103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB0113

 

Introduced 1/24/2023, by Sen. Steve McClure

 

SYNOPSIS AS INTRODUCED:
 
40 ILCS 5/14-104  from Ch. 108 1/2, par. 14-104
40 ILCS 5/15-113  from Ch. 108 1/2, par. 15-113
40 ILCS 5/15-113.13 new
40 ILCS 5/16-127  from Ch. 108 1/2, par. 16-127
40 ILCS 5/16-128  from Ch. 108 1/2, par. 16-128

    Amends the State Employee, State Universities, and Downstate Teacher Articles of the Illinois Pension Code. Provides that a member may establish up to 5 years of creditable service for periods during which the participant rendered contractual services to any agency of the State, regardless of whether the services were rendered on a part-time or full-time basis if the member applies for the credit and makes a specified contribution. Provides that a member may not establish such service credit if the member has service credit in any other pension fund or retirement system under the Code during the period for which service credit is sought.


LRB103 26397 RPS 52760 b

 

 

A BILL FOR

 

SB0113LRB103 26397 RPS 52760 b

1    AN ACT concerning public employee benefits.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Pension Code is amended by
5changing Sections 14-104, 15-113, 16-127, and 16-128 and by
6adding Section 15-113.13 as follows:
 
7    (40 ILCS 5/14-104)  (from Ch. 108 1/2, par. 14-104)
8    Sec. 14-104. Service for which contributions permitted.
9Contributions provided for in this Section shall cover the
10period of service granted. Except as otherwise provided in
11this Section, the contributions shall be based upon the
12employee's compensation and contribution rate in effect on the
13date he last became a member of the System; provided that for
14all employment prior to January 1, 1969 the contribution rate
15shall be that in effect for a noncovered employee on the date
16he last became a member of the System. Except as otherwise
17provided in this Section, contributions permitted under this
18Section shall include regular interest from the date an
19employee last became a member of the System to the date of
20payment.
21    These contributions must be paid in full before retirement
22either in a lump sum or in installment payments in accordance
23with such rules as may be adopted by the board.

 

 

SB0113- 2 -LRB103 26397 RPS 52760 b

1    (a) Any member may make contributions as required in this
2Section for any period of service, subsequent to the date of
3establishment, but prior to the date of membership.
4    (b) Any employee who had been previously excluded from
5membership because of age at entry and subsequently became
6eligible may elect to make contributions as required in this
7Section for the period of service during which he was
8ineligible.
9    (c) An employee of the Department of Insurance who, after
10January 1, 1944 but prior to becoming eligible for membership,
11received salary from funds of insurance companies in the
12process of rehabilitation, liquidation, conservation or
13dissolution, may elect to make contributions as required in
14this Section for such service.
15    (d) Any employee who rendered service in a State office to
16which he was elected, or rendered service in the elective
17office of Clerk of the Appellate Court prior to the date he
18became a member, may make contributions for such service as
19required in this Section. Any member who served by appointment
20of the Governor under the Civil Administrative Code of
21Illinois and did not participate in this System may make
22contributions as required in this Section for such service.
23    (e) Any person employed by the United States government or
24any instrumentality or agency thereof from January 1, 1942
25through November 15, 1946 as the result of a transfer from
26State service by executive order of the President of the

 

 

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1United States shall be entitled to prior service credit
2covering the period from January 1, 1942 through December 31,
31943 as provided for in this Article and to membership service
4credit for the period from January 1, 1944 through November
515, 1946 by making the contributions required in this Section.
6A person so employed on January 1, 1944 but whose employment
7began after January 1, 1942 may qualify for prior service and
8membership service credit under the same conditions.
9    (f) An employee of the Department of Labor of the State of
10Illinois who performed services for and under the supervision
11of that Department prior to January 1, 1944 but who was
12compensated for those services directly by federal funds and
13not by a warrant of the Auditor of Public Accounts paid by the
14State Treasurer may establish credit for such employment by
15making the contributions required in this Section. An employee
16of the Department of Agriculture of the State of Illinois, who
17performed services for and under the supervision of that
18Department prior to June 1, 1963, but was compensated for
19those services directly by federal funds and not paid by a
20warrant of the Auditor of Public Accounts paid by the State
21Treasurer, and who did not contribute to any other public
22employee retirement system for such service, may establish
23credit for such employment by making the contributions
24required in this Section.
25    (g) Any employee who executed a waiver of membership
26within 60 days prior to January 1, 1944 may, at any time while

