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92_HB1688
LRB9204647LDpr
1 AN ACT in relation to public employee benefits.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The Illinois Pension Code is amended by
5 changing Sections 16-127, 16-128, and 17-133 as follows:
6 (40 ILCS 5/16-127) (from Ch. 108 1/2, par. 16-127)
7 Sec. 16-127. Computation of creditable service.
8 (a) Each member shall receive regular credit for all
9 service as a teacher from the date membership begins, for
10 which satisfactory evidence is supplied and all contributions
11 have been paid.
12 (b) The following periods of service shall earn optional
13 credit and each member shall receive credit for all such
14 service for which satisfactory evidence is supplied and all
15 contributions have been paid as of the date specified:
16 (1) Prior service as a teacher.
17 (2) Service in a capacity essentially similar or
18 equivalent to that of a teacher, in the public common
19 schools in school districts in this State not included
20 within the provisions of this System, or of any other
21 State, territory, dependency or possession of the United
22 States, or in schools operated by or under the auspices
23 of the United States, or under the auspices of any agency
24 or department of any other State, and service during any
25 period of professional speech correction or special
26 education experience for a public agency within this
27 State or any other State, territory, dependency or
28 possession of the United States, and service prior to
29 February 1, 1951 as a recreation worker for the Illinois
30 Department of Public Safety, for a period not exceeding
31 the lesser of 2/5 of the total creditable service of the
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1 member or 10 years. The maximum service of 10 years
2 which is allowable under this paragraph shall be reduced
3 by the service credit which is validated by other
4 retirement systems under paragraph (i) of Section 15-113
5 and paragraph 1 of Section 17-133. Credit granted under
6 this paragraph may not be used in determination of a
7 retirement annuity or disability benefits unless the
8 member has at least 5 years of creditable service earned
9 subsequent to this employment with one or more of the
10 following systems: Teachers' Retirement System of the
11 State of Illinois, State Universities Retirement System,
12 and the Public School Teachers' Pension and Retirement
13 Fund of Chicago. Whenever such service credit exceeds
14 the maximum allowed for all purposes of this Article, the
15 first service rendered in point of time shall be
16 considered. The changes to this subdivision (b)(2) made
17 by Public Act 86-272 shall apply not only to persons who
18 on or after its effective date (August 23, 1989) are in
19 service as a teacher under the System, but also to
20 persons whose status as such a teacher terminated prior
21 to such effective date, whether or not such person is an
22 annuitant on that date.
23 (3) Any periods immediately following teaching
24 service, under this System or under Article 17, (or
25 immediately following service prior to February 1, 1951
26 as a recreation worker for the Illinois Department of
27 Public Safety) spent in active service with the military
28 forces of the United States; periods spent in educational
29 programs that prepare for return to teaching sponsored by
30 the federal government following such active military
31 service; if a teacher returns to teaching service within
32 one calendar year after discharge or after the completion
33 of the educational program, a further period, not
34 exceeding one calendar year, between time spent in
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1 military service or in such educational programs and the
2 return to employment as a teacher under this System; and
3 a period of up to 2 years of active military service not
4 immediately following employment as a teacher.
5 The changes to this Section and Section 16-128
6 relating to military service made by P.A. 87-794 shall
7 apply not only to persons who on or after its effective
8 date are in service as a teacher under the System, but
9 also to persons whose status as a teacher terminated
10 prior to that date, whether or not the person is an
11 annuitant on that date. In the case of an annuitant who
12 applies for credit allowable under this Section for a
13 period of military service that did not immediately
14 follow employment, and who has made the required
15 contributions for such credit, the annuity shall be
16 recalculated to include the additional service credit,
17 with the increase taking effect on the date the System
18 received written notification of the annuitant's intent
19 to purchase the credit, if payment of all the required
20 contributions is made within 60 days of such notice, or
21 else on the first annuity payment date following the date
22 of payment of the required contributions. In calculating
23 the automatic annual increase for an annuity that has
24 been recalculated under this Section, the increase
25 attributable to the additional service allowable under
26 P.A. 87-794 shall be included in the calculation of
27 automatic annual increases accruing after the effective
28 date of the recalculation.
