Rep. William B. Black
Filed: 3/11/2009
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1 | AMENDMENT TO HOUSE BILL 3181
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2 | AMENDMENT NO. ______. Amend House Bill 3181 by replacing | ||||||
3 | everything after the enacting clause with the following:
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4 | "Section 5. The Illinois Pension Code is amended by | ||||||
5 | changing Sections 16-127 and 16-128 and by adding Section | ||||||
6 | 16-203.1 as follows:
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7 | (40 ILCS 5/16-127) (from Ch. 108 1/2, par. 16-127)
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8 | Sec. 16-127. Computation of creditable service.
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9 | (a) Each member shall receive regular credit for all
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10 | service as a teacher from the date membership begins, for which
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11 | satisfactory evidence is supplied and all contributions have | ||||||
12 | been paid.
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13 | (b) The following periods of service shall earn optional | ||||||
14 | credit and
each member shall receive credit for all such | ||||||
15 | service for which
satisfactory evidence is supplied and all | ||||||
16 | contributions have been paid as
of the date specified:
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1 | (1) Prior service as a teacher.
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2 | (2) Service in a capacity essentially similar or | ||||||
3 | equivalent to that of a
teacher, in the public common | ||||||
4 | schools in school districts in this State not
included | ||||||
5 | within the provisions of this System, or of any other | ||||||
6 | State,
territory, dependency or possession of the United | ||||||
7 | States, or in schools
operated by or under the auspices of | ||||||
8 | the United States, or under the
auspices of any agency or | ||||||
9 | department of any other State, and service during
any | ||||||
10 | period of professional speech correction or special | ||||||
11 | education
experience for a public agency within this State | ||||||
12 | or any other State,
territory, dependency or possession of | ||||||
13 | the United States, and service prior
to February 1, 1951 as | ||||||
14 | a recreation worker for the Illinois Department of
Public | ||||||
15 | Safety, for a period not exceeding the lesser of 2/5 of the | ||||||
16 | total
creditable service of the member or 10 years. The | ||||||
17 | maximum service of 10
years which is allowable under this | ||||||
18 | paragraph shall be reduced by the
service credit which is | ||||||
19 | validated by other retirement systems under
paragraph (i) | ||||||
20 | of Section 15-113 and paragraph 1 of Section 17-133. Credit
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21 | granted under this paragraph may not be used in | ||||||
22 | determination of a
retirement annuity or disability | ||||||
23 | benefits unless the member has at least 5
years of | ||||||
24 | creditable service earned subsequent to this employment | ||||||
25 | with one
or more of the following systems: Teachers' | ||||||
26 | Retirement System of the State
of Illinois, State |
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1 | Universities Retirement System, and the Public School
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2 | Teachers' Pension and Retirement Fund of Chicago. Whenever | ||||||
3 | such service
credit exceeds the maximum allowed for all | ||||||
4 | purposes of this Article, the
first service rendered in | ||||||
5 | point of time shall be considered.
The changes to this | ||||||
6 | subdivision (b)(2) made by Public Act 86-272 shall
apply | ||||||
7 | not only to persons who on or after its effective date | ||||||
8 | (August 23,
1989) are in service as a teacher under the | ||||||
9 | System, but also to persons
whose status as such a teacher | ||||||
10 | terminated prior to such effective date,
whether or not | ||||||
11 | such person is an annuitant on that date.
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12 | (3) Any periods immediately following teaching | ||||||
13 | service, under this
System or under Article 17, (or | ||||||
14 | immediately following service prior to
February 1, 1951 as | ||||||
15 | a recreation worker for the Illinois Department of
Public | ||||||
16 | Safety) spent in active service with the military forces of | ||||||
17 | the
United States; periods spent in educational programs | ||||||
18 | that prepare for
return to teaching sponsored by the | ||||||
19 | federal government following such
active military service; | ||||||
20 | if a teacher returns to teaching service within
one | ||||||
21 | calendar year after discharge or after the completion of | ||||||
22 | the
educational program, a further period, not exceeding | ||||||
23 | one calendar year,
between time spent in military service | ||||||
24 | or in such educational programs and
the return to | ||||||
25 | employment as a teacher under this System; and a period of | ||||||
26 | up
to 2 years of active military service not immediately |
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1 | following employment
as a teacher.
