Full Text of HB3584 94th General Assembly
HB3584 94TH GENERAL ASSEMBLY
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94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006 HB3584
Introduced 2/24/2005, by Rep. Gary Hannig SYNOPSIS AS INTRODUCED: |
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40 ILCS 5/16-106 |
from Ch. 108 1/2, par. 16-106 |
40 ILCS 5/16-113 |
from Ch. 108 1/2, par. 16-113 |
40 ILCS 5/16-123 |
from Ch. 108 1/2, par. 16-123 |
40 ILCS 5/16-127 |
from Ch. 108 1/2, par. 16-127 |
40 ILCS 5/16-129.1 |
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40 ILCS 5/16-130 |
from Ch. 108 1/2, par. 16-130 |
40 ILCS 5/16-136.4 |
from Ch. 108 1/2, par. 16-136.4 |
40 ILCS 5/16-141 |
from Ch. 108 1/2, par. 16-141 |
40 ILCS 5/16-155 |
from Ch. 108 1/2, par. 16-155 |
40 ILCS 5/16-158 |
from Ch. 108 1/2, par. 16-158 |
40 ILCS 5/16-131.4 rep. |
from Ch. 108 1/2, par. 16-131.4 |
40 ILCS 5/16-134 rep. |
from Ch. 108 1/2, par. 16-134 |
40 ILCS 5/16-149.3 rep. |
from Ch. 108 1/2, par. 16-149.3 |
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Amends the Downstate Teachers Article of the Illinois Pension Code. Provides for participation in the System by current System employees who elect
to participate after a change in position.
Includes within the membership of the System persons employed in a professional position by the State Board of Education. Excludes from membership executives of certain boards engaged in the service of public education. Eliminates the 100-day TRS membership waiting period for persons receiving a
retirement annuity under the Chicago Teacher Article. Requires 1.5 years of contributing service (rather than just creditable service) to qualify for a survivor's benefit upon death in service. Permits certain teachers
who interrupted service under the Chicago Teacher Article because of pregnancy
to purchase TRS credit for the period of leave. Reduces the required contribution for certain persons electing to receive the augmented 2.2% retirement formula, and incorporates the 2.2%
retirement formula into the calculation of the single-sum retirement benefit.
In the definition of "accumulated contributions", specifies that interest is neither accumulated nor paid on contributions for the automatic increase in base pension. Deletes a provision authorizing the Board to prescribe rules relating to contribution statements. Repeals certain obsolete provisions, including provisions relating to SIU employment, transfers by county sheriffs, exemptions from paying certain employer contributions, and increases in certain retirement and disability annuities that were being paid in 1947. Effective immediately.
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FISCAL NOTE ACT MAY APPLY | |
PENSION IMPACT NOTE ACT MAY APPLY |
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A BILL FOR
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HB3584 |
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LRB094 10789 EFG 41251 b |
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| AN ACT in relation to public employee benefits.
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| Be it enacted by the People of the State of Illinois, | 3 |
| represented in the General Assembly:
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| Section 5. The Illinois Pension Code is amended by changing | 5 |
| Sections 16-106, 16-113, 16-123, 16-127, 16-129.1, 16-130, | 6 |
| 16-136.4, 16-141, 16-155, and 16-158 as follows:
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| (40 ILCS 5/16-106) (from Ch. 108 1/2, par. 16-106)
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| Sec. 16-106. Teacher. "Teacher": The following | 9 |
| individuals, provided
that, for employment prior to July 1, | 10 |
| 1990, they are employed on a
full-time basis, or if not | 11 |
| full-time, on a permanent and continuous basis
in a position in | 12 |
| which services are expected to be rendered for at least
one | 13 |
| school term:
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| (1) Any educational, administrative, professional or | 15 |
| other staff employed
in the public common schools included | 16 |
| within this system in a position
requiring certification | 17 |
| under the law governing the certification of
teachers;
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| (2) Any educational, administrative, professional or | 19 |
| other staff employed
in any facility of the Department of | 20 |
| Children and Family Services or the
Department of Human | 21 |
| Services, in a position requiring certification under
the | 22 |
| law governing the certification of teachers, and any person | 23 |
| who (i)
works in such a position for the Department of | 24 |
| Corrections, (ii) was a member
of this System on May 31, | 25 |
| 1987, and (iii) did not elect to become a member of
the | 26 |
| State Employees' Retirement System pursuant to Section | 27 |
| 14-108.2 of this
Code; except that "teacher" does not | 28 |
| include any person who (A) becomes
a security employee of | 29 |
| the Department of Human Services, as defined in
Section | 30 |
| 14-110, after June 28, 2001 (the effective date of Public | 31 |
| Act
92-14), or (B) becomes a member of the State Employees'
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| Retirement System pursuant to Section 14-108.2c of this |
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| Code;
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| (3) Any regional superintendent of schools, assistant | 3 |
| regional
superintendent of schools, or State | 4 |
| Superintendent of Education; and any person
employed by the | 5 |
| State Board of Education in a professional position;
as an | 6 |
| executive; any executive of
the boards engaged in the | 7 |
| service of public common school education in
school | 8 |
| districts covered under this system of which the State
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| Superintendent of Education is an ex-officio member;
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| (4) Any employee of a school board association | 11 |
| operating in compliance
with Article 23 of the School Code | 12 |
| who is certificated under the law
governing the | 13 |
| certification of teachers;
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| (5) Any person employed by the retirement system
who:
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| (i) was an employee of and a participant in the | 16 |
| system on August 17,
2001 (the effective date of Public | 17 |
| Act 92-416), or
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| (ii) was an employee of but not a participant in | 19 |
| the system on the
effective date of this amendatory Act | 20 |
| of the 94th General Assembly, and
has thereafter become | 21 |
| employed by the system in a different position and
made | 22 |
| an irrevocable election to begin participating in the | 23 |
| system, or | 24 |
| (iii) becomes an employee of the system on or after | 25 |
| August 17, 2001;
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| (6) Any educational, administrative, professional or | 27 |
| other staff
employed by and under the supervision and | 28 |
| control of a regional
superintendent of schools, provided | 29 |
| such employment position requires the
person to be | 30 |
| certificated under the law governing the certification of
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| teachers and is in an educational program serving 2 or more | 32 |
| districts in
accordance with a joint agreement authorized | 33 |
| by the School Code or by federal
legislation;
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| (7) Any educational, administrative, professional or | 35 |
| other staff employed
in an educational program serving 2 or | 36 |
| more school districts in accordance
with a joint agreement |
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| authorized by the School Code or by federal
legislation and | 2 |
| in a position requiring certification under the laws
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| governing the certification of teachers;
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| (8) Any officer or employee of a statewide teacher | 5 |
| organization or
officer of a national teacher organization | 6 |
| who is certified under the law
governing certification of | 7 |
| teachers, provided: (i) the individual had
previously | 8 |
| established creditable service under this Article, (ii) | 9 |
| the
individual files with the system an irrevocable | 10 |
| election to become a member,
and (iii) the individual does | 11 |
| not receive credit for such service under any
other Article | 12 |
| of this Code;
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| (9) Any educational, administrative, professional, or | 14 |
| other staff
employed in a charter school operating in | 15 |
| compliance with the Charter
Schools Law who is certificated | 16 |
| under the law governing the certification
of teachers.
