State of Illinois
90th General Assembly
Legislation

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90_SB1909

      40 ILCS 5/16-127          from Ch. 108 1/2, par. 16-127
          Amends the Downstate Teacher Article of the Pension  Code
      to  increase  the  amount of out-of-State service that may be
      purchased by a teacher.  Effective immediately.
                                                     LRB9011512EGfg
                                               LRB9011512EGfg
 1        AN ACT to amend the Illinois  Pension  Code  by  changing
 2    Section 16-127.
 3        Be  it  enacted  by  the People of the State of Illinois,
 4    represented in the General Assembly:
 5        Section 5.  The  Illinois  Pension  Code  is  amended  by
 6    changing Section 16-127 as follows:
 7        (40 ILCS 5/16-127) (from Ch. 108 1/2, par. 16-127)
 8        Sec. 16-127.  Computation of creditable service.
 9        (a)  Each  member  shall  receive  regular credit for all
10    service as a teacher from the  date  membership  begins,  for
11    which satisfactory evidence is supplied and all contributions
12    have been paid.
13        (b)  The following periods of service shall earn optional
14    credit  and  each  member  shall  receive credit for all such
15    service for which satisfactory evidence is supplied  and  all
16    contributions have been paid as of the date specified:
17             (1)  Prior service as a teacher.
18             (2)  Service  in  a  capacity essentially similar or
19        equivalent to that of a teacher,  in  the  public  common
20        schools  in  school  districts in this State not included
21        within the provisions of this System,  or  of  any  other
22        State,  territory, dependency or possession of the United
23        States, or in schools operated by or under  the  auspices
24        of the United States, or under the auspices of any agency
25        or  department of any other State, and service during any
26        period  of  professional  speech  correction  or  special
27        education experience for  a  public  agency  within  this
28        State  or  any  other  State,  territory,  dependency  or
29        possession  of  the  United  States, and service prior to
30        February 1, 1951 as a recreation worker for the  Illinois
31        Department  of  Public Safety, for a period not exceeding
                            -2-                LRB9011512EGfg
 1        the lesser of  2/5  of  the  total  number  of  years  of
 2        creditable   service   of  the  member  at  the  time  of
 3        application or  15  10  years.   The  maximum  period  of
 4        service  of  10  years  which  is  allowable  under  this
 5        paragraph shall be reduced by the service credit which is
 6        validated by other retirement systems under paragraph (i)
 7        of  Section  15-113  and  paragraph  1 of Section 17-133.
 8        Credit granted under this paragraph may not  be  used  in
 9        determination  of  a  retirement  annuity  or  disability
10        benefits  unless  the  member  has  at  least  5 years of
11        creditable service earned subsequent to  this  employment
12        with  one  or  more  of  the following systems: Teachers'
13        Retirement  System  of  the  State  of  Illinois,   State
14        Universities  Retirement  System,  and  the Public School
15        Teachers'  Pension  and  Retirement  Fund   of   Chicago.
16        Whenever  such service credit exceeds the maximum allowed
17        for all purposes  of  this  Article,  the  first  service
18        rendered  in  point  of  time  shall  be  considered. The
19        changes to this subdivision (b)(2)  made  by  Public  Act
20        86-272  shall  apply  not only to persons who on or after
21        its effective date (August 23, 1989) are in service as  a
22        teacher  under  the  System,  but  also  to persons whose
23        status  as  such  a  teacher  terminated  prior  to  such
24        effective  date,  whether  or  not  such  person  is   an
25        annuitant on that date.
26             (3)  Any   periods  immediately  following  teaching
27        service, under this  System  or  under  Article  17,  (or
28        immediately  following  service prior to February 1, 1951
29        as a recreation worker for  the  Illinois  Department  of
30        Public  Safety) spent in active service with the military
31        forces of the United States; periods spent in educational
32        programs that prepare for return to teaching sponsored by
33        the federal government  following  such  active  military
34        service;  if a teacher returns to teaching service within
                            -3-                LRB9011512EGfg
 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
 6        a  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
12        also to persons whose  status  as  a  teacher  terminated
13        prior  to  that  date,  whether  or  not the person is an
14        annuitant on that date.  In the case of an annuitant  who
15        applies  for  credit  allowable  under this Section for a
16        period of  military  service  that  did  not  immediately
17        follow   employment,   and  who  has  made  the  required
18        contributions for  such  credit,  the  annuity  shall  be
19        recalculated  to  include  the additional service credit,
20        with the increase taking effect on the  date  the  System
21        received  written  notification of the annuitant's intent
22        to purchase the credit, if payment of  all  the  required
23        contributions  is  made within 60 days of such notice, or
24        else on the first annuity payment date following the date
25        of payment of the required contributions.  In calculating
26        the automatic annual increase for  an  annuity  that  has
27        been  recalculated  under    this  Section,  the increase
28        attributable to the additional  service  allowable  under
29        P.A.  87-794  shall  be  included  in  the calculation of
30        automatic annual increases accruing after  the  effective
31        date of the recalculation.
