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92_HB4506ham002
LRB9215750EGfgam04
1 AMENDMENT TO HOUSE BILL 4506
2 AMENDMENT NO. . Amend House Bill 4506 by replacing
3 the title with the following:
4 "AN ACT in relation to public employee benefits."; and
5 by replacing everything after the enacting clause with the
6 following:
7 "Section 5. The Illinois Pension Code is amended by
8 changing Sections 17-106, 17-119.1, 17-121, 17-134, and
9 17-149 as follows:
10 (40 ILCS 5/17-106) (from Ch. 108 1/2, par. 17-106)
11 Sec. 17-106. Contributor, member or teacher.
12 "Contributor", "member" or "teacher": All members of the
13 teaching force of the city, including principals, assistant
14 principals, the general superintendent of schools, deputy
15 superintendents of schools, associate superintendents of
16 schools, assistant and district superintendents of schools,
17 members of the Board of Examiners, all other persons whose
18 employment requires a teaching certificate issued under the
19 laws governing the certification of teachers, any
20 educational, administrative, professional, or other staff
21 employed in a charter school operating in compliance with the
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1 Charter Schools Law who is certified under the law governing
2 the certification of teachers, and employees of the Board,
3 but excluding persons contributing concurrently to any other
4 public employee pension system in Illinois for the same
5 employment or receiving retirement pensions under another
6 Article of this Code for that same employment, persons
7 employed on an hourly basis, and persons receiving pensions
8 from the Fund who are employed temporarily by an Employer for
9 150 days or less in any school year and not on an annual
10 basis.
11 In the case of a person who has been making contributions
12 and otherwise participating in this Fund prior to the
13 effective date of this amendatory Act of the 91st General
14 Assembly, and whose right to participate in the Fund is
15 established or confirmed by this amendatory Act, such prior
16 participation in the Fund, including all contributions
17 previously made and service credits previously earned by the
18 person, are hereby validated.
19 The changes made to this Section and Section 17-149 by
20 this amendatory Act of the 92nd General Assembly apply
21 without regard to whether the person was in service on or
22 after the effective date of this amendatory Act,
23 notwithstanding Sections 1-103.1 and 17-157.
24 (Source: P.A. 91-887, eff. 7-6-00; 92-416, eff. 8-17-01.)
25 (40 ILCS 5/17-119.1)
26 Sec. 17-119.1. Optional increase in retirement annuity.
27 (a) A member of the Fund may qualify for the augmented
28 rate under subdivision (b)(3) of Section 17-116 for all years
29 of creditable service earned before July 1, 1998 by making
30 the optional contribution specified in subsection (b); except
31 that a member who retires on or after July 1, 1998 with at
32 least 30 years of creditable service at retirement qualifies
33 for the augmented rate without making any contribution under
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1 subsection (b). Any member who retires on or after July 1,
2 1998 and before the effective date of this amendatory Act of
3 the 92nd General Assembly with at least 30 years of
4 creditable service shall be paid a lump sum equal to the
5 amount he or she would have received under the augmented rate
6 minus the amount he or she actually received. A member may
7 not elect to qualify for the augmented rate for only a
8 portion of his or her creditable service earned before July
9 1, 1998.
10 (b) The contribution shall be an amount equal to 1.0% of
11 the member's highest salary rate in the 4 consecutive school
12 years immediately prior to but not including the school year
13 in which the application occurs, multiplied by the number of
14 years of creditable service earned by the member before July
15 1, 1998 or 20, whichever is less. This contribution shall be
16 reduced by 1.0% of that salary rate for every 3 full years of
17 creditable service earned by the member after June 30, 1998.
18 The contribution shall be further reduced at the rate of 25%
19 of the contribution (as reduced for service after June 30,
20 1998) for each year of the member's total creditable service
21 in excess of 34 years. The contribution shall not in any
22 event exceed 20% of that salary rate.