 

 

SB0113- 4 -LRB103 26397 RPS 52760 b

1in the service of a department, file with the board a
2rescission of such waiver. Upon making the contributions
3required by this Section, the member shall be granted the
4creditable service that would have been received if the waiver
5had not been executed.
6    (h) Until May 1, 1990, an employee who was employed on a
7full-time basis by a regional planning commission for at least
85 continuous years may establish creditable service for such
9employment by making the contributions required under this
10Section, provided that any credits earned by the employee in
11the commission's retirement plan have been terminated.
12    (i) Any person who rendered full time contractual services
13to the General Assembly as a member of a legislative staff may
14establish service credit for up to 8 years of such services by
15making the contributions required under this Section, provided
16that application therefor is made not later than July 1, 1991.
17    (j) By paying the contributions otherwise required under
18this Section, plus an amount determined by the Board to be
19equal to the employer's normal cost of the benefit plus
20interest, but with all of the interest calculated from the
21date the employee last became a member of the System or
22November 19, 1991, whichever is later, to the date of payment,
23an employee may establish service credit for a period of up to
244 years spent in active military service for which he does not
25qualify for credit under Section 14-105, provided that (1) he
26was not dishonorably discharged from such military service,

 

 

SB0113- 5 -LRB103 26397 RPS 52760 b

1and (2) the amount of service credit established by a member
2under this subsection (j), when added to the amount of
3military service credit granted to the member under subsection
4(b) of Section 14-105, shall not exceed 5 years. The change in
5the manner of calculating interest under this subsection (j)
6made by this amendatory Act of the 92nd General Assembly
7applies to credit purchased by an employee on or after its
8effective date and does not entitle any person to a refund of
9contributions or interest already paid. In compliance with
10Section 14-152.1 of this Act concerning new benefit increases,
11any new benefit increase as a result of the changes to this
12subsection (j) made by Public Act 95-483 is funded through the
13employee contributions provided for in this subsection (j).
14Any new benefit increase as a result of the changes made to
15this subsection (j) by Public Act 95-483 is exempt from the
16provisions of subsection (d) of Section 14-152.1.
17    (k) An employee who was employed on a full-time basis by
18the Illinois State's Attorneys Association Statewide Appellate
19Assistance Service LEAA-ILEC grant project prior to the time
20that project became the State's Attorneys Appellate Service
21Commission, now the Office of the State's Attorneys Appellate
22Prosecutor, an agency of State government, may establish
23creditable service for not more than 60 months service for
24such employment by making contributions required under this
25Section.
26    (l) By paying the contributions otherwise required under

 

 

SB0113- 6 -LRB103 26397 RPS 52760 b

1this Section, plus an amount determined by the Board to be
2equal to the employer's normal cost of the benefit plus
3interest, a member may establish service credit for periods of
4less than one year spent on authorized leave of absence from
5service, provided that (1) the period of leave began on or
6after January 1, 1982 and (2) any credit established by the
7member for the period of leave in any other public employee
8retirement system has been terminated. A member may establish
9service credit under this subsection for more than one period
10of authorized leave, and in that case the total period of
11service credit established by the member under this subsection
12may exceed one year. In determining the contributions required
13for establishing service credit under this subsection, the
14interest shall be calculated from the beginning of the leave
15of absence to the date of payment.
16    (l-5) By paying the contributions otherwise required under
17this Section, plus an amount determined by the Board to be
18equal to the employer's normal cost of the benefit plus
19interest, a member may establish service credit for periods of
20up to 2 years spent on authorized leave of absence from
21service, provided that during that leave the member
22represented or was employed as an officer or employee of a
23statewide labor organization that represents members of this
24System. In determining the contributions required for
25establishing service credit under this subsection, the
26interest shall be calculated from the beginning of the leave

