94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006
HB4136

 

Introduced 10/21/2005, by Rep. Gary Hannig

 

SYNOPSIS AS INTRODUCED:
 
40 ILCS 5/16-128   from Ch. 108 1/2, par. 16-128

    Amends the Downstate Teacher Article of the Illinois Pension Code. Provides that employer contributions for days granted by an employer in excess of the member's normal annual sick leave allotment shall be paid in the form of a lump sum within 30 days after receipt of the bill after the teacher begins receiving benefits under this Article. Effective immediately.


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PENSION IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB4136 LRB094 14747 AMC 49724 b

1     AN ACT concerning public employee benefits.
 
2     Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
 
4     Section 5. The Illinois Pension Code is amended by changing
5 Section 16-128 as follows:
 
6     (40 ILCS 5/16-128)  (from Ch. 108 1/2, par. 16-128)
7     Sec. 16-128. Creditable service - required contributions.
8     (a) In order to receive the creditable service specified
9 under subsection (b) of Section 16-127, a member is required to
10 make the following contributions: (i) an amount equal to the
11 contributions which would have been required had such service
12 been rendered as a member under this System; (ii) for military
13 service not immediately following employment and for service
14 established under subdivision (b)(10) of Section 16-127, an
15 amount determined by the Board to be equal to the employer's
16 normal cost of the benefits accrued for such service; and (iii)
17 interest from the date the contributions would have been due
18 (or, in the case of a person establishing credit for military
19 service under subdivision (b)(3) of Section 16-127, the date of
20 first membership in the System, if that date is later) to the
21 date of payment, at the following rate of interest, compounded
22 annually: for periods prior to July 1, 1965, regular interest;
23 from July 1, 1965 to June 30, 1977, 4% per year; on and after
24 July 1, 1977, regular interest.
25     (b) In order to receive creditable service under paragraph
26 (2) of subsection (b) of Section 16-127 for those who were not
27 members on June 30, 1963, the minimum required contribution
28 shall be $420 per year of service together with interest at 4%
29 per year compounded annually from July 1, preceding the date of
30 membership until June 30, 1977 and at regular interest
31 compounded annually thereafter to the date of payment.
32     (c) In determining the contribution required in order to

 

 

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1 receive creditable service under paragraph (3) of subsection
2 (b) of Section 16-127, the salary rate for the remainder of the
3 school term in which a member enters military service shall be
4 assumed to be equal to the member's salary rate at the time of
5 entering military service. However, for military service not
6 immediately following employment, the salary rate on the last
7 date as a participating teacher prior to such military service,
8 or on the first date as a participating teacher after such
9 military service, whichever is greater, shall be assumed to be
10 equal to the member's salary rate at the time of entering
11 military service. For each school term thereafter, the member's
12 salary rate shall be assumed to be 5% higher than the salary
13 rate in the previous school term.
14     (d) In determining the contribution required in order to
15 receive creditable service under paragraph (5) of subsection
16 (b) of Section 16-127, a member's salary rate during the period
17 for which credit is being established shall be assumed to be
18 equal to the member's last salary rate immediately preceding
19 that period.
20     (d-5) For each year of service credit to be established
21 under subsection (b-1) of Section 16-127, a member is required
22 to contribute to the System (i) 16.5% of the annual salary rate
23 during the first year of full-time employment as a teacher
24 under this Article following the private school service, plus
25 (ii) interest thereon from the date of first full-time
26 employment as a teacher under this Article following the
27 private school service to the date of payment, compounded
28 annually, at the rate of 8.5% per year for periods before the
29 effective date of this amendatory Act of the 92nd General
30 Assembly, and for subsequent periods at a rate equal to the
31 System's actuarially assumed rate of return on investments.
32     (d-10) For service credit established under paragraph (6)
33 of subsection (b) of Section 16-127 for days granted by an
34 employer in excess of the member's normal annual sick leave
35 allotment, the employer is required to pay the normal cost of
36 benefits based upon such service credit. This subsection (d-10)

 

 

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1 does not apply to sick leave granted to teachers under
2 contracts or collective bargaining agreements entered into,
3 amended, or renewed before June 1, 2005 (the effective date of
4 Public Act 94-4) this amendatory Act of the 94th General
5 Assembly. The employer contributions required under this
6 subsection (d-10) shall be paid in the form of a lump sum
7 within 30 days after receipt of the bill after the teacher
8 begins receiving benefits under this Article.
9     (e) Except for contributions under subsection (d-10), the
10 The contributions required under this Section may be made from
11 the date the statement for such creditable service is issued
12 until retirement date. All such required contributions must be
13 made before any retirement annuity is granted.
14 (Source: P.A. 94-4, eff. 6-1-05.)
 
15     Section 99. Effective date. This Act takes effect upon
16 becoming law.