Section 16-122.9 of the Illinois Pension Code), hours or
19conditions of employment about which they have bargained for
20and agreed to in a collective bargaining agreement prior to the
21effective date of this Act, but excluding the changes, the
22impact of changes, and the implementation of the changes set
23forth in this amendatory Act of the 98th General Assembly.
24(Source: P.A. 83-1014.)
 
25    (115 ILCS 5/17)  (from Ch. 48, par. 1717)

 

 

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1    Sec. 17. Effect on other laws. In case of any conflict
2between the provisions of this Act and any other law (other
3than Section 16-122.9 of the Illinois Pension Code), executive
4order or administrative regulation, the provisions of this Act
5shall prevail and control. The provisions of this Act are
6subject to any applicable restrictions in Section 16-122.9 of
7the Illinois Pension Code, as well as the changes, impact of
8changes, and implementation of changes set forth in this
9amendatory Act of the 98th General Assembly. Nothing in this
10Act shall be construed to replace or diminish the rights of
11employees established by Section 36d of "An Act to create the
12State Universities Civil Service System", approved May 11,
131905, as amended or modified.
14(Source: P.A. 83-1014.)
 
15    Section 99. Effective date. This Act takes effect upon
16becoming law.".