Full Text of HB3813 97th General Assembly
HB3813ham003 97TH GENERAL ASSEMBLY | Rep. Tom Cross Filed: 10/26/2011
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| 1 | | AMENDMENT TO HOUSE BILL 3813
| 2 | | AMENDMENT NO. ______. Amend House Bill 3813, AS AMENDED, by | 3 | | replacing everything after the enacting clause with the | 4 | | following: | 5 | | "Section 5. The Illinois Pension Code is amended by | 6 | | changing Sections 1-114, 1-135, 7-132, 8-226, 11-215, 17-134, | 7 | | and 17-134.1 and by adding 3-110.12, 3-110.13, 3-110.14, | 8 | | 4-108.7, 4-108.8, 4-108.9, 5-212.1, 5-212.2, 5-212.3, 6-209.2, | 9 | | 6-209.3, 6-209.4, 8-117.1, 8-226.8, 11-116.1, 11-215.2, | 10 | | 15-113.12, 15-113.13, 15-113.14, 16-110.1, 16-110.2, 16-110.3, | 11 | | 17-109.3, and 17-134.2 as follows:
| 12 | | (40 ILCS 5/1-114) (from Ch. 108 1/2, par. 1-114)
| 13 | | Sec. 1-114. Liability for Breach of Fiduciary Duty. (a) Any | 14 | | person who is a fiduciary with respect to a retirement system | 15 | | or
pension fund established under this Code who breaches any | 16 | | duty
imposed upon fiduciaries by this Code , including, but not |
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| 1 | | limited to, a failure to report a reasonable suspicion of a | 2 | | false statement specified in Section 1-135 of this Code, shall | 3 | | be personally liable to make
good to such retirement system or | 4 | | pension fund any losses to it resulting
from each such breach, | 5 | | and to restore to such retirement system or pension
fund any | 6 | | profits of such fiduciary which have been made through use of | 7 | | assets
of the retirement system or pension fund by the | 8 | | fiduciary, and shall be
subject to such equitable or remedial | 9 | | relief as the court may deem appropriate,
including the removal | 10 | | of such fiduciary.
| 11 | | (b) No person shall be liable with respect to a breach of | 12 | | fiduciary duty
under this Code if such breach occurred before | 13 | | such person became a fiduciary
or after such person ceased to | 14 | | be a fiduciary.
| 15 | | (Source: P.A. 82-960.)
| 16 | | (40 ILCS 5/1-135)
| 17 | | Sec. 1-135. Fraud. Any person who knowingly makes any false | 18 | | statement or falsifies or permits to be falsified any record of | 19 | | a retirement system or pension fund created under this Code or | 20 | | the Illinois State Board of Investment in an attempt to defraud | 21 | | the retirement system or pension fund created under this Code | 22 | | or the Illinois State Board of Investment is guilty of a Class | 23 | | 3 felony. Any reasonable suspicion by any appointed or elected | 24 | | commissioner, trustee, director, board member, or employee of a | 25 | | retirement system or pension fund created under this Code or |
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| 1 | | the State Board of Investment of a false statement or falsified | 2 | | record being submitted or permitted by a person under this Code | 3 | | shall be immediately referred to the board of trustees of a | 4 | | retirement system or pension fund created under this Code or | 5 | | the State Board of Investment or the State's Attorney of the | 6 | | jurisdiction where the alleged fraudulent activity occurred. | 7 | | The board of trustees of a retirement system or pension fund | 8 | | created under this Code or the State Board of Investment shall | 9 | | immediately notify the State's Attorney of the jurisdiction | 10 | | where any alleged fraudulent activity occurred for | 11 | | investigation.
| 12 | | (Source: P.A. 96-6, eff. 4-3-09.) | 13 | | (40 ILCS 5/3-110.12 new) | 14 | | Sec. 3-110.12. Leaves of absence. For any leave of absence | 15 | | that is covered under subsection (c) of Section 3-110 and that | 16 | | is granted after the effective date of this amendatory Act of | 17 | | the 97th General Assembly, any pension credit earned in this | 18 | | Article shall be based on the participant's salary immediately | 19 | | before the leave of absence. The participant must contribute an | 20 | | amount equal to the actuarially determined normal cost of the | 21 | | benefit as calculated by the fund. The employer of the | 22 | | participant may elect to contribute all or a portion of the | 23 | | participant's required contribution. | 24 | | (40 ILCS 5/3-110.13 new) |
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| 1 | | Sec. 3-110.13. Leave of absence benefit recalculation. | 2 | | Every 3 years, beginning on or as soon as practical after the | 3 | | effective date of this amendatory Act of the 97th General | 4 | | Assembly, each fund shall determine if any benefit earned by a | 5 | | participant who first earns credit on or after the effective | 6 | | date of this Section as a result of subsection (c) of Section | 7 | | 3-110 has created any additional unfunded liability to the | 8 | | fund. If it is determined by the fund that additional unfunded | 9 | | liability has been created, then the participant must remit the | 10 | | total cost to the fund, as determined by the fund, within one | 11 | | year. | 12 | | (40 ILCS 5/3-110.14 new) | 13 | | Sec. 3-110.14. Leaves of absence; computation of salary. | 14 | | For any participant who, on or after the effective date of this | 15 | | amendatory Act of the 97th General Assembly, takes a leave of | 16 | | absence covered by subsection (c) of Section 3-110, his or her | 17 | | average salary shall be based upon the regular salary rate | 18 | | received by the participant for his or her municipal employment | 19 | | immediately prior to that leave of absence. | 20 | | (40 ILCS 5/4-108.7 new) | 21 | | Sec. 4-108.7. Leaves of absence. For any leave of absence | 22 | | that is covered under subdivision (c)(3) of Section 4-108 and | 23 | | that is granted after the effective date of this amendatory Act | 24 | | of the 97th General Assembly, any pension credit earned in this |
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| 1 | | Article shall be based on the participant's salary immediately | 2 | | before the leave of absence. The participant must contribute an | 3 | | amount equal to the actuarially determined normal cost of the | 4 | | benefit as calculated by the fund. The employer of the | 5 | | participant may elect to contribute all or a portion of the | 6 | | participant's required contribution. | 7 | | (40 ILCS 5/4-108.8 new) | 8 | | Sec. 4-108.8. Leave of absence benefit recalculation. | 9 | | Every 3 years, beginning on or as soon as practical after the | 10 | | effective date of this amendatory Act of the 97th General | 11 | | Assembly, each fund shall determine if any benefit earned by a | 12 | | participant who first earns credit on or after the effective | 13 | | date of this Section as a result of subdivision (c)(3) of | 14 | | Section 4-108 has created any additional unfunded liability to | 15 | | the fund. If it is determined by the fund that additional | 16 | | unfunded liability has been created, then the participant must | 17 | | remit the total cost to the fund, as determined by the fund, | 18 | | within one year. | 19 | | (40 ILCS 5/4-108.9 new) | 20 | | Sec. 4-108.9. Leaves of absence; computation of salary. For | 21 | | any participant who, on or after the effective date of this | 22 | | amendatory Act of the 97th General Assembly, takes a leave of | 23 | | absence covered by subdivision (c)(3) of Section 4-108, his or | 24 | | her average salary shall be based upon the regular salary rate |
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| 1 | | received by the participant for his or her municipal employment | 2 | | immediately prior to that leave of absence. | 3 | | (40 ILCS 5/5-212.1 new) | 4 | | Sec. 5-212.1. Pension credit earned for other service. Any | 5 | | credit for other service that is covered under subdivision (b) | 6 | | of Section 5-214 and that is granted after the effective date | 7 | | of this amendatory Act of the 97th General Assembly shall be | 8 | | based on the participant's salary immediately before engaging | 9 | | in the type of employment specified in that provision. The | 10 | | participant must contribute an amount equal to the actuarially | 11 | | determined normal cost of the benefit as calculated by the | 12 | | fund. The employer of the participant may elect to contribute | 13 | | all or a portion of the participant's required contribution. | 14 | | (40 ILCS 5/5-212.2 new) | 15 | | Sec. 5-212.2. Credit for other service; recalculation. | 16 | | Every 3 years, beginning on or as soon as practical after the | 17 | | effective date of this amendatory Act of the 97th General | 18 | | Assembly, the fund shall determine if any benefit earned by a | 19 | | participant who first earns credit on or after the effective | 20 | | date of this Section as a result of subdivision (b) of Section | 21 | | 5-214 has created any additional unfunded liability to the | 22 | | fund. If it is determined by the fund that additional unfunded | 23 | | liability has been created, then the participant must remit the | 24 | | total cost to the fund, as determined by the fund, within one |
