Full Text of HB4652 103rd General Assembly
HB4652ham002 103RD GENERAL ASSEMBLY | Rep. Barbara Hernandez Filed: 4/30/2024 | | 10300HB4652ham002 | | LRB103 36983 RJT 72619 a |
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| 1 | | AMENDMENT TO HOUSE BILL 4652
| 2 | | AMENDMENT NO. ______. Amend House Bill 4652, AS AMENDED, | 3 | | by replacing everything after the enacting clause with the | 4 | | following: | 5 | | "Section 5. The Illinois Pension Code is amended by | 6 | | changing Sections 16-121, 16-127, 16-158, and 16-203 as | 7 | | follows: | 8 | | (40 ILCS 5/16-121) (from Ch. 108 1/2, par. 16-121) | 9 | | (Text of Section WITHOUT the changes made by P.A. 98-599, | 10 | | which has been held unconstitutional) | 11 | | Sec. 16-121. Salary. "Salary": The actual compensation | 12 | | received by a teacher during any school year and recognized by | 13 | | the system in accordance with rules of the board. "Salary" | 14 | | includes any stipend paid under Section 9.44 of the Board of | 15 | | Higher Education Act to an eligible cooperating teacher. | 16 | | For purposes of this Section, "school year" includes the |
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| 1 | | regular school term plus any additional period for which a | 2 | | teacher is compensated and such compensation is recognized by | 3 | | the rules of the board. | 4 | | (Source: P.A. 84-1028.) | 5 | | (40 ILCS 5/16-127) (from Ch. 108 1/2, par. 16-127) | 6 | | Sec. 16-127. Computation of creditable service. | 7 | | (a) Each member shall receive regular credit for all | 8 | | service as a teacher from the date membership begins, for | 9 | | which satisfactory evidence is supplied and all contributions | 10 | | have been paid. | 11 | | (b) The following periods of service shall earn optional | 12 | | credit and each member shall receive credit for all such | 13 | | service for which satisfactory evidence is supplied and all | 14 | | contributions have been paid as of the date specified: | 15 | | (1) Prior service as a teacher. | 16 | | (2) Service in a capacity essentially similar or | 17 | | equivalent to that of a teacher, in the public common | 18 | | schools in school districts in this State not included | 19 | | within the provisions of this System, or of any other | 20 | | State, territory, dependency or possession of the United | 21 | | States, or in schools operated by or under the auspices of | 22 | | the United States, or under the auspices of any agency or | 23 | | department of any other State, and service during any | 24 | | period of professional speech correction or special | 25 | | education experience for a public agency within this State |
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| 1 | | or any other State, territory, dependency or possession of | 2 | | the United States, and service prior to February 1, 1951 | 3 | | as a recreation worker for the Illinois Department of | 4 | | Public Safety, for a period not exceeding the lesser of | 5 | | 2/5 of the total creditable service of the member or 10 | 6 | | years. The maximum service of 10 years which is allowable | 7 | | under this paragraph shall be reduced by the service | 8 | | credit which is validated by other retirement systems | 9 | | under paragraph (i) of Section 15-113 and paragraph 1 of | 10 | | Section 17-133. Credit granted under this paragraph may | 11 | | not be used in determination of a retirement annuity or | 12 | | disability benefits unless the member has at least 5 years | 13 | | of creditable service earned subsequent to this employment | 14 | | with one or more of the following systems: Teachers' | 15 | | Retirement System of the State of Illinois, State | 16 | | Universities Retirement System, and the Public School | 17 | | Teachers' Pension and Retirement Fund of Chicago. Whenever | 18 | | such service credit exceeds the maximum allowed for all | 19 | | purposes of this Article, the first service rendered in | 20 | | point of time shall be considered. The changes to this | 21 | | paragraph subdivision (b) (2) made by Public Act 86-272 | 22 | | shall apply not only to persons who on or after its | 23 | | effective date (August 23, 1989) are in service as a | 24 | | teacher under the System, but also to persons whose status | 25 | | as such a teacher terminated prior to such effective date, | 26 | | whether or not such person is an annuitant on that date. |
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| 1 | | (3) Any periods immediately following teaching | 2 | | service, under this System or under Article 17, (or | 3 | | immediately following service prior to February 1, 1951 as | 4 | | a recreation worker for the Illinois Department of Public | 5 | | Safety) spent in active service with the military forces | 6 | | of the United States; periods spent in educational | 7 | | programs that prepare for return to teaching sponsored by | 8 | | the federal government following such active military | 9 | | service; if a teacher returns to teaching service within | 10 | | one calendar year after discharge or after the completion | 11 | | of the educational program, a further period, not | 12 | | exceeding one calendar year, between time spent in | 13 | | military service or in such educational programs and the | 14 | | return to employment as a teacher under this System; and a | 15 | | period of up to 2 years of active military service not | 16 | | immediately following employment as a teacher. | 17 | | The changes to this Section and Section 16-128 | 18 | | relating to military service made by Public Act P.A. | 19 | | 87-794 shall apply not only to persons who on or after its | 20 | | effective date are in service as a teacher under the | 21 | | System, but also to persons whose status as a teacher | 22 | | terminated prior to that date, whether or not the person | 23 | | is an annuitant on that date. In the case of an annuitant | 24 | | who applies for credit allowable under this Section for a | 25 | | period of military service that did not immediately follow | 26 | | employment, and who has made the required contributions |
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| 1 | | for such credit, the annuity shall be recalculated to | 2 | | include the additional service credit, with the increase | 3 | | taking effect on the date the System received written | 4 | | notification of the annuitant's intent to purchase the | 5 | | credit, if payment of all the required contributions is | 6 | | made within 60 days of such notice, or else on the first | 7 | | annuity payment date following the date of payment of the | 8 | | required contributions. In calculating the automatic | 9 | | annual increase for an annuity that has been recalculated | 10 | | under this Section, the increase attributable to the | 11 | | additional service allowable under Public Act P.A. 87-794 | 12 | | shall be included in the calculation of automatic annual | 13 | | increases accruing after the effective date of the | 14 | | recalculation. | 15 | | Credit for military service shall be determined as | 16 | | follows: if entry occurs during the months of July, | 17 | | August, or September and the member was a teacher at the | 18 | | end of the immediately preceding school term, credit shall | 19 | | be granted from July 1 of the year in which he or she | 20 | | entered service; if entry occurs during the school term | 21 | | and the teacher was in teaching service at the beginning | 22 | | of the school term, credit shall be granted from July 1 of | 23 | | such year. In all other cases where credit for military | 24 | | service is allowed, credit shall be granted from the date | 25 | | of entry into the service. | 26 | | The total period of military service for which credit |