 

 

SB0113- 7 -LRB103 26397 RPS 52760 b

1of absence to the date of payment.
2    (m) Any person who rendered contractual services to a
3member of the General Assembly as a worker in the member's
4district office may establish creditable service for up to 3
5years of those contractual services by making the
6contributions required under this Section. The System shall
7determine a full-time salary equivalent for the purpose of
8calculating the required contribution. To establish credit
9under this subsection, the applicant must apply to the System
10by March 1, 1998.
11    (n) Any person who rendered contractual services to a
12member of the General Assembly as a worker providing
13constituent services to persons in the member's district may
14establish creditable service for up to 8 years of those
15contractual services by making the contributions required
16under this Section. The System shall determine a full-time
17salary equivalent for the purpose of calculating the required
18contribution. To establish credit under this subsection, the
19applicant must apply to the System by March 1, 1998.
20    (o) A member who participated in the Illinois Legislative
21Staff Internship Program may establish creditable service for
22up to one year of that participation by making the
23contribution required under this Section. The System shall
24determine a full-time salary equivalent for the purpose of
25calculating the required contribution. Credit may not be
26established under this subsection for any period for which

 

 

SB0113- 8 -LRB103 26397 RPS 52760 b

1service credit is established under any other provision of
2this Code.
3    (p) By paying the contributions otherwise required under
4this Section, plus an amount determined by the Board to be
5equal to the employer's normal cost of the benefit plus
6interest, a member may establish service credit for a period
7of up to 8 years during which he or she was employed by the
8Visually Handicapped Managers of Illinois in a vending program
9operated under a contractual agreement with the Department of
10Rehabilitation Services or its successor agency.
11    This subsection (p) applies without regard to whether the
12person was in service on or after the effective date of this
13amendatory Act of the 94th General Assembly. In the case of a
14person who is receiving a retirement annuity on that effective
15date, the increase, if any, shall begin to accrue on the first
16annuity payment date following receipt by the System of the
17contributions required under this subsection (p).
18    (q) By paying the required contributions under this
19Section, plus an amount determined by the Board to be equal to
20the employer's normal cost of the benefit plus interest, an
21employee who was laid off but returned to any State employment
22may establish creditable service for the period of the layoff,
23provided that (1) the applicant applies for the creditable
24service under this subsection (q) within 6 months after July
2527, 2010 (the effective date of Public Act 96-1320), (2) the
26applicant does not receive credit for that period under any

 

 

SB0113- 9 -LRB103 26397 RPS 52760 b

1other provision of this Code, (3) at the time of the layoff,
2the applicant is not in an initial probationary status
3consistent with the rules of the Department of Central
4Management Services, and (4) the total amount of creditable
5service established by the applicant under this subsection (q)
6does not exceed 3 years. For service established under this
7subsection (q), the required employee contribution shall be
8based on the rate of compensation earned by the employee on the
9date of returning to employment after the layoff and the
10contribution rate then in effect, and the required interest
11shall be calculated at the actuarially assumed rate from the
12date of returning to employment after the layoff to the date of
13payment. Funding for any new benefit increase, as defined in
14Section 14-152.1 of this Act, that is created under this
15subsection (q) will be provided by the employee contributions
16required under this subsection (q).
17    (r) A member who participated in the University of
18Illinois Government Public Service Internship Program (GPSI)
19may establish creditable service for up to 2 years of that
20participation by making the contribution required under this
21Section, plus an amount determined by the Board to be equal to
22the employer's normal cost of the benefit plus interest. The
23System shall determine a full-time salary equivalent for the
24purpose of calculating the required contribution. Credit may
25not be established under this subsection for any period for
26which service credit is established under any other provision

 

 