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| 1 | | year. | 2 | | (40 ILCS 5/5-212.3 new) | 3 | | Sec. 5-212.3. Salary for credit earned for other service. | 4 | | For any participant who, on or after the effective date of this | 5 | | amendatory Act of the 97th General Assembly, earns credit under | 6 | | subdivision (b) of Section 5-214, his or her average salary | 7 | | shall be based upon the regular salary rate received by the | 8 | | participant for his or her municipal employment immediately | 9 | | prior to that engaging in the type of employment specified in | 10 | | that provision. | 11 | | (40 ILCS 5/6-209.2 new) | 12 | | Sec. 6-209.2. Pension credit earned for other service. Any | 13 | | credit earned under item (f) of the second paragraph of Section | 14 | | 6-209 and that is granted after the effective date of this | 15 | | amendatory Act of the 97th General Assembly shall be based on | 16 | | the participant's salary immediately before engaging in the | 17 | | type of employment specified in that provision. The participant | 18 | | must contribute an amount equal to the actuarially determined | 19 | | normal cost of the benefit as calculated by the fund. The | 20 | | employer of the participant may elect to contribute all or a | 21 | | portion of the participant's required contribution. | 22 | | (40 ILCS 5/6-209.3 new) | 23 | | Sec. 6-209.3. Credit for other service; recalculation. |
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| 1 | | Every 3 years, beginning on or as soon as practical after the | 2 | | effective date of this amendatory Act of the 97th General | 3 | | Assembly, the fund shall determine if any benefit earned by a | 4 | | participant who first earns credit on or after the effective | 5 | | date of this Section as a result of item (f) of the second | 6 | | paragraph of Section 6-209 has created any additional unfunded | 7 | | liability to the fund. If it is determined by the fund that | 8 | | additional unfunded liability has been created, then the | 9 | | participant must remit the total cost to the fund, as | 10 | | determined by the fund, within one year. | 11 | | (40 ILCS 5/6-209.4 new) | 12 | | Sec. 6-209.4. Salary for credit earned for other service. | 13 | | For any participant who, on or after the effective date of this | 14 | | amendatory Act of the 97th General Assembly, has earned credit | 15 | | under item (f) of the second paragraph of Section 6-209, his or | 16 | | her average salary shall be based upon the regular salary rate | 17 | | received by the participant for his or her municipal employment | 18 | | immediately prior to that leave of absence.
| 19 | | (40 ILCS 5/7-132)
(from Ch. 108 1/2, par. 7-132)
| 20 | | Sec. 7-132. Municipalities, instrumentalities and | 21 | | participating
instrumentalities included and effective dates.
| 22 | | (A) Municipalities and their instrumentalities.
| 23 | | (a) The following described municipalities, but not |
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| 1 | | including any with
more than 1,000,000 inhabitants, and the | 2 | | instrumentalities thereof,
shall be included within and be | 3 | | subject to this Article beginning upon the
effective dates | 4 | | specified by the Board:
| 5 | | (1) Except as to the municipalities and | 6 | | instrumentalities thereof
specifically excluded under this | 7 | | Article, every county shall be subject to
this Article, and | 8 | | all cities, villages and incorporated towns having a
| 9 | | population in excess of 5,000 inhabitants as determined by | 10 | | the last
preceding decennial or subsequent federal census, | 11 | | shall be subject to this
Article following publication of | 12 | | the census by the Bureau of the Census.
Within 90 days | 13 | | after publication of the census, the Board shall notify
any | 14 | | municipality that has become subject to this Article as a | 15 | | result of
that census, and shall provide information to the | 16 | | corporate authorities of
the municipality explaining the | 17 | | duties and consequences of participation.
The notification | 18 | | shall also include a proposed date upon which
participation | 19 | | by the municipality will commence.
| 20 | | However, for any city, village or incorporated town | 21 | | that attains a
population over 5,000 inhabitants after | 22 | | having provided social security
coverage for its employees | 23 | | under the Social Security Enabling Act,
participation | 24 | | under this Article shall not be mandatory but may be | 25 | | elected
in accordance with subparagraph (3) or (4) of this | 26 | | paragraph (a), whichever
is applicable.
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| 1 | | (2) School districts, other than those specifically
| 2 | | excluded under this Article, shall be subject to this | 3 | | Article, without
election, with respect to all employees | 4 | | thereof.
| 5 | | (3) Towns and all other bodies politic and corporate | 6 | | which
are formed by vote of, or are subject to control by, | 7 | | the electors in towns
and are located in towns which are | 8 | | not participating municipalities on the
effective date of | 9 | | this Act, may become subject to this Article by
election | 10 | | pursuant to Section 7-132.1.
| 11 | | (4) Any other municipality (together with its | 12 | | instrumentalities),
other than those specifically excluded | 13 | | from participation and those
described in paragraph (3) | 14 | | above, may elect to be included either by
referendum under | 15 | | Section 7-134 or by the adoption of a resolution or
| 16 | | ordinance by its governing body. A copy of such resolution | 17 | | or ordinance
duly authenticated and certified by the clerk | 18 | | of the municipality or other
appropriate official of its | 19 | | governing body shall constitute the required
notice to the | 20 | | board of such action.
| 21 | | (b) A municipality that is about to begin participation | 22 | | shall submit to
the Board an application to participate, in a | 23 | | form acceptable to the Board,
not later than 90 days prior to | 24 | | the proposed effective date of
participation. The Board shall | 25 | | act upon the application within 90 days,
and if it finds that | 26 | | the application is in conformity with its requirements
and the |
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| 1 | | requirements of this Article, participation by the applicant | 2 | | shall
commence on a date acceptable to the municipality and | 3 | | specified by the
Board, but in no event more than one year from | 4 | | the date of application.
| 5 | | (c) A participating municipality which succeeds to the | 6 | | functions
of a participating municipality which is dissolved or | 7 | | terminates its
existence shall assume and be transferred the | 8 | | net accumulation balance
in the municipality reserve and the | 9 | | municipality account receivable
balance of the terminated | 10 | | municipality.
| 11 | | (d) In the case of a Veterans Assistance Commission whose | 12 | | employees
were being treated by the Fund on January 1, 1990 as | 13 | | employees of the
county served by the Commission, the Fund may | 14 | | continue to treat the
employees of the Veterans Assistance | 15 | | Commission as county employees for
the purposes of this | 16 | | Article, unless the Commission becomes a participating
| 17 | | instrumentality in accordance with subsection (B) of this | 18 | | Section.
| 19 | | (B) Participating instrumentalities.