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| 1 | | is granted shall not exceed 5 years for any member unless | 2 | | the service: (A) is validated before July 1, 1964, and (B) | 3 | | does not extend beyond July 1, 1963. Credit for military | 4 | | service shall be granted under this Section only if not | 5 | | more than 5 years of the military service for which credit | 6 | | is granted under this Section is used by the member to | 7 | | qualify for a military retirement allotment from any | 8 | | branch of the armed forces of the United States. The | 9 | | changes to this paragraph subdivision (b) (3) made by | 10 | | Public Act 86-272 shall apply not only to persons who on or | 11 | | after its effective date (August 23, 1989) are in service | 12 | | as a teacher under the System, but also to persons whose | 13 | | status as such a teacher terminated prior to such | 14 | | effective date, whether or not such person is an annuitant | 15 | | on that date. | 16 | | (4) Any periods served as a member of the General | 17 | | Assembly. | 18 | | (5)(i) Any periods for which a teacher, as defined in | 19 | | Section 16-106, is granted a leave of absence, provided he | 20 | | or she returns to teaching service creditable under this | 21 | | System or the State Universities Retirement System | 22 | | following the leave; (ii) periods during which a teacher | 23 | | is involuntarily laid off from teaching, provided he or | 24 | | she returns to teaching following the lay-off; (iii) | 25 | | periods prior to July 1, 1983 during which a teacher | 26 | | ceased covered employment due to pregnancy, provided that |
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| 1 | | the teacher returned to teaching service creditable under | 2 | | this System or the State Universities Retirement System | 3 | | following the pregnancy and submits evidence satisfactory | 4 | | to the Board documenting that the employment ceased due to | 5 | | pregnancy; and (iv) periods prior to July 1, 1983 during | 6 | | which a teacher ceased covered employment for the purpose | 7 | | of adopting an infant under 3 years of age or caring for a | 8 | | newly adopted infant under 3 years of age, provided that | 9 | | the teacher returned to teaching service creditable under | 10 | | this System or the State Universities Retirement System | 11 | | following the adoption and submits evidence satisfactory | 12 | | to the Board documenting that the employment ceased for | 13 | | the purpose of adopting an infant under 3 years of age or | 14 | | caring for a newly adopted infant under 3 years of age. | 15 | | However, total credit under this paragraph (5) may not | 16 | | exceed 3 years. | 17 | | Any qualified member or annuitant may apply for credit | 18 | | under item (iii) or (iv) of this paragraph (5) without | 19 | | regard to whether service was terminated before June 27, | 20 | | 1997 ( the effective date of Public Act 90-32) this | 21 | | amendatory Act of 1997 . In the case of an annuitant who | 22 | | establishes credit under item (iii) or (iv), the annuity | 23 | | shall be recalculated to include the additional service | 24 | | credit. The increase in annuity shall take effect on the | 25 | | date the System receives written notification of the | 26 | | annuitant's intent to purchase the credit, if the required |
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| 1 | | evidence is submitted and the required contribution paid | 2 | | within 60 days of that notification, otherwise on the | 3 | | first annuity payment date following the System's receipt | 4 | | of the required evidence and contribution. The increase in | 5 | | an annuity recalculated under this provision shall be | 6 | | included in the calculation of automatic annual increases | 7 | | in the annuity accruing after the effective date of the | 8 | | recalculation. | 9 | | Optional credit may be purchased under this paragraph | 10 | | subsection (b) (5) for periods during which a teacher has | 11 | | been granted a leave of absence pursuant to Section 24-13 | 12 | | of the School Code. A teacher whose service under this | 13 | | Article terminated prior to the effective date of Public | 14 | | Act P.A. 86-1488 shall be eligible to purchase such | 15 | | optional credit. If a teacher who purchases this optional | 16 | | credit is already receiving a retirement annuity under | 17 | | this Article, the annuity shall be recalculated as if the | 18 | | annuitant had applied for the leave of absence credit at | 19 | | the time of retirement. The difference between the | 20 | | entitled annuity and the actual annuity shall be credited | 21 | | to the purchase of the optional credit. The remainder of | 22 | | the purchase cost of the optional credit shall be paid on | 23 | | or before April 1, 1992. | 24 | | The change in this paragraph made by Public Act 86-273 | 25 | | shall be applicable to teachers who retire after June 1, | 26 | | 1989, as well as to teachers who are in service on that |
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| 1 | | date. | 2 | | (6) Any days of unused and uncompensated accumulated | 3 | | sick leave earned by a teacher. The service credit granted | 4 | | under this paragraph shall be the ratio of the number of | 5 | | unused and uncompensated accumulated sick leave days to | 6 | | 170 days, subject to a maximum of 2 years of service | 7 | | credit. Prior to the member's retirement, each former | 8 | | employer shall certify to the System the number of unused | 9 | | and uncompensated accumulated sick leave days credited to | 10 | | the member at the time of termination of service. The | 11 | | period of unused sick leave shall not be considered in | 12 | | determining the effective date of retirement. A member is | 13 | | not required to make contributions in order to obtain | 14 | | service credit for unused sick leave. | 15 | | Credit for sick leave shall, at retirement, be granted | 16 | | by the System for any retiring regional or assistant | 17 | | regional superintendent of schools at the rate of 6 days | 18 | | per year of creditable service or portion thereof | 19 | | established while serving as such superintendent or | 20 | | assistant superintendent. | 21 | | (7) Periods prior to February 1, 1987 served as an | 22 | | employee of the Illinois Mathematics and Science Academy | 23 | | for which credit has not been terminated under Section | 24 | | 15-113.9 of this Code. | 25 | | (8) Service as a substitute teacher for work performed | 26 | | prior to July 1, 1990. |
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| 1 | | (9) Service as a part-time teacher for work performed | 2 | | prior to July 1, 1990. | 3 | | (10) 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 | 7 | | teacher has no credit under Article 15. To receive credit | 8 | | under this item (10), a teacher must apply in writing to | 9 | | the Board and pay the required contributions before May 1, | 10 | | 1993 and have at least 12 years of service credit under | 11 | | this Article. | 12 | | (11) Periods of service as a student teacher as | 13 | | described in Section 24-8.5 of the School Code for which | 14 | | the student teacher received a salary. | 15 | | (12) Periods of service as a student teacher as | 16 | | described under Section 9.44 of the Board of Higher | 17 | | Education Act. | 18 | | (b-1) A member may establish optional credit for up to 2 | 19 | | years of service as a teacher or administrator employed by a | 20 | | private school recognized by the Illinois State Board of | 21 | | Education, provided that the teacher (i) was certified under | 22 | | the law governing the certification of teachers at the time | 23 | | the service was rendered, (ii) applies in writing on or before | 24 | | June 30, 2028, (iii) supplies satisfactory evidence of the | 25 | | employment, (iv) completes at least 10 years of contributing | 26 | | service as a teacher as defined in Section 16-106, and (v) pays |
