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91_HB0875
LRB9102992EGfg
1 AN ACT to amend the Illinois Pension Code by changing
2 Sections 16-127, 16-128, and 17-133 and to amend the State
3 Mandates Act.
4 Be it enacted by the People of the State of Illinois,
5 represented in the General Assembly:
6 Section 5. The Illinois Pension Code is amended by
7 changing Sections 16-127, 16-128, and 17-133 as follows:
8 (40 ILCS 5/16-127) (from Ch. 108 1/2, par. 16-127)
9 Sec. 16-127. Computation of creditable service.
10 (a) Each member shall receive regular credit for all
11 service as a teacher from the date membership begins, for
12 which satisfactory evidence is supplied and all contributions
13 have been paid.
14 (b) The following periods of service shall earn optional
15 credit and each member shall receive credit for all such
16 service for which satisfactory evidence is supplied and all
17 contributions have been paid as of the date specified:
18 (1) Prior service as a teacher.
19 (2) Service in a capacity essentially similar or
20 equivalent to that of a teacher, in the public common
21 schools in school districts in this State not included
22 within the provisions of this System, or of any other
23 State, territory, dependency or possession of the United
24 States, or in schools operated by or under the auspices
25 of the United States, or under the auspices of any agency
26 or department of any other State, and service during any
27 period of professional speech correction or special
28 education experience for a public agency within this
29 State or any other State, territory, dependency or
30 possession of the United States, and service prior to
31 February 1, 1951 as a recreation worker for the Illinois
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1 Department of Public Safety, for a period not exceeding
2 the lesser of 2/5 of the total creditable service of the
3 member or 10 years. The maximum service of 10 years
4 which is allowable under this paragraph shall be reduced
5 by the service credit which is validated by other
6 retirement systems under paragraph (i) of Section 15-113
7 and paragraph 1 of Section 17-133. Credit granted under
8 this paragraph may not be used in determination of a
9 retirement annuity or disability benefits unless the
10 member has at least 5 years of creditable service earned
11 subsequent to this employment with one or more of the
12 following systems: Teachers' Retirement System of the
13 State of Illinois, State Universities Retirement System,
14 and the Public School Teachers' Pension and Retirement
15 Fund of Chicago. Whenever such service credit exceeds
16 the maximum allowed for all purposes of this Article, the
17 first service rendered in point of time shall be
18 considered. The changes to this subdivision (b)(2) made
19 by Public Act 86-272 shall apply not only to persons who
20 on or after its effective date (August 23, 1989) are in
21 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 (3) Any periods immediately following teaching
26 service, under this System or under Article 17, (or
27 immediately following service prior to February 1, 1951
28 as a recreation worker for the Illinois Department of
29 Public Safety) spent in active service with the military
30 forces of the United States; periods spent in educational
31 programs that prepare for return to teaching sponsored by
32 the federal government following such active military
33 service; if a teacher returns to teaching service within
34 one calendar year after discharge or after the completion
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1 of the educational program, a further period, not
2 exceeding one calendar year, between time spent in
3 military service or in such educational programs and the
4 return to employment as a teacher under this System; and
5 a period of up to 2 years of active military service not
6 immediately following employment as a teacher.
7 The changes to this Section and Section 16-128
8 relating to military service made by P.A. 87-794 shall
9 apply not only to persons who on or after its effective
10 date are in service as a teacher under the System, but
11 also to persons whose status as a teacher terminated
12 prior to that date, whether or not the person is an
13 annuitant on that date. In the case of an annuitant who
14 applies for credit allowable under this Section for a
15 period of military service that did not immediately
16 follow employment, and who has made the required
17 contributions for such credit, the annuity shall be
18 recalculated to include the additional service credit,
19 with the increase taking effect on the date the System
20 received written notification of the annuitant's intent
21 to purchase the credit, if payment of all the required
22 contributions is made within 60 days of such notice, or
23 else on the first annuity payment date following the date
24 of payment of the required contributions. In calculating
25 the automatic annual increase for an annuity that has
26 been recalculated under this Section, the increase
27 attributable to the additional service allowable under
28 P.A. 87-794 shall be included in the calculation of
29 automatic annual increases accruing after the effective
30 date of the recalculation.