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2 | The changes to this Section and Section 16-128 relating | ||||||
3 | to military
service made by P.A. 87-794 shall apply not | ||||||
4 | only to persons who on or after its
effective date are in | ||||||
5 | service as a teacher under the System, but also to
persons | ||||||
6 | whose status as a teacher terminated prior to that date, | ||||||
7 | whether or not
the person is an annuitant on that date. In | ||||||
8 | the case of an annuitant who
applies for credit allowable | ||||||
9 | under this Section for a period of military
service that | ||||||
10 | did not immediately follow employment, and who has made the
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11 | required contributions for such credit, the annuity shall | ||||||
12 | be recalculated to
include the additional service credit, | ||||||
13 | with the increase taking effect on the
date the System | ||||||
14 | received written notification of the annuitant's intent to
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15 | purchase the credit, if payment of all the required | ||||||
16 | contributions is made
within 60 days of such notice, or | ||||||
17 | else on the first annuity payment date
following the date | ||||||
18 | of payment of the required contributions. In calculating
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19 | the automatic annual increase for an annuity that has been | ||||||
20 | recalculated under
this Section, the increase attributable | ||||||
21 | to the additional service allowable
under P.A. 87-794 shall | ||||||
22 | be included in the calculation of automatic annual
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23 | increases accruing after the effective date of the | ||||||
24 | recalculation.
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25 | Credit for military service shall be determined as | ||||||
26 | follows: if entry
occurs during the months of July, August, |
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1 | or September and the member was a
teacher at the end of the | ||||||
2 | immediately preceding school term, credit shall
be granted | ||||||
3 | from July 1 of the year in which he or she entered service; | ||||||
4 | if
entry occurs during the school term and the teacher was | ||||||
5 | in teaching service
at the beginning of the school term, | ||||||
6 | credit shall be granted from July 1 of
such year. In all | ||||||
7 | other cases where credit for military service is allowed,
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8 | credit shall be granted from the date of entry into the | ||||||
9 | service.
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10 | The total period of military service for which credit | ||||||
11 | is granted shall
not exceed 5 years for any member unless | ||||||
12 | the service: (A) is validated
before July 1, 1964, and (B) | ||||||
13 | does not extend beyond July 1, 1963. Credit
for military | ||||||
14 | service shall be granted under this Section only if not | ||||||
15 | more
than 5 years of the military service for which credit | ||||||
16 | is granted under this
Section is used by the member to | ||||||
17 | qualify for a military retirement
allotment from any branch | ||||||
18 | of the armed forces of the United States. The
changes to | ||||||
19 | this subdivision (b)(3) made by Public Act 86-272 shall | ||||||
20 | apply
not only to persons who on or after its effective | ||||||
21 | date (August 23, 1989)
are in service as a teacher under | ||||||
22 | the System, but also to persons whose
status as such a | ||||||
23 | teacher terminated prior to such effective date, whether
or | ||||||
24 | not such person is an annuitant on that date.
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25 | (4) Any periods served as a member of the General | ||||||
26 | Assembly.
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1 | (5)(i) Any periods for which a teacher, as defined in | ||||||
2 | Section
16-106, is granted a leave of absence, provided he | ||||||
3 | or she returns to teaching
service creditable under this | ||||||
4 | System or the State Universities Retirement
System | ||||||
5 | following the leave; (ii) periods during which a teacher is
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6 | involuntarily laid off from teaching, provided he or she | ||||||
7 | returns to teaching
following the lay-off; (iii) periods | ||||||
8 | prior to July 1, 1983 during which
a teacher ceased covered | ||||||
9 | employment due to pregnancy, provided that the teacher
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10 | returned to teaching service creditable under this System | ||||||
11 | or the State
Universities Retirement System following the | ||||||
12 | pregnancy and submits evidence
satisfactory to the Board | ||||||
13 | documenting that the employment ceased due to
pregnancy; | ||||||
14 | and (iv) periods prior to July 1, 1983 during which a | ||||||
15 | teacher
ceased covered employment for the purpose of | ||||||
16 | adopting an infant under 3 years
of age or caring for a | ||||||
17 | newly adopted infant under 3 years of age, provided that
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18 | the teacher returned to teaching service creditable under | ||||||
19 | this System or the
State Universities Retirement System | ||||||
20 | following the adoption and submits
evidence satisfactory | ||||||
21 | to the Board documenting that the employment ceased for
the | ||||||
22 | purpose of adopting an infant under 3 years of age or | ||||||
23 | caring for a newly
adopted infant under 3 years of age. | ||||||
24 | However, total credit under this
paragraph (5) may not | ||||||
25 | exceed 3 years.