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| 1 | | the contribution required in subsection (d-5) of Section | 2 | | 16-128. The member may apply for credit under this subsection | 3 | | and pay the required contribution before completing the 10 | 4 | | years of contributing service required under item (iv), but | 5 | | the credit may not be used until the item (iv) contributing | 6 | | service requirement has been met. | 7 | | (c) The service credits specified in this Section shall be | 8 | | granted only if: (1) such service credits are not used for | 9 | | credit in any other statutory tax-supported public employee | 10 | | retirement system other than the federal Social Security | 11 | | program; and (2) the member makes the required contributions | 12 | | as specified in Section 16-128. Except as provided in | 13 | | subsection (b-1) of this Section, the service credit shall be | 14 | | effective as of the date the required contributions are | 15 | | completed. | 16 | | Any service credits granted under this Section shall | 17 | | terminate upon cessation of membership for any cause. | 18 | | Credit may not be granted under this Section covering any | 19 | | period for which an age retirement or disability retirement | 20 | | allowance has been paid. | 21 | | Credit may not be granted under this Section for service | 22 | | as an employee of an entity that provides substitute teaching | 23 | | services under Section 2-3.173 of the School Code and is not a | 24 | | school district. | 25 | | (Source: P.A. 102-525, eff. 8-20-21; 103-17, eff. 6-9-23; | 26 | | 103-525, eff. 8-11-23; revised 9-5-23.) |
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| 1 | | (40 ILCS 5/16-158) (from Ch. 108 1/2, par. 16-158) | 2 | | Sec. 16-158. Contributions by State and other employing | 3 | | units. | 4 | | (a) The State shall make contributions to the System by | 5 | | means of appropriations from the Common School Fund and other | 6 | | State funds of amounts which, together with other employer | 7 | | contributions, employee contributions, investment income, and | 8 | | other income, will be sufficient to meet the cost of | 9 | | maintaining and administering the System on a 90% funded basis | 10 | | in accordance with actuarial recommendations. | 11 | | The Board shall determine the amount of State | 12 | | contributions required for each fiscal year on the basis of | 13 | | the actuarial tables and other assumptions adopted by the | 14 | | Board and the recommendations of the actuary, using the | 15 | | formula in subsection (b-3). | 16 | | (a-1) Annually, on or before November 15 until November | 17 | | 15, 2011, the Board shall certify to the Governor the amount of | 18 | | the required State contribution for the coming fiscal year. | 19 | | The certification under this subsection (a-1) shall include a | 20 | | copy of the actuarial recommendations upon which it is based | 21 | | and shall specifically identify the System's projected State | 22 | | normal cost for that fiscal year. | 23 | | On or before May 1, 2004, the Board shall recalculate and | 24 | | recertify to the Governor the amount of the required State | 25 | | contribution to the System for State fiscal year 2005, taking |
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| 1 | | into account the amounts appropriated to and received by the | 2 | | System under subsection (d) of Section 7.2 of the General | 3 | | Obligation Bond Act. | 4 | | On or before July 1, 2005, the Board shall recalculate and | 5 | | recertify to the Governor the amount of the required State | 6 | | contribution to the System for State fiscal year 2006, taking | 7 | | into account the changes in required State contributions made | 8 | | by Public Act 94-4. | 9 | | On or before April 1, 2011, the Board shall recalculate | 10 | | and recertify to the Governor the amount of the required State | 11 | | contribution to the System for State fiscal year 2011, | 12 | | applying the changes made by Public Act 96-889 to the System's | 13 | | assets and liabilities as of June 30, 2009 as though Public Act | 14 | | 96-889 was approved on that date. | 15 | | (a-5) On or before November 1 of each year, beginning | 16 | | November 1, 2012, the Board shall submit to the State Actuary, | 17 | | the Governor, and the General Assembly a proposed | 18 | | certification of the amount of the required State contribution | 19 | | to the System for the next fiscal year, along with all of the | 20 | | actuarial assumptions, calculations, and data upon which that | 21 | | proposed certification is based. On or before January 1 of | 22 | | each year, beginning January 1, 2013, the State Actuary shall | 23 | | issue a preliminary report concerning the proposed | 24 | | certification and identifying, if necessary, recommended | 25 | | changes in actuarial assumptions that the Board must consider | 26 | | before finalizing its certification of the required State |
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| 1 | | contributions. On or before January 15, 2013 and each January | 2 | | 15 thereafter, the Board shall certify to the Governor and the | 3 | | General Assembly the amount of the required State contribution | 4 | | for the next fiscal year. The Board's certification must note | 5 | | any deviations from the State Actuary's recommended changes, | 6 | | the reason or reasons for not following the State Actuary's | 7 | | recommended changes, and the fiscal impact of not following | 8 | | the State Actuary's recommended changes on the required State | 9 | | contribution. | 10 | | (a-10) By November 1, 2017, the Board shall recalculate | 11 | | and recertify to the State Actuary, the Governor, and the | 12 | | General Assembly the amount of the State contribution to the | 13 | | System for State fiscal year 2018, taking into account the | 14 | | changes in required State contributions made by Public Act | 15 | | 100-23. The State Actuary shall review the assumptions and | 16 | | valuations underlying the Board's revised certification and | 17 | | issue a preliminary report concerning the proposed | 18 | | recertification and identifying, if necessary, recommended | 19 | | changes in actuarial assumptions that the Board must consider | 20 | | before finalizing its certification of the required State | 21 | | contributions. The Board's final certification must note any | 22 | | deviations from the State Actuary's recommended changes, the | 23 | | reason or reasons for not following the State Actuary's | 24 | | recommended changes, and the fiscal impact of not following | 25 | | the State Actuary's recommended changes on the required State | 26 | | contribution. |
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| 1 | | (a-15) On or after June 15, 2019, but no later than June | 2 | | 30, 2019, the Board shall recalculate and recertify to the | 3 | | Governor and the General Assembly the amount of the State | 4 | | contribution to the System for State fiscal year 2019, taking | 5 | | into account the changes in required State contributions made | 6 | | by Public Act 100-587. The recalculation shall be made using | 7 | | assumptions adopted by the Board for the original fiscal year | 8 | | 2019 certification. The monthly voucher for the 12th month of | 9 | | fiscal year 2019 shall be paid by the Comptroller after the | 10 | | recertification required pursuant to this subsection is | 11 | | submitted to the Governor, Comptroller, and General Assembly. | 12 | | The recertification submitted to the General Assembly shall be | 13 | | filed with the Clerk of the House of Representatives and the | 14 | | Secretary of the Senate in electronic form only, in the manner | 15 | | that the Clerk and the Secretary shall direct. | 16 | | (b) Through State fiscal year 1995, the State | 17 | | contributions shall be paid to the System in accordance with | 18 | | Section 18-7 of the School Code. | 19 | | (b-1) Beginning in State fiscal year 1996, on the 15th day | 20 | | of each month, or as soon thereafter as may be practicable, the | 21 | | Board shall submit vouchers for payment of State contributions | 22 | | to the System, in a total monthly amount of one-twelfth of the | 23 | | required annual State contribution certified under subsection | 24 | | (a-1). From March 5, 2004 (the effective date of Public Act | 25 | | 93-665) through June 30, 2004, the Board shall not submit | 26 | | vouchers for the remainder of fiscal year 2004 in excess of the |