29 Credit for military service shall be determined as
30 follows: if entry occurs during the months of July,
31 August, or September and the member was a teacher at the
32 end of the immediately preceding school term, credit
33 shall be granted from July 1 of the year in which he or
34 she entered service; if entry occurs during the school
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1 term and the teacher was in teaching service at the
2 beginning of the school term, credit shall be granted
3 from July 1 of such year. In all other cases where credit
4 for military service is allowed, credit shall be granted
5 from the date of entry into the service.
6 The total period of military service for which
7 credit is granted shall not exceed 5 years for any member
8 unless the service: (A) is validated before July 1,
9 1964, and (B) does not extend beyond July 1, 1963.
10 Credit for military service shall be granted under this
11 Section only if not more than 5 years of the military
12 service for which credit is granted under this Section is
13 used by the member to qualify for a military retirement
14 allotment from any branch of the armed forces of the
15 United States. The changes to this subdivision (b)(3)
16 made by Public Act 86-272 shall apply not only to persons
17 who on or after its effective date (August 23, 1989) are
18 in service as a teacher under the System, but also to
19 persons whose status as such a teacher terminated prior
20 to such effective date, whether or not such person is an
21 annuitant on that date.
22 (4) Any periods served as a member of the General
23 Assembly.
24 (5)(i) Any periods for which a teacher, as defined
25 in Section 16-106, is granted a leave of absence,
26 provided he or she returns to teaching service creditable
27 under this System or the State Universities Retirement
28 System following the leave; (ii) periods during which a
29 teacher is involuntarily laid off from teaching, provided
30 he or she returns to teaching following the lay-off;
31 (iii) periods prior to July 1, 1983 during which a
32 teacher ceased covered employment due to pregnancy,
33 provided that the teacher returned to teaching service
34 creditable under this System or the State Universities
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1 Retirement System following the pregnancy and submits
2 evidence satisfactory to the Board documenting that the
3 employment ceased due to pregnancy; and (iv) periods
4 prior to July 1, 1983 during which a teacher ceased
5 covered employment for the purpose of adopting an infant
6 under 3 years of age or caring for a newly adopted infant
7 under 3 years of age, provided that the teacher returned
8 to teaching service creditable under this System or the
9 State Universities Retirement System following the
10 adoption and submits evidence satisfactory to the Board
11 documenting that the employment ceased for the purpose of
12 adopting an infant under 3 years of age or caring for a
13 newly adopted infant under 3 years of age. However,
14 total credit under this paragraph (5) may not exceed 3
15 years.
16 Any qualified member or annuitant may apply for
17 credit under item (iii) or (iv) of this paragraph (5)
18 without regard to whether service was terminated before
19 the effective date of this amendatory Act of 1997. In
20 the case of an annuitant who establishes credit under
21 item (iii) or (iv), the annuity shall be recalculated to
22 include the additional service credit. The increase in
23 annuity shall take effect on the date the System receives
24 written notification of the annuitant's intent to
25 purchase the credit, if the required evidence is
26 submitted and the required contribution paid within 60
27 days of that notification, otherwise on the first annuity
28 payment date following the System's receipt of the
29 required evidence and contribution. The increase in an
30 annuity recalculated under this provision shall be
31 included in the calculation of automatic annual increases
32 in the annuity accruing after the effective date of the
33 recalculation.