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26 | Any qualified member or annuitant may apply for credit |
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1 | under item (iii)
or (iv) of this paragraph (5) without | ||||||
2 | regard to whether service was
terminated before the | ||||||
3 | effective date of this amendatory Act of 1997. In the case | ||||||
4 | of an annuitant who establishes credit under item (iii)
or | ||||||
5 | (iv), the annuity shall be recalculated to include the | ||||||
6 | additional
service credit. The increase in annuity shall | ||||||
7 | take effect on the date the
System receives written | ||||||
8 | notification of the annuitant's intent to purchase the
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9 | credit, if the required evidence is submitted and the | ||||||
10 | required contribution
paid within 60 days of that | ||||||
11 | notification, otherwise on the first annuity
payment date | ||||||
12 | following the System's receipt of the required evidence and
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13 | contribution. The increase in an annuity recalculated | ||||||
14 | under this provision
shall be included in the calculation | ||||||
15 | of automatic annual increases in the
annuity accruing after | ||||||
16 | the effective date of the recalculation.
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17 | Optional credit may be purchased under this subsection | ||||||
18 | (b)(5) for
periods during which a teacher has been granted | ||||||
19 | a leave of absence pursuant
to Section 24-13 of the School | ||||||
20 | Code. A teacher whose service under this
Article terminated | ||||||
21 | prior to the effective date of P.A. 86-1488 shall be
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22 | eligible to purchase such optional credit. If a teacher who | ||||||
23 | purchases this
optional credit is already receiving a | ||||||
24 | retirement annuity under this Article,
the annuity shall be | ||||||
25 | recalculated as if the annuitant had applied for the leave
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26 | of absence credit at the time of retirement. The difference |
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1 | between the
entitled annuity and the actual annuity shall | ||||||
2 | be credited to the purchase of
the optional credit. The | ||||||
3 | remainder of the purchase cost of the optional credit
shall | ||||||
4 | be paid on or before April 1, 1992.
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5 | The change in this paragraph made by Public Act 86-273 | ||||||
6 | shall
be applicable to teachers who retire after June 1, | ||||||
7 | 1989, as well as to
teachers who are in service on that | ||||||
8 | date.
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9 | (6) Any days of unused and uncompensated accumulated | ||||||
10 | sick leave earned
by a teacher. The service credit granted | ||||||
11 | under this paragraph shall be the
ratio of the number of | ||||||
12 | unused and uncompensated accumulated sick leave days
to 170 | ||||||
13 | days, subject to a maximum of 2 years of service
credit. | ||||||
14 | Prior to the member's retirement, each former employer | ||||||
15 | shall
certify to the System the number of unused and | ||||||
16 | uncompensated accumulated
sick leave days credited to the | ||||||
17 | member at the time of termination of service.
The period of | ||||||
18 | unused sick leave shall not be considered in determining
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19 | the effective date of retirement. A member is not required | ||||||
20 | to make
contributions in order to obtain service credit for | ||||||
21 | unused sick leave.
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22 | Credit for sick leave shall, at retirement, be granted | ||||||
23 | by the System
for any retiring regional or assistant | ||||||
24 | regional superintendent of schools
at the rate of 6 days | ||||||
25 | per year of creditable service or portion thereof
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26 | established while serving as such superintendent or |
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1 | assistant
superintendent.
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2 | (7) Periods prior to February 1, 1987 served as an | ||||||
3 | employee of the
Illinois Mathematics and Science Academy | ||||||
4 | for which credit has not been
terminated under Section | ||||||
5 | 15-113.9 of this Code.
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6 | (8) Service as a substitute teacher for work performed
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7 | prior to July 1, 1990.
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8 | (9) Service as a part-time teacher for work performed
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9 | prior to July 1, 1990.
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10 | (10) Up to 2 years of employment with Southern Illinois | ||||||
11 | University -
Carbondale from September 1, 1959 to August | ||||||
12 | 31, 1961, or with Governors
State University from September | ||||||
13 | 1, 1972 to August 31, 1974, for which the
teacher has no | ||||||
14 | credit under Article 15. To receive credit under this item
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15 | (10), a teacher must apply in writing to the Board and pay | ||||||
16 | the required
contributions before May 1, 1993 and have at | ||||||
17 | least 12 years of service
credit under this Article.