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| 1 | | fiscal year 2004 certified contribution amount determined | 2 | | under this Section after taking into consideration the | 3 | | transfer to the System under subsection (a) of Section 6z-61 | 4 | | of the State Finance Act. These vouchers shall be paid by the | 5 | | State Comptroller and Treasurer by warrants drawn on the funds | 6 | | appropriated to the System for that fiscal year. | 7 | | If in any month the amount remaining unexpended from all | 8 | | other appropriations to the System for the applicable fiscal | 9 | | year (including the appropriations to the System under Section | 10 | | 8.12 of the State Finance Act and Section 1 of the State | 11 | | Pension Funds Continuing Appropriation Act) is less than the | 12 | | amount lawfully vouchered under this subsection, the | 13 | | difference shall be paid from the Common School Fund under the | 14 | | continuing appropriation authority provided in Section 1.1 of | 15 | | the State Pension Funds Continuing Appropriation Act. | 16 | | (b-2) Allocations from the Common School Fund apportioned | 17 | | to school districts not coming under this System shall not be | 18 | | diminished or affected by the provisions of this Article. | 19 | | (b-3) For State fiscal years 2012 through 2045, the | 20 | | minimum contribution to the System to be made by the State for | 21 | | each fiscal year shall be an amount determined by the System to | 22 | | be sufficient to bring the total assets of the System up to 90% | 23 | | of the total actuarial liabilities of the System by the end of | 24 | | State fiscal year 2045. In making these determinations, the | 25 | | required State contribution shall be calculated each year as a | 26 | | level percentage of payroll over the years remaining to and |
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| 1 | | including fiscal year 2045 and shall be determined under the | 2 | | projected unit credit actuarial cost method. | 3 | | For each of State fiscal years 2018, 2019, and 2020, the | 4 | | State shall make an additional contribution to the System | 5 | | equal to 2% of the total payroll of each employee who is deemed | 6 | | to have elected the benefits under Section 1-161 or who has | 7 | | made the election under subsection (c) of Section 1-161. | 8 | | A change in an actuarial or investment assumption that | 9 | | increases or decreases the required State contribution and | 10 | | first applies in State fiscal year 2018 or thereafter shall be | 11 | | implemented in equal annual amounts over a 5-year period | 12 | | beginning in the State fiscal year in which the actuarial | 13 | | change first applies to the required State contribution. | 14 | | A change in an actuarial or investment assumption that | 15 | | increases or decreases the required State contribution and | 16 | | first applied to the State contribution in fiscal year 2014, | 17 | | 2015, 2016, or 2017 shall be implemented: | 18 | | (i) as already applied in State fiscal years before | 19 | | 2018; and | 20 | | (ii) in the portion of the 5-year period beginning in | 21 | | the State fiscal year in which the actuarial change first | 22 | | applied that occurs in State fiscal year 2018 or | 23 | | thereafter, by calculating the change in equal annual | 24 | | amounts over that 5-year period and then implementing it | 25 | | at the resulting annual rate in each of the remaining | 26 | | fiscal years in that 5-year period. |
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| 1 | | For State fiscal years 1996 through 2005, the State | 2 | | contribution to the System, as a percentage of the applicable | 3 | | employee payroll, shall be increased in equal annual | 4 | | increments so that by State fiscal year 2011, the State is | 5 | | contributing at the rate required under this Section; except | 6 | | that in the following specified State fiscal years, the State | 7 | | contribution to the System shall not be less than the | 8 | | following indicated percentages of the applicable employee | 9 | | payroll, even if the indicated percentage will produce a State | 10 | | contribution in excess of the amount otherwise required under | 11 | | this subsection and subsection (a), and notwithstanding any | 12 | | contrary certification made under subsection (a-1) before May | 13 | | 27, 1998 (the effective date of Public Act 90-582): 10.02% in | 14 | | FY 1999; 10.77% in FY 2000; 11.47% in FY 2001; 12.16% in FY | 15 | | 2002; 12.86% in FY 2003; and 13.56% in FY 2004. | 16 | | Notwithstanding any other provision of this Article, the | 17 | | total required State contribution for State fiscal year 2006 | 18 | | is $534,627,700. | 19 | | Notwithstanding any other provision of this Article, the | 20 | | total required State contribution for State fiscal year 2007 | 21 | | is $738,014,500. | 22 | | For each of State fiscal years 2008 through 2009, the | 23 | | State contribution to the System, as a percentage of the | 24 | | applicable employee payroll, shall be increased in equal | 25 | | annual increments from the required State contribution for | 26 | | State fiscal year 2007, so that by State fiscal year 2011, the |
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| 1 | | State is contributing at the rate otherwise required under | 2 | | this Section. | 3 | | Notwithstanding any other provision of this Article, the | 4 | | total required State contribution for State fiscal year 2010 | 5 | | is $2,089,268,000 and shall be made from the proceeds of bonds | 6 | | sold in fiscal year 2010 pursuant to Section 7.2 of the General | 7 | | Obligation Bond Act, less (i) the pro rata share of bond sale | 8 | | expenses determined by the System's share of total bond | 9 | | proceeds, (ii) any amounts received from the Common School | 10 | | Fund in fiscal year 2010, and (iii) any reduction in bond | 11 | | proceeds due to the issuance of discounted bonds, if | 12 | | applicable. | 13 | | Notwithstanding any other provision of this Article, the | 14 | | total required State contribution for State fiscal year 2011 | 15 | | is the amount recertified by the System on or before April 1, | 16 | | 2011 pursuant to subsection (a-1) of this Section and shall be | 17 | | made from the proceeds of bonds sold in fiscal year 2011 | 18 | | pursuant to Section 7.2 of the General Obligation Bond Act, | 19 | | less (i) the pro rata share of bond sale expenses determined by | 20 | | the System's share of total bond proceeds, (ii) any amounts | 21 | | received from the Common School Fund in fiscal year 2011, and | 22 | | (iii) any reduction in bond proceeds due to the issuance of | 23 | | discounted bonds, if applicable. This amount shall include, in | 24 | | addition to the amount certified by the System, an amount | 25 | | necessary to meet employer contributions required by the State | 26 | | as an employer under paragraph (e) of this Section, which may |
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| 1 | | also be used by the System for contributions required by | 2 | | paragraph (a) of Section 16-127. | 3 | | Beginning in State fiscal year 2046, the minimum State | 4 | | contribution for each fiscal year shall be the amount needed | 5 | | to maintain the total assets of the System at 90% of the total | 6 | | actuarial liabilities of the System. | 7 | | Amounts received by the System pursuant to Section 25 of | 8 | | the Budget Stabilization Act or Section 8.12 of the State | 9 | | Finance Act in any fiscal year do not reduce and do not | 10 | | constitute payment of any portion of the minimum State | 11 | | contribution required under this Article in that fiscal year. | 12 | | Such amounts shall not reduce, and shall not be included in the | 13 | | calculation of, the required State contributions under this | 14 | | Article in any future year until the System has reached a | 15 | | funding ratio of at least 90%. A reference in this Article to | 16 | | the "required State contribution" or any substantially similar | 17 | | term does not include or apply to any amounts payable to the | 18 | | System under Section 25 of the Budget Stabilization Act. | 19 | | Notwithstanding any other provision of this Section, the | 20 | | required State contribution for State fiscal year 2005 and for | 21 | | fiscal year 2008 and each fiscal year thereafter, as | 22 | | calculated under this Section and certified under subsection | 23 | | (a-1), shall not exceed an amount equal to (i) the amount of | 24 | | the required State contribution that would have been | 25 | | calculated under this Section for that fiscal year if the | 26 | | System had not received any payments under subsection (d) of |
