Full Text of HB3813 97th General Assembly
HB3813ham004 97TH GENERAL ASSEMBLY | Rep. Tom Cross Filed: 10/26/2011
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| 1 | | AMENDMENT TO HOUSE BILL 3813
| 2 | | AMENDMENT NO. ______. Amend House Bill 3813, AS AMENDED, by | 3 | | replacing everything after the enacting clause with the | 4 | | following: | 5 | | "Section 5. The Illinois Pension Code is amended by | 6 | | changing Sections 1-114, 1-135, 8-226, 11-215, 17-134, and | 7 | | 17-134.1 and by adding 3-110.12, 3-110.13, 3-110.14, 4-108.7, | 8 | | 4-108.8, 4-108.9, 5-212.1, 5-212.2, 5-212.3, 6-209.2, 6-209.3, | 9 | | 6-209.4, 8-117.1, 8-226.8, 11-116.1, 11-215.2, 15-113.12, | 10 | | 15-113.13, 15-113.14, 16-110.1, 16-110.2, 16-110.3, 17-109.3, | 11 | | and 17-134.2 as follows:
| 12 | | (40 ILCS 5/1-114) (from Ch. 108 1/2, par. 1-114)
| 13 | | Sec. 1-114. Liability for Breach of Fiduciary Duty. (a) Any | 14 | | person who is a fiduciary with respect to a retirement system | 15 | | or
pension fund established under this Code who breaches any | 16 | | duty
imposed upon fiduciaries by this Code , including, but not |
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| 1 | | limited to, a failure to report a reasonable suspicion of a | 2 | | false statement specified in Section 1-135 of this Code, shall | 3 | | be personally liable to make
good to such retirement system or | 4 | | pension fund any losses to it resulting
from each such breach, | 5 | | and to restore to such retirement system or pension
fund any | 6 | | profits of such fiduciary which have been made through use of | 7 | | assets
of the retirement system or pension fund by the | 8 | | fiduciary, and shall be
subject to such equitable or remedial | 9 | | relief as the court may deem appropriate,
including the removal | 10 | | of such fiduciary.
| 11 | | (b) No person shall be liable with respect to a breach of | 12 | | fiduciary duty
under this Code if such breach occurred before | 13 | | such person became a fiduciary
or after such person ceased to | 14 | | be a fiduciary.
| 15 | | (Source: P.A. 82-960.)
| 16 | | (40 ILCS 5/1-135)
| 17 | | Sec. 1-135. Fraud. Any person who knowingly makes any false | 18 | | statement or falsifies or permits to be falsified any record of | 19 | | a retirement system or pension fund created under this Code or | 20 | | the Illinois State Board of Investment in an attempt to defraud | 21 | | the retirement system or pension fund created under this Code | 22 | | or the Illinois State Board of Investment is guilty of a Class | 23 | | 3 felony. Any reasonable suspicion by any appointed or elected | 24 | | commissioner, trustee, director, board member, or employee of a | 25 | | retirement system or pension fund created under this Code or |
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| 1 | | the State Board of Investment of a false statement or falsified | 2 | | record being submitted or permitted by a person under this Code | 3 | | shall be immediately referred to the board of trustees of a | 4 | | retirement system or pension fund created under this Code or | 5 | | the State Board of Investment or the State's Attorney of the | 6 | | jurisdiction where the alleged fraudulent activity occurred. | 7 | | The board of trustees of a retirement system or pension fund | 8 | | created under this Code or the State Board of Investment shall | 9 | | immediately notify the State's Attorney of the jurisdiction | 10 | | where any alleged fraudulent activity occurred for | 11 | | investigation.
| 12 | | (Source: P.A. 96-6, eff. 4-3-09.) | 13 | | (40 ILCS 5/3-110.12 new) | 14 | | Sec. 3-110.12. Leaves of absence. For any leave of absence | 15 | | that is covered under subsection (c) of Section 3-110 and that | 16 | | is granted after the effective date of this amendatory Act of | 17 | | the 97th General Assembly, any pension credit earned in this | 18 | | Article shall be based on the participant's salary immediately | 19 | | before the leave of absence. The participant must contribute an | 20 | | amount equal to the actuarially determined normal cost of the | 21 | | benefit as calculated by the fund. The employer of the | 22 | | participant may elect to contribute all or a portion of the | 23 | | participant's required contribution. | 24 | | (40 ILCS 5/3-110.13 new) |
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| 1 | | Sec. 3-110.13. Leave of absence benefit recalculation. | 2 | | Every 3 years, beginning on or as soon as practical after the | 3 | | effective date of this amendatory Act of the 97th General | 4 | | Assembly, each fund shall determine if any benefit earned by a | 5 | | participant who first earns credit on or after the effective | 6 | | date of this Section as a result of subsection (c) of Section | 7 | | 3-110 has created any additional unfunded liability to the | 8 | | fund. If it is determined by the fund that additional unfunded | 9 | | liability has been created, then the participant must remit the | 10 | | total cost to the fund, as determined by the fund, within one | 11 | | year. | 12 | | (40 ILCS 5/3-110.14 new) | 13 | | Sec. 3-110.14. Leaves of absence; computation of salary. | 14 | | For any participant who, on or after the effective date of this | 15 | | amendatory Act of the 97th General Assembly, takes a leave of | 16 | | absence covered by subsection (c) of Section 3-110, his or her | 17 | | average salary shall be based upon the regular salary rate | 18 | | received by the participant for his or her municipal employment | 19 | | immediately prior to that leave of absence. | 20 | | (40 ILCS 5/4-108.7 new) | 21 | | Sec. 4-108.7. Leaves of absence. For any leave of absence | 22 | | that is covered under subdivision (c)(3) of Section 4-108 and | 23 | | that is granted after the effective date of this amendatory Act | 24 | | of the 97th General Assembly, any pension credit earned in this |