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| An annuitant receiving a retirement annuity under this | 18 |
| Article or under
Article 17 of this Code who is employed by a | 19 |
| board of education
or other employer as permitted under Section | 20 |
| 16-118
or 16-150.1 is not a "teacher" for purposes of this | 21 |
| Article. A person who
has received a single-sum retirement | 22 |
| benefit under Section 16-136.4 of this
Article is not a | 23 |
| "teacher" for purposes of this Article.
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| (Source: P.A. 92-14, eff. 6-28-01; 92-416, eff. 8-17-01;
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| 92-651, eff. 7-11-02; 93-320, eff. 7-23-03.)
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| (40 ILCS 5/16-113) (from Ch. 108 1/2, par. 16-113)
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| Sec. 16-113. Accumulated contributions. "Accumulated | 28 |
| contributions": The sum of all contributions to this
System | 29 |
| made by or on behalf of a member in respect to membership
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| service and credited to his or her account in the Benefit Trust | 31 |
| Reserve,
together with regular interest thereon. Interest is | 32 |
| neither accumulated nor paid on contributions for the automatic | 33 |
| increase in base pension.
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| (Source: P.A. 93-469, eff. 8-8-03.)
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| (40 ILCS 5/16-123) (from Ch. 108 1/2, par. 16-123)
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| Sec. 16-123. Membership of System.
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| (a) The membership of this System shall be composed of all | 4 |
| teachers
employed after June 30, 1939 who become members as a | 5 |
| condition of
employment on the date they become teachers. | 6 |
| Membership shall continue
until the date a member becomes an | 7 |
| annuitant, dies, accepts a single-sum
retirement benefit, | 8 |
| accepts a refund, or forfeits the rights to a refund , or is | 9 |
| convicted of any felony relating to or arising out of or in | 10 |
| connection with his or her service as a teacher .
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| (b) This Article does not apply to any person first | 12 |
| employed after June
30, 1979 as a public service employment | 13 |
| program participant under the Federal
Comprehensive Employment | 14 |
| and Training Act and whose wages or fringe benefits
are paid in | 15 |
| whole or in part by funds provided under such Act.
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| (Source: P.A. 87-11.)
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| (40 ILCS 5/16-127) (from Ch. 108 1/2, par. 16-127)
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| Sec. 16-127. Computation of creditable service.
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| (a) Each member shall receive regular credit for all
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| service as a teacher from the date membership begins, for which
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| satisfactory evidence is supplied and all contributions have | 22 |
| been paid.
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| (b) The following periods of service shall earn optional | 24 |
| credit and
each member shall receive credit for all such | 25 |
| service for which
satisfactory evidence is supplied and all | 26 |
| contributions have been paid as
of the date specified:
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| (1) Prior service as a teacher.
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| (2) Service in a capacity essentially similar or | 29 |
| equivalent to that of a
teacher, in the public common | 30 |
| schools in school districts in this State not
included | 31 |
| within the provisions of this System, or of any other | 32 |
| State,
territory, dependency or possession of the United | 33 |
| States, or in schools
operated by or under the auspices of | 34 |
| the United States, or under the
auspices of any agency or | 35 |
| department of any other State, and service during
any |
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| period of professional speech correction or special | 2 |
| education
experience for a public agency within this State | 3 |
| or any other State,
territory, dependency or possession of | 4 |
| the United States, and service prior
to February 1, 1951 as | 5 |
| a recreation worker for the Illinois Department of
Public | 6 |
| Safety, for a period not exceeding the lesser of 2/5 of the | 7 |
| total
creditable service of the member or 10 years. The | 8 |
| maximum service of 10
years which is allowable under this | 9 |
| paragraph shall be reduced by the
service credit which is | 10 |
| validated by other retirement systems under
paragraph (i) | 11 |
| of Section 15-113 and paragraph 1 of Section 17-133. Credit
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| granted under this paragraph may not be used in | 13 |
| determination of a
retirement annuity or disability | 14 |
| benefits unless the member has at least 5
years of | 15 |
| creditable service earned subsequent to this employment | 16 |
| with one
or more of the following systems: Teachers' | 17 |
| Retirement System of the State
of Illinois, State | 18 |
| Universities Retirement System, and the Public School
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| Teachers' Pension and Retirement Fund of Chicago. Whenever | 20 |
| such service
credit exceeds the maximum allowed for all | 21 |
| purposes of this Article, the
first service rendered in | 22 |
| point of time shall be considered.
The changes to this | 23 |
| subdivision (b)(2) made by Public Act 86-272 shall
apply | 24 |
| not only to persons who on or after its effective date | 25 |
| (August 23,
1989) are in service as a teacher under the | 26 |
| System, but also to persons
whose status as such a teacher | 27 |
| terminated prior to such effective date,
whether or not | 28 |
| such person is an annuitant on that date.
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| (3) Any periods immediately following teaching | 30 |
| service, under this
System or under Article 17, (or | 31 |
| immediately following service prior to
February 1, 1951 as | 32 |
| a recreation worker for the Illinois Department of
Public | 33 |
| Safety) spent in active service with the military forces of | 34 |
| the
United States; periods spent in educational programs | 35 |
| that prepare for
return to teaching sponsored by the | 36 |
| federal government following such
active military service; |
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| if a teacher returns to teaching service within
one | 2 |
| calendar year after discharge or after the completion of | 3 |
| the
educational program, a further period, not exceeding | 4 |
| one calendar year,
between time spent in military service | 5 |
| or in such educational programs and
the return to | 6 |
| employment as a teacher under this System; and a period of | 7 |
| up
to 2 years of active military service not immediately | 8 |
| following employment
as a teacher.