31 Credit for military service shall be determined as
32 follows: if entry occurs during the months of July,
33 August, or September and the member was a teacher at the
34 end of the immediately preceding school term, credit
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1 shall be granted from July 1 of the year in which he or
2 she entered service; if entry occurs during the school
3 term and the teacher was in teaching service at the
4 beginning of the school term, credit shall be granted
5 from July 1 of such year. In all other cases where credit
6 for military service is allowed, credit shall be granted
7 from the date of entry into the service.
8 The total period of military service for which
9 credit is granted shall not exceed 5 years for any member
10 unless the service: (A) is validated before July 1,
11 1964, and (B) does not extend beyond July 1, 1963.
12 Credit for military service shall be granted under this
13 Section only if not more than 5 years of the military
14 service for which credit is granted under this Section is
15 used by the member to qualify for a military retirement
16 allotment from any branch of the armed forces of the
17 United States. The changes to this subdivision (b)(3)
18 made by Public Act 86-272 shall apply not only to persons
19 who on or after its effective date (August 23, 1989) are
20 in service as a teacher under the System, but also to
21 persons whose status as such a teacher terminated prior
22 to such effective date, whether or not such person is an
23 annuitant on that date.
24 (4) Any periods served as a member of the General
25 Assembly.
26 (5)(i) Any periods for which a teacher, as defined
27 in Section 16-106, is granted a leave of absence,
28 provided he or she returns to teaching service creditable
29 under this System or the State Universities Retirement
30 System following the leave; (ii) periods during which a
31 teacher is involuntarily laid off from teaching, provided
32 he or she returns to teaching following the lay-off;
33 (iii) periods prior to July 1, 1983 during which a
34 teacher ceased covered employment due to pregnancy,
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1 provided that the teacher returned to teaching service
2 creditable under this System or the State Universities
3 Retirement System following the pregnancy and submits
4 evidence satisfactory to the Board documenting that the
5 employment ceased due to pregnancy; and (iv) periods
6 prior to July 1, 1983 during which a teacher ceased
7 covered employment for the purpose of adopting an infant
8 under 3 years of age or caring for a newly adopted infant
9 under 3 years of age, provided that the teacher returned
10 to teaching service creditable under this System or the
11 State Universities Retirement System following the
12 adoption and submits evidence satisfactory to the Board
13 documenting that the employment ceased for the purpose of
14 adopting an infant under 3 years of age or caring for a
15 newly adopted infant under 3 years of age. However,
16 total credit under this paragraph (5) may not exceed 3
17 years.
18 Any qualified member or annuitant may apply for
19 credit under item (iii) or (iv) of this paragraph (5)
20 without regard to whether service was terminated before
21 the effective date of this amendatory Act of 1997. In
22 the case of an annuitant who establishes credit under
23 item (iii) or (iv), the annuity shall be recalculated to
24 include the additional service credit. The increase in
25 annuity shall take effect on the date the System receives
26 written notification of the annuitant's intent to
27 purchase the credit, if the required evidence is
28 submitted and the required contribution paid within 60
29 days of that notification, otherwise on the first annuity
30 payment date following the System's receipt of the
31 required evidence and contribution. The increase in an
32 annuity recalculated under this provision shall be
33 included in the calculation of automatic annual increases
34 in the annuity accruing after the effective date of the
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1 recalculation.