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| 1 | | Article shall be based on the participant's salary immediately | 2 | | before the leave of absence. The participant must contribute an | 3 | | amount equal to the actuarially determined normal cost of the | 4 | | benefit as calculated by the fund. The employer of the | 5 | | participant may elect to contribute all or a portion of the | 6 | | participant's required contribution. | 7 | | (40 ILCS 5/4-108.8 new) | 8 | | Sec. 4-108.8. Leave of absence benefit recalculation. | 9 | | Every 3 years, beginning on or as soon as practical after the | 10 | | effective date of this amendatory Act of the 97th General | 11 | | Assembly, each fund shall determine if any benefit earned by a | 12 | | participant who first earns credit on or after the effective | 13 | | date of this Section as a result of subdivision (c)(3) of | 14 | | Section 4-108 has created any additional unfunded liability to | 15 | | the fund. If it is determined by the fund that additional | 16 | | unfunded liability has been created, then the participant must | 17 | | remit the total cost to the fund, as determined by the fund, | 18 | | within one year. | 19 | | (40 ILCS 5/4-108.9 new) | 20 | | Sec. 4-108.9. Leaves of absence; computation of salary. For | 21 | | any participant who, on or after the effective date of this | 22 | | amendatory Act of the 97th General Assembly, takes a leave of | 23 | | absence covered by subdivision (c)(3) of Section 4-108, his or | 24 | | her average salary shall be based upon the regular salary rate |
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| 1 | | received by the participant for his or her municipal employment | 2 | | immediately prior to that leave of absence. | 3 | | (40 ILCS 5/5-212.1 new) | 4 | | Sec. 5-212.1. Pension credit earned for other service. Any | 5 | | credit for other service that is covered under subdivision (b) | 6 | | of Section 5-214 and that is granted after the effective date | 7 | | of this amendatory Act of the 97th General Assembly shall be | 8 | | based on the participant's salary immediately before engaging | 9 | | in the type of employment specified in that provision. The | 10 | | participant must contribute an amount equal to the actuarially | 11 | | determined normal cost of the benefit as calculated by the | 12 | | fund. The employer of the participant may elect to contribute | 13 | | all or a portion of the participant's required contribution. | 14 | | (40 ILCS 5/5-212.2 new) | 15 | | Sec. 5-212.2. Credit for other service; recalculation. | 16 | | Every 3 years, beginning on or as soon as practical after the | 17 | | effective date of this amendatory Act of the 97th General | 18 | | Assembly, the fund shall determine if any benefit earned by a | 19 | | participant who first earns credit on or after the effective | 20 | | date of this Section as a result of subdivision (b) of Section | 21 | | 5-214 has created any additional unfunded liability to the | 22 | | fund. If it is determined by the fund that additional unfunded | 23 | | liability has been created, then the participant must remit the | 24 | | total cost to the fund, as determined by the fund, within one |
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| 1 | | year. | 2 | | (40 ILCS 5/5-212.3 new) | 3 | | Sec. 5-212.3. Salary for credit earned for other service. | 4 | | For any participant who, on or after the effective date of this | 5 | | amendatory Act of the 97th General Assembly, earns credit under | 6 | | subdivision (b) of Section 5-214, his or her average salary | 7 | | shall be based upon the regular salary rate received by the | 8 | | participant for his or her municipal employment immediately | 9 | | prior to that engaging in the type of employment specified in | 10 | | that provision. | 11 | | (40 ILCS 5/6-209.2 new) | 12 | | Sec. 6-209.2. Pension credit earned for other service. Any | 13 | | credit earned under item (f) of the second paragraph of Section | 14 | | 6-209 and that is granted after the effective date of this | 15 | | amendatory Act of the 97th General Assembly shall be based on | 16 | | the participant's salary immediately before engaging in the | 17 | | type of employment specified in that provision. The participant | 18 | | must contribute an amount equal to the actuarially determined | 19 | | normal cost of the benefit as calculated by the fund. The | 20 | | employer of the participant may elect to contribute all or a | 21 | | portion of the participant's required contribution. | 22 | | (40 ILCS 5/6-209.3 new) | 23 | | Sec. 6-209.3. Credit for other service; recalculation. |
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| 1 | | Every 3 years, beginning on or as soon as practical after the | 2 | | effective date of this amendatory Act of the 97th General | 3 | | Assembly, the fund shall determine if any benefit earned by a | 4 | | participant who first earns credit on or after the effective | 5 | | date of this Section as a result of item (f) of the second | 6 | | paragraph of Section 6-209 has created any additional unfunded | 7 | | liability to the fund. If it is determined by the fund that | 8 | | additional unfunded liability has been created, then the | 9 | | participant must remit the total cost to the fund, as | 10 | | determined by the fund, within one year. | 11 | | (40 ILCS 5/6-209.4 new) | 12 | | Sec. 6-209.4. Salary for credit earned for other service. | 13 | | For any participant who, on or after the effective date of this | 14 | | amendatory Act of the 97th General Assembly, has earned credit | 15 | | under item (f) of the second paragraph of Section 6-209, his or | 16 | | her average salary shall be based upon the regular salary rate | 17 | | received by the participant for his or her municipal employment | 18 | | immediately prior to that leave of absence. | 19 | | (40 ILCS 5/8-117.1 new) | 20 | | Sec. 8-117.1. Leaves of absence; computation of salary. For | 21 | | any participant who, on or after the effective date of this | 22 | | amendatory Act of the 97th General Assembly, takes a leave of | 23 | | absence under subdivision (c) of Section 8-226, his or her | 24 | | highest average annual salary shall be based upon the regular |
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| 1 | | salary rate received by the participant for his or her | 2 | | municipal employment immediately prior to that leave of | 3 | | absence.
