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Public Act 094-1111 |
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AN ACT concerning public employee benefits.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 5. The Illinois Pension Code is amended by changing | ||||
Sections
14-103.05, 14-104, 16-106, 16-158, and 17-133 as | ||||
follows:
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(40 ILCS 5/14-103.05) (from Ch. 108 1/2, par. 14-103.05)
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Sec. 14-103.05. Employee.
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(a) Any person employed by a Department who receives salary
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for personal services rendered to the Department on a warrant
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issued pursuant to a payroll voucher certified by a Department | ||||
and drawn
by the State Comptroller upon the State Treasurer, | ||||
including an elected
official described in subparagraph (d) of | ||||
Section 14-104, shall become
an employee for purpose of | ||||
membership in the Retirement System on the
first day of such | ||||
employment.
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A person entering service on or after January 1, 1972 and | ||||
prior to January
1, 1984 shall become a member as a condition | ||||
of employment and shall begin
making contributions as of the | ||||
first day of employment.
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A person entering service on or after January 1, 1984 | ||||
shall, upon completion
of 6 months of continuous service which | ||||
is not interrupted by a break of more
than 2 months, become a | ||||
member as a condition of employment. Contributions
shall begin | ||||
the first of the month after completion of the qualifying | ||||
period.
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The qualifying period of 6 months of service is not | ||||
applicable to: (1)
a person who has been granted credit for | ||||
service in a position covered by
the State Universities | ||||
Retirement System, the Teachers' Retirement System
of the State | ||||
of Illinois, the General Assembly Retirement System, or the
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Judges Retirement System of Illinois unless that service has |
been forfeited
under the laws of those systems; (2) a person | ||
entering service on or
after July 1, 1991 in a noncovered | ||
position; or (3) a person to whom Section
14-108.2a or | ||
14-108.2b applies.
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(b) The term "employee" does not include the following:
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(1) members of the State Legislature, and persons | ||
electing to become
members of the General Assembly | ||
Retirement System pursuant to Section 2-105;
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(2) incumbents of offices normally filled by vote of | ||
the people;
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(3) except as otherwise provided in this Section, any | ||
person
appointed by the Governor with the advice and | ||
consent
of the Senate unless that person elects to | ||
participate in this system;
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(3.1) any person serving as a commissioner of an ethics | ||
commission created under the State Officials and Employees | ||
Ethics Act unless that person elects to participate in this | ||
system with respect to that service as a commissioner;
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(3.2) any person serving as a part-time employee in any | ||
of the following positions: Legislative Inspector General, | ||
Special Legislative Inspector General, employee of the | ||
Office of the Legislative Inspector General, Executive | ||
Director of the Legislative Ethics Commission, or staff of | ||
the Legislative Ethics Commission, regardless of whether | ||
he or she is in active service on or after July 8, 2004 | ||
(the effective date of Public Act 93-685), unless that | ||
person elects to participate in this System with respect to | ||
that service; in this item (3.2), a "part-time employee" is | ||
a person who is not required to work at least 35 hours per | ||
week; | ||
(3.3) any person who has made an election under Section | ||
1-123 and who is serving either as legal counsel in the | ||
Office of the Governor or as Chief Deputy Attorney General;
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(4) except as provided in Section 14-108.2 or | ||
14-108.2c, any person
who is covered or eligible to be | ||
covered by the Teachers' Retirement System of
the State of |
Illinois, the State Universities Retirement System, or the | ||
Judges
Retirement System of Illinois;
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(5) an employee of a municipality or any other | ||
political subdivision
of the State;
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(6) any person who becomes an employee after June 30, | ||
1979 as a
public service employment program participant | ||
under the Federal
Comprehensive Employment and Training | ||
Act and whose wages or fringe
benefits are paid in whole or | ||
in part by funds provided under such Act;
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(7) enrollees of the Illinois Young Adult Conservation | ||
Corps program,
administered by the Department of Natural | ||
Resources, authorized grantee
pursuant to Title VIII of the | ||
"Comprehensive Employment and Training Act of
1973", 29 USC | ||
993, as now or hereafter amended;
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(8) enrollees and temporary staff of programs | ||
administered by the
Department of Natural Resources under | ||
the Youth
Conservation Corps Act of 1970;
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(9) any person who is a member of any professional | ||
licensing or
disciplinary board created under an Act | ||
administered by the Department of
Professional Regulation | ||
or a successor agency or created or re-created
after the | ||
effective date of this amendatory Act of 1997, and who | ||
receives
per diem compensation rather than a salary, | ||
notwithstanding that such per diem
compensation is paid by | ||
warrant issued pursuant to a payroll voucher; such
persons | ||
have never been included in the membership of this System, | ||
and this
amendatory Act of 1987 (P.A. 84-1472) is not | ||
intended to effect any change in
the status of such | ||
persons;
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(10) any person who is a member of the Illinois Health | ||
Care Cost
Containment Council, and receives per diem | ||
compensation rather than a
salary, notwithstanding that | ||
such per diem compensation is paid by warrant
issued | ||
pursuant to a payroll voucher; such persons have never been | ||
included
in the membership of this System, and this | ||
amendatory Act of 1987 is not
intended to effect any change |
in the status of such persons;
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(11) any person who is a member of the Oil and Gas | ||
Board created by
Section 1.2 of the Illinois Oil and Gas | ||
Act, and receives per diem
compensation rather than a | ||
salary, notwithstanding that such per diem
compensation is | ||
paid by warrant issued pursuant to a payroll voucher; or
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(12) a person employed by the State Board of Higher | ||
Education in a position with the Illinois Century Network | ||
as of June 30, 2004, who remains continuously employed | ||
after that date by the Department of Central Management | ||
Services in a position with the Illinois Century Network | ||
and participates in the Article 15 system with respect to | ||
that employment.