34 Optional credit may be purchased under this
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1 subsection (b)(5) for periods during which a teacher has
2 been granted a leave of absence pursuant to Section 24-13
3 of the School Code. A teacher whose service under this
4 Article terminated prior to the effective date of P.A.
5 86-1488 shall be eligible to purchase such optional
6 credit. If a teacher who purchases this optional credit
7 is already receiving a retirement annuity under this
8 Article, the annuity shall be recalculated as if the
9 annuitant had applied for the leave of absence credit at
10 the time of retirement. The difference between the
11 entitled annuity and the actual annuity shall be credited
12 to the purchase of the optional credit. The remainder of
13 the purchase cost of the optional credit shall be paid on
14 or before April 1, 1992.
15 The change in this paragraph made by Public Act
16 86-273 shall be applicable to teachers who retire after
17 June 1, 1989, as well as to teachers who are in service
18 on that date.
19 (6) Any days of unused and uncompensated
20 accumulated sick leave earned by a teacher. 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 one year
24 of service credit. Prior to the member's retirement,
25 each former employer shall certify to the System the
26 number of unused and uncompensated accumulated sick leave
27 days credited to the member at the time of termination of
28 service. The period of unused sick leave shall not be
29 considered in determining the effective date of
30 retirement. A member is not required to make
31 contributions in order to obtain service credit for
32 unused sick leave.
33 Credit for sick leave shall, at retirement, be
34 granted by the System for any retiring regional or
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1 assistant regional superintendent of schools at the rate
2 of 6 days per year of creditable service or portion
3 thereof established while serving as such superintendent
4 or assistant superintendent.
5 (7) Periods prior to February 1, 1987 served as an
6 employee of the Illinois Mathematics and Science Academy
7 for which credit has not been terminated under Section
8 15-113.9 of this Code.
9 (8) Service as a substitute teacher for work
10 performed prior to July 1, 1990.
11 (9) Service as a part-time teacher for work
12 performed prior to July 1, 1990.
13 (10) Up to 2 years of employment with Southern
14 Illinois University - Carbondale from September 1, 1959
15 to August 31, 1961, or with Governors State University
16 from September 1, 1972 to August 31, 1974, for which the
17 teacher has no credit under Article 15. To receive
18 credit under this item (10), a teacher must apply in
19 writing to the Board and pay the required contributions
20 before May 1, 1993 and have at least 12 years of service
21 credit under this Article.
22 (b-1) A member may establish optional credit for up to 3
23 years of service as a teacher or administrator employed by a
24 private school recognized by the Illinois State Board of
25 Education, provided that the teacher (i) was certified under
26 the law governing the certification of teachers at the time
27 the service was rendered, (ii) applies in writing on or
28 before June 1, 2004, (iii) supplies satisfactory evidence of
29 the employment, (iv) completes at least 5 years of
30 contributing service as a teacher as defined in Section
31 16-106, (v) pays the contribution required in subsection
32 (d-5) of Section 16-128, and (vi) does not receive credit for
33 that service under any other provision of this Code. The
34 member may apply for credit under this subsection and pay the
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1 required contribution before completing the 5 years of
2 contributing service required under item (iv), but the credit
3 may not be used until the item (iv) contributing service
4 requirement has been met.
5 (c) The service credits specified in this Section shall
6 be granted only if: (1) such service credits are not used for
7 credit in any other statutory tax-supported public employee
8 retirement system other than the federal Social Security
9 program; and (2) the member makes the required contributions
10 as specified in Section 16-128. Except as provided in
11 subsection (b-1) of this Section, the service credit shall be
12 effective as of the date the required contributions are
13 completed.
14 Any service credits granted under this Section shall
15 terminate upon cessation of membership for any cause.
16 Credit may not be granted under this Section covering any
17 period for which an age retirement or disability retirement
18 allowance has been paid.
19 (Source: P.A. 89-430, eff. 12-15-95; 90-32, eff. 6-27-97.)
20 (40 ILCS 5/16-128) (from Ch. 108 1/2, par. 16-128)
21 Sec. 16-128. Creditable service - required
22 contributions.