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| The changes to this Section and Section 16-128 relating | 10 |
| to military
service made by P.A. 87-794 shall apply not | 11 |
| only to persons who on or after its
effective date are in | 12 |
| service as a teacher under the System, but also to
persons | 13 |
| whose status as a teacher terminated prior to that date, | 14 |
| whether or not
the person is an annuitant on that date. In | 15 |
| the case of an annuitant who
applies for credit allowable | 16 |
| under this Section for a period of military
service that | 17 |
| did not immediately follow employment, and who has made the
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| required contributions for such credit, the annuity shall | 19 |
| be recalculated to
include the additional service credit, | 20 |
| with the increase taking effect on the
date the System | 21 |
| received written notification of the annuitant's intent to
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| purchase the credit, if payment of all the required | 23 |
| contributions is made
within 60 days of such notice, or | 24 |
| else on the first annuity payment date
following the date | 25 |
| of payment of the required contributions. In calculating
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| the automatic annual increase for an annuity that has been | 27 |
| recalculated under
this Section, the increase attributable | 28 |
| to the additional service allowable
under P.A. 87-794 shall | 29 |
| be included in the calculation of automatic annual
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| increases accruing after the effective date of the | 31 |
| recalculation.
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| Credit for military service shall be determined as | 33 |
| follows: if entry
occurs during the months of July, August, | 34 |
| or September and the member was a
teacher at the end of the | 35 |
| immediately preceding school term, credit shall
be granted | 36 |
| from July 1 of the year in which he or she entered service; |
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| if
entry occurs during the school term and the teacher was | 2 |
| in teaching service
at the beginning of the school term, | 3 |
| credit shall be granted from July 1 of
such year. In all | 4 |
| other cases where credit for military service is allowed,
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| credit shall be granted from the date of entry into the | 6 |
| service.
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| The total period of military service for which credit | 8 |
| is granted shall
not exceed 5 years for any member unless | 9 |
| the service: (A) is validated
before July 1, 1964, and (B) | 10 |
| does not extend beyond July 1, 1963. Credit
for military | 11 |
| service shall be granted under this Section only if not | 12 |
| more
than 5 years of the military service for which credit | 13 |
| is granted under this
Section is used by the member to | 14 |
| qualify for a military retirement
allotment from any branch | 15 |
| of the armed forces of the United States. The
changes to | 16 |
| this subdivision (b)(3) made by Public Act 86-272 shall | 17 |
| apply
not only to persons who on or after its effective | 18 |
| date (August 23, 1989)
are in service as a teacher under | 19 |
| the System, but also to persons whose
status as such a | 20 |
| teacher terminated prior to such effective date, whether
or | 21 |
| not such person is an annuitant on that date.
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| (4) Any periods served as a member of the General | 23 |
| Assembly.
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| (5)(i) Any periods for which a teacher, as defined in | 25 |
| Section
16-106, is granted a leave of absence, provided he | 26 |
| or she returns to teaching
service creditable under this | 27 |
| System or the State Universities Retirement
System | 28 |
| following the leave; (ii) periods during which a teacher is
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| involuntarily laid off from teaching, provided he or she | 30 |
| returns to teaching
following the lay-off; (iii) periods | 31 |
| prior to July 1, 1983 during which
a teacher ceased covered | 32 |
| employment under this Article or Article 17 due to | 33 |
| pregnancy, provided that the teacher
returned to teaching | 34 |
| service creditable under this System or the State
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| Universities Retirement System following the pregnancy and | 36 |
| submits evidence
satisfactory to the Board documenting |
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| that the employment ceased due to
pregnancy; and (iv) | 2 |
| periods prior to July 1, 1983 during which a teacher
ceased | 3 |
| covered employment for the purpose of adopting an infant | 4 |
| under 3 years
of age or caring for a newly adopted infant | 5 |
| under 3 years of age, provided that
the teacher returned to | 6 |
| teaching service creditable under this System or the
State | 7 |
| Universities Retirement System following the adoption and | 8 |
| submits
evidence satisfactory to the Board documenting | 9 |
| that the employment ceased for
the purpose of adopting an | 10 |
| infant under 3 years of age or caring for a newly
adopted | 11 |
| infant under 3 years of age. However, total credit under | 12 |
| this
paragraph (5) may not exceed 3 years.
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| Any qualified member or annuitant may apply for credit | 14 |
| under item (iii)
or (iv) of this paragraph (5) without | 15 |
| regard to whether service was
terminated before the | 16 |
| effective date of this amendatory Act of 1997. In the case | 17 |
| of an annuitant who establishes credit under item (iii)
or | 18 |
| (iv), the annuity shall be recalculated to include the | 19 |
| additional
service credit. The increase in annuity shall | 20 |
| take effect on the date the
System receives written | 21 |
| notification of the annuitant's intent to purchase the
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| credit, if the required evidence is submitted and the | 23 |
| required contribution
paid within 60 days of that | 24 |
| notification, otherwise on the first annuity
payment date | 25 |
| following the System's receipt of the required evidence and
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| contribution. The increase in an annuity recalculated | 27 |
| under this provision
shall be included in the calculation | 28 |
| of automatic annual increases in the
annuity accruing after | 29 |
| the effective date of the recalculation.
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| Optional credit may be purchased under this subsection | 31 |
| (b)(5) for
periods during which a teacher has been granted | 32 |
| a leave of absence pursuant
to Section 24-13 of the School | 33 |
| Code. A teacher whose service under this
Article terminated | 34 |
| prior to the effective date of P.A. 86-1488 shall be
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| eligible to purchase such optional credit. If a teacher who | 36 |
| purchases this
optional credit is already receiving a |
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| retirement annuity under this Article,
the annuity shall be | 2 |
| recalculated as if the annuitant had applied for the leave
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| of absence credit at the time of retirement. The difference | 4 |
| between the
entitled annuity and the actual annuity shall | 5 |
| be credited to the purchase of
the optional credit. The | 6 |
| remainder of the purchase cost of the optional credit
shall | 7 |
| be paid on or before April 1, 1992.
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| The change in this paragraph made by Public Act 86-273 | 9 |
| shall
be applicable to teachers who retire after June 1, | 10 |
| 1989, as well as to
teachers who are in service on that | 11 |
| date.