| 20 | | (a) The participating instrumentalities designated in
| 21 | | paragraph (b) of this subsection shall be included within
and | 22 | | be subject to this Article if:
| 23 | | (1) an application to participate, in a form acceptable | 24 | | to
the Board and adopted by a two-thirds vote of the | 25 | | governing body, is
presented to the Board not later than 90 |
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| 1 | | days prior to the proposed
effective date; and
| 2 | | (2) the Board finds that the application is in
| 3 | | conformity with its requirements, that the applicant has | 4 | | reasonable
expectation to continue as a political entity | 5 | | for a period of at least
10 years and has the prospective | 6 | | financial capacity to meet its
current and future | 7 | | obligations to the Fund, and that the actuarial
soundness | 8 | | of the Fund may be reasonably expected to be unimpaired by
| 9 | | approval of participation by the applicant.
| 10 | | The Board shall notify the applicant of its findings within | 11 | | 90 days
after receiving the application, and if the
Board | 12 | | approves the application, participation by the applicant shall
| 13 | | commence on the effective date specified by the Board.
| 14 | | (b) The following participating instrumentalities, so long | 15 | | as
they meet the requirements of Section 7-108 and the area | 16 | | served by them
or within their jurisdiction is not located | 17 | | entirely within a municipality
having more than one million | 18 | | inhabitants, may be included hereunder:
| 19 | | i. Township School District Trustees.
| 20 | | ii. Multiple County and Consolidated Health | 21 | | Departments created
under Division 5-25 of the Counties | 22 | | Code or its predecessor law.
| 23 | | iii. Public Building Commissions created under the | 24 | | Public Building
Commission Act, and located in counties of | 25 | | less
than 1,000,000 inhabitants.
| 26 | | iv. A multitype, consolidated or cooperative
library |
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| 1 | | system created under the Illinois Library System Act. Any
| 2 | | library system created under the Illinois Library System | 3 | | Act that has one
or more predecessors that participated in | 4 | | the Fund may participate in the
Fund upon application. The | 5 | | Board shall establish procedures for
implementing the | 6 | | transfer of rights and obligations from the predecessor
| 7 | | system to the successor system.
| 8 | | v. Regional Planning Commissions created under | 9 | | Division 5-14 of the
Counties Code or its predecessor law.
| 10 | | vi. Local Public Housing Authorities created under the | 11 | | Housing
Authorities Act, located in counties of less than | 12 | | 1,000,000 inhabitants.
| 13 | | vii. Illinois Municipal League , for participants who | 14 | | first become participants before the effective date of this | 15 | | amendatory Act of the 97th General Assembly .
| 16 | | viii. Northeastern Illinois Metropolitan Area Planning | 17 | | Commission.
| 18 | | ix. Southwestern Illinois Metropolitan Area Planning | 19 | | Commission.
| 20 | | x. Illinois Association of Park Districts.
| 21 | | xi. Illinois Supervisors, County Commissioners and | 22 | | Superintendents
of Highways Association.
| 23 | | xii. Tri-City Regional Port District.
| 24 | | xiii. An association, or not-for-profit corporation, | 25 | | membership in
which is authorized under Section 85-15 of | 26 | | the Township Code.
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| 1 | | xiv. Drainage Districts operating under the Illinois | 2 | | Drainage
Code.
| 3 | | xv. Local mass transit districts created under the | 4 | | Local Mass
Transit District Act.
| 5 | | xvi. Soil and water conservation districts created | 6 | | under the Soil
and Water Conservation Districts Law.
| 7 | | xvii. Commissions created to provide water supply or | 8 | | sewer services
or both under Division 135 or Division 136 | 9 | | of Article 11 of the Illinois
Municipal Code.
| 10 | | xviii. Public water districts created under the Public | 11 | | Water
District Act.
| 12 | | xix. Veterans Assistance Commissions established under | 13 | | Section
9 of the Military Veterans Assistance Act that
| 14 | | serve counties with a population of less than 1,000,000.
| 15 | | xx. The governing body of an entity, other than a | 16 | | vocational education
cooperative, created under an | 17 | | intergovernmental cooperative agreement
established | 18 | | between participating municipalities under the
| 19 | | Intergovernmental Cooperation Act, which by the terms of | 20 | | the agreement is
the employer of the persons performing | 21 | | services under the agreement under
the usual common law | 22 | | rules determining the employer-employee relationship.
The | 23 | | governing body of such an intergovernmental cooperative | 24 | | entity
established prior to July 1, 1988 may make | 25 | | participation retroactive to the
effective date of the | 26 | | agreement and, if so, the effective date of
participation |
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| 1 | | shall be the date the required application is filed with | 2 | | the
fund. If any such entity is unable to pay the required | 3 | | employer
contributions to the fund, then the participating | 4 | | municipalities shall make
payment of the required | 5 | | contributions and the payments shall be allocated
as | 6 | | provided in the agreement or, if not so provided, equally | 7 | | among them.
| 8 | | xxi. The Illinois Municipal Electric Agency.
| 9 | | xxii. The Waukegan Port District.
| 10 | | xxiii. The Fox Waterway Agency created under the Fox | 11 | | Waterway Agency
Act.
| 12 | | xxiv. The Illinois Municipal Gas Agency.
| 13 | | xxv. The Kaskaskia Regional Port District.
| 14 | | xxvi. The Southwestern Illinois Development Authority.
| 15 | | xxvii. The Cairo Public Utility Company.
| 16 | | xxviii. Except with respect to employees who elect to | 17 | | participate in the State Employees' Retirement System of | 18 | | Illinois under Section 14-104.13 of this Code, the Chicago | 19 | | Metropolitan Agency for Planning created under the | 20 | | Regional Planning Act, provided that, with respect to the | 21 | | benefits payable pursuant to Sections 7-146, 7-150, and | 22 | | 7-164 and the requirement that eligibility for such | 23 | | benefits is conditional upon satisfying a minimum period of | 24 | | service or a minimum contribution, any employee of the | 25 | | Chicago Metropolitan Agency for Planning that was | 26 | | immediately prior to such employment an employee of the |
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| 1 | | Chicago Area Transportation Study or the Northeastern | 2 | | Illinois Planning Commission, such employee's service at | 3 | | the Chicago Area Transportation Study or the Northeastern | 4 | | Illinois Planning Commission and contributions to the | 5 | | State Employees' Retirement System of Illinois established | 6 | | under Article 14 and the Illinois Municipal Retirement Fund | 7 | | shall count towards the satisfaction of such requirements.
| 8 | | xxix. United Counties Council (formerly the Urban | 9 | | Counties Council), but only if the Council has a ruling | 10 | | from the United States Internal Revenue Service that it is | 11 | | a governmental entity.
| 12 | | xxx. The Will County Governmental League, but only if | 13 | | the League has a ruling from the United States Internal | 14 | | Revenue Service that it is a governmental entity and only | 15 | | for participants who first become participants before the | 16 | | effective date of this amendatory Act of the 97th General | 17 | | Assembly . | 18 | | (c) The governing boards of special education joint | 19 | | agreements
created under Section 10-22.31 of the School Code | 20 | | without designation of an
administrative district shall be | 21 | | included within and be subject to this
Article as participating | 22 | | instrumentalities when the joint agreement becomes
effective. | 23 | | However, the governing board of any such special education
| 24 | | joint agreement in effect before September 5, 1975 shall not be | 25 | | subject to this
Article unless the joint agreement is modified | 26 | | by the school districts to
provide that the governing board is |
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| 1 | | subject to this Article, except as
otherwise provided by this | 2 | | Section.