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| 1 | | Section 7.2 of the General Obligation Bond Act, minus (ii) the | 2 | | portion of the State's total debt service payments for that | 3 | | fiscal year on the bonds issued in fiscal year 2003 for the | 4 | | purposes of that Section 7.2, as determined and certified by | 5 | | the Comptroller, that is the same as the System's portion of | 6 | | the total moneys distributed under subsection (d) of Section | 7 | | 7.2 of the General Obligation Bond Act. In determining this | 8 | | maximum for State fiscal years 2008 through 2010, however, the | 9 | | amount referred to in item (i) shall be increased, as a | 10 | | percentage of the applicable employee payroll, in equal | 11 | | increments calculated from the sum of the required State | 12 | | contribution for State fiscal year 2007 plus the applicable | 13 | | portion of the State's total debt service payments for fiscal | 14 | | year 2007 on the bonds issued in fiscal year 2003 for the | 15 | | purposes of Section 7.2 of the General Obligation Bond Act, so | 16 | | that, by State fiscal year 2011, the State is contributing at | 17 | | the rate otherwise required under this Section. | 18 | | (b-4) Beginning in fiscal year 2018, each employer under | 19 | | this Article shall pay to the System a required contribution | 20 | | determined as a percentage of projected payroll and sufficient | 21 | | to produce an annual amount equal to: | 22 | | (i) for each of fiscal years 2018, 2019, and 2020, the | 23 | | defined benefit normal cost of the defined benefit plan, | 24 | | less the employee contribution, for each employee of that | 25 | | employer who has elected or who is deemed to have elected | 26 | | the benefits under Section 1-161 or who has made the |
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| 1 | | election under subsection (b) of Section 1-161; for fiscal | 2 | | year 2021 and each fiscal year thereafter, the defined | 3 | | benefit normal cost of the defined benefit plan, less the | 4 | | employee contribution, plus 2%, for each employee of that | 5 | | employer who has elected or who is deemed to have elected | 6 | | the benefits under Section 1-161 or who has made the | 7 | | election under subsection (b) of Section 1-161; plus | 8 | | (ii) the amount required for that fiscal year to | 9 | | amortize any unfunded actuarial accrued liability | 10 | | associated with the present value of liabilities | 11 | | attributable to the employer's account under Section | 12 | | 16-158.3, determined as a level percentage of payroll over | 13 | | a 30-year rolling amortization period. | 14 | | In determining contributions required under item (i) of | 15 | | this subsection, the System shall determine an aggregate rate | 16 | | for all employers, expressed as a percentage of projected | 17 | | payroll. | 18 | | In determining the contributions required under item (ii) | 19 | | of this subsection, the amount shall be computed by the System | 20 | | on the basis of the actuarial assumptions and tables used in | 21 | | the most recent actuarial valuation of the System that is | 22 | | available at the time of the computation. | 23 | | The contributions required under this subsection (b-4) | 24 | | shall be paid by an employer concurrently with that employer's | 25 | | payroll payment period. The State, as the actual employer of | 26 | | an employee, shall make the required contributions under this |
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| 1 | | subsection. | 2 | | (c) Payment of the required State contributions and of all | 3 | | pensions, retirement annuities, death benefits, refunds, and | 4 | | other benefits granted under or assumed by this System, and | 5 | | all expenses in connection with the administration and | 6 | | operation thereof, are obligations of the State. | 7 | | If members are paid from special trust or federal funds | 8 | | which are administered by the employing unit, whether school | 9 | | district or other unit, the employing unit shall pay to the | 10 | | System from such funds the full accruing retirement costs | 11 | | based upon that service, which, beginning July 1, 2017, shall | 12 | | be at a rate, expressed as a percentage of salary, equal to the | 13 | | total employer's normal cost, expressed as a percentage of | 14 | | payroll, as determined by the System. Employer contributions, | 15 | | based on salary paid to members from federal funds, may be | 16 | | forwarded by the distributing agency of the State of Illinois | 17 | | to the System prior to allocation, in an amount determined in | 18 | | accordance with guidelines established by such agency and the | 19 | | System. Any contribution for fiscal year 2015 collected as a | 20 | | result of the change made by Public Act 98-674 shall be | 21 | | considered a State contribution under subsection (b-3) of this | 22 | | Section. | 23 | | (d) Effective July 1, 1986, any employer of a teacher as | 24 | | defined in paragraph (8) of Section 16-106 shall pay the | 25 | | employer's normal cost of benefits based upon the teacher's | 26 | | 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 | 23 | | employer contribution shall be equal to 0.58% of each | 24 | | teacher's salary. | 25 | | The school district or other employing unit may pay these | 26 | | employer contributions out of any source of funding available |
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| 1 | | for that purpose and shall forward the contributions to the | 2 | | System on the schedule established for the payment of member | 3 | | contributions. | 4 | | These employer contributions are intended to offset a | 5 | | portion of the cost to the System of the increases in | 6 | | retirement benefits resulting from Public Act 90-582. | 7 | | Each employer of teachers is entitled to a credit against | 8 | | the contributions required under this subsection (e) with | 9 | | respect to salaries paid to teachers for the period January 1, | 10 | | 2002 through June 30, 2003, equal to the amount paid by that | 11 | | employer under subsection (a-5) of Section 6.6 of the State | 12 | | Employees Group Insurance Act of 1971 with respect to salaries | 13 | | paid to teachers for that period. | 14 | | The additional 1% employee contribution required under | 15 | | Section 16-152 by Public Act 90-582 is the responsibility of | 16 | | the teacher and not the teacher's employer, unless the | 17 | | employer agrees, through collective bargaining or otherwise, | 18 | | to make the contribution on behalf of the teacher. | 19 | | If an employer is required by a contract in effect on May | 20 | | 1, 1998 between the employer and an employee organization to | 21 | | pay, on behalf of all its full-time employees covered by this | 22 | | Article, all mandatory employee contributions required under | 23 | | this Article, then the employer shall be excused from paying | 24 | | the employer contribution required under this subsection (e) | 25 | | for the balance of the term of that contract. The employer and | 26 | | the employee organization shall jointly certify to the System |