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(c) An individual who represents or is employed as an | ||
officer or employee of a statewide labor organization that | ||
represents members of this System may participate in the System | ||
and shall be deemed an employee, provided that (1) the | ||
individual has previously earned creditable service under this | ||
Article, (2) the individual files with the System an | ||
irrevocable election to become a participant within 6 months | ||
after the effective date of this amendatory Act of the 94th | ||
General Assembly, and (3) the individual does not receive | ||
credit for that employment under any other provisions of this | ||
Code. An employee under this subsection (c) is responsible for | ||
paying to the System both (i) employee contributions based on | ||
the actual compensation received for service with the labor | ||
organization and (ii) employer contributions based on the | ||
percentage of payroll certified by the board; all or any part | ||
of these contributions may be paid on the employee's behalf or | ||
picked up for tax purposes (if authorized under federal law) by | ||
the labor organization. | ||
A person who is an employee as defined in this subsection | ||
(c) may establish service credit for similar employment prior | ||
to becoming an employee under this subsection by paying to the | ||
System for that employment the contributions specified in this | ||
subsection, plus interest at the effective rate from the date |
of service to the date of payment. However, credit shall not be | ||
granted under this subsection (c) for any such prior employment | ||
for which the applicant received credit under any other | ||
provision of this Code or during which the applicant was on a | ||
leave of absence.
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(Source: P.A. 92-14, eff. 6-28-01; 93-685, eff. 7-8-04; 93-839, | ||
eff. 7-30-04; 93-1069, eff. 1-15-05.)
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(40 ILCS 5/14-104) (from Ch. 108 1/2, par. 14-104)
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Sec. 14-104. Service for which contributions permitted.
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Contributions provided for in this Section shall cover the | ||
period of
service granted. Except as otherwise provided in this | ||
Section, the
contributions shall be based upon the employee's | ||
compensation and
contribution rate in effect on the date he | ||
last became a member of the
System; provided that for all | ||
employment prior to January 1, 1969 the
contribution rate shall | ||
be that in effect for a noncovered employee on
the date he last | ||
became a member of the System. Except as otherwise provided
in | ||
this Section, contributions permitted under this Section shall | ||
include
regular interest from the date an employee last became | ||
a member of the System
to the date of payment.
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These contributions must be paid in full before retirement | ||
either in
a lump sum or in installment payments in accordance | ||
with such rules as
may be adopted by the board.
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(a) Any member may make contributions as required in this | ||
Section
for any period of service, subsequent to the date of | ||
establishment, but
prior to the date of membership.
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(b) Any employee who had been previously excluded from | ||
membership
because of age at entry and subsequently became | ||
eligible may elect to
make contributions as required in this | ||
Section for the period of service
during which he was | ||
ineligible.
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(c) An employee of the Department of Insurance who, after | ||
January 1,
1944 but prior to becoming eligible for membership, | ||
received salary from
funds of insurance companies in the | ||
process of rehabilitation,
liquidation, conservation or |
dissolution, may elect to make
contributions as required in | ||
this Section for such service.
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(d) Any employee who rendered service in a State office to | ||
which he
was elected, or rendered service in the elective | ||
office of Clerk of the
Appellate Court prior to the date he | ||
became a member, may make
contributions for such service as | ||
required in this Section. Any member
who served by appointment | ||
of the Governor under the Civil Administrative
Code of Illinois | ||
and did not participate in this System may make
contributions | ||
as required in this Section for such service.
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(e) Any person employed by the United States government or | ||
any
instrumentality or agency thereof from January 1, 1942 | ||
through November
15, 1946 as the result of a transfer from | ||
State service by executive
order of the President of the United | ||
States shall be entitled to prior
service credit covering the | ||
period from January 1, 1942 through December
31, 1943 as | ||
provided for in this Article and to membership service
credit | ||
for the period from January 1, 1944 through November 15, 1946 | ||
by
making the contributions required in this Section. A person | ||
so employed
on January 1, 1944 but whose employment began after | ||
January 1, 1942 may
qualify for prior service and membership | ||
service credit under the same
conditions.
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(f) An employee of the Department of Labor of the State of | ||
Illinois who
performed services for and under the supervision | ||
of that Department
prior to January 1, 1944 but who was | ||
compensated for those services
directly by federal funds and | ||
not by a warrant of the Auditor of Public
Accounts paid by the | ||
State Treasurer may establish credit for such
employment by | ||
making the contributions required in this Section. An
employee | ||
of the Department of Agriculture of the State of Illinois, who
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performed services for and under the supervision of that | ||
Department
prior to June 1, 1963, but was compensated for those | ||
services directly
by federal funds and not paid by a warrant of | ||
the Auditor of Public
Accounts paid by the State Treasurer, and | ||
who did not contribute to any
other public employee retirement | ||
system for such service, may establish
credit for such |
employment by making the contributions required in this
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Section.
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(g) Any employee who executed a waiver of membership within
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60 days prior to January 1, 1944 may, at any time while in the | ||
service of a
department, file with the board a rescission of | ||
such waiver. Upon
making the contributions required by this | ||
Section, the member shall be
granted the creditable service | ||
that would have been received if the
waiver had not been | ||
executed.
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(h) Until May 1, 1990, an employee who was employed on a | ||
full-time
basis by a regional planning commission for at least | ||
5 continuous years may
establish creditable service for such | ||
employment by making the
contributions required under this | ||
Section, provided that any credits earned
by the employee in | ||
the commission's retirement plan have been terminated.
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(i) Any person who rendered full time contractual services | ||
to the General
Assembly as a member of a legislative staff may | ||
establish service credit for up
to 8 years of such services by | ||
making the contributions required under this
Section, provided | ||
that application therefor is made not later than July 1,
1991.