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| (6) Any days of unused and uncompensated accumulated | 13 |
| sick leave earned
by a teacher. The service credit granted | 14 |
| under this paragraph shall be the
ratio of the number of | 15 |
| unused and uncompensated accumulated sick leave days
to 170 | 16 |
| days, subject to a maximum of 2 years of service
credit. | 17 |
| Prior to the member's retirement, each former employer | 18 |
| shall
certify to the System the number of unused and | 19 |
| uncompensated accumulated
sick leave days credited to the | 20 |
| member at the time of termination of service.
The period of | 21 |
| unused sick leave shall not be considered in determining
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| the effective date of retirement. A member is not required | 23 |
| to make
contributions in order to obtain service credit for | 24 |
| unused sick leave.
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| Credit for sick leave shall, at retirement, be granted | 26 |
| by the System
for any retiring regional or assistant | 27 |
| regional superintendent of schools
at the rate of 6 days | 28 |
| per year of creditable service or portion thereof
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| established while serving as such superintendent or | 30 |
| assistant
superintendent.
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| (7) Periods prior to February 1, 1987 served as an | 32 |
| employee of the
Illinois Mathematics and Science Academy | 33 |
| for which credit has not been
terminated under Section | 34 |
| 15-113.9 of this Code.
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| (8) Service as a substitute teacher for work performed
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| prior to July 1, 1990.
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| (9) Service as a part-time teacher for work performed
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| prior to July 1, 1990.
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| (10) (Blank).
Up to 2 years of employment with Southern | 4 |
| Illinois University -
Carbondale from September 1, 1959 to | 5 |
| August 31, 1961, or with Governors
State University from | 6 |
| September 1, 1972 to August 31, 1974, for which the
teacher | 7 |
| has no credit under Article 15. To receive credit under | 8 |
| this item
(10), a teacher must apply in writing to the | 9 |
| Board and pay the required
contributions before May 1, 1993 | 10 |
| and have at least 12 years of service
credit under this | 11 |
| Article.
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| (b-1) A member may establish optional credit for up to 2 | 13 |
| years of service
as a teacher or administrator employed by a | 14 |
| private school recognized by the
Illinois State Board of | 15 |
| Education, provided that the teacher (i) was certified
under | 16 |
| the law governing the certification of teachers at the time the | 17 |
| service
was rendered, (ii) applies in writing on or after June | 18 |
| 1, 2002 and on or before
June 1, 2005, (iii) supplies | 19 |
| satisfactory evidence of the employment, (iv)
completes at | 20 |
| least 10 years of contributing service as a teacher as defined | 21 |
| in
Section 16-106, and (v) pays the contribution required in | 22 |
| subsection (d-5) of
Section 16-128. The member may apply for | 23 |
| credit under this subsection and pay
the required contribution | 24 |
| before completing the 10 years of contributing
service required | 25 |
| under item (iv), but the credit may not be used until the
item | 26 |
| (iv) contributing service requirement has been met.
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| (c) The service credits specified in this Section shall be | 28 |
| granted only
if: (1) such service credits are not used for | 29 |
| credit in any other statutory
tax-supported public employee | 30 |
| retirement system other than the federal Social
Security | 31 |
| program; and (2) the member makes the required contributions as
| 32 |
| specified in Section 16-128. Except as provided in subsection | 33 |
| (b-1) of
this Section, the service credit shall be effective as | 34 |
| of the date the
required contributions are completed.
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| Any service credits granted under this Section shall | 36 |
| terminate upon
cessation of membership for any cause.
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| Credit may not be granted under this Section covering any | 2 |
| period for
which an age retirement or disability retirement | 3 |
| allowance has been paid.
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| (Source: P.A. 92-867, eff. 1-3-03.)
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| (40 ILCS 5/16-129.1)
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| Sec. 16-129.1. Optional increase in retirement annuity.
| 7 |
| (a) A member of the System may qualify for the augmented | 8 |
| rate under
subdivision (a)(B)(1) of Section 16-133 for all | 9 |
| years of creditable service
earned before July 1, 1998 by | 10 |
| making the optional contribution specified in
subsection (b). A | 11 |
| member may not elect to qualify for the augmented rate for
only | 12 |
| a portion of his or her creditable service earned before July | 13 |
| 1, 1998.
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| (b) The contribution shall be an amount equal to 1.0% of | 15 |
| the member's
highest salary rate in the 4 consecutive school | 16 |
| years immediately prior to but
not including the school year in | 17 |
| which the application occurs, multiplied by
the number of years | 18 |
| of creditable service earned by the member before July 1,
1998 | 19 |
| or 20, whichever is less. This contribution shall be reduced by | 20 |
| 1.0% of
that salary rate for every 3 full years of creditable | 21 |
| service earned by the
member after June 30, 1998. The | 22 |
| contribution shall be further reduced at
the rate of 25% of the | 23 |
| contribution (as reduced for service after June 30,
1998) for | 24 |
| each year of the member's total creditable service in excess of | 25 |
| 34
years or the number of years needed to achieve a 75% maximum | 26 |
| annuity, whichever is greater . The contribution shall not in | 27 |
| any event exceed 20% of that salary
rate.
| 28 |
| The member shall pay to the System the amount of the | 29 |
| contribution as
calculated at the time of application under | 30 |
| this Section. The amount of the
contribution determined under | 31 |
| this subsection shall be recalculated at the time
of | 32 |
| retirement, and if the System determines that the amount paid | 33 |
| by the member
exceeds the recalculated amount, the System shall | 34 |
| refund the difference to the
member with regular interest from | 35 |
| the date of payment to the date of refund.
|
|
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| The contribution required by this subsection shall be paid | 2 |
| in one of the
following ways or in a combination of the | 3 |
| following ways that does not extend
over more than 5 years:
| 4 |
| (i) in a lump sum on or before the date of retirement;
| 5 |
| (ii) in substantially equal installments over a period | 6 |
| of time not to
exceed 5 years, as a deduction from salary | 7 |
| in accordance with subsection (b) of
Section 16-154;
| 8 |
| (iii) in
substantially equal monthly installments over | 9 |
| a 24-month period, by reducing
the annuitant's monthly | 10 |
| benefit over a 24-month period by the amount of the
| 11 |
| otherwise applicable contribution. For federal and | 12 |
| Illinois tax purposes, the
monthly amount by which the | 13 |
| annuitant's benefit is reduced shall not be treated
as a | 14 |
| contribution by the annuitant, but rather as a reduction of | 15 |
| the
annuitant's monthly benefit.