SB0113- 10 -LRB103 26397 RPS 52760 b

1of this Code.
2    (s) A member who worked as a nurse under a contractual
3agreement for the Department of Public Aid, or its successor
4agency, the Department of Human Services, in the Client
5Assessment Unit and was subsequently determined to be a State
6employee by the United States Internal Revenue Service and the
7Illinois Labor Relations Board may establish creditable
8service for those contractual services by making the
9contributions required under this Section. To establish credit
10under this subsection, the applicant must apply to the System
11by July 1, 2008.
12    The Department of Human Services shall pay an employer
13contribution based upon an amount determined by the Board to
14be equal to the employer's normal cost of the benefit, plus
15interest.
16    In compliance with Section 14-152.1 added by Public Act
1794-4, the cost of the benefits provided by Public Act 95-583
18are offset by the required employee and employer
19contributions.
20    (t) Any person who rendered contractual services on a
21full-time basis to the Illinois Institute of Natural Resources
22and the Illinois Department of Energy and Natural Resources
23may establish creditable service for up to 4 years of those
24contractual services by making the contributions required
25under this Section, plus an amount determined by the Board to
26be equal to the employer's normal cost of the benefit plus

 

 

SB0113- 11 -LRB103 26397 RPS 52760 b

1interest at the actuarially assumed rate from the first day of
2the service for which credit is being established to the date
3of payment. To establish credit under this subsection (t), the
4applicant must apply to the System within 6 months after July
527, 2010 (the effective date of Public Act 96-1320).
6    (u) By paying the required contributions under this
7Section, plus an amount determined by the Board to be equal to
8the employer's normal cost of the benefit, plus interest, a
9member may establish creditable service and earnings credit
10for periods of furlough beginning on or after July 1, 2008. To
11receive this credit, the participant must (i) apply in writing
12to the System before December 31, 2011 and (ii) not receive
13compensation for the furlough period. For service established
14under this subsection, the required employee contribution
15shall be based on the rate of compensation earned by the
16employee immediately following the date of the first furlough
17day in the time period specified in this subsection (u), and
18the required interest shall be calculated at the actuarially
19assumed rate from the date of the furlough to the date of
20payment.
21    (v) Any member who rendered full-time contractual services
22to an Illinois Veterans Home operated by the Department of
23Veterans' Affairs may establish service credit for up to 8
24years of such services by making the contributions required
25under this Section, plus an amount determined by the Board to
26be equal to the employer's normal cost of the benefit, plus

 

 

SB0113- 12 -LRB103 26397 RPS 52760 b

1interest at the actuarially assumed rate. To establish credit
2under this subsection, the applicant must apply to the System
3no later than 6 months after July 27, 2010 (the effective date
4of Public Act 96-1320).
5    (w) Any member who rendered contractual services to a
6department, regardless of whether the services were rendered
7on a part-time or full-time basis, may establish service
8credit for up to 5 years of such service by: (i) applying in
9writing to the System; and (ii) contributing an amount
10determined by the Board to be equal to the contributions
11required under this Section, plus the employer's normal cost
12of the benefit, plus interest at the actuarially assumed rate,
13compounded annually, from the date the contractual services
14were rendered to the date of payment. A member may not
15establish service credit under this subsection if the member
16has service credit in any other pension fund or retirement
17system under this Code during the period for which service
18credit is sought under this subsection.
19(Source: P.A. 96-97, eff. 7-27-09; 96-718, eff. 8-25-09;
2096-775, eff. 8-28-09; 96-961, eff. 7-2-10; 96-1000, eff.
217-2-10; 96-1320, eff. 7-27-10; 96-1535, eff. 3-4-11; 97-333,
228-12-11.)
 
23    (40 ILCS 5/15-113)  (from Ch. 108 1/2, par. 15-113)
24    Sec. 15-113. Service. "Service": The periods defined in
25Sections 15-113.1 through 15-113.9 and Sections 15-113.11

 

 

SB0113- 13 -LRB103 26397 RPS 52760 b

1through 15-113.13 15-113.12.
2(Source: P.A. 100-556, eff. 12-8-17.)
 