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(j) By paying the contributions otherwise required under | ||
this Section,
plus an amount determined by the Board to be | ||
equal to the employer's normal
cost of the benefit plus | ||
interest, but with all of the interest calculated
from the date | ||
the employee last became a member of the System or November 19,
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1991, whichever is later, to the date of payment, an employee | ||
may establish
service credit
for a period of up to 2 years | ||
spent in active military service for which he
does not qualify | ||
for credit under Section 14-105, provided that (1) he was
not | ||
dishonorably discharged from such military service, and (2) the | ||
amount
of service credit established by a member under this | ||
subsection (j), when
added to the amount of military service | ||
credit granted to the member under
subsection (b) of Section | ||
14-105, shall not exceed 5 years. The change
in the manner of | ||
calculating interest under this subsection (j) made by this
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amendatory Act of the 92nd General Assembly applies to credit |
purchased by an
employee on or after its effective date and | ||
does not entitle any person to a
refund of contributions or | ||
interest already paid.
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(k) An employee who was employed on a full-time basis by | ||
the Illinois
State's Attorneys Association Statewide Appellate | ||
Assistance Service
LEAA-ILEC grant project prior to the time | ||
that project became the State's
Attorneys Appellate Service | ||
Commission, now the Office of the State's
Attorneys Appellate | ||
Prosecutor, an agency of State government, may
establish | ||
creditable service for not more than 60 months service for
such | ||
employment by making contributions required under this | ||
Section.
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(l) By paying the contributions otherwise required under | ||
this Section,
plus an amount determined by the Board to be | ||
equal to the employer's normal
cost of the benefit plus | ||
interest, a member may establish service credit
for periods of | ||
less than one year spent on authorized leave of absence from
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service, provided that (1) the period of leave began on or | ||
after January 1,
1982 and (2) any credit established by the | ||
member for the period of leave in
any other public employee | ||
retirement system has been terminated. A member
may establish | ||
service credit under this subsection for more than one period
| ||
of authorized leave, and in that case the total period of | ||
service credit
established by the member under this subsection | ||
may exceed one year. In
determining the contributions required | ||
for establishing service credit under
this subsection, the | ||
interest shall be calculated from the beginning of the
leave of | ||
absence to the date of payment.
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(m) Any person who rendered contractual services to a | ||
member of
the General Assembly as a worker in the member's | ||
district office may establish
creditable service for up to 3 | ||
years of those contractual services by making
the contributions | ||
required under this Section. The System shall determine a
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full-time salary equivalent for the purpose of calculating the | ||
required
contribution. To establish credit under this | ||
subsection, the applicant must
apply to the System by March 1, |
1998.
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(n) Any person who rendered contractual services to a | ||
member of
the General Assembly as a worker providing | ||
constituent services to persons in
the member's district may | ||
establish
creditable service for up to 8 years of those | ||
contractual services by making
the contributions required | ||
under this Section. The System shall determine a
full-time | ||
salary equivalent for the purpose of calculating the required
| ||
contribution. To establish credit under this subsection, the | ||
applicant must
apply to the System by March 1, 1998.
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(o) A member who participated in the Illinois Legislative | ||
Staff
Internship Program may establish creditable service for | ||
up to one year
of that participation by making the contribution | ||
required under this Section.
The System shall determine a | ||
full-time salary equivalent for the purpose of
calculating the | ||
required contribution. Credit may not be established under
this | ||
subsection for any period for which service credit is | ||
established under
any other provision of this Code.
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(p) By paying the contributions otherwise required under | ||
this Section,
plus an amount determined by the Board to be | ||
equal to the employer's normal
cost of the benefit plus | ||
interest, a member may establish service credit
for a period of | ||
up to 8 years during which he or she was employed by the
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Visually Handicapped Managers of Illinois in a vending program | ||
operated under
a contractual agreement with the Department of | ||
Rehabilitation Services or its successor agency.
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This subsection (p) applies without regard to whether the | ||
person was in service on or after the effective date of this | ||
amendatory Act of the 94th General Assembly. In the case of a | ||
person who is receiving a retirement annuity on that effective | ||
date, the increase, if any, shall begin to accrue on the first | ||
annuity payment date following receipt by the System of the | ||
contributions required under this subsection (p).
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(q) By paying the required contributions under this | ||
Section, plus an amount determined by the Board to be equal to | ||
the employer's normal cost of the benefit plus interest, an |
employee who was laid off but returned to State employment | ||
under circumstances in which the employee is considered to have | ||
been in continuous service for purposes of determining | ||
seniority may establish creditable service for the period of | ||
the layoff, provided that (1) the applicant applies for the | ||
creditable service under this subsection (q) within 6 months | ||
after the effective date of this amendatory Act of the 94th | ||
General Assembly, (2) the applicant does not receive credit for | ||
that period under any other provision of this Code, (3) at the | ||
time of the layoff, the applicant is not in an initial | ||
probationary status consistent with the rules of the Department | ||
of Central Management Services, and (4) the total amount of | ||
creditable service established by the applicant under this | ||
subsection (q) does not exceed 3 years. For service established | ||
under this subsection (q), the required employee contribution | ||
shall be based on the rate of compensation earned by the | ||
employee on the date of returning to employment after the | ||
layoff and the contribution rate then in effect, and the | ||
required interest shall be calculated from the date of | ||
returning to employment after the layoff to the date of | ||
payment.
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(Source: P.A. 94-612, eff. 8-18-05.)