| 16 |
| (c) If the member fails to make the full contribution under | 17 |
| this Section
in a timely fashion, the payments made under this | 18 |
| Section shall be refunded
to the member, without interest. If | 19 |
| the member dies before making the full
contribution, the | 20 |
| payments made under this Section, together with regular
| 21 |
| interest thereon, shall be refunded to the member's designated | 22 |
| beneficiary
for benefits under Section 16-138.
| 23 |
| (d) For purposes of this Section and subdivision (a)(B)(1) | 24 |
| of Section
16-133, optional creditable service established by a | 25 |
| member shall be deemed to
have been earned at the time of the | 26 |
| employment or other qualifying event upon
which the service is | 27 |
| based, rather than at the time the credit was established
in | 28 |
| this System.
| 29 |
| (e) The contributions required under this Section are the | 30 |
| responsibility of
the teacher and not the teacher's employer. | 31 |
| However, an employer of teachers
may, after the effective date | 32 |
| of this amendatory Act of 1998, specifically
agree, through | 33 |
| collective bargaining or otherwise, to make the contributions
| 34 |
| required by this Section on behalf of those teachers.
| 35 |
| (f) A person who, on or after July 1, 1998 and before June | 36 |
| 4, 1999, began
receiving a retirement annuity calculated at the |
|
|
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| 1 |
| augmented rate may apply in
writing to have the annuity | 2 |
| recalculated to reflect the changes to this Section
and Section | 3 |
| 16-133 that were enacted in Public Act 91-17. The amount of any
| 4 |
| resulting decrease in the optional contribution shall be | 5 |
| refunded to the
annuitant, without interest. Any resulting | 6 |
| increase in retirement annuity
shall take effect on the next | 7 |
| annuity payment date following the date of
application under | 8 |
| this subsection.
| 9 |
| (Source: P.A. 92-416, eff. 8-17-01; 93-469, eff. 8-8-03.)
| 10 |
| (40 ILCS 5/16-130) (from Ch. 108 1/2, par. 16-130)
| 11 |
| Sec. 16-130. Creditable service - whole or portion of year.
| 12 |
| (a) Except
as provided in paragraph (6) of subsection (b) | 13 |
| of Section 16-127, only one
year of service is creditable for | 14 |
| all service in any one school year.
| 15 |
| (b) For employment prior to July 1, 1990, service rendered | 16 |
| for the
regular legal school term, if creditable hereunder, is | 17 |
| equivalent to one
year of service, and time less than a legal | 18 |
| school term shall be counted as
a portion of a year in the | 19 |
| ratio that the number of days paid bears to the
number of days
| 20 |
| required at the time to constitute a legal school term; | 21 |
| however, service of
170 or more days in any school year after | 22 |
| June 30, 1959 shall constitute a
year of service.
| 23 |
| (c) Creditable service for periods of employment after June | 24 |
| 30, 1990
shall be calculated as follows:
| 25 |
| For full-time, part-time, and substitute teachers, | 26 |
| creditable service in
any school year shall be
that fraction of | 27 |
| a year equal to the ratio of
days paid in the legal school | 28 |
| term, or the employment agreement if longer, to
170 days.
| 29 |
| (d) Creditable service for optional service verified after | 30 |
| July 1, 1990
for periods of employment prior to July 1, 1990 | 31 |
| shall be calculated as follows:
| 32 |
| For full-time, part-time, and substitute teachers, | 33 |
| creditable service in
any school year shall be that fraction of | 34 |
| a year that is equal to the ratio
of days paid in the legal | 35 |
| school term , or employment agreement if longer,
to either the |
|
|
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| number of days required at the time of service to constitute
a | 2 |
| legal school term or the number of days in the employment | 3 |
| agreement,
whichever is greater . However, service of 170 or | 4 |
| more days in any school
year after June 30, 1959 shall | 5 |
| constitute a year of service.
| 6 |
| (Source: P.A. 86-273; 86-1028; 86-1488.)
| 7 |
| (40 ILCS 5/16-136.4) (from Ch. 108 1/2, par. 16-136.4)
| 8 |
| Sec. 16-136.4. Single-sum retirement benefit.
| 9 |
| (a) A member who has less than 5 years of creditable | 10 |
| service shall be
entitled, upon written application to the | 11 |
| board, to receive a retirement
benefit payable in a single sum | 12 |
| upon or after the member's attainment of
age 65. However, the | 13 |
| benefit shall not be paid while the member is
employed as a | 14 |
| teacher in the schools included under this Article or Article
| 15 |
| 17, unless the System is required by federal law to make | 16 |
| payment due to the
member's age.
| 17 |
| (b) The retirement benefit shall consist of a single sum | 18 |
| that is the
actuarial equivalent of a life annuity consisting | 19 |
| of 1.67% of the member's
final average salary for each year of | 20 |
| creditable service earned before
July 1, 1998 and 2.2% of the | 21 |
| member's final average salary for each year of
creditable | 22 |
| service earned after June 30, 1998 . In determining
the amount | 23 |
| of the benefit, a fractional year shall be granted proportional
| 24 |
| credit.
| 25 |
| For the purposes of this Section, final average salary | 26 |
| shall be the
average salary of the member's highest 4 | 27 |
| consecutive years of service
as determined under rules of the | 28 |
| board. For a member with less than 4
consecutive years of | 29 |
| service, final average salary shall be the average
salary | 30 |
| during the member's entire period of service. In the | 31 |
| determination
of final average salary for members other than | 32 |
| elected officials and their
appointees when such appointees are | 33 |
| allowed by statute, that part of a
member's salary which | 34 |
| exceeds the member's annual full-time salary rate
with the same | 35 |
| employer for the preceding year by more than 20% shall be
|
|
|
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| excluded.