| 3 | | The governing board of the Special Education District of | 4 | | Lake County shall
become subject to this Article as a | 5 | | participating instrumentality on July 1,
1997. Notwithstanding | 6 | | subdivision (a)1 of Section 7-139, on the effective date
of | 7 | | participation, employees of the governing board of the Special | 8 | | Education
District of Lake County shall receive creditable | 9 | | service for their prior
service with that employer, up to a | 10 | | maximum of 5 years, without any employee
contribution. | 11 | | Employees may establish creditable service for the remainder
of | 12 | | their prior service with that employer, if any, by applying in | 13 | | writing and
paying an employee contribution in an amount | 14 | | determined by the Fund, based on
the employee contribution | 15 | | rates in effect at the time of application for the
creditable | 16 | | service and the employee's salary rate on the effective date of
| 17 | | participation for that employer, plus interest at the effective | 18 | | rate from the
date of the prior service to the date of payment. | 19 | | Application for this
creditable service must be made before | 20 | | July 1, 1998; the payment may be made
at any time while the | 21 | | employee is still in service. The employer may elect to
make | 22 | | the required contribution on behalf of the employee.
| 23 | | The governing board of a special education joint agreement | 24 | | created
under Section 10-22.31 of the School Code for which an | 25 | | administrative
district has been designated, if there are | 26 | | employees of the cooperative
educational entity who are not |
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| 1 | | employees of the administrative district,
may elect to | 2 | | participate in the Fund and be included within this Article as
| 3 | | a participating instrumentality, subject to such application | 4 | | procedures and
rules as the Board may prescribe.
| 5 | | The Boards of Control of cooperative or joint educational | 6 | | programs or
projects created and administered under Section | 7 | | 3-15.14 of the School
Code, whether or not the Boards act as | 8 | | their own administrative district,
shall be included within and | 9 | | be subject to this Article as participating
instrumentalities | 10 | | when the agreement establishing the cooperative or joint
| 11 | | educational program or project becomes effective.
| 12 | | The governing board of a special education joint agreement | 13 | | entered into
after June 30, 1984 and prior to September 17, | 14 | | 1985 which provides for
representation on the governing board | 15 | | by less than all the participating
districts shall be included | 16 | | within and subject to this Article as a
participating | 17 | | instrumentality. Such participation shall be effective as of
| 18 | | the date the joint agreement becomes effective.
| 19 | | The governing boards of educational service centers | 20 | | established under
Section 2-3.62 of the School Code shall be | 21 | | included within and subject to
this Article as participating | 22 | | instrumentalities. The governing boards of
vocational | 23 | | education cooperative agreements created under the
| 24 | | Intergovernmental Cooperation Act and approved by the State | 25 | | Board of
Education shall be included within and be subject to | 26 | | this
Article as participating instrumentalities. If any such |
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| 1 | | governing boards
or boards of control are unable to pay the | 2 | | required employer contributions
to the fund, then the school | 3 | | districts served by such boards shall make
payment of required | 4 | | contributions as provided in Section 7-172. The
payments shall | 5 | | be allocated among the several school districts in
proportion | 6 | | to the number of students in average daily attendance for the
| 7 | | last full school year for each district in relation to the | 8 | | total number of
students in average attendance for such period | 9 | | for all districts served.
If such educational service centers, | 10 | | vocational education cooperatives or
cooperative or joint | 11 | | educational programs or projects created and
administered | 12 | | under Section 3-15.14 of the School Code are dissolved, the
| 13 | | assets and obligations shall be distributed among the districts | 14 | | in the
same proportions unless otherwise provided.
| 15 | | The governing board of Paris Cooperative High School shall | 16 | | be included within and be subject to this
Article as a | 17 | | participating instrumentality on the effective date of this | 18 | | amendatory Act of the 96th General Assembly. If the governing | 19 | | board of Paris Cooperative High School is unable to pay the | 20 | | required employer contributions
to the fund, then the school | 21 | | districts served shall make
payment of required contributions | 22 | | as provided in Section 7-172. The
payments shall be allocated | 23 | | among the several school districts in
proportion to the number | 24 | | of students in average daily attendance for the
last full | 25 | | school year for each district in relation to the total number | 26 | | of
students in average attendance for such period for all |
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| 1 | | districts served.
If Paris Cooperative High School is | 2 | | dissolved, then the
assets and obligations shall be distributed | 3 | | among the districts in the
same proportions unless otherwise | 4 | | provided. | 5 | | Financial Oversight Panels established under Article 1H of | 6 | | the School Code shall be included within and be subject to this | 7 | | Article as a participating instrumentality on the effective | 8 | | date of this amendatory Act of the 97th General Assembly. If | 9 | | the Financial Oversight Panel is unable to pay the required | 10 | | employer contributions to the fund, then the school districts | 11 | | served shall make payment of required contributions as provided | 12 | | in Section 7-172. If the Financial Oversight Panel is | 13 | | dissolved, then the assets and obligations shall be distributed | 14 | | to the district served. | 15 | | (d) The governing boards of special recreation joint | 16 | | agreements
created under Section 8-10b of the Park District | 17 | | Code, operating
without
designation of an administrative | 18 | | district or an administrative
municipality appointed to | 19 | | administer the program operating under the
authority of such | 20 | | joint agreement shall be included within and be
subject to this | 21 | | Article as participating instrumentalities when the
joint | 22 | | agreement becomes effective. However, the governing board of | 23 | | any
such special recreation joint agreement in effect before | 24 | | January 1,
1980 shall not be subject to this Article unless the | 25 | | joint agreement is
modified, by the districts and | 26 | | municipalities which are parties to the
agreement, to provide |
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| 1 | | that the governing board is subject to this Article.
| 2 | | If the Board returns any employer and employee | 3 | | contributions to any
employer which erroneously submitted such | 4 | | contributions on behalf of a
special recreation joint | 5 | | agreement, the Board shall include interest
computed from the | 6 | | end of each year to the date of payment, not compounded,
at the | 7 | | rate of 7% per annum.
| 8 | | (e) Each multi-township assessment district, the board of
| 9 | | trustees of which has adopted this Article by ordinance prior | 10 | | to April 1,
1982, shall be a participating instrumentality | 11 | | included within and subject
to this Article effective December | 12 | | 1, 1981. The contributions required
under Section 7-172 shall | 13 | | be included in the budget prepared under and
allocated in | 14 | | accordance with Section 2-30 of the Property Tax Code.
| 15 | | (f) The Illinois Medical District Commission created under | 16 | | the Illinois Medical District Act may be included within and | 17 | | subject to
this Article as a participating instrumentality, | 18 | | notwithstanding that the location of the District is entirely | 19 | | within the City of Chicago. To become a participating | 20 | | instrumentality, the Commission must apply to the Board in the | 21 | | manner set forth in paragraph (a) of this subsection (B). If | 22 | | the
Board approves the application, under the criteria and | 23 | | procedures set forth in paragraph (a) and any other applicable | 24 | | rules, criteria, and procedures of the Board, participation by | 25 | | the Commission shall
commence on the effective date specified | 26 | | by the Board.