23 The member shall pay to the Fund the amount of the
24 contribution as calculated at the time of application under
25 this Section. The amount of the contribution determined
26 under this subsection shall be recalculated at the time of
27 retirement, and if the Fund determines that the amount paid
28 by the member exceeds the recalculated amount, the Fund shall
29 refund the difference to the member with regular interest
30 from the date of payment to the date of refund.
31 The contribution required by this subsection shall be
32 paid in one of the following ways or in a combination of the
33 following ways that does not extend over more than 5 years:
34 (i) in a lump sum on or before the date of
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1 retirement;
2 (ii) in substantially equal installments over a
3 period of time not to exceed 5 years, as a deduction from
4 salary in accordance with Section 17-130.2;
5 (iii) if the member becomes an annuitant before
6 June 30, 2003, in substantially equal monthly
7 installments over a 24-month period, by a deduction from
8 the annuitant's monthly benefit.
9 (c) If the member fails to make the full contribution
10 under this Section in a timely fashion, the payments made
11 under this Section shall be refunded to the member, without
12 interest. If the member dies before making the full
13 contribution, the payments made under this Section shall be
14 refunded to the member's designated beneficiary.
15 (d) For purposes of this Section and subsection (b) of
16 Section 17-116, optional creditable service established by a
17 member shall be deemed to have been earned at the time of the
18 employment or other qualifying event upon which the service
19 is based, rather than at the time the credit was established
20 in this Fund.
21 (e) The contributions required under this Section are
22 the responsibility of the teacher and not the teacher's
23 employer. However, an employer of teachers may 3ay, after
24 the effective date of this amendatory Act of 1998,
25 specifically agree, through collective bargaining or
26 otherwise, to make the contributions required by this Section
27 on behalf of those teachers.
28 (Source: P.A. 91-17, eff. 6-4-99; 92-416, eff. 8-17-01;
29 revised 10-4-01.)
30 (40 ILCS 5/17-121) (from Ch. 108 1/2, par. 17-121)
31 Sec. 17-121. Survivor's and Children's pensions -
32 Eligibility.
33 (a) A surviving spouse of a teacher shall be entitled to
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1 a survivor's pension only if the surviving spouse he was
2 married to the teacher contributor for at least one year
3 1 1/2 years immediately prior to the teacher's his death or
4 retirement, whichever first occurs, and also on the date of
5 the last termination of his service.
6 The changes made to this subsection (a) by this
7 amendatory Act of the 92nd General Assembly apply (i) only to
8 the surviving spouse of a person who dies on or after the
9 effective date of this amendatory Act, and only if the amount
10 of any refund of contributions for survivor's pension is
11 repaid with interest in accordance with subsection (f), and
12 (ii) notwithstanding Section 17-157 and without regard to
13 whether the deceased person was in service on or after the
14 effective date of this amendatory Act.
15 (b) If the surviving spouse is under age 50 and there
16 are no eligible minor children born to or legally adopted by
17 the contributor and his or her surviving spouse, payment of
18 the survivor's pension shall begin when the surviving spouse
19 attains age 50.
20 (c) Beginning January 1, 2003, the remarriage of a
21 surviving spouse at any age does not terminate his or her
22 survivor's pension.
23 A surviving spouse whose survivor's pension (or
24 expectation of a survivor's pension upon attainment of age
25 50) was terminated before January 1, 2003 due to remarriage
26 and who applies for reinstatement of that pension and repays
27 the amount of any refund of contributions for survivor's
28 pension with interest in accordance subsection (f) shall be
29 entitled to have the survivor's pension (or expectation of a
30 survivor's pension upon attainment of age 50) reinstated.
31 The reinstated pension shall begin to accrue on the first day
32 of the month following the month in which the application and
33 repayment, if any, are received by the Fund, but in no event
34 sooner than January 1, 2003 and, if subsection (b) applies,
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1 no sooner than upon attainment of age 50. The reinstated
2 pension shall include any one-time or annual increases in the
3 survivor's pension received prior to the date of termination,
4 but not any increases that would otherwise have accrued from
5 the date of termination to the date of reinstatement.