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(40 ILCS 5/16-106) (from Ch. 108 1/2, par. 16-106)
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Sec. 16-106. Teacher. "Teacher": The following | ||
individuals, provided
that, for employment prior to July 1, | ||
1990, they are employed on a
full-time basis, or if not | ||
full-time, on a permanent and continuous basis
in a position in | ||
which services are expected to be rendered for at least
one | ||
school term:
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(1) Any educational, administrative, professional or | ||
other staff employed
in the public common schools included | ||
within this system in a position
requiring certification | ||
under the law governing the certification of
teachers;
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(2) Any educational, administrative, professional or | ||
other staff employed
in any facility of the Department of |
Children and Family Services or the
Department of Human | ||
Services, in a position requiring certification under
the | ||
law governing the certification of teachers, and any person | ||
who (i)
works in such a position for the Department of | ||
Corrections, (ii) was a member
of this System on May 31, | ||
1987, and (iii) did not elect to become a member of
the | ||
State Employees' Retirement System pursuant to Section | ||
14-108.2 of this
Code; except that "teacher" does not | ||
include any person who (A) becomes
a security employee of | ||
the Department of Human Services, as defined in
Section | ||
14-110, after June 28, 2001 (the effective date of Public | ||
Act
92-14), or (B) becomes a member of the State Employees'
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Retirement System pursuant to Section 14-108.2c of this | ||
Code;
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(3) Any regional superintendent of schools, assistant | ||
regional
superintendent of schools, State Superintendent | ||
of Education; any person
employed by the State Board of | ||
Education as an executive; any executive of
the boards | ||
engaged in the service of public common school education in
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school districts covered under this system of which the | ||
State
Superintendent of Education is an ex-officio member;
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(4) Any employee of a school board association | ||
operating in compliance
with Article 23 of the School Code | ||
who is certificated under the law
governing the | ||
certification of teachers;
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(5) Any person employed by the retirement system
who:
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(i) was an employee of and a participant in the | ||
system on August 17,
2001 (the effective date of Public | ||
Act 92-416), or
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(ii) becomes an employee of the system on or after | ||
August 17, 2001;
| ||
(6) Any educational, administrative, professional or | ||
other staff
employed by and under the supervision and | ||
control of a regional
superintendent of schools, provided | ||
such employment position requires the
person to be | ||
certificated under the law governing the certification of
|
teachers and is in an educational program serving 2 or more | ||
districts in
accordance with a joint agreement authorized | ||
by the School Code or by federal
legislation;
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(7) Any educational, administrative, professional or | ||
other staff employed
in an educational program serving 2 or | ||
more school districts in accordance
with a joint agreement | ||
authorized by the School Code or by federal
legislation and | ||
in a position requiring certification under the laws
| ||
governing the certification of teachers;
| ||
(8) Any officer or employee of a statewide teacher | ||
organization or
officer of a national teacher organization | ||
who is certified under the law
governing certification of | ||
teachers, provided: (i) the individual had
previously | ||
established creditable service under this Article, (ii) | ||
the
individual files with the system an irrevocable | ||
election to become a member,
and (iii) the individual does | ||
not receive credit for such service under any
other Article | ||
of this Code;
| ||
(9) Any educational, administrative, professional, or | ||
other staff
employed in a charter school operating in | ||
compliance with the Charter
Schools Law who is certificated | ||
under the law governing the certification
of teachers.
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(10) Any person employed, on the effective date of this | ||
amendatory Act of the 94th General Assembly, by the | ||
Macon-Piatt Regional Office of Education in a | ||
birth-through-age-three pilot program receiving funds | ||
under Section 2-389 of the School Code who is required by | ||
the Macon-Piatt Regional Office of Education to hold a | ||
teaching certificate, provided that the Macon-Piatt | ||
Regional Office of Education makes an election, within 6 | ||
months after the effective date of this amendatory Act of | ||
the 94th General Assembly, to have the person participate | ||
in the system. Any service established prior to the | ||
effective date of this amendatory Act of the 94th General | ||
Assembly for service as an employee of the Macon-Piatt | ||
Regional Office of Education in a birth-through-age-three |
pilot program receiving funds under Section 2-389 of the | ||
School Code shall be considered service as a teacher if | ||
employee and employer contributions have been received by | ||
the system and the system has not refunded those | ||
contributions.
| ||
An annuitant receiving a retirement annuity under this | ||
Article or under
Article 17 of this Code who is employed by a | ||
board of education
or other employer as permitted under Section | ||
16-118
or 16-150.1 is not a "teacher" for purposes of this | ||
Article. A person who
has received a single-sum retirement | ||
benefit under Section 16-136.4 of this
Article is not a | ||
"teacher" for purposes of this Article. | ||
A person who is a teacher as described in item (8) of this | ||
Section may establish service credit for similar employment | ||
prior to becoming certified as a teacher if he or she (i) is | ||
certified as a teacher on or before the effective date of this | ||
amendatory Act of the 94th General Assembly, (ii) applies in | ||
writing to the system within 6 months after the effective date | ||
of this amendatory Act of the 94th General Assembly, and (iii) | ||
pays to the system contributions equal to the normal costs | ||
calculated from the date of first full-time employment as | ||
described in item (8) to the date of payment, compounded | ||
annually at the rate of 8.5% per year for periods before the | ||
effective date of this amendatory Act of the 94th General | ||
Assembly and for subsequent periods at a rate equal to the | ||
System's actuarially assumed rate of return on investments. | ||
However, credit shall not be granted under this paragraph for | ||
any such prior employment for which the applicant received | ||
credit under any other provision of this Code.
| ||
(Source: P.A. 92-14, eff. 6-28-01; 92-416, eff. 8-17-01;
| ||
92-651, eff. 7-11-02; 93-320, eff. 7-23-03.)
| ||
(40 ILCS 5/16-158)
(from Ch. 108 1/2, par. 16-158)
| ||
Sec. 16-158. Contributions by State and other employing | ||
units.