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18 | (11) Service in an amount not greater than 5 years for | ||||||
19 | employment by the New York School for the Deaf, a public | ||||||
20 | entity under the New York State Education Department, if | ||||||
21 | such employment occurred before January 1, 1975 and if the | ||||||
22 | contributions required under subsection (f) of Section | ||||||
23 | 16-128 of this Code are made. The member shall be eligible | ||||||
24 | for service credit under this item (11) regardless of | ||||||
25 | whether the specified employment required a teaching | ||||||
26 | certificate. If credit for any portion of that service is |
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1 | validated by any other retirement system operated under the | ||||||
2 | auspices of any agency or department of any other state, | ||||||
3 | then credit for that service shall be reduced | ||||||
4 | proportionately under this item (11). | ||||||
5 | (b-1) A member may establish optional credit for up to 2 | ||||||
6 | years of service
as a teacher or administrator employed by a | ||||||
7 | private school recognized by the
Illinois State Board of | ||||||
8 | Education, provided that the teacher (i) was certified
under | ||||||
9 | the law governing the certification of teachers at the time the | ||||||
10 | service
was rendered, (ii) applies in writing on or after June | ||||||
11 | 1, 2002 and on or before
June 1, 2005, (iii) supplies | ||||||
12 | satisfactory evidence of the employment, (iv)
completes at | ||||||
13 | least 10 years of contributing service as a teacher as defined | ||||||
14 | in
Section 16-106, and (v) pays the contribution required in | ||||||
15 | subsection (d-5) of
Section 16-128. The member may apply for | ||||||
16 | credit under this subsection and pay
the required contribution | ||||||
17 | before completing the 10 years of contributing
service required | ||||||
18 | under item (iv), but the credit may not be used until the
item | ||||||
19 | (iv) contributing service requirement has been met.
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20 | (c) The service credits specified in this Section shall be | ||||||
21 | granted only
if: (1) such service credits are not used for | ||||||
22 | credit in any other statutory
tax-supported public employee | ||||||
23 | retirement system other than the federal Social
Security | ||||||
24 | program; and (2) the member makes the required contributions as
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25 | specified in Section 16-128. Except as provided in subsection | ||||||
26 | (b-1) of
this Section, the service credit shall be effective as |
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1 | of the date the
required contributions are completed.
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2 | Any service credits granted under this Section shall | ||||||
3 | terminate upon
cessation of membership for any cause.
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4 | Credit may not be granted under this Section covering any | ||||||
5 | period for
which an age retirement or disability retirement | ||||||
6 | allowance has been paid.
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7 | (Source: P.A. 92-867, eff. 1-3-03.)
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8 | (40 ILCS 5/16-128) (from Ch. 108 1/2, par. 16-128)
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9 | Sec. 16-128. Creditable service - required contributions.
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10 | (a) In order to receive the creditable service specified | ||||||
11 | under
subsection (b) of Section 16-127, a member is required to | ||||||
12 | make the
following contributions: (i) an amount equal to the | ||||||
13 | contributions
which would have been required had such service | ||||||
14 | been rendered as a member
under this System; (ii) for military | ||||||
15 | service not immediately following
employment and for service | ||||||
16 | established under subdivision (b)(10) of
Section 16-127, an | ||||||
17 | amount determined by the Board to be equal to the
employer's | ||||||
18 | normal cost of the benefits accrued for such service; and (iii)
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19 | interest from the date the contributions would have been due | ||||||
20 | (or, in the case
of a person establishing credit for military | ||||||
21 | service under subdivision (b)(3)
of Section 16-127, the date of | ||||||
22 | first membership in the System, if that date
is later) to the | ||||||
23 | date of payment, at the following rate of interest,
compounded | ||||||
24 | annually: for periods prior to July 1, 1965, regular interest; | ||||||
25 | from
July 1, 1965 to June 30, 1977, 4% per year; on and after |
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1 | July 1, 1977, regular
interest.
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2 | (b) In order to receive creditable service under paragraph | ||||||
3 | (2) of
subsection (b) of Section 16-127 for those who were not | ||||||
4 | members on June 30,
1963, the minimum required contribution | ||||||
5 | shall be $420 per year of service
together with interest at 4% | ||||||
6 | per year compounded annually from July 1,
preceding the date of | ||||||
7 | membership until June 30, 1977 and at regular
interest | ||||||
8 | compounded annually thereafter to the date of payment.
