Personnel and Pensions Committee
Adopted in House Comm. on Mar 13, 2008
 
 

 




 

 		












09500HB5142ham001

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AMENDMENT TO HOUSE BILL 5142




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    AMENDMENT NO. ______. Amend House Bill 5142 by replacing 
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line 22 on page 10 through line 23 on page 13 with the 
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following:

 



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    "(40 ILCS 5/16-128)  (from Ch. 108 1/2, par. 16-128)



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    Sec. 16-128. Creditable service - required contributions. 

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    (a) In order to receive the creditable service specified 
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under
subsection (b) of Section 16-127 (other than paragraph 
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(5.1) of subsection (b)), a member is required to make the

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following contributions: (i) an amount equal to the 
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contributions
which would have been required had such service 
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been rendered as a member
under this System; (ii)
for military 
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service not immediately following
employment and for service 
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established under subdivision (b)(10) of
Section 16-127, an 
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amount determined by the Board to be equal to the
employer's 
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normal cost of the benefits accrued for such service;  and (iii)

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interest from the date the contributions would have been due 
 


 






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(or, in the case
of a person establishing credit for military 
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service under subdivision (b)(3)
of Section 16-127, the date of 
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first membership in the System, if that date
is later) to the 
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date of payment, at the following rate of interest,
compounded 
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annually:  for periods prior to July 1, 1965, regular interest; 
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from
July 1, 1965 to June 30, 1977, 4% per year; on and after 
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July 1, 1977, regular
interest.

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    (a-5) In order to receive the creditable service specified 
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in paragraph (5.1) of subsection (b) of Section 16-127, a 
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member is required to make the
following contributions: (i) an 
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amount equal to the contributions
which would have been 
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required had such service been rendered as a member
under this 
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System; (ii)
an amount determined by the Board to be equal to 
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the
employer's normal cost of the benefits accrued for such 
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service;  and (iii)
interest from the date the contributions 
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would have been due to the date of payment at the actuarially 
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assumed interest rate. 
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    (b) In order to receive creditable service under paragraph 
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(2) of
subsection (b) of Section 16-127 for those who were not 
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members on June 30,
1963, the minimum required contribution 
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shall be $420 per year of service
together with interest at 4% 
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per year compounded annually from July 1,
preceding the date of 
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membership until June 30, 1977 and at regular
interest 
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compounded annually thereafter to the date of payment.

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    (c) In determining the contribution required in order to 
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receive creditable
service under paragraph (3) of subsection 
 


 






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(b) of Section 16-127, the salary
rate for the remainder of the 
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school term in which a member enters military
service shall be 
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assumed to be equal to the member's salary rate at the
time of 
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entering military service.  However, for military service not

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immediately following employment, the salary rate on the last 
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date as a
participating teacher prior to such military service, 
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or on the first date
as a participating teacher after such 
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military service, whichever is
greater, shall be assumed to be 
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equal to the member's salary rate at the
time of entering 
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military service.  For each school term thereafter, the
member's 
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salary rate shall be assumed to be 5% higher than the salary 
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rate
in the previous school term.

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    (d) In determining the contribution required in order to 
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receive creditable
service under paragraph (5) and (5.1) of 
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subsection (b) of Section 16-127, a member's
salary rate during 
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the period for which credit is being established shall be

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assumed to be equal to the member's last salary
rate 
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immediately preceding that period.

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    (d-5) For each year of service credit to be established 
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under subsection
(b-1) of Section 16-127, a member is required 
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to contribute to the System (i)
16.5% of the annual salary rate 
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during the first year of full-time employment
as a teacher 
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under this Article following the private school service, plus

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(ii) 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 8.5% per year for periods before the

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effective date of this amendatory Act of the 92nd General 
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Assembly, and for
subsequent periods at a rate equal to the 
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System's actuarially assumed rate of
return on investments.

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    (d-10)  For service credit established under paragraph (6) 
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of subsection (b) of Section 16-127 for days granted by an 
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employer in excess of the member's normal annual sick leave 
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allotment, the employer is required to pay the normal cost of 
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benefits based upon such service credit.  This subsection (d-10) 
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does not apply to sick leave granted to teachers under 
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contracts or collective bargaining agreements entered into, 
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amended, or renewed before June 1, 2005 (the effective date of 
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Public Act 94-4).
The employer contributions required under 
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this subsection (d-10) shall be paid in the form of a lump sum 
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within 30 days after receipt of the bill after the teacher 
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begins receiving benefits under this Article.

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    (e) Except for contributions under subsection (d-10), the 
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contributions required under this Section may be made from the

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date the statement for such creditable service is issued until 
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retirement
date.  All such required contributions must be made 
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before any retirement
annuity is granted.

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(Source: P.A. 94-4, eff. 6-1-05; 94-1057, eff. 7-31-06.)".