| 4 | | (40 ILCS 5/8-226) (from Ch. 108 1/2, par. 8-226)
| 5 | | Sec. 8-226. Computation of service.
In computing the term | 6 | | of service of an employee prior to the effective
date, the | 7 | | entire period beginning on the date he was first appointed and
| 8 | | ending on the day before the effective date, except any | 9 | | intervening period
during which he was separated by withdrawal | 10 | | from service, shall be counted
for all purposes of this | 11 | | Article, except that for any employee who was not
in service on | 12 | | the day before the effective date, service rendered prior to
| 13 | | such date shall not be considered for the purposes of Section | 14 | | 8-138.
| 15 | | For a person employed by an employer for whom this Article | 16 | | was in effect
prior to January 1, 1950, from whose salary | 17 | | deductions are first made under
this Article after December 31, | 18 | | 1949, any period of service rendered prior
to the effective | 19 | | date, unless he was in service on the day before the
effective | 20 | | date, shall not be counted as service.
| 21 | | The time a person was an employee of any territory annexed | 22 | | to the city
prior to the effective date shall be counted as a | 23 | | period of service.
| 24 | | In computing the term of service of any employee subsequent | 25 | | to the day
before the effective date, the following periods |
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| 1 | | shall be counted as
periods of service for age and service, | 2 | | widow's and child's annuity
purposes:
| 3 | | (a) The time during which he performed the duties of | 4 | | his position;
| 5 | | (b) Vacations, leaves of absence with whole or part | 6 | | pay, and leaves of
absence without pay not longer than 90 | 7 | | days;
| 8 | | (c) Leaves of absence without pay during which a | 9 | | participant is
employed full-time by a local labor | 10 | | organization that represents municipal employees,
provided | 11 | | that (1) the participant continues to make employee | 12 | | contributions
to the Fund as though he were an active | 13 | | employee, based on the regular
salary rate received by the | 14 | | participant
for his municipal employment immediately prior | 15 | | to such leave of absence
(and in the case of such | 16 | | employment prior to December 9, 1987, pays
to the Fund an | 17 | | amount equal
to the employee contributions for such | 18 | | employment plus regular interest
thereon as calculated by | 19 | | the board),
and based on his current salary with such labor | 20 | | organization after the
effective date of this amendatory | 21 | | Act of 1991 for leaves of absence before the effective date | 22 | | of this amendatory Act of the 97th General Assembly ,
and, | 23 | | for leaves of absence after the effective date of this | 24 | | amendatory Act of the 97th General Assembly, based on the | 25 | | regular salary rate received by the participant for
his | 26 | | municipal employment immediately prior to such leave of |
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| 1 | | absence, (2) after January 1, 1989 the participant, or the | 2 | | labor organization on the
participant's behalf, makes | 3 | | contributions to the Fund as though it were the
employer, | 4 | | in the same amount and same manner as specified under this
| 5 | | Article, based on the regular salary rate received by the | 6 | | participant for
his municipal employment immediately prior | 7 | | to such leave of absence, and
based on his current salary | 8 | | with such labor organization after the effective
date of | 9 | | this amendatory Act of 1991 for leaves of absence before | 10 | | the effective date of this amendatory Act of the 97th | 11 | | General Assembly , and, for leaves of absence after the | 12 | | effective date of this amendatory Act of the 97th General | 13 | | Assembly, based on the regular salary rate received by the | 14 | | participant for
his municipal employment immediately prior | 15 | | to such leave of absence, and (3) the participant does not | 16 | | receive
credit in any pension plan established by the local | 17 | | labor organization based on
his employment by the | 18 | | organization , including, but not limited to, pension plans | 19 | | established by the local labor organization, the national | 20 | | labor organization, or the international labor | 21 | | organization ;
| 22 | | (d) Any period of disability for which he received (i) | 23 | | a disability
benefit under this Article, or (ii) a | 24 | | temporary total disability benefit
under the Workers' | 25 | | Compensation Act if the disability results from a
condition | 26 | | commonly termed heart attack or stroke or any other |
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| 1 | | condition
falling within the broad field of coronary | 2 | | involvement or heart disease,
or (iii) whole or part pay;
| 3 | | (e) Any period for which contributions and service | 4 | | credit have been
transferred to this Fund under subsection | 5 | | (d) of Section 9-121.1 or
subsection (d) of Section | 6 | | 12-127.1 of this Code.