2 Optional credit may be purchased under this
3 subsection (b)(5) for periods during which a teacher has
4 been granted a leave of absence pursuant to Section 24-13
5 of the School Code. A teacher whose service under this
6 Article terminated prior to the effective date of P.A.
7 86-1488 shall be eligible to purchase such optional
8 credit. If a teacher who purchases this optional credit
9 is already receiving a retirement annuity under this
10 Article, the annuity shall be recalculated as if the
11 annuitant had applied for the leave of absence credit at
12 the time of retirement. The difference between the
13 entitled annuity and the actual annuity shall be credited
14 to the purchase of the optional credit. The remainder of
15 the purchase cost of the optional credit shall be paid on
16 or before April 1, 1992.
17 The change in this paragraph made by Public Act
18 86-273 shall be applicable to teachers who retire after
19 June 1, 1989, as well as to teachers who are in service
20 on that date.
21 (6) Any days of unused and uncompensated
22 accumulated sick leave earned by a teacher. The service
23 credit granted under this paragraph shall be the ratio of
24 the number of unused and uncompensated accumulated sick
25 leave days to 170 days, subject to a maximum of one year
26 of service credit. Prior to the member's retirement,
27 each former employer shall certify to the System the
28 number of unused and uncompensated accumulated sick leave
29 days credited to the member at the time of termination of
30 service. The period of unused sick leave shall not be
31 considered in determining the effective date of
32 retirement. A member is not required to make
33 contributions in order to obtain service credit for
34 unused sick leave.
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1 Credit for sick leave shall, at retirement, be
2 granted by the System for any retiring regional or
3 assistant regional superintendent of schools at the rate
4 of 6 days per year of creditable service or portion
5 thereof established while serving as such superintendent
6 or assistant superintendent.
7 (7) Periods prior to February 1, 1987 served as an
8 employee of the Illinois Mathematics and Science Academy
9 for which credit has not been terminated under Section
10 15-113.9 of this Code.
11 (8) Service as a substitute teacher for work
12 performed prior to July 1, 1990.
13 (9) Service as a part-time teacher for work
14 performed prior to July 1, 1990.
15 (10) Up to 2 years of employment with Southern
16 Illinois University - Carbondale from September 1, 1959
17 to August 31, 1961, or with Governors State University
18 from September 1, 1972 to August 31, 1974, for which the
19 teacher has no credit under Article 15. To receive
20 credit under this item (10), a teacher must apply in
21 writing to the Board and pay the required contributions
22 before May 1, 1993 and have at least 12 years of service
23 credit under this Article.
24 (b-1) A member may establish optional credit for up to 3
25 years of service as a teacher or administrator employed by a
26 private school recognized by the Illinois State Board of
27 Education, provided that the teacher (i) was certified under
28 the law governing the certification of teachers at the time
29 the service was rendered, (ii) applies in writing on or after
30 June 1, 2000 and on or before June 1, 2003, (iii) supplies
31 satisfactory evidence of the employment, (iv) completes at
32 least 5 years of contributing service as a teacher as defined
33 in Section 16-106, (v) pays the contribution required in
34 subsection (d-5) of Section 16-128, and (vi) does not receive
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1 credit for that service under any other provision of this
2 Code. The member may apply for credit under this subsection
3 and pay the required contribution before completing the 5
4 years of contributing service required under item (iv), but
5 the credit may not be used until the item (iv) contributing
6 service requirement has been met.
7 (c) The service credits specified in this Section shall
8 be granted only if: (1) such service credits are not used for
9 credit in any other statutory tax-supported public employee
10 retirement system other than the federal Social Security
11 program; and (2) the member makes the required contributions
12 as specified in Section 16-128. Except as provided in
13 subsection (b-1) of this Section, the service credit shall be
14 effective as of the date the required contributions are
15 completed.
16 Any service credits granted under this Section shall
17 terminate upon cessation of membership for any cause.
18 Credit may not be granted under this Section covering any
19 period for which an age retirement or disability retirement
20 allowance has been paid.
21 (Source: P.A. 89-430, eff. 12-15-95; 90-32, eff. 6-27-97.)