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9 | (c) In determining the contribution required in order to | ||||||
10 | receive creditable
service under paragraph (3) of subsection | ||||||
11 | (b) of Section 16-127, the salary
rate for the remainder of the | ||||||
12 | school term in which a member enters military
service shall be | ||||||
13 | assumed to be equal to the member's salary rate at the
time of | ||||||
14 | entering military service. However, for military service not
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15 | immediately following employment, the salary rate on the last | ||||||
16 | date as a
participating teacher prior to such military service, | ||||||
17 | or on the first date
as a participating teacher after such | ||||||
18 | military service, whichever is
greater, shall be assumed to be | ||||||
19 | equal to the member's salary rate at the
time of entering | ||||||
20 | military service. For each school term thereafter, the
member's | ||||||
21 | salary rate shall be assumed to be 5% higher than the salary | ||||||
22 | rate
in the previous school term.
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23 | (d) In determining the contribution required in order to | ||||||
24 | receive creditable
service under paragraph (5) of subsection | ||||||
25 | (b) of Section 16-127, a member's
salary rate during the period | ||||||
26 | for which credit is being established shall be
assumed to be |
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1 | equal to the member's last salary
rate immediately preceding | ||||||
2 | that period.
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3 | (d-5) For each year of service credit to be established | ||||||
4 | under subsection
(b-1) of Section 16-127, a member is required | ||||||
5 | to contribute to the System (i)
16.5% of the annual salary rate | ||||||
6 | during the first year of full-time employment
as a teacher | ||||||
7 | under this Article following the private school service, plus
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8 | (ii) interest thereon from the date of first full-time | ||||||
9 | employment as a teacher
under this Article following the | ||||||
10 | private school service to the date of payment,
compounded | ||||||
11 | annually, at the rate of 8.5% per year for periods before the
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12 | effective date of this amendatory Act of the 92nd General | ||||||
13 | Assembly, and for
subsequent periods at a rate equal to the | ||||||
14 | System's actuarially assumed rate of
return on investments.
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15 | (d-10) For service credit established under paragraph (6) | ||||||
16 | of subsection (b) of Section 16-127 for days granted by an | ||||||
17 | employer in excess of the member's normal annual sick leave | ||||||
18 | allotment, the employer is required to pay the normal cost of | ||||||
19 | benefits based upon such service credit. This subsection (d-10) | ||||||
20 | does not apply to sick leave granted to teachers under | ||||||
21 | contracts or collective bargaining agreements entered into, | ||||||
22 | amended, or renewed before June 1, 2005 (the effective date of | ||||||
23 | Public Act 94-4).
The employer contributions required under | ||||||
24 | this subsection (d-10) shall be paid in the form of a lump sum | ||||||
25 | within 30 days after receipt of the bill after the teacher | ||||||
26 | begins receiving benefits under this Article.
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1 | (e) Except for contributions under subsection (d-10), the | ||||||
2 | contributions required under this Section may be made from the
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3 | date the statement for such creditable service is issued until | ||||||
4 | retirement
date. All such required contributions must be made | ||||||
5 | before any retirement
annuity is granted.
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6 | (f) For each year of service credit to be established under | ||||||
7 | item (11) of subsection (b) of Section 16-127, a member is | ||||||
8 | required to contribute to the System an amount equal to (i) the | ||||||
9 | employee contributions that would have been required by the | ||||||
10 | member if the service had been earned as a teacher under the | ||||||
11 | System, plus (ii) the employer's normal cost of the benefit had | ||||||
12 | the service been earned as a teacher under the System, plus | ||||||
13 | (iii) interest on items (i) and (ii) at the actuarially assumed | ||||||
14 | rate from the date of first employment as a teacher under this | ||||||
15 | Article following the date the specified out-of-state | ||||||
16 | employment occurred to the date of payment, compounded | ||||||
17 | annually. | ||||||
18 | (Source: P.A. 94-4, eff. 6-1-05; 94-1057, eff. 7-31-06.)
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19 | (40 ILCS 5/16-203.1 new)
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20 | Sec. 16-203.1. New benefit increases. The General Assembly | ||||||
21 | finds and declares that the amendment to Section 16-127 made by | ||||||
22 | this amendatory Act of the 96th General Assembly that allows | ||||||
23 | members to establish service credit for employment by the New | ||||||
24 | York School for the Deaf constitutes a new benefit increase | ||||||
25 | within the meaning of Section 16-203. Funding for this new |
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1 | benefit increase will be provided by additional employee | ||||||
2 | contributions under subsection (f) of Section 16-128. In | ||||||
3 | accordance with subsection (d) of Section 16-203, this new | ||||||
4 | benefit increase shall expire 5 years after the effective date | ||||||
5 | of this amendatory Act of the 96th General Assembly. ".
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