| 7 | | For a person employed by an employer in which the 1921 Act | 8 | | was in effect
prior to January 1, 1950, from whose salary | 9 | | deductions are first made under
the 1921 Act or this Article | 10 | | after December 31, 1949, any period of service
rendered | 11 | | subsequent to the effective date and prior to the date he | 12 | | became
an employee and contributor, shall not be counted as a | 13 | | period of service
under this Article,
except such period for | 14 | | which he made payment as
provided in Section 8-230 of this | 15 | | Article, in which case such period shall
be counted as a period | 16 | | of service for all annuity purposes hereunder.
| 17 | | In computing the term of service of an employee subsequent | 18 | | to the day
before the effective date for ordinary disability | 19 | | benefit purposes, all
periods described in the preceding | 20 | | paragraph, except any such period for
which he receives | 21 | | ordinary disability benefit, shall be counted as periods
of | 22 | | service; provided, that for any person employed by an employer | 23 | | in which
this Article was in effect prior to January 1, 1950, | 24 | | from whose salary
deductions are first made under this Article | 25 | | after December 31, 1949, any
period of service rendered | 26 | | subsequent to the effective date and prior to
the date he |
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| 1 | | became an employee and contributor, shall not be counted as a
| 2 | | period of service for ordinary disability benefit purposes, | 3 | | unless the person
made payment for the period as provided in | 4 | | Section 8-230 of this Article, in
which case the period shall | 5 | | be counted as a period of service for ordinary
disability | 6 | | purposes for periods of disability on or after the effective | 7 | | date of
this amendatory Act of 1997.
| 8 | | Overtime or extra service shall not be included in | 9 | | computing any term of
service. Not more than 1 year of service | 10 | | shall be allowed for service
rendered during any calendar year.
| 11 | | (Source: P.A. 90-511, eff. 8-22-97.)
| 12 | | (40 ILCS 5/8-226.8 new) | 13 | | Sec. 8-226.8. Leave of absence benefit recalculation. | 14 | | Every 3 years, beginning on or as soon as practical after the | 15 | | effective date of this amendatory Act of the 97th General | 16 | | Assembly, the fund shall determine if any benefit earned by a | 17 | | participant who first earns credit on or after the effective | 18 | | date of this Section as a result of subdivision (c) of Section | 19 | | 8-226 has created any additional unfunded liability to the | 20 | | fund. If it is determined by the fund that additional unfunded | 21 | | liability has been created, then the participant must remit the | 22 | | total cost to the fund, as determined by the fund, within one | 23 | | year. | 24 | | (40 ILCS 5/11-116.1 new) |
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| 1 | | Sec. 11-116.1. Leaves of absence; computation of salary. | 2 | | For any participant who, on or after the effective date of this | 3 | | amendatory Act of the 97th General Assembly, takes a leave of | 4 | | absence under paragraph (3) of subsection (c) of Section | 5 | | 11-215, his or her highest average annual salary shall be based | 6 | | upon the regular salary rate received by the participant for | 7 | | his or her municipal employment immediately prior to that leave | 8 | | of absence.
| 9 | | (40 ILCS 5/11-215) (from Ch. 108 1/2, par. 11-215)
| 10 | | Sec. 11-215. Computation of service.
| 11 | | (a) In computing the term of service of an employee prior | 12 | | to the effective
date, the entire period beginning on the date | 13 | | he was first appointed and ending
on the day before the | 14 | | effective date, except any intervening period during
which he | 15 | | was separated by withdrawal from service, shall be counted for | 16 | | all
purposes of this Article. Only the first year of each | 17 | | period of lay-off or
leave of absence without pay, continuing | 18 | | or extending for a period in excess
of one year, shall be | 19 | | counted as such service.
| 20 | | (b) For a person employed by an employer for whom this | 21 | | Article was in effect
prior to August 1, 1949, from whose | 22 | | salary deductions are first made under
this Article after July | 23 | | 31, 1949, any period of service rendered prior to
the effective | 24 | | date, unless he was in service on the day before the
effective | 25 | | date, shall not be counted as service.