22 (40 ILCS 5/16-128) (from Ch. 108 1/2, par. 16-128)
23 Sec. 16-128. Creditable service - required
24 contributions.
25 (a) In order to receive the creditable service specified
26 under subsection (b) of Section 16-127, a member is required
27 to make the following contributions: (i) an amount equal to
28 the contributions which would have been required had such
29 service been rendered as a member under this System; (ii) for
30 military service not immediately following employment and for
31 service established under subdivision (b)(10) of Section
32 16-127, an amount determined by the Board to be equal to the
33 employer's normal cost of the benefits accrued for such
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1 service; and (iii) interest from the date the contributions
2 would have been due (or, in the case of a person establishing
3 credit for military service under subdivision (b)(3) of
4 Section 16-127, the date of first membership in the System,
5 if that date is later) to the date of payment, at the
6 following rate of interest, compounded annually: for periods
7 prior to July 1, 1965, regular interest; from July 1, 1965 to
8 June 30, 1977, 4% per year; on and after July 1, 1977,
9 regular interest.
10 (b) In order to receive creditable service under
11 paragraph (2) of subsection (b) of Section 16-127 for those
12 who were not members on June 30, 1963, the minimum required
13 contribution shall be $420 per year of service together with
14 interest at 4% per year compounded annually from July 1,
15 preceding the date of membership until June 30, 1977 and at
16 regular interest compounded annually thereafter to the date
17 of payment.
18 (c) In determining the contribution required in order to
19 receive creditable service under paragraph (3) of subsection
20 (b) of Section 16-127, the salary rate for the remainder of
21 the school term in which a member enters military service
22 shall be assumed to be equal to the member's salary rate at
23 the time of entering military service. However, for military
24 service not immediately following employment, the salary rate
25 on the last date as a participating teacher prior to such
26 military service, or on the first date as a participating
27 teacher after such military service, whichever is greater,
28 shall be assumed to be equal to the member's salary rate at
29 the time of entering military service. For each school term
30 thereafter, the member's salary rate shall be assumed to be
31 5% higher than the salary rate in the previous school term.
32 (d) In determining the contribution required in order to
33 receive creditable service under paragraph (5) of subsection
34 (b) of Section 16-127, a member's salary rate during the
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1 period for which credit is being established shall be assumed
2 to be equal to the member's last salary rate immediately
3 preceding that period.
4 (d-5) For each year of service credit to be established
5 under subsection (b-1) of Section 16-127, a member is
6 required to contribute to the System (i) 16.5% of the annual
7 salary rate during the first year of full-time employment as
8 a teacher under this Article following the private school
9 service, plus (ii) interest thereon from the date of first
10 full-time employment as a teacher under this Article
11 following the private school service to the date of payment,
12 compounded annually, at the rate of 8.5% per year for periods
13 before the effective date of this amendatory Act of the 91st
14 General Assembly, and for subsequent periods at a rate equal
15 to the System's actuarially assumed rate of return on
16 investments.
17 (e) The contributions required under this Section may be
18 made from the date the statement for such creditable service
19 is issued until retirement date. All such required
20 contributions must be made before any retirement annuity is
21 granted.
22 (Source: P.A. 89-430, eff. 12-15-95.)
23 (40 ILCS 5/17-133) (from Ch. 108 1/2, par. 17-133)
24 Sec. 17-133. Contributions for periods of outside and
25 other service.
26 (a) Regularly certified and appointed teachers who
27 desire to have the following described services credited for
28 pension purposes shall submit to the Board evidence thereof
29 and pay into the Fund the amounts prescribed herein:
30 1. For teaching service by a certified teacher in
31 the public schools of the several states or in schools
32 operated by or under the auspices of the United States, a
33 teacher shall pay the contributions at the rates in force
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1 (a) on the date of appointment as a regularly certified
2 teacher after salary adjustments are completed, or (b) at
3 the time of reappointment after salary adjustments are
4 completed, whichever is later, but not less than $450 per
5 year of service. Upon the Board's approval of such
6 service and the payment of the required contributions,
7 service credit of not more than 10 years shall be
8 granted.