6 This subsection (c) applies notwithstanding Section
7 17-157 and without regard to whether the deceased teacher was
8 in service on or after the effective date of this amendatory
9 Act of the 92nd General Assembly.
10 (d) Except as provided in subsection (c), remarriage of
11 the surviving spouse prior to September 1, 1983 while in
12 receipt of a survivor's pension shall permanently terminate
13 payment thereof, regardless of any subsequent change in
14 marital status; however, beginning September 1, 1983,
15 remarriage of a surviving spouse after attainment of age 55
16 shall not terminate the survivor's pension.
17 A surviving spouse whose pension was terminated on or
18 after September 1, 1983 due to remarriage after attainment of
19 age 55, and who applies for reinstatement of that pension
20 before January 1, 1990, shall be entitled to have the pension
21 reinstated effective January 1, 1990.
22 (e) A surviving spouse of a member or annuitant under
23 this Fund who is also a dependent beneficiary under the
24 provisions of Section 16-140 is eligible for a reciprocal
25 survivor's pension, provided that any refund of survivor's
26 pension contributions is repaid to the Fund and application
27 is made within 30 days after the effective date of this
28 amendatory Act of the 92nd General Assembly.
29 (f) If a refund of contributions for survivor's pension
30 has been paid, a person choosing to establish or reestablish
31 the right to receive a survivor's pension pursuant to the
32 changes made to this Section by this amendatory Act of the
33 92nd General Assembly must first repay to the Fund the amount
34 of the refund of contributions for survivor's pension,
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1 together with interest thereon at the rate of 5% per year,
2 compounded annually, from the date of the refund to the date
3 of repayment.
4 (Source: P.A. 92-416, eff. 8-17-01.)
5 (40 ILCS 5/17-134) (from Ch. 108 1/2, par. 17-134)
6 Sec. 17-134. Contributions for leaves of absence;
7 military service; computing service. In computing service
8 for pension purposes the following periods of service shall
9 stand in lieu of a like number of years of teaching service
10 upon payment therefor in the manner hereinafter provided: (a)
11 time spent on a leave sabbatical leaves of absence granted by
12 the employer, sick leaves or maternity or paternity leaves;
13 (b) service with teacher or labor organizations based upon
14 special leaves of absence therefor granted by an Employer;
15 (c) a maximum of 5 years spent in the military service of the
16 United States, of which up to 2 years may have been served
17 outside the pension period; (d) unused sick days at
18 termination of service to a maximum of 244 days; (e) time
19 lost due to layoff and curtailment of the school term from
20 June 6 through June 21, 1976; and (f) time spent after June
21 30, 1982 as a member of the Board of Education, if required
22 to resign from an administrative or teaching position in
23 order to qualify as a member of the Board of Education.
24 (1) For time spent on or after September 6, 1948 on
25 sabbatical leaves of absence or sick leaves, for which
26 salaries are paid, an Employer shall make payroll
27 deductions at the applicable rates in effect during such
28 periods.
29 (2) For time spent on a leave of absence granted by
30 the employer sabbatical or sick leaves commencing on or
31 after September 1, 1961, and for time spent on maternity
32 or paternity leaves, for which no salaries are paid,
33 teachers desiring credit therefor shall pay the required
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1 contributions at the rates in effect during such periods
2 as though they were in teaching service. If an Employer
3 pays salary for vacations which occur during a teacher's
4 sick leave or maternity or paternity leave without
5 salary, vacation pay for which the teacher would have
6 qualified while in active service shall be considered
7 part of the teacher's total salary for pension purposes.
8 No more than 36 12 months of sick leave or maternity or
9 paternity leave credit may be allowed any person during
10 the entire term of service. Sabbatical leave credit
11 shall be limited to the time the person on leave without
12 salary under an Employer's rules is allowed to engage in
13 an activity for which he receives salary or compensation.
14 (3) For time spent prior to September 6, 1948, on
15 sabbatical leaves of absence or sick leaves for which
16 salaries were paid, teachers desiring service credit
17 therefor shall pay the required contributions at the
18 maximum applicable rates in effect during such periods.