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| 1 | | (C) Prospective participants. | 2 | | Beginning January 1, 1992, each prospective participating
| 3 | | municipality or participating instrumentality shall pay to the | 4 | | Fund the
cost, as determined by the Board, of a study prepared | 5 | | by the Fund or its
actuary, detailing the prospective costs of | 6 | | participation in the Fund to be
expected by the municipality or | 7 | | instrumentality.
| 8 | | (Source: P.A. 96-211, eff. 8-10-09; 96-551, eff. 8-17-09; | 9 | | 96-1000, eff. 7-2-10; 96-1046, eff. 7-14-10; 97-429, eff. | 10 | | 8-16-11.)
| 11 | | (40 ILCS 5/8-117.1 new) | 12 | | Sec. 8-117.1. Leaves of absence; computation of salary. For | 13 | | any participant who, on or after the effective date of this | 14 | | amendatory Act of the 97th General Assembly, takes a leave of | 15 | | absence under subdivision (c) of Section 8-226, his or her | 16 | | highest average annual salary shall be based upon the regular | 17 | | salary rate received by the participant for his or her | 18 | | municipal employment immediately prior to that leave of | 19 | | absence.
| 20 | | (40 ILCS 5/8-226) (from Ch. 108 1/2, par. 8-226)
| 21 | | Sec. 8-226. Computation of service.
In computing the term | 22 | | of service of an employee prior to the effective
date, the | 23 | | entire period beginning on the date he was first appointed and
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| 1 | | ending on the day before the effective date, except any | 2 | | intervening period
during which he was separated by withdrawal | 3 | | from service, shall be counted
for all purposes of this | 4 | | Article, except that for any employee who was not
in service on | 5 | | the day before the effective date, service rendered prior to
| 6 | | such date shall not be considered for the purposes of Section | 7 | | 8-138.
| 8 | | For a person employed by an employer for whom this Article | 9 | | was in effect
prior to January 1, 1950, from whose salary | 10 | | deductions are first made under
this Article after December 31, | 11 | | 1949, any period of service rendered prior
to the effective | 12 | | date, unless he was in service on the day before the
effective | 13 | | date, shall not be counted as service.
| 14 | | The time a person was an employee of any territory annexed | 15 | | to the city
prior to the effective date shall be counted as a | 16 | | period of service.
| 17 | | In computing the term of service of any employee subsequent | 18 | | to the day
before the effective date, the following periods | 19 | | shall be counted as
periods of service for age and service, | 20 | | widow's and child's annuity
purposes:
| 21 | | (a) The time during which he performed the duties of | 22 | | his position;
| 23 | | (b) Vacations, leaves of absence with whole or part | 24 | | pay, and leaves of
absence without pay not longer than 90 | 25 | | days;
| 26 | | (c) Leaves of absence without pay during which a |
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| 1 | | participant is
employed full-time by a local labor | 2 | | organization that represents municipal employees,
provided | 3 | | that (1) the participant continues to make employee | 4 | | contributions
to the Fund as though he were an active | 5 | | employee, based on the regular
salary rate received by the | 6 | | participant
for his municipal employment immediately prior | 7 | | to such leave of absence
(and in the case of such | 8 | | employment prior to December 9, 1987, pays
to the Fund an | 9 | | amount equal
to the employee contributions for such | 10 | | employment plus regular interest
thereon as calculated by | 11 | | the board),
and based on his current salary with such labor | 12 | | organization after the
effective date of this amendatory | 13 | | Act of 1991 for leaves of absence before the effective date | 14 | | of this amendatory Act of the 97th General Assembly ,
and, | 15 | | for leaves of absence after the effective date of this | 16 | | amendatory Act of the 97th General Assembly, based on the | 17 | | regular salary rate received by the participant for
his | 18 | | municipal employment immediately prior to such leave of | 19 | | absence, (2) after January 1, 1989 the participant, or the | 20 | | labor organization on the
participant's behalf, makes | 21 | | contributions to the Fund as though it were the
employer, | 22 | | in the same amount and same manner as specified under this
| 23 | | Article, based on the regular salary rate received by the | 24 | | participant for
his municipal employment immediately prior | 25 | | to such leave of absence, and
based on his current salary | 26 | | with such labor organization after the effective
date of |
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| 1 | | this amendatory Act of 1991 for leaves of absence before | 2 | | the effective date of this amendatory Act of the 97th | 3 | | General Assembly , and, for leaves of absence after the | 4 | | effective date of this amendatory Act of the 97th General | 5 | | Assembly, based on the regular salary rate received by the | 6 | | participant for
his municipal employment immediately prior | 7 | | to such leave of absence, and (3) the participant does not | 8 | | receive
credit in any pension plan established by the local | 9 | | labor organization based on
his employment by the | 10 | | organization , including, but not limited to, pension plans | 11 | | established by the local labor organization, the national | 12 | | labor organization, or the international labor | 13 | | organization ;
| 14 | | (d) Any period of disability for which he received (i) | 15 | | a disability
benefit under this Article, or (ii) a | 16 | | temporary total disability benefit
under the Workers' | 17 | | Compensation Act if the disability results from a
condition | 18 | | commonly termed heart attack or stroke or any other | 19 | | condition
falling within the broad field of coronary | 20 | | involvement or heart disease,
or (iii) whole or part pay;
| 21 | | (e) Any period for which contributions and service | 22 | | credit have been
transferred to this Fund under subsection | 23 | | (d) of Section 9-121.1 or
subsection (d) of Section | 24 | | 12-127.1 of this Code.
| 25 | | For a person employed by an employer in which the 1921 Act | 26 | | was in effect
prior to January 1, 1950, from whose salary |
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| 1 | | deductions are first made under
the 1921 Act or this Article | 2 | | after December 31, 1949, any period of service
rendered | 3 | | subsequent to the effective date and prior to the date he | 4 | | became
an employee and contributor, shall not be counted as a | 5 | | period of service
under this Article,
except such period for | 6 | | which he made payment as
provided in Section 8-230 of this | 7 | | Article, in which case such period shall
be counted as a period | 8 | | of service for all annuity purposes hereunder.
| 9 | | In computing the term of service of an employee subsequent | 10 | | to the day
before the effective date for ordinary disability | 11 | | benefit purposes, all
periods described in the preceding | 12 | | paragraph, except any such period for
which he receives | 13 | | ordinary disability benefit, shall be counted as periods
of | 14 | | service; provided, that for any person employed by an employer | 15 | | in which
this Article was in effect prior to January 1, 1950, | 16 | | from whose salary
deductions are first made under this Article | 17 | | after December 31, 1949, any
period of service rendered | 18 | | subsequent to the effective date and prior to
the date he | 19 | | became an employee and contributor, shall not be counted as a
| 20 | | period of service for ordinary disability benefit purposes, | 21 | | unless the person
made payment for the period as provided in | 22 | | Section 8-230 of this Article, in
which case the period shall | 23 | | be counted as a period of service for ordinary
disability | 24 | | purposes for periods of disability on or after the effective | 25 | | date of
this amendatory Act of 1997.
| 26 | | Overtime or extra service shall not be included in |
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| 1 | | computing any term of
service. Not more than 1 year of service | 2 | | shall be allowed for service
rendered during any calendar year.
| 3 | | (Source: P.A. 90-511, eff. 8-22-97.)
| 4 | | (40 ILCS 5/8-226.8 new) | 5 | | Sec. 8-226.8. Leave of absence benefit recalculation. | 6 | | Every 3 years, beginning on or as soon as practical after the | 7 | | effective date of this amendatory Act of the 97th General | 8 | | Assembly, the fund shall determine if any benefit earned by a | 9 | | participant who first earns credit on or after the effective | 10 | | date of this Section as a result of subdivision (c) of Section | 11 | | 8-226 has created any additional unfunded liability to the | 12 | | fund. If it is determined by the fund that additional unfunded | 13 | | liability has been created, then the participant must remit the | 14 | | total cost to the fund, as determined by the fund, within one | 15 | | year. | 16 | | (40 ILCS 5/11-116.1 new) | 17 | | Sec. 11-116.1. Leaves of absence; computation of salary. | 18 | | For any participant who, on or after the effective date of this | 19 | | amendatory Act of the 97th General Assembly, takes a leave of | 20 | | absence under paragraph (3) of subsection (c) of Section | 21 | | 11-215, his or her highest average annual salary shall be based | 22 | | upon the regular salary rate received by the participant for | 23 | | his or her municipal employment immediately prior to that leave | 24 | | of absence.