| ||
(a) The State shall make contributions to the System by |
means of
appropriations from the Common School Fund and other | ||
State funds of amounts
which, together with other employer | ||
contributions, employee contributions,
investment income, and | ||
other income, will be sufficient to meet the cost of
| ||
maintaining and administering the System on a 90% funded basis | ||
in accordance
with actuarial recommendations.
| ||
The Board shall determine the amount of State contributions | ||
required for
each fiscal year on the basis of the actuarial | ||
tables and other assumptions
adopted by the Board and the | ||
recommendations of the actuary, using the formula
in subsection | ||
(b-3).
| ||
(a-1) Annually, on or before November 15, the Board shall | ||
certify to the
Governor the amount of the required State | ||
contribution for the coming fiscal
year. The certification | ||
shall include a copy of the actuarial recommendations
upon | ||
which it is based.
| ||
On or before May 1, 2004, the Board shall recalculate and | ||
recertify to
the Governor the amount of the required State | ||
contribution to the System for
State fiscal year 2005, taking | ||
into account the amounts appropriated to and
received by the | ||
System under subsection (d) of Section 7.2 of the General
| ||
Obligation Bond Act.
| ||
On or before July 1, 2005, the Board shall recalculate and | ||
recertify
to the Governor the amount of the required State
| ||
contribution to the System for State fiscal year 2006, taking | ||
into account the changes in required State contributions made | ||
by this amendatory Act of the 94th General Assembly.
| ||
(b) Through State fiscal year 1995, the State contributions | ||
shall be
paid to the System in accordance with Section 18-7 of | ||
the School Code.
| ||
(b-1) Beginning in State fiscal year 1996, on the 15th day | ||
of each month,
or as soon thereafter as may be practicable, the | ||
Board shall submit vouchers
for payment of State contributions | ||
to the System, in a total monthly amount of
one-twelfth of the | ||
required annual State contribution certified under
subsection | ||
(a-1).
From the
effective date of this amendatory Act of the |
93rd General Assembly
through June 30, 2004, the Board shall | ||
not submit vouchers for the
remainder of fiscal year 2004 in | ||
excess of the fiscal year 2004
certified contribution amount | ||
determined under this Section
after taking into consideration | ||
the transfer to the System
under subsection (a) of Section | ||
6z-61 of the State Finance Act.
These vouchers shall be paid by | ||
the State Comptroller and
Treasurer by warrants drawn on the | ||
funds appropriated to the System for that
fiscal year.
| ||
If in any month the amount remaining unexpended from all | ||
other appropriations
to the System for the applicable fiscal | ||
year (including the appropriations to
the System under Section | ||
8.12 of the State Finance Act and Section 1 of the
State | ||
Pension Funds Continuing Appropriation Act) is less than the | ||
amount
lawfully vouchered under this subsection, the | ||
difference shall be paid from the
Common School Fund under the | ||
continuing appropriation authority provided in
Section 1.1 of | ||
the State Pension Funds Continuing Appropriation Act.
| ||
(b-2) Allocations from the Common School Fund apportioned | ||
to school
districts not coming under this System shall not be | ||
diminished or affected by
the provisions of this Article.
| ||
(b-3) For State fiscal years 2011 through 2045, the minimum | ||
contribution
to the System to be made by the State for each | ||
fiscal year shall be an amount
determined by the System to be | ||
sufficient to bring the total assets of the
System up to 90% of | ||
the total actuarial liabilities of the System by the end of
| ||
State fiscal year 2045. In making these determinations, the | ||
required State
contribution shall be calculated each year as a | ||
level percentage of payroll
over the years remaining to and | ||
including fiscal year 2045 and shall be
determined under the | ||
projected unit credit actuarial cost method.
| ||
For State fiscal years 1996 through 2005, the State | ||
contribution to the
System, as a percentage of the applicable | ||
employee payroll, shall be increased
in equal annual increments | ||
so that by State fiscal year 2011, the State is
contributing at | ||
the rate required under this Section; except that in the
| ||
following specified State fiscal years, the State contribution |
to the System
shall not be less than the following indicated | ||
percentages of the applicable
employee payroll, even if the | ||
indicated percentage will produce a State
contribution in | ||
excess of the amount otherwise required under this subsection
| ||
and subsection (a), and notwithstanding any contrary | ||
certification made under
subsection (a-1) before the effective | ||
date of this amendatory Act of 1998:
10.02% in FY 1999;
10.77% | ||
in FY 2000;
11.47% in FY 2001;
12.16% in FY 2002;
12.86% in FY | ||
2003; and
13.56% in FY 2004.
| ||
Notwithstanding any other provision of this Article, the | ||
total required State
contribution for State fiscal year 2006 is | ||
$534,627,700.
| ||
Notwithstanding any other provision of this Article, the | ||
total required State
contribution for State fiscal year 2007 is | ||
$738,014,500.
| ||
For each of State fiscal years 2008 through 2010, the State | ||
contribution to
the System, as a percentage of the applicable | ||
employee payroll, shall be
increased in equal annual increments | ||
from the required State contribution for State fiscal year | ||
2007, so that by State fiscal year 2011, the
State is | ||
contributing at the rate otherwise required under this Section.
| ||
Beginning in State fiscal year 2046, the minimum State | ||
contribution for
each fiscal year shall be the amount needed to | ||
maintain the total assets of
the System at 90% of the total | ||
actuarial liabilities of the System.