32             Credit  for  military service shall be determined as
33        follows: if entry  occurs  during  the  months  of  July,
34        August,  or September and the member was a teacher at the
                            -4-                LRB9011512EGfg
 1        end of the  immediately  preceding  school  term,  credit
 2        shall  be  granted from July 1 of the year in which he or
 3        she entered service; if entry occurs  during  the  school
 4        term  and  the  teacher  was  in  teaching service at the
 5        beginning of the school term,  credit  shall  be  granted
 6        from July 1 of such year. In all other cases where credit
 7        for  military service is allowed, credit shall be granted
 8        from the date of entry into the service.
 9             The total  period  of  military  service  for  which
10        credit is granted shall not exceed 5 years for any member
11        unless  the  service:   (A)  is  validated before July 1,
12        1964, and (B)  does  not  extend  beyond  July  1,  1963.
13        Credit  for  military service shall be granted under this
14        Section only if not more than 5  years  of  the  military
15        service for which credit is granted under this Section is
16        used  by  the member to qualify for a military retirement
17        allotment from any branch of  the  armed  forces  of  the
18        United  States.  The  changes  to this subdivision (b)(3)
19        made by Public Act 86-272 shall apply not only to persons
20        who on or after its effective date (August 23, 1989)  are
21        in  service  as  a  teacher under the System, but also to
22        persons whose status as such a teacher  terminated  prior
23        to  such effective date, whether or not such person is an
24        annuitant on that date.
25             (4)  Any periods served as a member of  the  General
26        Assembly.
27             (5)(i)  Any  periods for which a teacher, as defined
28        in  Section  16-106,  is  granted  a  leave  of  absence,
29        provided he or she returns to teaching service creditable
30        under this System or the  State  Universities  Retirement
31        System  following  the leave; (ii) periods during which a
32        teacher is involuntarily laid off from teaching, provided
33        he or she returns  to  teaching  following  the  lay-off;
34        (iii)  periods  prior  to  July  1,  1983  during which a
                            -5-                LRB9011512EGfg
 1        teacher  ceased  covered  employment  due  to  pregnancy,
 2        provided that the teacher returned  to  teaching  service
 3        creditable  under  this  System or the State Universities
 4        Retirement System following  the  pregnancy  and  submits
 5        evidence  satisfactory  to the Board documenting that the
 6        employment ceased due  to  pregnancy;  and  (iv)  periods
 7        prior  to  July  1,  1983  during  which a teacher ceased
 8        covered employment for the purpose of adopting an  infant
 9        under 3 years of age or caring for a newly adopted infant
10        under  3 years of age, provided that the teacher returned
11        to teaching service creditable under this System  or  the
12        State   Universities   Retirement  System  following  the
13        adoption and submits evidence satisfactory to  the  Board
14        documenting that the employment ceased for the purpose of
15        adopting  an  infant under 3 years of age or caring for a
16        newly adopted infant under  3  years  of  age.   However,
17        total  credit  under  this paragraph (5) may not exceed 3
18        years.
19             Any qualified member  or  annuitant  may  apply  for
20        credit  under  item  (iii)  or (iv) of this paragraph (5)
21        without regard to whether service was  terminated  before
22        the  effective  date  of this amendatory Act of 1997.  In
23        the case of an annuitant  who  establishes  credit  under
24        item  (iii) or (iv), the annuity shall be recalculated to
25        include the additional service credit.  The  increase  in
26        annuity shall take effect on the date the System receives
27        written   notification   of  the  annuitant's  intent  to
28        purchase  the  credit,  if  the  required   evidence   is
29        submitted  and  the  required contribution paid within 60
30        days of that notification, otherwise on the first annuity
31        payment  date  following  the  System's  receipt  of  the
32        required evidence and contribution.  The increase  in  an
33        annuity   recalculated  under  this  provision  shall  be
34        included in the calculation of automatic annual increases
                            -6-                LRB9011512EGfg
 1        in the annuity accruing after the effective date  of  the
 2        recalculation.