3    (40 ILCS 5/15-113.13 new)
4    Sec. 15-113.13. Service for rendering contractual services
5to an agency of the State. A participating employee may
6establish up to 5 years of creditable service for periods
7during which the participant rendered contractual services to
8any agency of the State, regardless of whether the services
9were rendered on a part-time or full-time basis. To receive
10this credit, the participant must: (i) apply in writing to the
11System; and (ii) contribute an amount determined by the Board
12to be equal to the employee contributions required under
13Section 15-157, plus the employer's normal cost of the
14benefit, plus interest at the effective rate, compounded
15annually, from the date the contractual services were rendered
16to the date of payment. A participant may not establish
17service credit under this Section if the participant has
18service credit in any other pension fund or retirement system
19under this Code during the period for which service credit is
20sought under this Section.
 
21    (40 ILCS 5/16-127)  (from Ch. 108 1/2, par. 16-127)
22    Sec. 16-127. Computation of creditable service.
23    (a) Each member shall receive regular credit for all
24service as a teacher from the date membership begins, for

 

 

SB0113- 14 -LRB103 26397 RPS 52760 b

1which satisfactory evidence is supplied and all contributions
2have been paid.
3    (b) The following periods of service shall earn optional
4credit and each member shall receive credit for all such
5service for which satisfactory evidence is supplied and all
6contributions have been paid as of the date specified:
7        (1) Prior service as a teacher.
8        (2) Service in a capacity essentially similar or
9    equivalent to that of a teacher, in the public common
10    schools in school districts in this State not included
11    within the provisions of this System, or of any other
12    State, territory, dependency or possession of the United
13    States, or in schools operated by or under the auspices of
14    the United States, or under the auspices of any agency or
15    department of any other State, and service during any
16    period of professional speech correction or special
17    education experience for a public agency within this State
18    or any other State, territory, dependency or possession of
19    the United States, and service prior to February 1, 1951
20    as a recreation worker for the Illinois Department of
21    Public Safety, for a period not exceeding the lesser of
22    2/5 of the total creditable service of the member or 10
23    years. The maximum service of 10 years which is allowable
24    under this paragraph shall be reduced by the service
25    credit which is validated by other retirement systems
26    under paragraph (i) of Section 15-113 and paragraph 1 of

 

 

SB0113- 15 -LRB103 26397 RPS 52760 b

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

 

 

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

 

 

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1    under this Section, the increase attributable to the
2    additional service allowable under P.A. 87-794 shall be
3    included in the calculation of automatic annual increases
4    accruing after the effective date of the recalculation.
5        Credit for military service shall be determined as
6    follows: if entry occurs during the months of July,
7    August, or September and the member was a teacher at the
8    end of the immediately preceding school term, credit shall
9    be granted from July 1 of the year in which he or she
10    entered service; if entry occurs during the school term
11    and the teacher was in teaching service at the beginning
12    of the school term, credit shall be granted from July 1 of
13    such year. In all other cases where credit for military
14    service is allowed, credit shall be granted from the date
15    of entry into the service.
16        The total period of military service for which credit
17    is granted shall not exceed 5 years for any member unless
18    the service: (A) is validated before July 1, 1964, and (B)
19    does not extend beyond July 1, 1963. Credit for military
20    service shall be granted under this Section only if not
21    more than 5 years of the military service for which credit
22    is granted under this Section is used by the member to
23    qualify for a military retirement allotment from any
24    branch of the armed forces of the United States. The
25    changes to this subdivision (b)(3) made by Public Act
26    86-272 shall apply not only to persons who on or after its

 

 

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

 

 

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

 

 