The exclusion shall not apply in any year in which | 2 |
| the member's creditable
earnings are less than 50% of the | 3 |
| preceding year's mean salary for downstate
teachers as | 4 |
| determined by the survey of school district salaries provided | 5 |
| in
Section 2-3.103 of the School Code.
| 6 |
| (c) The retirement benefit determined under this Section | 7 |
| shall be
available to all members who render teaching service | 8 |
| after July 1, 1947 for
which member contributions are required.
| 9 |
| (d) Upon acceptance of the retirement benefit, all of the | 10 |
| member's
accrued rights and credits in the System are | 11 |
| forfeited. Receipt of a
single-sum retirement benefit under | 12 |
| this Section does not make a person an
"annuitant" for the | 13 |
| purposes of this Article, nor a "benefit recipient" for
the | 14 |
| purposes of Sections 16-153.1 through 16-153.4.
| 15 |
| (Source: P.A. 91-887, eff. 7-6-00.)
| 16 |
| (40 ILCS 5/16-141) (from Ch. 108 1/2, par. 16-141)
| 17 |
| Sec. 16-141. Survivors' benefits - death in service.
| 18 |
| (a) Upon the death of a member in service occurring on or | 19 |
| after
July 1, 1990, a beneficiary designated by the member | 20 |
| shall be
entitled to receive, in a single sum, for each | 21 |
| completed year of service
up to a maximum of 6 years, an amount | 22 |
| equal to 1/6 of the member's
highest annual salary rate within | 23 |
| the last 4 years of service. If death occurs
prior to | 24 |
| completion of the first year of service, the beneficiary shall | 25 |
| be
entitled to receive, in a single sum, an amount equal to 1/6 | 26 |
| of the most
recent annual salary rate. If no beneficiary is | 27 |
| designated by the member or if
no designated beneficiary | 28 |
| survives the member, the single sum benefit under
this | 29 |
| paragraph shall be paid to the eligible dependent beneficiary | 30 |
| or to the
trust established for such eligible dependent | 31 |
| beneficiary, as determined under
paragraph (3) of Section | 32 |
| 16-140, or, if there is no dependent beneficiary, to
the | 33 |
| decedent's estate upon receipt of proper proof of death.
| 34 |
| (b) If the deceased member had at least 1.5 years of | 35 |
| contributing
creditable service,
had rendered at least 60 days |
|
|
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| of creditable service within the 18 months
immediately | 2 |
| preceding death and had not designated a non-dependent
| 3 |
| beneficiary who survives, a dependent beneficiary may elect to | 4 |
| receive,
instead of the benefit under subsection (a) of this | 5 |
| Section, a single sum
payment of $1,000, divided by the number | 6 |
| of such beneficiaries, together
with a survivor's benefit as | 7 |
| specified under the following paragraphs:
| 8 |
| (1) A surviving spouse, if no eligible children exist, | 9 |
| shall receive
a survivor's benefit of 30% of average | 10 |
| salary, beginning at age 50 or upon
the date of the | 11 |
| member's death, whichever is later, except that if the
| 12 |
| member's death occurred before July 1, 1973 and the | 13 |
| surviving spouse is less
than age 55 on the effective date | 14 |
| of this amendatory Act of 1997, the
survivor's benefit | 15 |
| shall begin on the effective date of this amendatory Act
of | 16 |
| 1997 or upon the surviving spouse's attainment of age 50, | 17 |
| whichever occurs
later.
| 18 |
| (2) A surviving spouse, regardless of age, who is | 19 |
| providing for the
support of the deceased member's eligible | 20 |
| child, shall receive a survivor's
benefit of 30% of average | 21 |
| salary, plus the sum of (A) 20% of average salary
on | 22 |
| account of each dependent child, and (B) 10% of average | 23 |
| salary divided
by the number of children entitled to this | 24 |
| benefit.
| 25 |
| (3) Each eligible child, if there is no eligible | 26 |
| surviving spouse, shall
receive upon the death of the | 27 |
| member a survivor's benefit equal to the
sum of: (A) 20% of | 28 |
| average salary, and (B) 10% of average salary divided by
| 29 |
| the number of children entitled to this benefit.
| 30 |
| (4) A dependent parent shall receive upon attainment of | 31 |
| age 55 or the
date of the member's death, whichever is | 32 |
| later, a survivor's benefit
of 30% of average salary, | 33 |
| unless dependency is terminated by remarriage or | 34 |
| otherwise.
| 35 |
| (c) No election under this Section may be made by a | 36 |
| dependent
beneficiary if a non-dependent beneficiary |
|
|
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| 1 |
| designated by the member
survives such member.
| 2 |
| (d) Notwithstanding the other provisions of this Section, | 3 |
| if the member is
in receipt of a benefit at the time of his or | 4 |
| her death, a dependent
beneficiary shall receive a survivor | 5 |
| benefit beginning the first of the
month following the death of | 6 |
| the member.
| 7 |
| (e) In cases where the changes to this Section or Section | 8 |
| 16-142 made
by Public Act 87-1265 increase the amount
of a | 9 |
| single-sum death benefit that has already been paid by the | 10 |
| System, the
System shall pay to the beneficiary the amount of | 11 |
| the increase provided by this
amendatory Act.
| 12 |
| (Source: P.A. 90-32, eff. 6-27-97.)
| 13 |
| (40 ILCS 5/16-155) (from Ch. 108 1/2, par. 16-155)
| 14 |
| Sec. 16-155. Report to system and payment of deductions.
| 15 |
| (a) The governing body of each school district shall make | 16 |
| two deposits each
month. The deposit for member contributions | 17 |
| for salary paid between the first
and the fifteenth of the | 18 |
| month is due by the 25th of the month. The deposit of
member | 19 |
| contributions for salary paid between the sixteenth and last | 20 |
| day of the
month is due by the 10th of the following month. All | 21 |
| required contributions
for salary earned during a school term | 22 |
| are due by July 10 next following the
close of such school | 23 |
| term.
| 24 |
| The governing body of each State institution coming
under | 25 |
| this retirement system, the State Comptroller or other State | 26 |
| officer
certifying payroll vouchers including payments of | 27 |
| salary or wages to
teachers, and any other employer of | 28 |
| teachers, shall, monthly, forward to
the secretary of the | 29 |
| retirement system the member contributions required
under this | 30 |
| Article.
| 31 |
| Each employer specified above shall, prior to August 15 of | 32 |
| each year,
forward to the System a detailed statement, verified | 33 |
| in all cases of school
districts by the secretary or clerk of | 34 |
| the district, of the amounts so
contributed since the period | 35 |
| covered by the last previous annual statement,
together with |
|
|
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| required contributions not yet forwarded, such payments being
| 2 |
| payable to the System.
| 3 |
| The board may prescribe rules governing the form, content, | 4 |
| investigation,
control, and supervision of such statements. If | 5 |
| no teacher in
a school district comes under the provisions of | 6 |
| this Article, the
governing body of the district shall so state | 7 |
| under the oath of its
secretary to this system, and shall at | 8 |
| the same time forward a copy of
the statement to the regional | 9 |
| superintendent of schools.