9 2. For service as a playground instructor in public
10 school playgrounds, teachers shall pay the contributions
11 prescribed in this Article (a) at the time of
12 appointment, as a regularly certified teacher after
13 salary adjustments are completed, or (b) on return to
14 service as a full time regularly certified teacher, as
15 the case may be, provided such rates or amounts shall not
16 be less than $450 per year.
17 3. For service prior to September 1, 1955, in the
18 public schools of the City as a substitute, evening
19 school or temporary teacher, or for service as an
20 Americanization teacher prior to December 31, 1955,
21 teachers shall pay the contributions prescribed in this
22 Article (a) at the time of appointment, as a regularly
23 certified teacher after salary adjustments are completed,
24 (b) on return to service as a full time regularly
25 certified teacher, as the case may be, provided such
26 rates or amounts shall not be less than $450 per year;
27 and provided further that for teachers employed on or
28 after September 1, 1953, rates shall not include
29 contributions for widows' pensions if the service
30 described in this sub-paragraph 3 was rendered before
31 that date. Any teacher entitled to repay a refund of
32 contributions under Section 126 of this Article may
33 validate service described in this paragraph by payment
34 of the amounts prescribed herein, together with the
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1 repayment of the refund, provided that if such creditable
2 service was the last service rendered in the public
3 schools of the City and is not automatically reinstated
4 by repayment of the refund, the rates or amounts shall
5 not be less than $450 per year.
6 4. For service after June 30, 1982 as a member of
7 the Board of Education, if required to resign from an
8 administrative or teaching position in order to qualify
9 as a member of the Board of Education.
10 5. For up to 3 years of service as a teacher or
11 administrator employed by a private school recognized by
12 the Illinois State Board of Education, provided that the
13 teacher (i) was certified under the law governing the
14 certification of teachers at the time the service was
15 rendered, (ii) applies in writing on or after June 1,
16 2000 and on or before June 1, 2003, (iii) supplies
17 satisfactory evidence of the employment, (iv) completes
18 at least 5 years of contributing service as a teacher as
19 defined in Section 17-106, (v) pays the contribution
20 required in this Section, and (vi) does not receive
21 credit for that service under any other provision of this
22 Code. The member may apply for credit under this
23 subsection and pay the required contribution before
24 completing the 5 years of contributing service required
25 under item (iv), but the credit may not be used until the
26 item (iv) contributing service requirement has been met.
27 For each year of service credit to be established
28 under this subparagraph 5, a member is required to
29 contribute to the System (i) 16.5% of the annual salary
30 rate during the first year of full-time employment as a
31 teacher under this Article following the private school
32 service, plus (ii) interest thereon from the date of
33 first full-time employment as a teacher under this
34 Article following the private school service to the date
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1 of payment, compounded annually, at the rate of 8.0% per
2 year.
3 (b) For service described in sub-paragraphs 1, 2 and 3
4 of this Section, interest shall be charged beginning one year
5 after the effective date of appointment or reappointment.
6 Effective September 1, 1974, the interest rate to be
7 charged by the Fund on contributions provided in
8 sub-paragraphs 1, 2, 3 and 4 shall be 5% per annum compounded
9 annually.
10 (Source: P.A. 90-566, eff. 1-2-98.)
11 Section 90. The State Mandates Act is amended by adding
12 Section 8.23 as follows:
13 (30 ILCS 805/8.23 new)
14 Sec. 8.23. Exempt mandate. Notwithstanding Sections 6
15 and 8 of this Act, no reimbursement by the State is required
16 for the implementation of any mandate created by this
17 amendatory Act of the 91st General Assembly.
18 Section 99. Effective date. This Act takes effect upon
19 becoming law.
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