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| 1 | | (c) In computing the term of service of an employee | 2 | | subsequent to the day
before the effective date, the following | 3 | | periods of time shall be counted
as periods of service for | 4 | | annuity purposes:
| 5 | | (1) the time during which he performed the duties of | 6 | | his position;
| 7 | | (2) leaves of absence with whole or part pay, and | 8 | | leaves of absence
without pay not longer than 90 days;
| 9 | | (3) leaves of absence without pay during which a | 10 | | participant is
employed full-time by a local labor | 11 | | organization that represents municipal
employees, provided | 12 | | that (A) the participant continues to make employee
| 13 | | contributions to the Fund as though he were an active | 14 | | employee, based
on the regular salary rate received by the
| 15 | | participant for his municipal employment immediately prior | 16 | | to such leave of
absence (and in the case of such | 17 | | employment prior to December 9, 1987,
pays to the Fund an | 18 | | amount equal to the employee contributions for such
| 19 | | employment plus regular interest thereon as calculated by | 20 | | the board), and
based on his current salary with such labor | 21 | | organization after the
effective date of this amendatory | 22 | | Act of 1991 for leaves of absence before the effective date | 23 | | of this amendatory Act of the 97th General Assembly , and, | 24 | | for leaves of absence after the effective date of this | 25 | | amendatory Act of the 97th General Assembly, based on the | 26 | | regular salary rate received by the participant for
his |
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| 1 | | municipal employment immediately prior to such leave of | 2 | | absence, (B) after January 1, 1989
the participant, or the | 3 | | labor organization on the participant's behalf,
makes | 4 | | contributions to the Fund as though it were the employer, | 5 | | in the same
amount and same manner as specified under this | 6 | | Article, based on the
regular salary rate received by the | 7 | | participant for his municipal
employment immediately prior | 8 | | to such leave of absence, and
based on his current salary | 9 | | with such labor organization after the
effective date of | 10 | | this amendatory Act of 1991 and for leaves of absence | 11 | | before the effective date of this amendatory Act of the | 12 | | 97th General Assembly , and, for leaves of absence after the | 13 | | effective date of this amendatory Act of the 97th General | 14 | | Assembly, based on the regular salary rate received by the | 15 | | participant for
his municipal employment immediately prior | 16 | | to such leave of absence, and (C)
the participant does
not | 17 | | receive credit in any pension plan established by the local | 18 | | labor
organization based on his employment by the | 19 | | organization , including, but not limited to, pension plans | 20 | | established by the local labor organization, the national | 21 | | labor organization, or the international labor | 22 | | organization ;
| 23 | | (4) any period of disability for which he received (i) | 24 | | a disability
benefit under this Article, or (ii) a | 25 | | temporary total disability benefit
under the Workers' | 26 | | Compensation Act if the disability results from a
condition |
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| 1 | | commonly termed heart attack or stroke or any other | 2 | | condition
falling within the broad field of coronary | 3 | | involvement or heart disease,
or (iii) whole or part pay.
| 4 | | (d) For a person employed by an employer, or the retirement | 5 | | board, in which
"The 1935 Act" was in effect prior to August 1, | 6 | | 1949, from whose salary
deductions are first made under "The | 7 | | 1935 Act" or this Article after July
31, 1949, any period of | 8 | | service rendered subsequent to the effective date
and prior to | 9 | | August 1, 1949, shall not be counted as a period of service
| 10 | | under this Article, except such period for which he made | 11 | | payment, as
provided in Section 11-221 of this Article, in | 12 | | which case such period
shall be counted as a period of service | 13 | | for all annuity purposes hereunder.
| 14 | | (e) In computing the term of service of an employee | 15 | | subsequent to the day
before the effective date for ordinary | 16 | | disability benefit purposes, the
following periods of time | 17 | | shall be counted as periods of service:
| 18 | | (1) any period during which he performed the duties of | 19 | | his position;
| 20 | | (2) leaves of absence with whole or part pay;
| 21 | | (3) any period of disability for which he received (i)
| 22 | | a duty disability benefit under this Article, or (ii) a | 23 | | temporary total
disability benefit under the Workers' | 24 | | Compensation Act if the disability
results from a condition | 25 | | commonly termed heart attack or stroke or any
other | 26 | | condition falling within the broad field of coronary |
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| 1 | | involvement or
heart disease, or (iii) whole or part pay.
| 2 | | However, any period of service rendered by an employee | 3 | | contributor prior to
the date he became a contributor to the | 4 | | fund shall not be counted as a
period of service for ordinary | 5 | | disability purposes, unless the person
made payment for the | 6 | | period as provided in Section 11-221 of this Article, in
which | 7 | | case the period shall be counted as a period of service for | 8 | | ordinary
disability purposes for periods of disability on or | 9 | | after the effective date of
this amendatory Act of 1997.
| 10 | | Overtime or extra service shall not be included in | 11 | | computing any term of
service. Not more than 1 year of service | 12 | | shall be allowed for service
rendered during any calendar year.
| 13 | | (Source: P.A. 90-511, eff. 8-22-97.)
