94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006
HB4592


 
Introduced 01/11/06, by Rep. Angelo Saviano
 
SYNOPSIS AS INTRODUCED:
 		













40 ILCS 5/17-133
  from Ch. 108 1/2, par. 17-133




30 ILCS 805/8.30 new










    Amends the Chicago Teacher Article of the Illinois Pension Code.
Allows purchase of service credit for up to 2 years of employment by a
private school.  Requires payment of a contribution plus interest.
Amends the State Mandates Act to require implementation without
reimbursement.  Effective immediately.
















LRB094 16352 AMC 51603 b

















FISCAL NOTE ACT MAY APPLY


PENSION IMPACT NOTE ACT MAY APPLY


STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT
















 


 


A BILL FOR









 











HB4592

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1
    AN ACT in relation to 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: 


 
4
    Section 5. The Illinois Pension Code is amended by changing 
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Section
17-133 as follows:


 
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    (40 ILCS 5/17-133)  (from Ch. 108 1/2, par. 17-133)

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    Sec. 17-133. Contributions for periods of outside and other 
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service.


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    Regularly certified and appointed teachers who desire to 
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have the following
described services credited for pension 
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purposes shall submit to the Board
evidence thereof and pay 
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into the Fund the amounts prescribed herein:


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        1. For teaching service by a certified teacher in the 
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    public
schools of the several states or in schools operated 
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    by or under the
auspices of the United States, a teacher 
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    shall pay the
contributions at the rates in force (a) on 
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    the date of
appointment as a regularly certified teacher 
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    after salary adjustments
are completed, or (b) at the time 
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    of reappointment after salary
adjustments are completed, 
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    whichever is later, but not less than $450
per year of 
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    service.  Upon the Board's approval of such service and the

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    payment of the required contributions, service credit of 
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    not more than
10 years shall be granted.


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        2. For service as a playground instructor in public 
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    school playgrounds,
teachers shall pay the contributions 
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    prescribed in this Article (a) at
the time of appointment, 
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    as a regularly certified teacher after salary
adjustments 
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    are completed, or (b) on return to service as a full time

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    regularly certified teacher, as the case may be, provided 
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    such rates or
amounts shall not be less than $450 per year.


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        3. For service prior to September 1, 1955, in the 
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    public schools of the
City as a substitute, evening school 
 


 






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    or temporary teacher, or for service
as an Americanization 
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    teacher prior to December 31, 1955, teachers  shall pay
the 
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    contributions prescribed in this Article (a) at the time of 
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    appointment,
as a regularly certified teacher after salary 
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    adjustments are completed,
(b) on return to service as a 
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    full time regularly certified teacher, as
the case may be, 
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    provided such rates or amounts shall not be less than $450

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    per year; and provided further that for teachers employed 
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    on or after September
1, 1953, rates shall not include 
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    contributions for widows' pensions if the
service 
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    described in this sub-paragraph 3 was rendered before that 
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    date.  Any
teacher entitled to repay a refund of 
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    contributions under Section 17-126 may validate service 
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    described in this paragraph by
payment of the amounts 
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    prescribed herein, together with the repayment of the

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    refund, provided that if such creditable service was the 
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    last service rendered
in the public schools of the City and 
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    is not automatically reinstated by
repayment of the refund, 
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    the rates or amounts shall not be less than $450 per
year.


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        4. For service after June 30, 1982 as a member of the 
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    Board of
Education, if required to resign from an 
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    administrative or teaching position
in order to qualify as 
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    a member of the Board of Education.


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        5. For service during the 1986-87 school year as a 
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    teacher on a special
leave of absence with full loss of 
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    salary, teaching for an agency under
contract to the Board 
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    of Education, if the teacher returned to employment in

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    September, 1987.  For service under this item 5, the teacher 
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    must pay the
contributions at the rates in force at the 
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    completion of the leave period.


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        6. For up to 2 years of service as a teacher or 
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    administrator employed
by a private school registered with 
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    or recognized by the Illinois State Board
of Education, 
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    provided that the teacher (i) was certified under the law

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    governing the certification of teachers at the time the 
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    service was rendered,
(ii) applies in writing on or after 
 


 






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    June 1, 2006 and on or before June 1,
2009, (iii) supplies 
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    satisfactory evidence of the employment, (iv) completes
at 
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    least 10 years of contributing service as a teacher as 
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    defined in
Section 17-106, (v) pays the contribution 
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    required in this Section, and (vi)
does not receive credit 
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    for that service under any other provision of this
Code.  
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    The member may apply for credit under this subsection and 
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    pay the
required contribution before completing the 10 
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    years of contributing service
required under item (iv), but 
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    the credit may not be used until the item (iv)
contributing 
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    service requirement has been met.

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        For each year of service credit to be established under 
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    this
subparagraph 6, a member is required to contribute to 
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    the System (i) 16.5%
of the annual salary rate during the 
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    first year of full-time employment
as a teacher under this 
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    Article following the private school service, plus
(ii) 
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    interest thereon from the date of first full-time 
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    employment as a teacher
under this Article following the 
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    private school service to the date of payment,
compounded 
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    annually, at the rate of 8.0% per year.


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    For service described in sub-paragraphs 1, 2 and 3 of this 
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Section, interest
shall be charged beginning one year after the 
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effective date of appointment or
reappointment.


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    Effective September 1, 1974, the interest rate to be 
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charged by the
Fund on contributions provided in sub-paragraphs 
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1, 2, 3 and 4 shall
be 5% per annum compounded annually.


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(Source: P.A. 90-566, eff. 1-2-98; 91-887, eff. 7-6-00.)


 
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    Section 90. The State Mandates Act is amended by adding 
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Section 8.30 as
follows:


 
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    (30 ILCS 805/8.30 new)

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    Sec. 8.30. Exempt mandate. Notwithstanding Sections 6 and 8 
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of this
Act, no reimbursement by the State is required for the 
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implementation of
any mandate created by this amendatory Act of 
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the 94th General Assembly.

 
 


 






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    Section 99. Effective date.   This Act takes effect upon 
2
becoming law.