19 (4) For service with teacher or labor organizations
20 authorized by special leaves of absence, for which no
21 payroll deductions are made by an Employer, teachers
22 desiring service credit therefor shall contribute to the
23 Fund upon the basis of the actual salary received from
24 such organizations at the percentage rates in effect
25 during such periods for certified positions with such
26 Employer. To the extent the actual salary exceeds the
27 regular salary, which shall be defined as the salary
28 rate, as calculated by the Board, in effect for the
29 teacher's regular position in teaching service on
30 September 1, 1983 or on the effective date of the leave
31 with the organization, whichever is later, the
32 organization shall pay to the Fund the employer's normal
33 cost as set by the Board on the increment.
34 (5) For time spent in the military service,
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1 teachers entitled to and desiring credit therefor shall
2 contribute the amount required for each year of service
3 or fraction thereof at the rates in force (a) at the date
4 oF appointment, or (b) on return to teaching service as a
5 regularly certified teacher, as the case may be; provided
6 such rates shall not be less than $450 per year of
7 service. These conditions shall apply unless an Employer
8 elects to and does pay into the Fund the amount which
9 would have been due from such person had he been employed
10 as a teacher during such time. In the case of credit for
11 military service not during the pension period, the
12 teacher must also pay to the Fund an amount determined by
13 the Board to be equal to the employer's normal cost of
14 the benefits accrued from such service, plus interest
15 thereon at 5% per year, compounded annually, from the
16 date of appointment to the date of payment.
17 The changes to this Section made by Public Act
18 87-795 shall apply not only to persons who on or after
19 its effective date are in service under the Fund, but
20 also to persons whose status as a teacher terminated
21 prior to that date, whether or not the person is an
22 annuitant on that date. In the case of an annuitant who
23 applies for credit allowable under this Section for a
24 period of military service that did not immediately
25 follow employment, and who has made the required
26 contributions for such credit, the annuity shall be
27 recalculated to include the additional service credit,
28 with the increase taking effect on the date the Fund
29 received written notification of the annuitant's intent
30 to purchase the credit, if payment of all the required
31 contributions is made within 60 days of such notice, or
32 else on the first annuity payment date following the date
33 of payment of the required contributions. In calculating
34 the automatic annual increase for an annuity that has
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1 been recalculated under this Section, the increase
2 attributable to the additional service allowable under
3 this amendatory Act of 1991 shall be included in the
4 calculation of automatic annual increases accruing after
5 the effective date of the recalculation.
6 The total credit for military service shall not
7 exceed 5 years, except that any teacher who on July 1,
8 1963, had validated credit for more than 5 years of
9 military service shall be entitled to the total amount of
10 such credit.
11 (6) A maximum of 244 unused sick days credited to
12 his account by an Employer on the date of termination of
13 employment. Members, upon verification of unused sick
14 days, may add this service time to total creditable
15 service.
16 (7) In all cases where time spent on leave is
17 creditable and no payroll deductions therefor are made by
18 an Employer, persons desiring service credit shall make
19 the required contributions directly to the Fund.
20 (8) For time lost without pay due to layoff and
21 curtailment of the school term from June 6 through June
22 21, 1976, as provided in item (e) of the first paragraph
23 of this Section, persons who were contributors on the
24 days immediately preceding such layoff shall receive
25 credit upon paying to the Fund a contribution based on
26 the rates of compensation and employee contributions in
27 effect at the time of such layoff, together with an
28 additional amount equal to 12.2% of the compensation
29 computed for such period of layoff, plus interest on the
30 entire amount at 5% per annum from January 1, 1978 to the
31 date of payment. If such contribution is paid, salary
32 for pension purposes for any year in which such a layoff
33 occurred shall include the compensation recognized for
34 purposes of computing that contribution.