 3             Optional   credit   may   be  purchased  under  this
 4        subsection (b)(5) for periods during which a teacher  has
 5        been granted a leave of absence pursuant to Section 24-13
 6        of  the  School Code.  A teacher whose service under this
 7        Article terminated prior to the effective  date  of  P.A.
 8        86-1488  shall  be  eligible  to  purchase  such optional
 9        credit.  If a teacher who purchases this optional  credit
10        is  already  receiving  a  retirement  annuity under this
11        Article, the annuity shall  be  recalculated  as  if  the
12        annuitant  had applied for the leave of absence credit at
13        the time  of  retirement.   The  difference  between  the
14        entitled annuity and the actual annuity shall be credited
15        to the purchase of the optional credit.  The remainder of
16        the purchase cost of the optional credit shall be paid on
17        or before April 1, 1992.
18             The  change  in  this  paragraph  made by Public Act
19        86-273 shall be applicable to teachers who  retire  after
20        June  1,  1989, as well as to teachers who are in service
21        on that date.
22             (6)  Any   days   of   unused   and    uncompensated
23        accumulated  sick leave earned by a teacher.  The service
24        credit granted under this paragraph shall be the ratio of
25        the number of unused and uncompensated  accumulated  sick
26        leave  days to 170 days, subject to a maximum of one year
27        of service credit.  Prior  to  the  member's  retirement,
28        each  former  employer  shall  certify  to the System the
29        number of unused and uncompensated accumulated sick leave
30        days credited to the member at the time of termination of
31        service. The period of unused sick  leave  shall  not  be
32        considered   in   determining   the   effective  date  of
33        retirement.   A  member   is   not   required   to   make
34        contributions  in  order  to  obtain  service  credit for
                            -7-                LRB9011512EGfg
 1        unused sick leave.
 2             Credit for  sick  leave  shall,  at  retirement,  be
 3        granted  by  the  System  for  any  retiring  regional or
 4        assistant regional superintendent of schools at the  rate
 5        of  6  days  per  year  of  creditable service or portion
 6        thereof established while serving as such  superintendent
 7        or assistant superintendent.
 8             (7)  Periods  prior to February 1, 1987 served as an
 9        employee of the Illinois Mathematics and Science  Academy
10        for  which  credit  has not been terminated under Section
11        15-113.9 of this Code.
12             (8)  Service  as  a  substitute  teacher  for   work
13        performed prior to July 1, 1990.
14             (9)  Service   as   a  part-time  teacher  for  work
15        performed prior to July 1, 1990.
16             (10)  Up to 2  years  of  employment  with  Southern
17        Illinois  University  - Carbondale from September 1, 1959
18        to August 31, 1961, or with  Governors  State  University
19        from  September 1, 1972 to August 31, 1974, for which the
20        teacher has no  credit  under  Article  15.   To  receive
21        credit  under  this  item  (10),  a teacher must apply in
22        writing to the Board and pay the  required  contributions
23        before  May 1, 1993 and have at least 12 years of service
24        credit under this Article.
25        (c)  The service credits specified in this Section  shall
26    be  granted  only  if:  (1) such service credits are not used
27    for  credit  in  any  other  statutory  tax-supported  public
28    employee retirement system  other  than  the  federal  Social
29    Security  program;  and  (2)  the  member  makes the required
30    contributions as specified in Section  16-128.   The  service
31    credit  shall  be  effective  as  of  the  date  the required
32    contributions are completed.
33        Any service credits  granted  under  this  Section  shall
34    terminate upon cessation of membership for any cause.
                            -8-                LRB9011512EGfg
 1        Credit may not be granted under this Section covering any
 2    period  for  which an age retirement or disability retirement
 3    allowance has been paid.
 4    (Source: P.A. 89-430, eff. 12-15-95; 90-32, eff. 6-27-97.)
 5        Section 99. Effective date.  This Act takes  effect  upon
 6    becoming law.

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