SB0113- 20 -LRB103 26397 RPS 52760 b

1    terminated prior to the effective date of P.A. 86-1488
2    shall be eligible to purchase such optional credit. If a
3    teacher who purchases this optional credit is already
4    receiving a retirement annuity under this Article, the
5    annuity shall be recalculated as if the annuitant had
6    applied for the leave of absence credit at the time of
7    retirement. The difference between the entitled annuity
8    and the actual annuity shall be credited to the purchase
9    of the optional credit. The remainder of the purchase cost
10    of the optional credit shall be paid on or before April 1,
11    1992.
12        The change in this paragraph made by Public Act 86-273
13    shall be applicable to teachers who retire after June 1,
14    1989, as well as to teachers who are in service on that
15    date.
16        (6) Any days of unused and uncompensated accumulated
17    sick leave earned by a teacher. The service credit granted
18    under this paragraph shall be the ratio of the number of
19    unused and uncompensated accumulated sick leave days to
20    170 days, subject to a maximum of 2 years of service
21    credit. Prior to the member's retirement, each former
22    employer shall certify to the System the number of unused
23    and uncompensated accumulated sick leave days credited to
24    the member at the time of termination of service. The
25    period of unused sick leave shall not be considered in
26    determining the effective date of retirement. A member is

 

 

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1    not required to make contributions in order to obtain
2    service credit for unused sick leave.
3        Credit for sick leave shall, at retirement, be granted
4    by the System for any retiring regional or assistant
5    regional superintendent of schools at the rate of 6 days
6    per year of creditable service or portion thereof
7    established while serving as such superintendent or
8    assistant superintendent.
9        (7) Periods prior to February 1, 1987 served as an
10    employee of the Illinois Mathematics and Science Academy
11    for which credit has not been terminated under Section
12    15-113.9 of this Code.
13        (8) Service as a substitute teacher for work performed
14    prior to July 1, 1990.
15        (9) Service as a part-time teacher for work performed
16    prior to July 1, 1990.
17        (10) Up to 2 years of employment with Southern
18    Illinois University - Carbondale from September 1, 1959 to
19    August 31, 1961, or with Governors State University from
20    September 1, 1972 to August 31, 1974, for which the
21    teacher has no credit under Article 15. To receive credit
22    under this item (10), a teacher must apply in writing to
23    the Board and pay the required contributions before May 1,
24    1993 and have at least 12 years of service credit under
25    this Article.
26        (11) Up to 5 years for periods during which the

 

 

SB0113- 22 -LRB103 26397 RPS 52760 b

1    participant rendered contractual services to any agency of
2    the State, regardless of whether the services were
3    rendered on a part-time or full-time basis.
4    (b-1) A member may establish optional credit for up to 2
5years of service as a teacher or administrator employed by a
6private school recognized by the Illinois State Board of
7Education, provided that the teacher (i) was certified under
8the law governing the certification of teachers at the time
9the service was rendered, (ii) applies in writing on or before
10June 30, 2023, (iii) supplies satisfactory evidence of the
11employment, (iv) completes at least 10 years of contributing
12service as a teacher as defined in Section 16-106, and (v) pays
13the contribution required in subsection (d-5) of Section
1416-128. The member may apply for credit under this subsection
15and pay the required contribution before completing the 10
16years of contributing service required under item (iv), but
17the credit may not be used until the item (iv) contributing
18service requirement has been met.
19    (c) The service credits specified in this Section shall be
20granted only if: (1) such service credits are not used for
21credit in any other statutory tax-supported public employee
22retirement system other than the federal Social Security
23program; and (2) the member makes the required contributions
24as specified in Section 16-128. Except as provided in
25subsection (b-1) of this Section, the service credit shall be
26effective as of the date the required contributions are

 

 

SB0113- 23 -LRB103 26397 RPS 52760 b

1completed.
2    Any service credits granted under this Section shall
3terminate upon cessation of membership for any cause.
4    Credit may not be granted under this Section covering any
5period for which an age retirement or disability retirement
6allowance has been paid.
7    Credit may not be granted under this Section for service
8as an employee of an entity that provides substitute teaching
9services under Section 2-3.173 of the School Code and is not a
10school district.
11(Source: P.A. 102-525, eff. 8-20-21.)
 