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1 (9) For time spent after June 30, 1982, as a
2 nonsalaried member of the Board of Education, if required
3 to resign from an administrative or teaching position in
4 order to qualify as a member of the Board of Education,
5 an administrator or teacher desiring credit therefor
6 shall pay the required contributions at the rates and
7 salaries in effect during such periods as though the
8 member were in service.
9 Effective September 1, 1974, the interest charged for
10 validation of service described in paragraphs (2) through (5)
11 of this Section shall be compounded annually at a rate of 5%
12 commencing one year after the termination of the leave or
13 return to service.
14 (Source: P.A. 90-32, eff. 6-27-97; 90-566, eff. 1-2-98.)
15 (40 ILCS 5/17-149) (from Ch. 108 1/2, par. 17-149)
16 Sec. 17-149. Cancellation of pensions.
17 (a) If any person receiving a service or disability
18 retirement pension from the Fund is re-employed as a teacher
19 by an Employer, the pension shall be cancelled on the date
20 the re-employment begins, or on the first day of a payroll
21 period for which service credit was validated, whichever is
22 earlier.
23 (b) If any person receiving a service retirement pension
24 from the Fund is re-employed as a teacher on a permanent or
25 annual basis by an Employer, the pension shall be cancelled
26 on the date the re-employment begins, or on the first day of
27 a payroll period for which service credit was validated,
28 whichever is earlier. However, the pension shall not be
29 cancelled in the case of a service retirement pensioner who
30 is temporarily re-employed on a temporary and non-annual
31 basis for not more than 150 days during any school year or on
32 an hourly basis., provided the pensioner does not receive
33 salary in any school year of an amount more than that payable
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1 to a substitute teacher for 150 days' employment. A service
2 retirement pensioner who is temporarily re-employed for not
3 more than 150 days during any school year or on an hourly
4 basis shall be entitled, at the end of the school year, to a
5 refund of any contributions made to the Fund during that
6 school year.
7 If the pensioner does receive salary from an Employer in
8 any school year for more than 150 days' employment, the
9 pensioner shall be deemed to have returned to service on the
10 first day of employment as a pensioner-substitute. The
11 pensioner shall reimburse the Fund for pension payments
12 received after the return to service and shall pay to the
13 Fund the participant's contributions prescribed in Section
14 17-130 of this Article.
15 (c) If the date of re-employment on a permanent or
16 annual basis occurs within 5 school months after the date of
17 previous retirement, exclusive of any vacation period, the
18 member shall be deemed to have been out of service only
19 temporarily and not permanently retired. Such person shall
20 be entitled to pension payments for the time he could have
21 been employed as a teacher and received salary, but shall not
22 be entitled to pension for or during the summer vacation
23 prior to his return to service.
24 When the member again retires on pension, the time of
25 service and the money contributed by him during re-employment
26 shall be added to the time and money previously credited.
27 Such person must acquire 3 consecutive years of additional
28 contributing service before he may retire again on a pension
29 at a rate and under conditions other than those in force or
30 attained at the time of his previous retirement.
31 (d) Notwithstanding Sections 1-103.1 and 17-157, the
32 changes to this Section made by Public this amendatory Act
33 90-32 of 1997 shall apply without regard to whether
34 termination of service occurred before the effective date of
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1 that this amendatory Act and shall apply retroactively to
2 August 23, 1989.
3 Notwithstanding Sections 1-103.1 and 17-157, the changes
4 to this Section and Section 17-106 made by this amendatory
5 Act of the 92nd General Assembly apply without regard to
6 whether termination of service occurred before the effective
7 date of this amendatory Act.
8 (Source: P.A. 92-416, eff. 8-17-01.)
9 Section 90. The State Mandates Act is amended by adding
10 Section 8.26 as follows:
11 (30 ILCS 805/8.26 new)
12 Sec. 8.26. Exempt mandate. Notwithstanding Sections 6
13 and 8 of this Act, no reimbursement by the State is required
14 for the implementation of any mandate created by this
15 amendatory Act of the 92nd General Assembly.
16 Section 99. Effective date. This Act takes effect upon
17 becoming law.".