| 10 |
| (b) If the governing body of an employer that is not a | 11 |
| State agency fails to forward such
required contributions | 12 |
| within the time permitted in subsection (a) above,
the System | 13 |
| shall notify the employer of an additional amount
due, equal to
| 14 |
| the greater of the following: (1) an amount representing the | 15 |
| interest lost
by the system due to late forwarding of | 16 |
| contributions, calculated for the
number of days which the | 17 |
| employer is late in forwarding
contributions at a rate of | 18 |
| interest prescribed by the board, based on its
investment | 19 |
| experience; or (2) $50.
| 20 |
| (c) If the system, on August 15, is not in receipt of the | 21 |
| detailed
statements required under this Section of any school | 22 |
| district or other
employing unit, such school district or other | 23 |
| employing unit shall pay to
the system an amount equal to $250 | 24 |
| for each day that elapses from August
15, until the day such | 25 |
| statement is filed with the system.
| 26 |
| (Source: P.A. 90-448, eff. 8-16-97.)
| 27 |
| (40 ILCS 5/16-158)
(from Ch. 108 1/2, par. 16-158)
| 28 |
| Sec. 16-158. Contributions by State and other employing | 29 |
| units.
| 30 |
| (a) The State shall make contributions to the System by | 31 |
| means of
appropriations from the Common School Fund and other | 32 |
| State funds of amounts
which, together with other employer | 33 |
| contributions, employee contributions,
investment income, and | 34 |
| other income, will be sufficient to meet the cost of
| 35 |
| maintaining and administering the System on a 90% funded basis |
|
|
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| 1 |
| in accordance
with actuarial recommendations.
| 2 |
| The Board shall determine the amount of State contributions | 3 |
| required for
each fiscal year on the basis of the actuarial | 4 |
| tables and other assumptions
adopted by the Board and the | 5 |
| recommendations of the actuary, using the formula
in subsection | 6 |
| (b-3).
| 7 |
| (a-1) Annually, on or before November 15, the Board shall | 8 |
| certify to the
Governor the amount of the required State | 9 |
| contribution for the coming fiscal
year. The certification | 10 |
| shall include a copy of the actuarial recommendations
upon | 11 |
| which it is based.
| 12 |
| On or before May 1, 2004, the Board shall recalculate and | 13 |
| recertify to
the Governor the amount of the required State | 14 |
| contribution to the System for
State fiscal year 2005, taking | 15 |
| into account the amounts appropriated to and
received by the | 16 |
| System under subsection (d) of Section 7.2 of the General
| 17 |
| Obligation Bond Act.
| 18 |
| (b) Through State fiscal year 1995, the State contributions | 19 |
| shall be
paid to the System in accordance with Section 18-7 of | 20 |
| the School Code.
| 21 |
| (b-1) Beginning in State fiscal year 1996, on the 15th day | 22 |
| of each month,
or as soon thereafter as may be practicable, the | 23 |
| Board shall submit vouchers
for payment of State contributions | 24 |
| to the System, in a total monthly amount of
one-twelfth of the | 25 |
| required annual State contribution certified under
subsection | 26 |
| (a-1).
From the
effective date of this amendatory Act of the | 27 |
| 93rd General Assembly
through June 30, 2004, the Board shall | 28 |
| not submit vouchers for the
remainder of fiscal year 2004 in | 29 |
| excess of the fiscal year 2004
certified contribution amount | 30 |
| determined under this Section
after taking into consideration | 31 |
| the transfer to the System
under subsection (a) of Section | 32 |
| 6z-61 of the State Finance Act.
These vouchers shall be paid by | 33 |
| the State Comptroller and
Treasurer by warrants drawn on the | 34 |
| funds appropriated to the System for that
fiscal year.
| 35 |
| If in any month the amount remaining unexpended from all | 36 |
| other appropriations
to the System for the applicable fiscal |
|
|
|
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| 1 |
| year (including the appropriations to
the System under Section | 2 |
| 8.12 of the State Finance Act and Section 1 of the
State | 3 |
| Pension Funds Continuing Appropriation Act) is less than the | 4 |
| amount
lawfully vouchered under this subsection, the | 5 |
| difference shall be paid from the
Common School Fund under the | 6 |
| continuing appropriation authority provided in
Section 1.1 of | 7 |
| the State Pension Funds Continuing Appropriation Act.
| 8 |
| (b-2) Allocations from the Common School Fund apportioned | 9 |
| to school
districts not coming under this System shall not be | 10 |
| diminished or affected by
the provisions of this Article.
| 11 |
| (b-3) For State fiscal years 2011 through 2045, the minimum | 12 |
| contribution
to the System to be made by the State for each | 13 |
| fiscal year shall be an amount
determined by the System to be | 14 |
| sufficient to bring the total assets of the
System up to 90% of | 15 |
| the total actuarial liabilities of the System by the end of
| 16 |
| State fiscal year 2045. In making these determinations, the | 17 |
| required State
contribution shall be calculated each year as a | 18 |
| level percentage of payroll
over the years remaining to and | 19 |
| including fiscal year 2045 and shall be
determined under the | 20 |
| projected unit credit actuarial cost method.
| 21 |
| For State fiscal years 1996 through 2010, the State | 22 |
| contribution to the
System, as a percentage of the applicable | 23 |
| employee payroll, shall be increased
in equal annual increments | 24 |
| so that by State fiscal year 2011, the State is
contributing at | 25 |
| the rate required under this Section; except that in the
| 26 |
| following specified State fiscal years, the State contribution | 27 |
| to the System
shall not be less than the following indicated | 28 |
| percentages of the applicable
employee payroll, even if the | 29 |
| indicated percentage will produce a State
contribution in | 30 |
| excess of the amount otherwise required under this subsection
| 31 |
| and subsection (a), and notwithstanding any contrary | 32 |
| certification made under
subsection (a-1) before the effective | 33 |
| date of this amendatory Act of 1998:
10.02% in FY 1999;
10.77% | 34 |
| in FY 2000;
11.47% in FY 2001;
12.16% in FY 2002;
12.86% in FY | 35 |
| 2003; and
13.56% in FY 2004.
| 36 |
| Beginning in State fiscal year 2046, the minimum State |
|
|
|
HB3584 |
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| 1 |
| contribution for
each fiscal year shall be the amount needed to | 2 |
| maintain the total assets of
the System at 90% of the total | 3 |
| actuarial liabilities of the System.