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| 1 | | the existence of the contractual requirement, in such form as | 2 | | the System may prescribe. This exclusion shall cease upon the | 3 | | termination, extension, or renewal of the contract at any time | 4 | | after May 1, 1998. | 5 | | (f) If the amount of a teacher's salary for any school year | 6 | | used to determine final average salary exceeds the member's | 7 | | annual full-time salary rate with the same employer for the | 8 | | previous school year by more than 6%, the teacher's employer | 9 | | shall pay to the System, in addition to all other payments | 10 | | required under this Section and in accordance with guidelines | 11 | | established by the System, the present value of the increase | 12 | | in benefits resulting from the portion of the increase in | 13 | | salary that is in excess of 6%. This present value shall be | 14 | | computed by the System on the basis of the actuarial | 15 | | assumptions and tables used in the most recent actuarial | 16 | | valuation of the System that is available at the time of the | 17 | | computation. If a teacher's salary for the 2005-2006 school | 18 | | year is used to determine final average salary under this | 19 | | subsection (f), then the changes made to this subsection (f) | 20 | | by Public Act 94-1057 shall apply in calculating whether the | 21 | | increase in his or her salary is in excess of 6%. For the | 22 | | purposes of this Section, change in employment under Section | 23 | | 10-21.12 of the School Code on or after June 1, 2005 shall | 24 | | constitute a change in employer. The System may require the | 25 | | employer to provide any pertinent information or | 26 | | documentation. The changes made to this subsection (f) by |
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| 1 | | Public Act 94-1111 apply without regard to whether the teacher | 2 | | was in service on or after its effective date. | 3 | | Whenever it determines that a payment is or may be | 4 | | required under this subsection, the System shall calculate the | 5 | | amount of the payment and bill the employer for that amount. | 6 | | The bill shall specify the calculations used to determine the | 7 | | amount due. If the employer disputes the amount of the bill, it | 8 | | may, within 30 days after receipt of the bill, apply to the | 9 | | System in writing for a recalculation. The application must | 10 | | specify in detail the grounds of the dispute and, if the | 11 | | employer asserts that the calculation is subject to subsection | 12 | | (g), (g-5), (g-10), (g-15), (g-20), (g-25), or (h) of this | 13 | | Section, must include an affidavit setting forth and attesting | 14 | | to all facts within the employer's knowledge that are | 15 | | pertinent to the applicability of that subsection. Upon | 16 | | receiving a timely application for recalculation, the System | 17 | | shall review the application and, if appropriate, recalculate | 18 | | the amount due. | 19 | | The employer contributions required under this subsection | 20 | | (f) may be paid in the form of a lump sum within 90 days after | 21 | | receipt of the bill. If the employer contributions are not | 22 | | paid within 90 days after receipt of the bill, then interest | 23 | | will be charged at a rate equal to the System's annual | 24 | | actuarially assumed rate of return on investment compounded | 25 | | annually from the 91st day after receipt of the bill. Payments | 26 | | must be concluded within 3 years after the employer's receipt |
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| 1 | | of the bill. | 2 | | (f-1) (Blank). | 3 | | (g) This subsection (g) applies only to payments made or | 4 | | salary increases given on or after June 1, 2005 but before July | 5 | | 1, 2011. The changes made by Public Act 94-1057 shall not | 6 | | require the System to refund any payments received before July | 7 | | 31, 2006 (the effective date of Public Act 94-1057). | 8 | | When assessing payment for any amount due under subsection | 9 | | (f), the System shall exclude salary increases paid to | 10 | | teachers under contracts or collective bargaining agreements | 11 | | entered into, amended, or renewed before June 1, 2005. | 12 | | When assessing payment for any amount due under subsection | 13 | | (f), the System shall exclude salary increases paid to a | 14 | | teacher at a time when the teacher is 10 or more years from | 15 | | retirement eligibility under Section 16-132 or 16-133.2. | 16 | | When assessing payment for any amount due under subsection | 17 | | (f), the System shall exclude salary increases resulting from | 18 | | overload work, including summer school, when the school | 19 | | district has certified to the System, and the System has | 20 | | approved the certification, that (i) the overload work is for | 21 | | the sole purpose of classroom instruction in excess of the | 22 | | standard number of classes for a full-time teacher in a school | 23 | | district during a school year and (ii) the salary increases | 24 | | are equal to or less than the rate of pay for classroom | 25 | | instruction computed on the teacher's current salary and work | 26 | | schedule. |
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| 1 | | When assessing payment for any amount due under subsection | 2 | | (f), the System shall exclude a salary increase resulting from | 3 | | a promotion (i) for which the employee is required to hold a | 4 | | certificate or supervisory endorsement issued by the State | 5 | | Teacher Certification Board that is a different certification | 6 | | or supervisory endorsement than is required for the teacher's | 7 | | previous position and (ii) to a position that has existed and | 8 | | been filled by a member for no less than one complete academic | 9 | | year and the salary increase from the promotion is an increase | 10 | | that results in an amount no greater than the lesser of the | 11 | | average salary paid for other similar positions in the | 12 | | district requiring the same certification or the amount | 13 | | stipulated in the collective bargaining agreement for a | 14 | | similar position requiring the same certification. | 15 | | When assessing payment for any amount due under subsection | 16 | | (f), the System shall exclude any payment to the teacher from | 17 | | the State of Illinois or the State Board of Education over | 18 | | which the employer does not have discretion, notwithstanding | 19 | | that the payment is included in the computation of final | 20 | | average salary. | 21 | | (g-5) When assessing payment for any amount due under | 22 | | subsection (f), the System shall exclude salary increases | 23 | | resulting from overload or stipend work performed in a school | 24 | | year subsequent to a school year in which the employer was | 25 | | unable to offer or allow to be conducted overload or stipend | 26 | | work due to an emergency declaration limiting such activities. |
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| 1 | | (g-10) When assessing payment for any amount due under | 2 | | subsection (f), the System shall exclude salary increases | 3 | | resulting from increased instructional time that exceeded the | 4 | | instructional time required during the 2019-2020 school year. | 5 | | (g-15) When assessing payment for any amount due under | 6 | | subsection (f), the System shall exclude salary increases | 7 | | resulting from teaching summer school on or after May 1, 2021 | 8 | | and before September 15, 2022. | 9 | | (g-20) When assessing payment for any amount due under | 10 | | subsection (f), the System shall exclude salary increases | 11 | | necessary to bring a school board in compliance with Public | 12 | | Act 101-443 or this amendatory Act of the 103rd General | 13 | | Assembly. | 14 | | (g-25) When assessing payment for any amount due under | 15 | | subsection (f), the System shall exclude any stipends paid to | 16 | | an eligible cooperating teacher under Section 9.44 of the | 17 | | Board of Higher Education Act. | 18 | | (h) When assessing payment for any amount due under | 19 | | subsection (f), the System shall exclude any salary increase | 20 | | described in subsection (g) of this Section given on or after | 21 | | July 1, 2011 but before July 1, 2014 under a contract or | 22 | | collective bargaining agreement entered into, amended, or | 23 | | renewed on or after June 1, 2005 but before July 1, 2011. | 24 | | Notwithstanding any other provision of this Section, any | 25 | | payments made or salary increases given after June 30, 2014 | 26 | | shall be used in assessing payment for any amount due under |