| ||
Amounts received by the System pursuant to Section 25 of | ||
the Budget Stabilization Act in any fiscal year do not reduce | ||
and do not constitute payment of any portion of the minimum | ||
State contribution required under this Article in that fiscal | ||
year. Such amounts shall not reduce, and shall not be included | ||
in the calculation of, the required State contributions under | ||
this Article in any future year until the System has reached a | ||
funding ratio of at least 90%. A reference in this Article to | ||
the "required State contribution" or any substantially similar | ||
term does not include or apply to any amounts payable to the | ||
System under Section 25 of the Budget Stabilization Act. |
Notwithstanding any other provision of this Section, the | ||
required State
contribution for State fiscal year 2005 and for | ||
fiscal year 2008 and each fiscal year thereafter, as
calculated | ||
under this Section and
certified under subsection (a-1), shall | ||
not exceed an amount equal to (i) the
amount of the required | ||
State contribution that would have been calculated under
this | ||
Section for that fiscal year if the System had not received any | ||
payments
under subsection (d) of Section 7.2 of the General | ||
Obligation Bond Act, minus
(ii) the portion of the State's | ||
total debt service payments for that fiscal
year on the bonds | ||
issued for the purposes of that Section 7.2, as determined
and | ||
certified by the Comptroller, that is the same as the System's | ||
portion of
the total moneys distributed under subsection (d) of | ||
Section 7.2 of the General
Obligation Bond Act. In determining | ||
this maximum for State fiscal years 2008 through 2010, however, | ||
the amount referred to in item (i) shall be increased, as a | ||
percentage of the applicable employee payroll, in equal | ||
increments calculated from the sum of the required State | ||
contribution for State fiscal year 2007 plus the applicable | ||
portion of the State's total debt service payments for fiscal | ||
year 2007 on the bonds issued for the purposes of Section 7.2 | ||
of the General
Obligation Bond Act, so that, by State fiscal | ||
year 2011, the
State is contributing at the rate otherwise | ||
required under this Section.
| ||
(c) Payment of the required State contributions and of all | ||
pensions,
retirement annuities, death benefits, refunds, and | ||
other benefits granted
under or assumed by this System, and all | ||
expenses in connection with the
administration and operation | ||
thereof, are obligations of the State.
| ||
If members are paid from special trust or federal funds | ||
which are
administered by the employing unit, whether school | ||
district or other
unit, the employing unit shall pay to the | ||
System from such
funds the full accruing retirement costs based | ||
upon that
service, as determined by the System. Employer | ||
contributions, based on
salary paid to members from federal | ||
funds, may be forwarded by the distributing
agency of the State |
of Illinois to the System prior to allocation, in an
amount | ||
determined in accordance with guidelines established by such
| ||
agency and the System.
| ||
(d) Effective July 1, 1986, any employer of a teacher as | ||
defined in
paragraph (8) of Section 16-106 shall pay the | ||
employer's normal cost
of benefits based upon the teacher's | ||
service, in addition to
employee contributions, as determined | ||
by the System. Such employer
contributions shall be forwarded | ||
monthly in accordance with guidelines
established by the | ||
System.
| ||
However, with respect to benefits granted under Section | ||
16-133.4 or
16-133.5 to a teacher as defined in paragraph (8) | ||
of Section 16-106, the
employer's contribution shall be 12% | ||
(rather than 20%) of the member's
highest annual salary rate | ||
for each year of creditable service granted, and
the employer | ||
shall also pay the required employee contribution on behalf of
| ||
the teacher. For the purposes of Sections 16-133.4 and | ||
16-133.5, a teacher
as defined in paragraph (8) of Section | ||
16-106 who is serving in that capacity
while on leave of | ||
absence from another employer under this Article shall not
be | ||
considered an employee of the employer from which the teacher | ||
is on leave.
| ||
(e) Beginning July 1, 1998, every employer of a teacher
| ||
shall pay to the System an employer contribution computed as | ||
follows:
| ||
(1) Beginning July 1, 1998 through June 30, 1999, the | ||
employer
contribution shall be equal to 0.3% of each | ||
teacher's salary.
| ||
(2) Beginning July 1, 1999 and thereafter, the employer
| ||
contribution shall be equal to 0.58% of each teacher's | ||
salary.
| ||
The school district or other employing unit may pay these | ||
employer
contributions out of any source of funding available | ||
for that purpose and
shall forward the contributions to the | ||
System on the schedule established
for the payment of member | ||
contributions.
|
These employer contributions are intended to offset a | ||
portion of the cost
to the System of the increases in | ||
retirement benefits resulting from this
amendatory Act of 1998.
| ||
Each employer of teachers is entitled to a credit against | ||
the contributions
required under this subsection (e) with | ||
respect to salaries paid to teachers
for the period January 1, | ||
2002 through June 30, 2003, equal to the amount paid
by that | ||
employer under subsection (a-5) of Section 6.6 of the State | ||
Employees
Group Insurance Act of 1971 with respect to salaries | ||
paid to teachers for that
period.
| ||
The additional 1% employee contribution required under | ||
Section 16-152 by
this amendatory Act of 1998 is the | ||
responsibility of the teacher and not the
teacher's employer, | ||
unless the employer agrees, through collective bargaining
or | ||
otherwise, to make the contribution on behalf of the teacher.
| ||
If an employer is required by a contract in effect on May | ||
1, 1998 between the
employer and an employee organization to | ||
pay, on behalf of all its full-time
employees
covered by this | ||
Article, all mandatory employee contributions required under
| ||
this Article, then the employer shall be excused from paying | ||
the employer
contribution required under this subsection (e) | ||
for the balance of the term
of that contract. The employer and | ||
the employee organization shall jointly
certify to the System | ||
the existence of the contractual requirement, in such
form as | ||
the System may prescribe. This exclusion shall cease upon the
| ||
termination, extension, or renewal of the contract at any time | ||
after May 1,
1998.