| 4 |
| Notwithstanding any other provision of this Section, the | 5 |
| required State
contribution for State fiscal year 2005 and each | 6 |
| fiscal year thereafter, as
calculated under this Section and
| 7 |
| certified under subsection (a-1), shall not exceed an amount | 8 |
| equal to (i) the
amount of the required State contribution that | 9 |
| would have been calculated under
this Section for that fiscal | 10 |
| year if the System had not received any payments
under | 11 |
| subsection (d) of Section 7.2 of the General Obligation Bond | 12 |
| Act, minus
(ii) the portion of the State's total debt service | 13 |
| payments for that fiscal
year on the bonds issued for the | 14 |
| purposes of that Section 7.2, as determined
and certified by | 15 |
| the Comptroller, that is the same as the System's portion of
| 16 |
| the total moneys distributed under subsection (d) of Section | 17 |
| 7.2 of the General
Obligation Bond Act.
| 18 |
| (c) Payment of the required State contributions and of all | 19 |
| pensions,
retirement annuities, death benefits, refunds, and | 20 |
| other benefits granted
under or assumed by this System, and all | 21 |
| expenses in connection with the
administration and operation | 22 |
| thereof, are obligations of the State.
| 23 |
| If members are paid from special trust or federal funds | 24 |
| which are
administered by the employing unit, whether school | 25 |
| district or other
unit, the employing unit shall pay to the | 26 |
| System from such
funds the full accruing retirement costs based | 27 |
| upon that
service, as determined by the System. Employer | 28 |
| contributions, based on
salary paid to members from federal | 29 |
| funds, may be forwarded by the distributing
agency of the State | 30 |
| of Illinois to the System prior to allocation, in an
amount | 31 |
| determined in accordance with guidelines established by such
| 32 |
| agency and the System.
| 33 |
| (d) Effective July 1, 1986, any employer of a teacher as | 34 |
| defined in
paragraph (8) of Section 16-106 shall pay the | 35 |
| employer's normal cost
of benefits based upon the teacher's | 36 |
| service, in addition to
employee contributions, as determined |
|
|
|
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| 1 |
| by the System. Such employer
contributions shall be forwarded | 2 |
| monthly in accordance with guidelines
established by the | 3 |
| System.
| 4 |
| However, with respect to benefits granted under Section | 5 |
| 16-133.4 or
16-133.5 to a teacher as defined in paragraph (8) | 6 |
| of Section 16-106, the
employer's contribution shall be 12% | 7 |
| (rather than 20%) of the member's
highest annual salary rate | 8 |
| for each year of creditable service granted, and
the employer | 9 |
| shall also pay the required employee contribution on behalf of
| 10 |
| the teacher. For the purposes of Sections 16-133.4 and | 11 |
| 16-133.5, a teacher
as defined in paragraph (8) of Section | 12 |
| 16-106 who is serving in that capacity
while on leave of | 13 |
| absence from another employer under this Article shall not
be | 14 |
| considered an employee of the employer from which the teacher | 15 |
| is on leave.
| 16 |
| (e) Beginning July 1, 1998, every employer of a teacher
| 17 |
| shall pay to the System an employer contribution computed as | 18 |
| follows:
| 19 |
| (1) Beginning July 1, 1998 through June 30, 1999, the | 20 |
| employer
contribution shall be equal to 0.3% of each | 21 |
| teacher's salary.
| 22 |
| (2) Beginning July 1, 1999 and thereafter, the employer
| 23 |
| contribution shall be equal to 0.58% of each teacher's | 24 |
| salary.
| 25 |
| The school district or other employing unit may pay these | 26 |
| employer
contributions out of any source of funding available | 27 |
| for that purpose and
shall forward the contributions to the | 28 |
| System on the schedule established
for the payment of member | 29 |
| contributions.
| 30 |
| These employer contributions are intended to offset a | 31 |
| portion of the cost
to the System of the increases in | 32 |
| retirement benefits resulting from this
amendatory Act of 1998.
| 33 |
| Each employer of teachers is entitled to a credit against | 34 |
| the contributions
required under this subsection (e) with | 35 |
| respect to salaries paid to teachers
for the period January 1, | 36 |
| 2002 through June 30, 2003, equal to the amount paid
by that |
|
|
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HB3584 |
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LRB094 10789 EFG 41251 b |
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| 1 |
| employer under subsection (a-5) of Section 6.6 of the State | 2 |
| Employees
Group Insurance Act of 1971 with respect to salaries | 3 |
| paid to teachers for that
period.
| 4 |
| The additional 1% employee contribution required under | 5 |
| Section 16-152 by
this amendatory Act of 1998 is the | 6 |
| responsibility of the teacher and not the
teacher's employer, | 7 |
| unless the employer agrees, through collective bargaining
or | 8 |
| otherwise, to make the contribution on behalf of the teacher.
| 9 |
| If an employer is required by a contract in effect on May | 10 |
| 1, 1998 between the
employer and an employee organization to | 11 |
| pay, on behalf of all its full-time
employees
covered by this | 12 |
| Article, all mandatory employee contributions required under
| 13 |
| this Article, then the employer shall be excused from paying | 14 |
| the employer
contribution required under this subsection (e) | 15 |
| for the balance of the term
of that contract. The employer and | 16 |
| the employee organization shall jointly
certify to the System | 17 |
| the existence of the contractual requirement, in such
form as | 18 |
| the System may prescribe. This exclusion shall cease upon the
| 19 |
| termination, extension, or renewal of the contract at any time | 20 |
| after May 1,
1998.
| 21 |
| (Source: P.A. 92-505, eff. 12-20-01; 93-2, eff. 4-7-03; 93-665, | 22 |
| eff. 3-5-04.)
| 23 |
| (40 ILCS 5/16-131.4 rep.) (from Ch. 108 1/2, par. 16-131.4)
| 24 |
| (40 ILCS 5/16-134 rep.) (from Ch. 108 1/2, par. 16-134)
| 25 |
| (40 ILCS 5/16-149.3 rep.) (from Ch. 108 1/2, par. 16-149.3)
| 26 |
| Section 10. The Illinois Pension Code is amended by | 27 |
| repealing Sections 16-131.4, 16-134, and 16-149.3. | 28 |
| Section 99. Effective date. This Act takes effect upon | 29 |
| becoming law. |
|