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| 1 | | (40 ILCS 5/11-215) (from Ch. 108 1/2, par. 11-215)
| 2 | | Sec. 11-215. Computation of service.
| 3 | | (a) In computing the term of service of an employee prior | 4 | | to the effective
date, the entire period beginning on the date | 5 | | he was first appointed and ending
on the day before the | 6 | | effective date, except any intervening period during
which he | 7 | | was separated by withdrawal from service, shall be counted for | 8 | | all
purposes of this Article. Only the first year of each | 9 | | period of lay-off or
leave of absence without pay, continuing | 10 | | or extending for a period in excess
of one year, shall be | 11 | | counted as such service.
| 12 | | (b) For a person employed by an employer for whom this | 13 | | Article was in effect
prior to August 1, 1949, from whose | 14 | | salary deductions are first made under
this Article after July | 15 | | 31, 1949, any period of service rendered prior to
the effective | 16 | | date, unless he was in service on the day before the
effective | 17 | | date, shall not be counted as service.
| 18 | | (c) In computing the term of service of an employee | 19 | | subsequent to the day
before the effective date, the following | 20 | | periods of time shall be counted
as periods of service for | 21 | | annuity purposes:
| 22 | | (1) the time during which he performed the duties of | 23 | | his position;
| 24 | | (2) leaves of absence with whole or part pay, and | 25 | | leaves of absence
without pay not longer than 90 days;
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| 1 | | (3) leaves of absence without pay during which a | 2 | | participant is
employed full-time by a local labor | 3 | | organization that represents municipal
employees, provided | 4 | | that (A) the participant continues to make employee
| 5 | | contributions to the Fund as though he were an active | 6 | | employee, based
on the regular salary rate received by the
| 7 | | participant for his municipal employment immediately prior | 8 | | to such leave of
absence (and in the case of such | 9 | | employment prior to December 9, 1987,
pays to the Fund an | 10 | | amount equal to the employee contributions for such
| 11 | | employment plus regular interest thereon as calculated by | 12 | | the board), and
based on his current salary with such labor | 13 | | organization after the
effective date of this amendatory | 14 | | Act of 1991 for leaves of absence before the effective date | 15 | | of this amendatory Act of the 97th General Assembly , and, | 16 | | for leaves of absence after the effective date of this | 17 | | amendatory Act of the 97th General Assembly, based on the | 18 | | regular salary rate received by the participant for
his | 19 | | municipal employment immediately prior to such leave of | 20 | | absence, (B) after January 1, 1989
the participant, or the | 21 | | labor organization on the participant's behalf,
makes | 22 | | contributions to the Fund as though it were the employer, | 23 | | in the same
amount and same manner as specified under this | 24 | | Article, based on the
regular salary rate received by the | 25 | | participant for his municipal
employment immediately prior | 26 | | to such leave of absence, and
based on his current salary |
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| 1 | | with such labor organization after the
effective date of | 2 | | this amendatory Act of 1991 and for leaves of absence | 3 | | before the effective date of this amendatory Act of the | 4 | | 97th General Assembly , and, for leaves of absence after the | 5 | | effective date of this amendatory Act of the 97th General | 6 | | Assembly, based on the regular salary rate received by the | 7 | | participant for
his municipal employment immediately prior | 8 | | to such leave of absence, and (C)
the participant does
not | 9 | | receive credit in any pension plan established by the local | 10 | | labor
organization based on his employment by the | 11 | | organization , including, but not limited to, pension plans | 12 | | established by the local labor organization, the national | 13 | | labor organization, or the international labor | 14 | | organization ;
| 15 | | (4) any period of disability for which he received (i) | 16 | | a disability
benefit under this Article, or (ii) a | 17 | | temporary total disability benefit
under the Workers' | 18 | | Compensation Act if the disability results from a
condition | 19 | | commonly termed heart attack or stroke or any other | 20 | | condition
falling within the broad field of coronary | 21 | | involvement or heart disease,
or (iii) whole or part pay.
| 22 | | (d) For a person employed by an employer, or the retirement | 23 | | board, in which
"The 1935 Act" was in effect prior to August 1, | 24 | | 1949, from whose salary
deductions are first made under "The | 25 | | 1935 Act" or this Article after July
31, 1949, any period of | 26 | | service rendered subsequent to the effective date
and prior to |
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| 1 | | August 1, 1949, shall not be counted as a period of service
| 2 | | under this Article, except such period for which he made | 3 | | payment, as
provided in Section 11-221 of this Article, in | 4 | | which case such period
shall be counted as a period of service | 5 | | for all annuity purposes hereunder.
| 6 | | (e) In computing the term of service of an employee | 7 | | subsequent to the day
before the effective date for ordinary | 8 | | disability benefit purposes, the
following periods of time | 9 | | shall be counted as periods of service:
| 10 | | (1) any period during which he performed the duties of | 11 | | his position;
| 12 | | (2) leaves of absence with whole or part pay;
| 13 | | (3) any period of disability for which he received (i)
| 14 | | a duty disability benefit under this Article, or (ii) a | 15 | | temporary total
disability benefit under the Workers' | 16 | | Compensation Act if the disability
results from a condition | 17 | | commonly termed heart attack or stroke or any
other | 18 | | condition falling within the broad field of coronary | 19 | | involvement or
heart disease, or (iii) whole or part pay.
| 20 | | However, any period of service rendered by an employee | 21 | | contributor prior to
the date he became a contributor to the | 22 | | fund shall not be counted as a
period of service for ordinary | 23 | | disability purposes, unless the person
made payment for the | 24 | | period as provided in Section 11-221 of this Article, in
which | 25 | | case the period shall be counted as a period of service for | 26 | | ordinary
disability purposes for periods of disability on or |
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| 1 | | after the effective date of
this amendatory Act of 1997.
| 2 | | Overtime or extra service shall not be included in | 3 | | computing any term of
service. Not more than 1 year of service | 4 | | shall be allowed for service
rendered during any calendar year.
| 5 | | (Source: P.A. 90-511, eff. 8-22-97.)