| ||
(f) If the amount of a teacher's salary for any school year | ||
used to determine final average salary exceeds the member's | ||
annual full-time salary rate with the same employer for the | ||
previous school year by more than 6%, the teacher's employer | ||
shall pay to the System, in addition to all other payments | ||
required under this Section and in accordance with guidelines | ||
established by the System, the present value of the increase in | ||
benefits resulting from the portion of the increase in salary | ||
that is in excess of 6%. This present value shall be computed |
by the System on the basis of the actuarial assumptions and | ||
tables used in the most recent actuarial valuation of the | ||
System that is available at the time of the computation. If a | ||
teacher's salary for the 2005-2006 school year is used to | ||
determine final average salary under this subsection (f), then | ||
the changes made to this subsection (f) by Public Act 94-1057 | ||
shall apply in calculating whether the increase in his or her | ||
salary is in excess of 6%. For the purposes of this Section, | ||
change in employment under Section 10-21.12 of the School Code | ||
on or after June 1, 2005 shall constitute a change in employer. | ||
The System may require the employer to provide any pertinent | ||
information or documentation.
The changes made to this | ||
subsection (f) by this amendatory Act of the 94th General | ||
Assembly apply without regard to whether the teacher was in | ||
service on or after its effective date.
| ||
Whenever it determines that a payment is or may be required | ||
under this subsection, the System shall calculate the amount of | ||
the payment and bill the employer for that amount. The bill | ||
shall specify the calculations used to determine the amount | ||
due. If the employer disputes the amount of the bill, it may, | ||
within 30 days after receipt of the bill, apply to the System | ||
in writing for a recalculation. The application must specify in | ||
detail the grounds of the dispute and, if the employer asserts | ||
that the calculation is subject to subsection (g) or (h) of | ||
this Section, must include an affidavit setting forth and | ||
attesting to all facts within the employer's knowledge that are | ||
pertinent to the applicability of that subsection. Upon | ||
receiving a timely application for recalculation, the System | ||
shall review the application and, if appropriate, recalculate | ||
the amount due.
| ||
The employer contributions required under this subsection | ||
(f) may be paid in the form of a lump sum within 90 days after | ||
receipt of the bill. If the employer contributions are not paid | ||
within 90 days after receipt of the bill, then interest will be | ||
charged at a rate equal to the System's annual actuarially | ||
assumed rate of return on investment compounded annually from |
the 91st day after receipt of the bill. Payments must be | ||
concluded within 3 years after the employer's receipt of the | ||
bill.
| ||
(g) This subsection (g) applies only to payments made or | ||
salary increases given on or after June 1, 2005 but before July | ||
1, 2011. The changes made by Public Act 94-1057
this amendatory | ||
Act of the 94th General Assembly shall not require the System | ||
to refund any payments received before
July 31, 2006 ( the | ||
effective date of Public Act 94-1057)
this amendatory Act . | ||
When assessing payment for any amount due under subsection | ||
(f), the System shall exclude salary increases paid to teachers | ||
under contracts or collective bargaining agreements entered | ||
into, amended, or renewed before June 1, 2005.
| ||
When assessing payment for any amount due under subsection | ||
(f), the System shall exclude salary increases paid to a | ||
teacher at a time when the teacher is 10 or more years from | ||
retirement eligibility under Section 16-132 or 16-133.2.
| ||
When assessing payment for any amount due under subsection | ||
(f), the System shall exclude salary increases resulting from | ||
overload work, including summer school, when the school | ||
district has certified to the System, and the System has | ||
approved the certification, that (i) the overload work is for | ||
the sole purpose of classroom instruction in excess of the | ||
standard number of classes for a full-time teacher in a school | ||
district during a school year and (ii) the salary increases are | ||
equal to or less than the rate of pay for classroom instruction | ||
computed on the teacher's current salary and work schedule.
| ||
When assessing payment for any amount due under subsection | ||
(f), the System shall exclude a salary increase resulting from | ||
a promotion (i) for which the employee is required to hold a | ||
certificate or supervisory endorsement issued by the State | ||
Teacher Certification Board that is a different certification | ||
or supervisory endorsement than is required for the teacher's | ||
previous position and (ii) to a position that has existed and | ||
been filled by a member for no less than one complete academic | ||
year and the salary increase from the promotion is an increase |
that results in an amount no greater than the lesser of the | ||
average salary paid for other similar positions in the district | ||
requiring the same certification or the amount stipulated in | ||
the collective bargaining agreement for a similar position | ||
requiring the same certification.
| ||
When assessing payment for any amount due under subsection | ||
(f), the System shall exclude any payment to the teacher from | ||
the State of Illinois or the State Board of Education over | ||
which the employer does not have discretion, notwithstanding | ||
that the payment is included in the computation of final | ||
average salary.
| ||
(h) When assessing payment for any amount due under | ||
subsection (f), the System shall exclude any salary increase | ||
described in subsection (g) of this Section given on or after | ||
July 1, 2011 but before July 1, 2014 under a contract or | ||
collective bargaining agreement entered into, amended, or | ||
renewed on or after June 1, 2005 but before July 1, 2011. | ||
Notwithstanding any other provision of this Section, any | ||
payments made or salary increases given after June 30, 2014 | ||
shall be used in assessing payment for any amount due under | ||
subsection (f) of this Section.
| ||
(i) The System shall prepare a report and file copies of | ||
the report with the Governor and the General Assembly by | ||
January 1, 2007 that contains all of the following information: | ||
(1) The number of recalculations required by the | ||
changes made to this Section by Public Act 94-1057
this | ||
amendatory Act of the 94th General Assembly for each | ||
employer. | ||
(2) The dollar amount by which each employer's | ||
contribution to the System was changed due to | ||
recalculations required by Public Act 94-1057
this | ||
amendatory Act of the 94th General Assembly . | ||
(3) The total amount the System received from each | ||
employer as a result of the changes made to this Section by | ||
Public Act 94-4. | ||
(4) The increase in the required State contribution |
resulting from the changes made to this Section by Public | ||
Act 94-1057
this amendatory Act of the 94th General | ||
Assembly .