12    (40 ILCS 5/16-128)  (from Ch. 108 1/2, par. 16-128)
13    Sec. 16-128. Creditable service - required contributions.
14    (a) In order to receive the creditable service specified
15under subsection (b) of Section 16-127, a member is required
16to make the following contributions: (i) an amount equal to
17the contributions which would have been required had such
18service been rendered as a member under this System; (ii) for
19military service not immediately following employment and for
20service established under subdivision (b)(10) of Section
2116-127, an amount determined by the Board to be equal to the
22employer's normal cost of the benefits accrued for such
23service; and (iii) interest from the date the contributions
24would have been due (or, in the case of a person establishing
25credit for military service under subdivision (b)(3) of

 

 

SB0113- 24 -LRB103 26397 RPS 52760 b

1Section 16-127, the date of first membership in the System, if
2that date is later) to the date of payment, at the following
3rate of interest, compounded annually: for periods prior to
4July 1, 1965, regular interest; from July 1, 1965 to June 30,
51977, 4% per year; on and after July 1, 1977, regular interest.
6    (b) In order to receive creditable service under paragraph
7(2) of subsection (b) of Section 16-127 for those who were not
8members on June 30, 1963, the minimum required contribution
9shall be $420 per year of service together with interest at 4%
10per year compounded annually from July 1, preceding the date
11of membership until June 30, 1977 and at regular interest
12compounded annually thereafter to the date of payment.
13    (c) In determining the contribution required in order to
14receive creditable service under paragraph (3) of subsection
15(b) of Section 16-127, the salary rate for the remainder of the
16school term in which a member enters military service shall be
17assumed to be equal to the member's salary rate at the time of
18entering military service. However, for military service not
19immediately following employment, the salary rate on the last
20date as a participating teacher prior to such military
21service, or on the first date as a participating teacher after
22such military service, whichever is greater, shall be assumed
23to be equal to the member's salary rate at the time of entering
24military service. For each school term thereafter, the
25member's salary rate shall be assumed to be 5% higher than the
26salary rate in the previous school term.

 

 

SB0113- 25 -LRB103 26397 RPS 52760 b

1    (d) In determining the contribution required in order to
2receive creditable service under paragraph (5) of subsection
3(b) of Section 16-127, a member's salary rate during the
4period for which credit is being established shall be assumed
5to be equal to the member's last salary rate immediately
6preceding that period.
7    (d-5) For each year of service credit to be established
8under subsection (b-1) of Section 16-127, a member is required
9to contribute to the System (i) the employee and employer
10contribution that would have been required had such service
11been rendered as a member based on the annual salary rate
12during the first year of full-time employment as a teacher
13under this Article following the private or parochial school
14service, plus (ii) interest thereon at the actuarially assumed
15rate from the date of first full-time employment as a teacher
16under this Article following the private or parochial school
17service to the date of payment, compounded annually, at a rate
18determined by the Board.
19    (d-10) For service credit established under paragraph (6)
20of subsection (b) of Section 16-127 for days granted by an
21employer in excess of the member's normal annual sick leave
22allotment, the employer is required to pay the normal cost of
23benefits based upon such service credit. This subsection
24(d-10) does not apply to sick leave granted to teachers under
25contracts or collective bargaining agreements entered into,
26amended, or renewed before June 1, 2005 (the effective date of

 

 

SB0113- 26 -LRB103 26397 RPS 52760 b

1Public Act 94-4). The employer contributions required under
2this subsection (d-10) shall be paid in the form of a lump sum
3within 30 days after receipt of the bill after the teacher
4begins receiving benefits under this Article.
5    (d-15) For service credit established under paragraph (11)
6of subsection (b) of Section 16-127, a member is required to
7contribute to the System the employee contributions that would
8have been required if the service had been rendered as a member
9based on the annual salary rate at the time of application for
10the service credit, plus the employer's normal cost of the
11benefit, plus regular interest thereon, compounded annually,
12from the date the contractual services were rendered to the
13date of payment.
14    (e) Except for contributions under subsection (d-10), the
15contributions required under this Section may be made from the
16date the statement for such creditable service is issued until
17retirement date. All such required contributions must be made
18before any retirement annuity is granted.
19(Source: P.A. 96-546, eff. 8-17-09.)