| 14 | | (40 ILCS 5/11-215.2 new) | 15 | | Sec. 11-215.2. Leave of absence benefit recalculation. | 16 | | Every 3 years, beginning on or as soon as practical after the | 17 | | effective date of this amendatory Act of the 97th General | 18 | | Assembly, the fund shall determine if any benefit earned by a | 19 | | participant who first earns credit on or after the effective | 20 | | date of this Section as a result of subdivision (c)(3) of | 21 | | Section 11-215 has created any additional unfunded liability to | 22 | | the fund. If it is determined by the fund that additional | 23 | | unfunded liability has been created, then the participant must | 24 | | remit the total cost to the fund, as determined by the fund, | 25 | | within one year. |
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| 1 | | (40 ILCS 5/15-113.12 new) | 2 | | Sec. 15-113.12. Pension credit earned for employment with a | 3 | | teacher organization. Any credit earned under subsection (i) of | 4 | | Section 15-107 and that is granted after the effective date of | 5 | | this amendatory Act of the 97th General Assembly shall be based | 6 | | on the participant's salary immediately before engaging in the | 7 | | type of employment specified in that provision. The participant | 8 | | must contribute an amount equal to the actuarially determined | 9 | | normal cost of the benefit as calculated by the System. The | 10 | | employer of the participant may elect to contribute all or a | 11 | | portion of the participant's required contribution. | 12 | | (40 ILCS 5/15-113.13 new) | 13 | | Sec. 15-113.13. Credit recalculation. Every 3 years, | 14 | | beginning on or as soon as practical after the effective date | 15 | | of this amendatory Act of the 97th General Assembly, the System | 16 | | shall determine if any benefit earned by a participant who | 17 | | first becomes a participant on or after the effective date of | 18 | | this Section as a result of subsection (i) of Section 15-107 | 19 | | has created any additional unfunded liability to the System. If | 20 | | it is determined by the System that additional unfunded | 21 | | liability has been created, then the participant must remit the | 22 | | total cost to the System, as determined by the System, within | 23 | | one year. |
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| 1 | | (40 ILCS 5/15-113.14 new) | 2 | | Sec. 15-113.14. Salary for credit earned for service to a | 3 | | teacher organization. For any participant who, on or after the | 4 | | effective date of this amendatory Act of the 97th General | 5 | | Assembly, earned credit under subsection (i) of Section 15-107, | 6 | | his or her average salary shall be based upon the regular | 7 | | salary rate received by the participant for his or her | 8 | | employment immediately prior to engaging in the type of | 9 | | employment specified in that provision. | 10 | | (40 ILCS 5/16-110.1 new) | 11 | | Sec. 16-110.1. Pension credit earned for employment with a | 12 | | teacher organization or a school board association. Any credit | 13 | | earned under item (4) or (8) of Section 16-106 and that is | 14 | | granted after the effective date of this amendatory Act of the | 15 | | 97th General Assembly shall be based on the participant's | 16 | | salary immediately before engaging in the type of employment | 17 | | specified in that provision. The participant must contribute an | 18 | | amount equal to the actuarially determined normal cost of the | 19 | | benefit as calculated by the System. The employer of the | 20 | | participant may elect to contribute all or a portion of the | 21 | | participant's required contribution. | 22 | | (40 ILCS 5/16-110.2 new) | 23 | | Sec. 16-110.2. Credit recalculation. Every 3 years, | 24 | | beginning on or as soon as practical after the effective date |
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| 1 | | of this amendatory Act of the 97th General Assembly, the System | 2 | | shall determine if any benefit earned by a participant who | 3 | | first earns credit on or after the effective date of this | 4 | | Section as a result of item (4) or (8) of Section 16-106 has | 5 | | created any additional unfunded liability to the System. If it | 6 | | is determined by the System that additional unfunded liability | 7 | | has been created, then the participant must remit the total | 8 | | cost to the System, as determined by the System, within one | 9 | | year. | 10 | | (40 ILCS 5/16-110.3 new) | 11 | | Sec. 16-110.3. Leaves of absence; computation of salary. | 12 | | For any participant who, on or after the effective date of this | 13 | | amendatory Act of the 97th General Assembly, has earned credit | 14 | | under item (4) or (8) of Section 16-106, his or her average | 15 | | salary shall be based upon the regular salary rate received by | 16 | | the participant for his or her employment immediately prior to | 17 | | that leave of absence. | 18 | | (40 ILCS 5/17-109.3 new) | 19 | | Sec. 17-109.3. Salary for credit earned for employment with | 20 | | a teacher organization or school board association. Any credit | 21 | | earned, on or after the effective date of this amendatory Act | 22 | | of the 97th General Assembly, under subdivision (4) of Section | 23 | | 17-134 or subsection (b) of Section 17-134.1, shall be based | 24 | | upon the regular salary rate received by the participant for |
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| 1 | | his or her employment immediately before engaging in the type | 2 | | of employment specified in that provision.
| 3 | | (40 ILCS 5/17-134) (from Ch. 108 1/2, par. 17-134)
| 4 | | Sec. 17-134. Contributions for leaves of absence; military | 5 | | service;
computing service. In computing service for pension | 6 | | purposes the following
periods of service shall stand in lieu | 7 | | of a like number of years of teaching
service upon payment | 8 | | therefor in the manner hereinafter provided: (a) time
spent on | 9 | | a leave of absence granted by the
employer;
(b) service with | 10 | | teacher or labor organizations based upon special
leaves of | 11 | | absence therefor granted by an Employer; (c) a maximum of 5 | 12 | | years
spent in the military service of the United States, of | 13 | | which up to 2 years
may have been served outside the pension | 14 | | period; (d) unused sick days at
termination of service to a | 15 | | maximum of 244 days; (e) time lost due
to layoff and | 16 | | curtailment of the school term from June 6 through June 21, | 17 | | 1976;
and (f) time spent after June 30, 1982 as a member of the | 18 | | Board of Education,
if required to resign from an | 19 | | administrative or teaching position in order to
qualify as a | 20 | | member of the Board of Education.
| 21 | | (1) For time spent on or after September 6, 1948 on | 22 | | sabbatical
leaves of absence or sick leaves, for which | 23 | | salaries are paid, an Employer
shall make payroll | 24 | | deductions at the applicable rates in effect
during such | 25 | | periods.