| ||
(Source: P.A. 93-2, eff. 4-7-03; 93-665, eff. 3-5-04; 94-4, | ||
eff. 6-1-05; 94-839, eff. 6-6-06; 94-1057, eff. 7-31-06; | ||
revised 8-3-06.)
| ||
(40 ILCS 5/17-133) (from Ch. 108 1/2, par. 17-133)
| ||
Sec. 17-133. Contributions for periods of outside and other | ||
service.
| ||
Regularly certified and appointed teachers who desire to | ||
have the following
described services credited for pension | ||
purposes shall submit to the Board
evidence thereof and pay | ||
into the Fund the amounts prescribed herein:
| ||
1. For teaching service by a certified teacher in the | ||
public
schools of the several states or in schools operated | ||
by or under the
auspices of the United States, a teacher | ||
shall pay the
contributions at the rates in force (a) on | ||
the date of
appointment as a regularly certified teacher | ||
after salary adjustments
are completed, or (b) at the time | ||
of reappointment after salary
adjustments are completed, | ||
whichever is later, but not less than $450
per year of | ||
service. Upon the Board's approval of such service and the
| ||
payment of the required contributions, service credit of | ||
not more than
10 years shall be granted.
| ||
2. For service as a playground instructor in public | ||
school playgrounds,
teachers shall pay the contributions | ||
prescribed in this Article (a) at
the time of appointment, | ||
as a regularly certified teacher after salary
adjustments | ||
are completed, or (b) on return to service as a full time
| ||
regularly certified teacher, as the case may be, provided | ||
such rates or
amounts shall not be less than $450 per year.
| ||
3. For service prior to September 1, 1955, in the | ||
public schools of the
City as a substitute, evening school | ||
or temporary teacher, or for service
as an Americanization | ||
teacher prior to December 31, 1955, teachers shall pay
the |
contributions prescribed in this Article (a) at the time of | ||
appointment,
as a regularly certified teacher after salary | ||
adjustments are completed,
(b) on return to service as a | ||
full time regularly certified teacher, as
the case may be, | ||
provided such rates or amounts shall not be less than $450
| ||
per year; and provided further that for teachers employed | ||
on or after September
1, 1953, rates shall not include | ||
contributions for widows' pensions if the
service | ||
described in this sub-paragraph 3 was rendered before that | ||
date. Any
teacher entitled to repay a refund of | ||
contributions under Section 17-126 may validate service | ||
described in this paragraph by
payment of the amounts | ||
prescribed herein, together with the repayment of the
| ||
refund, provided that if such creditable service was the | ||
last service rendered
in the public schools of the City and | ||
is not automatically reinstated by
repayment of the refund, | ||
the rates or amounts shall not be less than $450 per
year.
| ||
4. For service after June 30, 1982 as a member of the | ||
Board of
Education, if required to resign from an | ||
administrative or teaching position
in order to qualify as | ||
a member of the Board of Education.
| ||
5. For service during the 1986-87 school year as a | ||
teacher on a special
leave of absence with full loss of | ||
salary, teaching for an agency under
contract to the Board | ||
of Education, if the teacher returned to employment in
| ||
September, 1987. For service under this item 5, the teacher | ||
must pay the
contributions at the rates in force at the | ||
completion of the leave period.
| ||
6. For up to 2 years of service as a teacher or | ||
administrator employed
by a private school registered with | ||
or recognized by the Illinois State Board
of Education, | ||
provided that the teacher (i) was certified under the law
| ||
governing the certification of teachers at the time the | ||
service was rendered,
(ii) applies in writing on or after | ||
the effective date of this amendatory Act of the 94th | ||
General Assembly and on or before June 1,
2009, (iii) |
supplies satisfactory evidence of the employment, (iv) | ||
completes
at least 10 years of contributing service as a | ||
teacher as defined in
Section 17-106, (v) pays the | ||
contribution required in this Section, and (vi)
does not | ||
receive credit for that service under any other provision | ||
of this
Code. The member may apply for credit under this | ||
subsection and pay the
required contribution before | ||
completing the 10 years of contributing service
required | ||
under item (iv), but the credit may not be used until the | ||
item (iv)
contributing service requirement has been met.
| ||
For each year of service credit to be established under | ||
this
subparagraph 6, a member is required to contribute to | ||
the System (i) 16.5%
of the annual salary rate during the | ||
first year of full-time employment
as a teacher under this | ||
Article following the private school service, plus
(ii) | ||
interest thereon from the date of first full-time | ||
employment as a teacher
under this Article following the | ||
private school service to the date of payment,
compounded | ||
annually, at the rate of 8.0% per year.
| ||
For service described in sub-paragraphs 1, 2 and 3 of this | ||
Section, interest
shall be charged beginning one year after the | ||
effective date of appointment or
reappointment.
| ||
Effective September 1, 1974, the interest rate to be | ||
charged by the
Fund on contributions provided in sub-paragraphs | ||
1, 2, 3 and 4 shall
be 5% per annum compounded annually.
| ||
(Source: P.A. 90-566, eff. 1-2-98; 91-887, eff. 7-6-00.)
| ||
Section 90. The State Mandates Act is amended by adding | ||
Section 8.30 as
follows:
| ||
(30 ILCS 805/8.30 new)
| ||
Sec. 8.30. Exempt mandate. Notwithstanding Sections 6 and 8 | ||
of this
Act, no reimbursement by the State is required for the | ||
implementation of
any mandate created by this amendatory Act of | ||
the 94th General Assembly.
|
Section 99. Effective date. This Act takes effect upon | ||
becoming law.
|