| 6 | | (40 ILCS 5/11-215.2 new) | 7 | | Sec. 11-215.2. Leave of absence benefit recalculation. | 8 | | Every 3 years, beginning on or as soon as practical after the | 9 | | effective date of this amendatory Act of the 97th General | 10 | | Assembly, the fund shall determine if any benefit earned by a | 11 | | participant who first earns credit on or after the effective | 12 | | date of this Section as a result of subdivision (c)(3) of | 13 | | Section 11-215 has created any additional unfunded liability to | 14 | | the fund. If it is determined by the fund that additional | 15 | | unfunded liability has been created, then the participant must | 16 | | remit the total cost to the fund, as determined by the fund, | 17 | | within one year. | 18 | | (40 ILCS 5/15-113.12 new) | 19 | | Sec. 15-113.12. Pension credit earned for employment with a | 20 | | teacher organization. Any credit earned under subsection (i) of | 21 | | Section 15-107 and that is granted after the effective date of | 22 | | this amendatory Act of the 97th General Assembly shall be based | 23 | | on the participant's salary immediately before engaging in the | 24 | | type of employment specified in that provision. The participant |
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| 1 | | must contribute an amount equal to the actuarially determined | 2 | | normal cost of the benefit as calculated by the System. The | 3 | | employer of the participant may elect to contribute all or a | 4 | | portion of the participant's required contribution. | 5 | | (40 ILCS 5/15-113.13 new) | 6 | | Sec. 15-113.13. Credit recalculation. Every 3 years, | 7 | | beginning on or as soon as practical after the effective date | 8 | | of this amendatory Act of the 97th General Assembly, the System | 9 | | shall determine if any benefit earned by a participant who | 10 | | first becomes a participant on or after the effective date of | 11 | | this Section as a result of subsection (i) of Section 15-107 | 12 | | has created any additional unfunded liability to the System. If | 13 | | it is determined by the System that additional unfunded | 14 | | liability has been created, then the participant must remit the | 15 | | total cost to the System, as determined by the System, within | 16 | | one year. | 17 | | (40 ILCS 5/15-113.14 new) | 18 | | Sec. 15-113.14. Salary for credit earned for service to a | 19 | | teacher organization. For any participant who, on or after the | 20 | | effective date of this amendatory Act of the 97th General | 21 | | Assembly, earned credit under subsection (i) of Section 15-107, | 22 | | his or her average salary shall be based upon the regular | 23 | | salary rate received by the participant for his or her | 24 | | employment immediately prior to engaging in the type of |
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| 1 | | employment specified in that provision. | 2 | | (40 ILCS 5/16-110.1 new) | 3 | | Sec. 16-110.1. Pension credit earned for employment with a | 4 | | teacher organization or a school board association. Any credit | 5 | | earned under item (4) or (8) of Section 16-106 and that is | 6 | | granted after the effective date of this amendatory Act of the | 7 | | 97th General Assembly shall be based on the participant's | 8 | | salary immediately before engaging in the type of employment | 9 | | specified in that provision. The participant must contribute an | 10 | | amount equal to the actuarially determined normal cost of the | 11 | | benefit as calculated by the System. The employer of the | 12 | | participant may elect to contribute all or a portion of the | 13 | | participant's required contribution. | 14 | | (40 ILCS 5/16-110.2 new) | 15 | | Sec. 16-110.2. Credit recalculation. Every 3 years, | 16 | | beginning on or as soon as practical after the effective date | 17 | | of this amendatory Act of the 97th General Assembly, the System | 18 | | shall determine if any benefit earned by a participant who | 19 | | first earns credit on or after the effective date of this | 20 | | Section as a result of item (4) or (8) of Section 16-106 has | 21 | | created any additional unfunded liability to the System. If it | 22 | | is determined by the System that additional unfunded liability | 23 | | has been created, then the participant must remit the total | 24 | | cost to the System, as determined by the System, within one |
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| 1 | | year. | 2 | | (40 ILCS 5/16-110.3 new) | 3 | | Sec. 16-110.3. Leaves of absence; computation of salary. | 4 | | For any participant who, on or after the effective date of this | 5 | | amendatory Act of the 97th General Assembly, has earned credit | 6 | | under item (4) or (8) of Section 16-106, his or her average | 7 | | salary shall be based upon the regular salary rate received by | 8 | | the participant for his or her employment immediately prior to | 9 | | that leave of absence. | 10 | | (40 ILCS 5/17-109.3 new) | 11 | | Sec. 17-109.3. Salary for credit earned for employment with | 12 | | a teacher organization or school board association. Any credit | 13 | | earned, on or after the effective date of this amendatory Act | 14 | | of the 97th General Assembly, under subdivision (4) of Section | 15 | | 17-134 or subsection (b) of Section 17-134.1, shall be based | 16 | | upon the regular salary rate received by the participant for | 17 | | his or her employment immediately before engaging in the type | 18 | | of employment specified in that provision.
| 19 | | (40 ILCS 5/17-134) (from Ch. 108 1/2, par. 17-134)
| 20 | | Sec. 17-134. Contributions for leaves of absence; military | 21 | | service;
computing service. In computing service for pension | 22 | | purposes the following
periods of service shall stand in lieu | 23 | | of a like number of years of teaching
service upon payment |
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| 1 | | therefor in the manner hereinafter provided: (a) time
spent on | 2 | | a leave of absence granted by the
employer;
(b) service with | 3 | | teacher or labor organizations based upon special
leaves of | 4 | | absence therefor granted by an Employer; (c) a maximum of 5 | 5 | | years
spent in the military service of the United States, of | 6 | | which up to 2 years
may have been served outside the pension | 7 | | period; (d) unused sick days at
termination of service to a | 8 | | maximum of 244 days; (e) time lost due
to layoff and | 9 | | curtailment of the school term from June 6 through June 21, | 10 | | 1976;
and (f) time spent after June 30, 1982 as a member of the | 11 | | Board of Education,
if required to resign from an | 12 | | administrative or teaching position in order to
qualify as a | 13 | | member of the Board of Education.
| 14 | | (1) For time spent on or after September 6, 1948 on | 15 | | sabbatical
leaves of absence or sick leaves, for which | 16 | | salaries are paid, an Employer
shall make payroll | 17 | | deductions at the applicable rates in effect
during such | 18 | | periods.
| 19 | | (2) For time spent on a leave of absence granted by the | 20 | | employer for which no salaries are paid,
teachers desiring | 21 | | credit therefor shall pay the required contributions at the
| 22 | | rates in effect during such periods as though they were in | 23 | | teaching service.
If an Employer pays salary for vacations | 24 | | which occur during a teacher's sick
leave or maternity or | 25 | | paternity leave without salary, vacation pay for which
the | 26 | | teacher would have qualified while in active service shall |
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| 1 | | be considered
part of the teacher's total salary for | 2 | | pension purposes. No more than 36 months of leave credit | 3 | | may be
allowed any person during the entire term of | 4 | | service. Sabbatical leave credit
shall be limited to the | 5 | | time the person on leave without salary under an
Employer's | 6 | | rules is allowed to engage in an activity for which he | 7 | | receives
salary or compensation.
| 8 | | (3) For time spent prior to September 6, 1948, on | 9 | | sabbatical
leaves of absence or sick leaves for which | 10 | | salaries were paid, teachers
desiring service credit | 11 | | therefor shall pay the required contributions at the
| 12 | | maximum applicable rates in effect during such periods.
| 13 | | (4) For service with teacher or labor organizations | 14 | | authorized by special
leaves of absence, for which no | 15 | | payroll deductions are made by an Employer,
teachers | 16 | | desiring service credit therefor shall contribute to the | 17 | | Fund upon
the basis of the actual salary received from such | 18 | | organizations at the
percentage rates in effect during such | 19 | | periods for certified positions with
such Employer. To the | 20 | | extent the actual salary exceeds the regular salary,
which | 21 | | shall be defined as the salary rate, as calculated by the | 22 | | Board, in
effect for the teacher's regular position in | 23 | | teaching service on September 1,
1983 or on the effective | 24 | | date of the leave with the organization, whichever is
| 25 | | later, the organization shall pay to the Fund the | 26 | | employer's normal cost as set
by the Board on the |
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| 1 | | increment. For leaves of absence after the effective date | 2 | | of this amendatory Act of the 97th General Assembly, | 3 | | contributions to the Fund under this subdivision (4) shall | 4 | | be based upon the teacher's regular salary as defined in | 5 | | this subdivision (4).