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| 1 | | (2) For time spent on a leave of absence granted by the | 2 | | employer for which no salaries are paid,
teachers desiring | 3 | | credit therefor shall pay the required contributions at the
| 4 | | rates in effect during such periods as though they were in | 5 | | teaching service.
If an Employer pays salary for vacations | 6 | | which occur during a teacher's sick
leave or maternity or | 7 | | paternity leave without salary, vacation pay for which
the | 8 | | teacher would have qualified while in active service shall | 9 | | be considered
part of the teacher's total salary for | 10 | | pension purposes. No more than 36 months of leave credit | 11 | | may be
allowed any person during the entire term of | 12 | | service. Sabbatical leave credit
shall be limited to the | 13 | | time the person on leave without salary under an
Employer's | 14 | | rules is allowed to engage in an activity for which he | 15 | | receives
salary or compensation.
| 16 | | (3) For time spent prior to September 6, 1948, on | 17 | | sabbatical
leaves of absence or sick leaves for which | 18 | | salaries were paid, teachers
desiring service credit | 19 | | therefor shall pay the required contributions at the
| 20 | | maximum applicable rates in effect during such periods.
| 21 | | (4) For service with teacher or labor organizations | 22 | | authorized by special
leaves of absence, for which no | 23 | | payroll deductions are made by an Employer,
teachers | 24 | | desiring service credit therefor shall contribute to the | 25 | | Fund upon
the basis of the actual salary received from such | 26 | | organizations at the
percentage rates in effect during such |
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| 1 | | periods for certified positions with
such Employer. To the | 2 | | extent the actual salary exceeds the regular salary,
which | 3 | | shall be defined as the salary rate, as calculated by the | 4 | | Board, in
effect for the teacher's regular position in | 5 | | teaching service on September 1,
1983 or on the effective | 6 | | date of the leave with the organization, whichever is
| 7 | | later, the organization shall pay to the Fund the | 8 | | employer's normal cost as set
by the Board on the | 9 | | increment. For leaves of absence after the effective date | 10 | | of this amendatory Act of the 97th General Assembly, | 11 | | contributions to the Fund under this subdivision (4) shall | 12 | | be based upon the teacher's regular salary as defined in | 13 | | this subdivision (4).
| 14 | | (5) For time spent in the military service, teachers | 15 | | entitled to and
desiring credit therefor shall contribute | 16 | | the amount required for each year
of service or fraction | 17 | | thereof at the rates in force (a) at the date of
| 18 | | appointment, or (b) on return to teaching service as a | 19 | | regularly certified
teacher, as the case may be; provided | 20 | | such rates shall not be less than $450
per year of service. | 21 | | These conditions shall apply unless an Employer elects
to | 22 | | and does pay into the Fund the amount which would have been | 23 | | due from such
person had he been employed as a teacher | 24 | | during such time. In the case of
credit for military | 25 | | service not during the pension period, the teacher must
| 26 | | also pay to the Fund an amount determined by the Board to |
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| 1 | | be equal to the
employer's normal cost of the benefits | 2 | | accrued from such service, plus interest
thereon at 5% per | 3 | | year, compounded annually, from the date of appointment to
| 4 | | the date of payment.
| 5 | | The changes to this Section made by Public Act 87-795 | 6 | | shall apply
not only to persons who on or after its | 7 | | effective
date are in service under the Fund, but also to | 8 | | persons whose status as a
teacher terminated prior to that | 9 | | date, whether or not the person is an
annuitant on that | 10 | | date. In the case of an annuitant who applies for credit
| 11 | | allowable under this Section for a period of military | 12 | | service that did not
immediately follow employment, and who | 13 | | has made the required contributions for
such credit, the | 14 | | annuity shall be recalculated to include the additional
| 15 | | service credit, with the increase taking effect on the date | 16 | | the Fund received
written notification of the annuitant's | 17 | | intent to purchase the credit, if
payment of all the | 18 | | required contributions is made within 60 days of such
| 19 | | notice, or else on the first annuity payment date following | 20 | | the date of
payment of the required contributions. In | 21 | | calculating the automatic annual
increase for an annuity | 22 | | that has been recalculated under this Section, the
increase | 23 | | attributable to the additional service allowable under | 24 | | this
amendatory Act of 1991 shall be included in the | 25 | | calculation of automatic
annual increases accruing after | 26 | | the effective date of the recalculation.