23 (a) In order to receive the creditable service specified
24 under subsection (b) of Section 16-127, a member is required
25 to make the following contributions: (i) an amount equal to
26 the contributions which would have been required had such
27 service been rendered as a member under this System; (ii) for
28 military service not immediately following employment and for
29 service established under subdivision (b)(10) of Section
30 16-127, an amount determined by the Board to be equal to the
31 employer's normal cost of the benefits accrued for such
32 service; and (iii) interest from the date the contributions
33 would have been due (or, in the case of a person establishing
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1 credit for military service under subdivision (b)(3) of
2 Section 16-127, the date of first membership in the System,
3 if that date is later) to the date of payment, at the
4 following rate of interest, compounded annually: for periods
5 prior to July 1, 1965, regular interest; from July 1, 1965 to
6 June 30, 1977, 4% per year; on and after July 1, 1977,
7 regular interest.
8 (b) In order to receive creditable service under
9 paragraph (2) of subsection (b) of Section 16-127 for those
10 who were not members on June 30, 1963, the minimum required
11 contribution shall be $420 per year of service together with
12 interest at 4% per year compounded annually from July 1,
13 preceding the date of membership until June 30, 1977 and at
14 regular interest compounded annually thereafter to the date
15 of payment.
16 (c) In determining the contribution required in order to
17 receive creditable service under paragraph (3) of subsection
18 (b) of Section 16-127, the salary rate for the remainder of
19 the school term in which a member enters military service
20 shall be assumed to be equal to the member's salary rate at
21 the time of entering military service. However, for military
22 service not immediately following employment, the salary rate
23 on the last date as a participating teacher prior to such
24 military service, or on the first date as a participating
25 teacher after such military service, whichever is greater,
26 shall be assumed to be equal to the member's salary rate at
27 the time of entering military service. For each school term
28 thereafter, the member's salary rate shall be assumed to be
29 5% higher than the salary rate in the previous school term.
30 (d) In determining the contribution required in order to
31 receive creditable service under paragraph (5) of subsection
32 (b) of Section 16-127, a member's salary rate during the
33 period for which credit is being established shall be assumed
34 to be equal to the member's last salary rate immediately
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1 preceding that period.
2 (d-5) For each year of service credit to be established
3 under subsection (b-1) of Section 16-127, a member is
4 required to contribute to the System (i) 16.5% of the annual
5 salary rate during the first year of full-time employment as
6 a teacher under this Article following the private school
7 service, plus (ii) interest thereon from the date of first
8 full-time employment as a teacher under this Article
9 following the private school service to the date of payment,
10 compounded annually, at the rate of 8.5% per year for periods
11 before the effective date of this amendatory Act of the 92nd
12 General Assembly, and for subsequent periods at a rate equal
13 to the System's actuarially assumed rate of return on
14 investments.
15 (e) The contributions required under this Section may be
16 made from the date the statement for such creditable service
17 is issued until retirement date. All such required
18 contributions must be made before any retirement annuity is
19 granted.
20 (Source: P.A. 89-430, eff. 12-15-95.)
21 (40 ILCS 5/17-133) (from Ch. 108 1/2, par. 17-133)
22 Sec. 17-133. Contributions for periods of outside and
23 other service.
24 (a) Regularly certified and appointed teachers who
25 desire to have the following described services credited for
26 pension purposes shall submit to the Board evidence thereof
27 and pay into the Fund the amounts prescribed herein:
28 1. For teaching service by a certified teacher in
29 the public schools of the several states or in schools
30 operated by or under the auspices of the United States, a
31 teacher shall pay the contributions at the rates in force
32 (a) on the date of appointment as a regularly certified
33 teacher after salary adjustments are completed, or (b) at
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1 the time of reappointment after salary adjustments are
2 completed, whichever is later, but not less than $450 per
3 year of service. Upon the Board's approval of such
4 service and the payment of the required contributions,
5 service credit of not more than 10 years shall be
6 granted.