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| 1 | | subsection (f) of this Section. | 2 | | (i) The System shall prepare a report and file copies of | 3 | | the report with the Governor and the General Assembly by | 4 | | January 1, 2007 that contains all of the following | 5 | | information: | 6 | | (1) The number of recalculations required by the | 7 | | changes made to this Section by Public Act 94-1057 for | 8 | | each employer. | 9 | | (2) The dollar amount by which each employer's | 10 | | contribution to the System was changed due to | 11 | | recalculations required by Public Act 94-1057. | 12 | | (3) The total amount the System received from each | 13 | | employer as a result of the changes made to this Section by | 14 | | Public Act 94-4. | 15 | | (4) The increase in the required State contribution | 16 | | resulting from the changes made to this Section by Public | 17 | | Act 94-1057. | 18 | | (i-5) For school years beginning on or after July 1, 2017, | 19 | | if the amount of a participant's salary for any school year | 20 | | exceeds the amount of the salary set for the Governor, the | 21 | | participant's employer shall pay to the System, in addition to | 22 | | all other payments required under this Section and in | 23 | | accordance with guidelines established by the System, an | 24 | | amount determined by the System to be equal to the employer | 25 | | normal cost, as established by the System and expressed as a | 26 | | total percentage of payroll, multiplied by the amount of |
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| 1 | | salary in excess of the amount of the salary set for the | 2 | | Governor. This amount shall be computed by the System on the | 3 | | basis of the actuarial assumptions and tables used in the most | 4 | | recent actuarial valuation of the System that is available at | 5 | | the time of the computation. The System may require the | 6 | | employer to provide any pertinent information or | 7 | | documentation. | 8 | | Whenever it determines that a payment is or may be | 9 | | required under this subsection, the System shall calculate the | 10 | | amount of the payment and bill the employer for that amount. | 11 | | The bill shall specify the calculations used to determine the | 12 | | amount due. If the employer disputes the amount of the bill, it | 13 | | may, within 30 days after receipt of the bill, apply to the | 14 | | System in writing for a recalculation. The application must | 15 | | specify in detail the grounds of the dispute. Upon receiving a | 16 | | timely application for recalculation, the System shall review | 17 | | the application and, if appropriate, recalculate the amount | 18 | | due. | 19 | | The employer contributions required under this subsection | 20 | | may be paid in the form of a lump sum within 90 days after | 21 | | receipt of the bill. If the employer contributions are not | 22 | | paid within 90 days after receipt of the bill, then interest | 23 | | will be charged at a rate equal to the System's annual | 24 | | actuarially assumed rate of return on investment compounded | 25 | | annually from the 91st day after receipt of the bill. Payments | 26 | | must be concluded within 3 years after the employer's receipt |
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| 1 | | of the bill. | 2 | | (j) For purposes of determining the required State | 3 | | contribution to the System, the value of the System's assets | 4 | | shall be equal to the actuarial value of the System's assets, | 5 | | which shall be calculated as follows: | 6 | | As of June 30, 2008, the actuarial value of the System's | 7 | | assets shall be equal to the market value of the assets as of | 8 | | that date. In determining the actuarial value of the System's | 9 | | assets for fiscal years after June 30, 2008, any actuarial | 10 | | gains or losses from investment return incurred in a fiscal | 11 | | year shall be recognized in equal annual amounts over the | 12 | | 5-year period following that fiscal year. | 13 | | (k) For purposes of determining the required State | 14 | | contribution to the system for a particular year, the | 15 | | actuarial value of assets shall be assumed to earn a rate of | 16 | | return equal to the system's actuarially assumed rate of | 17 | | return. | 18 | | (Source: P.A. 102-16, eff. 6-17-21; 102-525, eff. 8-20-21; | 19 | | 102-558, eff. 8-20-21; 102-813, eff. 5-13-22; 103-515, eff. | 20 | | 8-11-23.) | 21 | | (40 ILCS 5/16-203) | 22 | | Sec. 16-203. Application and expiration of new benefit | 23 | | increases. | 24 | | (a) As used in this Section, "new benefit increase" means | 25 | | an increase in the amount of any benefit provided under this |
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| 1 | | Article, or an expansion of the conditions of eligibility for | 2 | | any benefit under this Article, that results from an amendment | 3 | | to this Code that takes effect after June 1, 2005 (the | 4 | | effective date of Public Act 94-4). "New benefit increase", | 5 | | however, does not include any benefit increase resulting from | 6 | | the changes made to Article 1 or this Article by Public Act | 7 | | 95-910, Public Act 100-23, Public Act 100-587, Public Act | 8 | | 100-743, Public Act 100-769, Public Act 101-10, Public Act | 9 | | 101-49, Public Act 102-16, or Public Act 102-871 , or this | 10 | | amendatory Act of the 103rd General Assembly . | 11 | | (b) Notwithstanding any other provision of this Code or | 12 | | any subsequent amendment to this Code, every new benefit | 13 | | increase is subject to this Section and shall be deemed to be | 14 | | granted only in conformance with and contingent upon | 15 | | compliance with the provisions of this Section. | 16 | | (c) The Public Act enacting a new benefit increase must | 17 | | identify and provide for payment to the System of additional | 18 | | funding at least sufficient to fund the resulting annual | 19 | | increase in cost to the System as it accrues. | 20 | | Every new benefit increase is contingent upon the General | 21 | | Assembly providing the additional funding required under this | 22 | | subsection. The Commission on Government Forecasting and | 23 | | Accountability shall analyze whether adequate additional | 24 | | funding has been provided for the new benefit increase and | 25 | | shall report its analysis to the Public Pension Division of | 26 | | the Department of Insurance. A new benefit increase created by |
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| 1 | | a Public Act that does not include the additional funding | 2 | | required under this subsection is null and void. If the Public | 3 | | Pension Division determines that the additional funding | 4 | | provided for a new benefit increase under this subsection is | 5 | | or has become inadequate, it may so certify to the Governor and | 6 | | the State Comptroller and, in the absence of corrective action | 7 | | by the General Assembly, the new benefit increase shall expire | 8 | | at the end of the fiscal year in which the certification is | 9 | | made. | 10 | | (d) Every new benefit increase shall expire 5 years after | 11 | | its effective date or on such earlier date as may be specified | 12 | | in the language enacting the new benefit increase or provided | 13 | | under subsection (c). This does not prevent the General | 14 | | Assembly from extending or re-creating a new benefit increase | 15 | | by law. | 16 | | (e) Except as otherwise provided in the language creating | 17 | | the new benefit increase, a new benefit increase that expires | 18 | | under this Section continues to apply to persons who applied | 19 | | and qualified for the affected benefit while the new benefit | 20 | | increase was in effect and to the affected beneficiaries and | 21 | | alternate payees of such persons, but does not apply to any | 22 | | other person, including, without limitation, a person who | 23 | | continues in service after the expiration date and did not | 24 | | apply and qualify for the affected benefit while the new | 25 | | benefit increase was in effect. | 26 | | (Source: P.A. 102-16, eff. 6-17-21; 102-558, eff. 8-20-21; |