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| 1 | | The total credit for military service shall not exceed | 2 | | 5 years, except
that any teacher who on July 1, 1963, had | 3 | | validated credit for more than 5
years of military service | 4 | | shall be entitled to the total amount of such credit.
| 5 | | (6) A maximum of 244 unused sick days credited to his | 6 | | account
by an Employer on the date of termination of | 7 | | employment. Members, upon
verification of unused sick | 8 | | days, may add this service time to total creditable
| 9 | | service.
| 10 | | (7) In all cases where time spent on leave is | 11 | | creditable and
no payroll deductions therefor are made by | 12 | | an Employer, persons
desiring service credit shall make the | 13 | | required contributions directly to
the Fund.
| 14 | | (8) For time lost without pay due to layoff and | 15 | | curtailment of
the school term from June 6 through June 21, | 16 | | 1976, as provided in item (e) of
the first paragraph of | 17 | | this Section, persons who were contributors on
the days | 18 | | immediately preceding such layoff shall receive credit | 19 | | upon
paying to the Fund a contribution based on the rates | 20 | | of compensation and
employee contributions in effect at the | 21 | | time of such layoff, together
with an additional amount | 22 | | equal to 12.2% of the compensation computed
for such period | 23 | | of layoff, plus interest on the entire amount at 5% per
| 24 | | annum from January 1, 1978 to the date of payment. If such | 25 | | contribution
is paid, salary for pension purposes for any | 26 | | year in which such a layoff
occurred shall include the |
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| 1 | | compensation recognized for purposes of
computing that | 2 | | contribution.
| 3 | | (9) For time spent after June 30, 1982, as a | 4 | | nonsalaried member
of the Board of Education, if required | 5 | | to resign from an administrative or
teaching position in | 6 | | order to qualify as a member of the Board of
Education, an | 7 | | administrator or teacher desiring credit therefor shall | 8 | | pay
the required contributions at the rates and salaries in | 9 | | effect during such
periods as though the member were in | 10 | | service.
| 11 | | Effective September 1, 1974, the interest charged for | 12 | | validation of
service described in paragraphs (2) through (5) | 13 | | of this Section shall be
compounded annually at a rate of 5% | 14 | | commencing one
year after the termination of the leave or | 15 | | return to service.
| 16 | | (Source: P.A. 92-599, eff. 6-28-02 .)
| 17 | | (40 ILCS 5/17-134.1)
| 18 | | Sec. 17-134.1. Labor organization employees.
| 19 | | (a) A former teacher who is employed by a teacher or labor | 20 | | organization and
is not eligible to participate under | 21 | | subdivision (4) of Section 17-134 because
he or she is not on a | 22 | | special leave of absence may elect to participate in the
Fund | 23 | | for the duration of that employment by so notifying the Fund in | 24 | | writing.
Participation shall be subject to the same conditions
| 25 | | as are applicable to persons participating under that |
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| 1 | | subdivision (4), and
service credit shall be contingent upon | 2 | | the required contributions being
received by the Fund.
| 3 | | (b) A person who participates in the Fund under subsection | 4 | | (a) may establish
service credit for periods of such employment | 5 | | that took place before beginning
participation under this | 6 | | Section by submitting a written application to the
Fund. Credit | 7 | | shall be granted upon payment to the Fund
of an amount to be | 8 | | determined by the Fund, equal to (i) the employee
contributions | 9 | | that would have been paid if the person had participated under
| 10 | | subdivision (4) of Section 17-134 during the period for which | 11 | | service credit is
to be established, based on the actual salary | 12 | | received, plus (ii) the
employer's normal cost associated with | 13 | | that service credit, plus (iii) interest
on items (i) and (ii) | 14 | | at the rate of 6% per year, compounded annually, from the
date | 15 | | of the service established to the date of payment. Service | 16 | | credit under
this subsection shall not be granted until the | 17 | | required contribution has been
paid in full; the contribution | 18 | | may be paid at any time before retirement. For leaves of | 19 | | absence after the effective date of this amendatory Act of the | 20 | | 97th General Assembly, contributions to the Fund under item (i) | 21 | | of this subsection (b) shall be based upon the teacher's | 22 | | regular salary as defined in subdivision (4) of Section 17-134.
| 23 | | (c) A person who participates in the Fund under subsection | 24 | | (a) may
reestablish any service credits previously forfeited by | 25 | | acceptance of a refund
by paying to the Fund the amount of the | 26 | | refund plus interest thereon at the
rate of 5% per annum, |
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| 1 | | compounded annually, from the date of the refund to the
date of | 2 | | payment.
| 3 | | (d) Rollover contributions from other retirement plans | 4 | | qualified under the
Internal Revenue Code of 1986 may be used | 5 | | to make the payments required under
subsections (b) and (c).
| 6 | | (e) No service credit may be established under this Section | 7 | | for any period
of employment for which the person receives | 8 | | service credit under any other
provision of this Code.
| 9 | | (Source: P.A. 90-448, eff. 8-16-97.)
| 10 | | (40 ILCS 5/17-134.2 new) | 11 | | Sec. 17-134.2. Credit recalculation. Every 3 years, | 12 | | beginning on or as soon as practical after the effective date | 13 | | of this amendatory Act of the 97th General Assembly, the Fund | 14 | | shall determine if any benefit earned by a participant who | 15 | | first earns credit on or after the effective date of this | 16 | | Section as a result of item (4) of Section 17-134 and Section | 17 | | 17-134.1 has created any additional unfunded liability to the | 18 | | Fund. If it is determined by the Fund that additional unfunded | 19 | | liability has been created, then the participant must remit the | 20 | | total cost to the Fund, as determined by the Fund, within one | 21 | | year.
| 22 | | Section 99. Effective date. This Act takes effect upon | 23 | | becoming law.".
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