7 2. For service as a playground instructor in public
8 school playgrounds, teachers shall pay the contributions
9 prescribed in this Article (a) at the time of
10 appointment, as a regularly certified teacher after
11 salary adjustments are completed, or (b) on return to
12 service as a full time regularly certified teacher, as
13 the case may be, provided such rates or amounts shall not
14 be less than $450 per year.
15 3. For service prior to September 1, 1955, in the
16 public schools of the City as a substitute, evening
17 school or temporary teacher, or for service as an
18 Americanization teacher prior to December 31, 1955,
19 teachers shall pay the contributions prescribed in this
20 Article (a) at the time of appointment, as a regularly
21 certified teacher after salary adjustments are completed,
22 (b) on return to service as a full time regularly
23 certified teacher, as the case may be, provided such
24 rates or amounts shall not be less than $450 per year;
25 and provided further that for teachers employed on or
26 after September 1, 1953, rates shall not include
27 contributions for widows' pensions if the service
28 described in this sub-paragraph 3 was rendered before
29 that date. Any teacher entitled to repay a refund of
30 contributions under Section 17-126 may validate service
31 described in this paragraph by payment of the amounts
32 prescribed herein, together with the repayment of the
33 refund, provided that if such creditable service was the
34 last service rendered in the public schools of the City
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1 and is not automatically reinstated by repayment of the
2 refund, the rates or amounts shall not be less than $450
3 per year.
4 4. For service after June 30, 1982 as a member of
5 the Board of Education, if required to resign from an
6 administrative or teaching position in order to qualify
7 as a member of the Board of Education.
8 5. For service during the 1986-87 school year as a
9 teacher on a special leave of absence with full loss of
10 salary, teaching for an agency under contract to the
11 Board of Education, if the teacher returned to employment
12 in September, 1987. For service under this item 5, the
13 teacher must pay the contributions at the rates in force
14 at the completion of the leave period.
15 6. For up to 3 years of service as a teacher or
16 administrator employed by a private school recognized by
17 the Illinois State Board of Education, provided that the
18 teacher (i) was certified under the law governing the
19 certification of teachers at the time the service was
20 rendered, (ii) applies in writing on or before June 1,
21 2004, (iii) supplies satisfactory evidence of the
22 employment, (iv) completes at least 5 years of
23 contributing service as a teacher as defined in Section
24 17-106, (v) pays the contribution required in this
25 Section, and (vi) does not receive credit for that
26 service under any other provision of this Code. The
27 member may apply for credit under this subsection and pay
28 the required contribution before completing the 5 years
29 of contributing service required under item (iv), but the
30 credit may not be used until the item (iv) contributing
31 service requirement has been met.
32 For each year of service credit to be established
33 under this subparagraph 5, a member is required to
34 contribute to the System (i) 16.5% of the annual salary
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1 rate during the first year of full-time employment as a
2 teacher under this Article following the private school
3 service, plus (ii) interest thereon from the date of
4 first full-time employment as a teacher under this
5 Article following the private school service to the date
6 of payment, compounded annually, at the rate of 8.0% per
7 year.
8 (b) For service described in sub-paragraphs 1, 2 and 3
9 of this Section, interest shall be charged beginning one year
10 after the effective date of appointment or reappointment.
11 Effective September 1, 1974, the interest rate to be
12 charged by the Fund on contributions provided in
13 sub-paragraphs 1, 2, 3 and 4 shall be 5% per annum compounded
14 annually.
15 (Source: P.A. 90-566, eff. 1-2-98; 91-887, eff. 7-6-00.)
16 Section 90. The State Mandates Act is amended by adding
17 Section 8.25 as follows:
18 (30 ILCS 805/8.25 new)
19 Sec. 8.25. Exempt mandate. Notwithstanding Sections 6
20 and 8 of this Act, no reimbursement by the State is required
21 for the implementation of any mandate created by this
22 amendatory Act of the 92nd General Assembly.
23 Section 99. Effective date. This Act takes effect upon
24 becoming law.