| 6 | | (5) For time spent in the military service, teachers | 7 | | entitled to and
desiring credit therefor shall contribute | 8 | | the amount required for each year
of service or fraction | 9 | | thereof at the rates in force (a) at the date of
| 10 | | appointment, or (b) on return to teaching service as a | 11 | | regularly certified
teacher, as the case may be; provided | 12 | | such rates shall not be less than $450
per year of service. | 13 | | These conditions shall apply unless an Employer elects
to | 14 | | and does pay into the Fund the amount which would have been | 15 | | due from such
person had he been employed as a teacher | 16 | | during such time. In the case of
credit for military | 17 | | service not during the pension period, the teacher must
| 18 | | also pay to the Fund an amount determined by the Board to | 19 | | be equal to the
employer's normal cost of the benefits | 20 | | accrued from such service, plus interest
thereon at 5% per | 21 | | year, compounded annually, from the date of appointment to
| 22 | | the date of payment.
| 23 | | The changes to this Section made by Public Act 87-795 | 24 | | shall apply
not only to persons who on or after its | 25 | | effective
date are in service under the Fund, but also to | 26 | | persons whose status as a
teacher terminated prior to that |
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| 1 | | date, whether or not the person is an
annuitant on that | 2 | | date. In the case of an annuitant who applies for credit
| 3 | | allowable under this Section for a period of military | 4 | | service that did not
immediately follow employment, and who | 5 | | has made the required contributions for
such credit, the | 6 | | annuity shall be recalculated to include the additional
| 7 | | service credit, with the increase taking effect on the date | 8 | | the Fund received
written notification of the annuitant's | 9 | | intent to purchase the credit, if
payment of all the | 10 | | required contributions is made within 60 days of such
| 11 | | notice, or else on the first annuity payment date following | 12 | | the date of
payment of the required contributions. In | 13 | | calculating the automatic annual
increase for an annuity | 14 | | that has been recalculated under this Section, the
increase | 15 | | attributable to the additional service allowable under | 16 | | this
amendatory Act of 1991 shall be included in the | 17 | | calculation of automatic
annual increases accruing after | 18 | | the effective date of the recalculation.
| 19 | | The total credit for military service shall not exceed | 20 | | 5 years, except
that any teacher who on July 1, 1963, had | 21 | | validated credit for more than 5
years of military service | 22 | | shall be entitled to the total amount of such credit.
| 23 | | (6) A maximum of 244 unused sick days credited to his | 24 | | account
by an Employer on the date of termination of | 25 | | employment. Members, upon
verification of unused sick | 26 | | days, may add this service time to total creditable
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| 1 | | service.
| 2 | | (7) In all cases where time spent on leave is | 3 | | creditable and
no payroll deductions therefor are made by | 4 | | an Employer, persons
desiring service credit shall make the | 5 | | required contributions directly to
the Fund.
| 6 | | (8) For time lost without pay due to layoff and | 7 | | curtailment of
the school term from June 6 through June 21, | 8 | | 1976, as provided in item (e) of
the first paragraph of | 9 | | this Section, persons who were contributors on
the days | 10 | | immediately preceding such layoff shall receive credit | 11 | | upon
paying to the Fund a contribution based on the rates | 12 | | of compensation and
employee contributions in effect at the | 13 | | time of such layoff, together
with an additional amount | 14 | | equal to 12.2% of the compensation computed
for such period | 15 | | of layoff, plus interest on the entire amount at 5% per
| 16 | | annum from January 1, 1978 to the date of payment. If such | 17 | | contribution
is paid, salary for pension purposes for any | 18 | | year in which such a layoff
occurred shall include the | 19 | | compensation recognized for purposes of
computing that | 20 | | contribution.
| 21 | | (9) For time spent after June 30, 1982, as a | 22 | | nonsalaried member
of the Board of Education, if required | 23 | | to resign from an administrative or
teaching position in | 24 | | order to qualify as a member of the Board of
Education, an | 25 | | administrator or teacher desiring credit therefor shall | 26 | | pay
the required contributions at the rates and salaries in |
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| 1 | | effect during such
periods as though the member were in | 2 | | service.
| 3 | | Effective September 1, 1974, the interest charged for | 4 | | validation of
service described in paragraphs (2) through (5) | 5 | | of this Section shall be
compounded annually at a rate of 5% | 6 | | commencing one
year after the termination of the leave or | 7 | | return to service.
| 8 | | (Source: P.A. 92-599, eff. 6-28-02 .)
| 9 | | (40 ILCS 5/17-134.1)
| 10 | | Sec. 17-134.1. Labor organization employees.
| 11 | | (a) A former teacher who is employed by a teacher or labor | 12 | | organization and
is not eligible to participate under | 13 | | subdivision (4) of Section 17-134 because
he or she is not on a | 14 | | special leave of absence may elect to participate in the
Fund | 15 | | for the duration of that employment by so notifying the Fund in | 16 | | writing.
Participation shall be subject to the same conditions
| 17 | | as are applicable to persons participating under that | 18 | | subdivision (4), and
service credit shall be contingent upon | 19 | | the required contributions being
received by the Fund.
| 20 | | (b) A person who participates in the Fund under subsection | 21 | | (a) may establish
service credit for periods of such employment | 22 | | that took place before beginning
participation under this | 23 | | Section by submitting a written application to the
Fund. Credit | 24 | | shall be granted upon payment to the Fund
of an amount to be | 25 | | determined by the Fund, equal to (i) the employee
contributions |
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| 1 | | that would have been paid if the person had participated under
| 2 | | subdivision (4) of Section 17-134 during the period for which | 3 | | service credit is
to be established, based on the actual salary | 4 | | received, plus (ii) the
employer's normal cost associated with | 5 | | that service credit, plus (iii) interest
on items (i) and (ii) | 6 | | at the rate of 6% per year, compounded annually, from the
date | 7 | | of the service established to the date of payment. Service | 8 | | credit under
this subsection shall not be granted until the | 9 | | required contribution has been
paid in full; the contribution | 10 | | may be paid at any time before retirement. For leaves of | 11 | | absence after the effective date of this amendatory Act of the | 12 | | 97th General Assembly, contributions to the Fund under item (i) | 13 | | of this subsection (b) shall be based upon the teacher's | 14 | | regular salary as defined in subdivision (4) of Section 17-134.
| 15 | | (c) A person who participates in the Fund under subsection | 16 | | (a) may
reestablish any service credits previously forfeited by | 17 | | acceptance of a refund
by paying to the Fund the amount of the | 18 | | refund plus interest thereon at the
rate of 5% per annum, | 19 | | compounded annually, from the date of the refund to the
date of | 20 | | payment.
| 21 | | (d) Rollover contributions from other retirement plans | 22 | | qualified under the
Internal Revenue Code of 1986 may be used | 23 | | to make the payments required under
subsections (b) and (c).
| 24 | | (e) No service credit may be established under this Section | 25 | | for any period
of employment for which the person receives | 26 | | service credit under any other
provision of this Code.
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| 1 | | (Source: P.A. 90-448, eff. 8-16-97.)
| 2 | | (40 ILCS 5/17-134.2 new) | 3 | | Sec. 17-134.2. Credit recalculation. Every 3 years, | 4 | | beginning on or as soon as practical after the effective date | 5 | | of this amendatory Act of the 97th General Assembly, the Fund | 6 | | shall determine if any benefit earned by a participant who | 7 | | first earns credit on or after the effective date of this | 8 | | Section as a result of item (4) of Section 17-134 and Section | 9 | | 17-134.1 has created any additional unfunded liability to the | 10 | | Fund. If it is determined by the Fund that additional unfunded | 11 | | liability has been created, then the participant must remit the | 12 | | total cost to the Fund, as determined by the Fund, within one | 13 | | year.
| 14 | | Section 99. Effective date. This Act takes effect upon | 15 | | becoming law.".
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