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| 1 | | 102-813, eff. 5-13-22; 102-871, eff. 5-13-22; 103-154, eff. | 2 | | 6-30-23.) | 3 | | Section 10. The Board of Higher Education Act is amended | 4 | | by adding Section 9.44 as follows: | 5 | | (110 ILCS 205/9.44 new) | 6 | | Sec. 9.44. Student teaching stipend program. | 7 | | (a) As used in this Section: | 8 | | "Educator preparation program" means an approved educator | 9 | | preparation program offered by a recognized school or | 10 | | institution under Article 21B of the School Code. | 11 | | "Eligible cooperating teacher" means a teacher who is | 12 | | licensed under Article 21B of the School Code or has attained | 13 | | the Department of Human Services' Gateways to Opportunity | 14 | | Early Childhood Education Credential Level 5 or 6, who is | 15 | | qualified to teach in the subject area assigned, and who is | 16 | | matched with an eligible student. | 17 | | "Eligible student" means a student who is enrolled in an | 18 | | educator preparation program, who is maintaining satisfactory | 19 | | academic progress, who intends to teach in this State, who is | 20 | | placed as a student teacher, and who is not contracted as the | 21 | | teacher of record for the student teaching placement. | 22 | | "Student teaching" means a supervised clinical experience | 23 | | that prepares a candidate to take full responsibility in an | 24 | | instructional setting. |
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| 1 | | (b) Subject to appropriation, the Board shall create a | 2 | | student teaching stipend program to alleviate the financial | 3 | | burden of student teaching, to encourage students to pursue | 4 | | teaching careers to alleviate this State's teacher shortage, | 5 | | and to encourage teachers to be matched with student teachers. | 6 | | (c) An educator preparation program shall notify the Board | 7 | | of all eligible students and eligible cooperating teachers who | 8 | | qualify for the stipend program. | 9 | | (d) Under the stipend program and subject to available | 10 | | appropriations, the Board shall disburse to each educator | 11 | | preparation program funds to distribute to each eligible | 12 | | student a stipend of up to $10,000 per semester for up to 2 | 13 | | consecutive semesters, plus additional funds to pay the direct | 14 | | costs of operating the stipend program. The educator | 15 | | preparation program shall distribute stipend funds using the | 16 | | standard methods for allocating State-based financial aid or | 17 | | as wages for employment to each eligible student in monthly | 18 | | installments. | 19 | | (e) If there is a surplus appropriated in a fiscal year for | 20 | | the stipend program, then the Board shall increase the amount | 21 | | distributed to each educator preparation program by the same | 22 | | percentage that the surplus bears to the amount required to | 23 | | fully fund the total number of eligible students who qualify | 24 | | for the stipend program that fiscal year. An educator | 25 | | preparation program shall increase the stipend amount | 26 | | distributed to each eligible student in proportion to the |
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| 1 | | surplus. | 2 | | (f) If the amount appropriated in a fiscal year for the | 3 | | stipend program is insufficient to fully fund stipends for the | 4 | | total number of eligible students for that fiscal year, then | 5 | | the Board shall prioritize eligible students based on | 6 | | demonstrated financial need reported by each educator | 7 | | preparation program. | 8 | | (g) Funds not distributed in a particular fiscal year by | 9 | | an educator preparation program under this Section shall be | 10 | | returned to the Board to be used for the subsequent fiscal | 11 | | year's stipend program. | 12 | | (h) An educator preparation program may not prohibit an | 13 | | eligible student from participating in the stipend program or | 14 | | from receiving a stipend from the stipend program. | 15 | | (i) Under the stipend program and subject to available | 16 | | appropriations, the Board shall disburse funds to the State | 17 | | Board of Education, who shall disburse funds to each school | 18 | | district or early childhood education provider employing an | 19 | | eligible cooperating teacher funds to distribute to each | 20 | | eligible cooperating teacher a stipend of up to $2,000 per | 21 | | semester for up to 2 consecutive semesters per academic year. | 22 | | The school district or early childhood education provider | 23 | | shall distribute stipend funds to an eligible cooperating | 24 | | teacher in one payment. | 25 | | (j) An eligible cooperating teacher who receives a stipend | 26 | | must complete State-approved, evidence-based training that |
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| 1 | | aligns with training for instructional coaches, covers basic | 2 | | responsibilities of a cooperating teacher, includes | 3 | | evidence-based practices in supporting student teachers in | 4 | | school or early childhood settings, and includes the effective | 5 | | assessment of student teachers that aligns with State educator | 6 | | performance evaluation requirements or the equivalent for | 7 | | early childhood education. The State Board of Education shall | 8 | | develop training that meets the criteria of this subsection | 9 | | available to cooperating teachers. | 10 | | (k) If there is a surplus appropriated in a fiscal year for | 11 | | the stipend program, then the Board shall increase the amount | 12 | | distributed by the same percentage that the surplus bears to | 13 | | the amount required to fully fund the total number of eligible | 14 | | cooperating teachers who qualify for the stipend program that | 15 | | fiscal year. A school district or early childhood education | 16 | | provider shall increase the stipend amount distributed to each | 17 | | eligible cooperating teacher in proportion to the surplus. | 18 | | (l) If the amount appropriated in a fiscal year for the | 19 | | stipend program is insufficient to fully fund stipends for the | 20 | | total number of eligible cooperating teachers for that fiscal | 21 | | year, then the Board shall reduce the amount distributed by | 22 | | the same percentage that the deficit bears to the amount | 23 | | required to fully fund the total number of eligible | 24 | | cooperating teachers who qualify for the stipend program. A | 25 | | school district or early childhood education provider shall | 26 | | reduce the stipend amount distributed to each eligible |
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| 1 | | cooperating teacher in proportion to the deficit. | 2 | | (m) Nothing in this Section is intended to preclude an | 3 | | educator preparation program from providing an eligible | 4 | | cooperating teacher with additional incentives. | 5 | | (n) An eligible cooperating teacher participating in the | 6 | | stipend program may receive professional development hours for | 7 | | completing cooperating teacher training that count toward the | 8 | | eligible cooperating teacher's license renewal or the | 9 | | equivalent for early childhood education. | 10 | | (o) Subject to available appropriations, the Board shall | 11 | | issue a report evaluating the impact of the stipend program on | 12 | | educator preparation programs, including enrollment and | 13 | | completion rates, hiring rates, and retention rates. The Board | 14 | | shall issue this report in collaboration with the State Board | 15 | | of Education. The Board shall submit this report to the | 16 | | General Assembly and Governor on or before June 30 of the | 17 | | fiscal year following the third consecutive fiscal year during | 18 | | which the stipend program has received funding of at least | 19 | | $2,000,000. | 20 | | (p) The Board shall provide guidance and technical | 21 | | assistance to educator preparation programs on the | 22 | | administration of the stipend program. | 23 | | (q) The Board shall adopt rules regarding the | 24 | | administration of the stipend program, including, but not | 25 | | limited to, the allocation of funds for the stipend program. |
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| 1 | | Section 99. Effective date. This Act takes effect upon | 2 | | becoming law.". |
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