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|[ Senate Amendment 001 ]|
90_HB0313sam002 SDS/90HB0313pam1/bkp 1 AMENDMENT TO HOUSE BILL 313 2 AMENDMENT NO. . Amend House Bill 313, with page and 3 line references to Senate Amendment No.1, on page 1, line 12, 4 by deleting "and 17-116.1" and inserting "17-106, 17-115, 5 17-116.1, 17-117, 17-117.1, 17-120, 17-122, 17-134, 17-146, 6 17-146.1 and 17-149"; and 7 on page 118 by inserting after line 30 the following: 8 "(40 ILCS 5/17-106) (from Ch. 108 1/2, par. 17-106) 9 Sec. 17-106. Contributor, member or teacher. 10 "Contributor", "member" or "teacher": All members of the 11 teaching force of the city, including principals, assistant 12 principals, the general superintendent of schools, deputy 13 superintendents of schools, associate superintendents of 14 schools, assistant and district superintendents of schools, 15 members of the Board of Examiners, all other persons whose 16 employment requires a teaching certificate issued by the 17 Board of Examiners, any educational, administrative, 18 professional, or other staff employed in a charter school 19 operating in compliance with the Charter Schools Law who is 20 certified under the law governing the certification of 21 teachers, and employees of the Board of Trustees, but 22 excluding persons contributing concurrently to any other 23 public employee pension system in Illinois or receiving -2- SDS/90HB0313pam1/bkp 1 retirement pensions under another Article of this Code 2 (unless the person's eligibility to participate in that other 3 pension system arises from the holding of an elective public 4 office, and the person has held that public office for at 5 least 10 years), persons employed on an hourly basis, and 6 persons receiving pensions from the fund who are employed 7 temporarily by the Board of Education for 100
75days or less 8 in any school year and not on an annual basis. 9 In the case of a person who has been making contributions 10 and otherwise participating in this Fund prior to the 11 effective date of this amendatory Act of 1991, and whose 12 right to participate in the Fund is established or confirmed 13 by this amendatory Act, such prior participation in the Fund, 14 including all contributions previously made and service 15 credits previously earned by the person, are hereby 16 validated. 17 (40 ILCS 5/17-115) (from Ch. 108 1/2, par. 17-115) 18 Sec. 17-115. Eligibility for service retirement pension. 19 (a) The Board shall find a contributor eligible for 20 service retirement pension when he has: 21 (1) 1.Left the employment of the Board of 22 Education or the board after completing 5 or more years 23 of service , or has been retired compulsorily as a regular24 teacher because of age. 25 (2) 2.Contributed to the fund the total sums 26 provided in this Article. 27 (3) 3.Contributed as a member of the teaching 28 force in the public schools of the City or to the State 29 Universities Retirement System or to the Teachers' 30 Retirement System of the State of Illinois during the 31 last 5 years of his term of service. 32 (4) 4.Filed a written application for pension. 33 (b) In computing the years of service for which annuity -3- SDS/90HB0313pam1/bkp 1 is granted, the following conditions shall apply: 2 (1) 1.No more than 10 years of teaching service in 3 public schools of the several states or in schools 4 operated by or under the auspices of the United States 5 shall be allowed. This maximum shall be reduced by the 6 service credit which is validated under paragraph (i) of 7 Section 15-113 and paragraph (3) of Section 16-127 of 8 this Code. Three-fifths of the term of service for which 9 an annuity is granted shall have been rendered in the 10 public schools of the city. No portion of any such 11 service shall be included in the total period of service 12 for which a pension is payable or paid by some other 13 public retirement system; provided that this shall not 14 apply to any benefit payable only after the teacher's 15 death or to any compensation or annuity paid by the Board 16 of Education after retirement from active service. 17 (2) 2.Up to No more than5 years of military 18 active service, if preceded by service as a teacher under 19 this fund or under Article 16, shall be included in the 20 total period of service even though it can otherwise be 21 used in the computation of a pension or other benefit 22 provided for service in any branch of the armed forces of 23 the United States. 24 (Source: P.A. 83-803.)"; and 25 on page 121 by inserting after line 17 the following: 26 "(40 ILCS 5/17-117) (from Ch. 108 1/2, par. 17-117) 27 Sec. 17-117. Disability retirement pension. 28 (a) The conditions prescribed in items 1 and 2 in 29 Section 17-116 for computing service retirement pensions 30 shall apply in the computation of disability retirement 31 pensions. 32 (1) 1.Each teacher retired or retiring after 10 33 years of service and with less than 20 years of service -4- SDS/90HB0313pam1/bkp 1 because of permanent disability not incurred as a 2 proximate result of the performance of duty shall receive 3 a disability retirement pension equal to 1 2/3% of 4 average salary for each year of service. 5 (2) 2.If the total service is 20 years and less 6 than 25 years and the teacher's age is under 55, the 7 disability retirement pension shall equal a service 8 retirement pension discounted 1/2 of 1% for each month 9 the age of the contributor is less than 55 down to a 10 minimum age of 50 years, provided the disability 11 retirement pension so computed shall not be less than the 12 amount payable under paragraph 1. 13 (3) 3.If the total service is 20 years or more and 14 the teacher has attained age 55, and is under age 60, a 15 disability retirement pension shall equal a service 16 retirement pension without discount. 17 (4) 4.If the total service is 25 years or more 18 regardless of age, a disability pension shall equal a 19 service retirement pension without discount. 20 (5) 5.If the total service is 20 years or more and 21 the teacher is age 60 or over, a service retirement 22 pension shall be payable. 23 (b) For disability retirement pensions, the following 24 further conditions shall apply: 25 (1) 1.Written application shall be submitted 26 within 3 years from the date of separation. 27 (2) 2.The applicant shall submit to examination by 28 physicians appointed by the board within one year from 29 the date of their appointment. 30 (3) 3.Two physicians, appointed by the board, 31 shall declare the applicant to be suffering from a 32 disability which wholly and presumably permanently 33 incapacitates him for teaching or for service as an 34 employee of the board. In the event of disagreement by -5- SDS/90HB0313pam1/bkp 1 the physicians, a third physician, appointed by the 2 board, shall declare the applicant wholly and presumably 3 permanently incapacitated. 4 (c) Disability retirement pensions shall begin on the 5 effective date of resignation or the day following the close 6 of the payroll period for which credit was validated, 7 whichever is later. 8 (Source: P.A. 86-1488.) 9 (40 ILCS 5/17-117.1) (from Ch. 108 1/2, par. 17-117.1) 10 Sec. 17-117.1. Duty disability. A teacher who becomes 11 wholly and presumably permanently totallyincapacitated for 12 duty while under age 65 as the proximate result of injuries 13 sustained or a hazardous condition encountered in the 14 performance and within the scope of his duties, if such 15 injury or hazard was not the result of his own negligence, 16 shall be entitled to a duty disability benefit, provided: 17 (1) application for the benefit is made to the 18 Board not more than 6 months after a final settlement or 19 an award from the Industrial Commission or within 6 20 months of the manifestation of an injury or illness that 21 can be traced directly to an injury or illness for which 22 a claim was filed with the Industrial Commission the23 occurrence of an injury disability or 6 months after the24 occurrence of disablement if an occupational disease; 25 (2) certification is received from 2 or more 26 physicians designated by the board that the teacher is 27 physically incapacitated for teaching service; and 28 (3) the teacher provides the Board with a copy of 29 the notice of the occurrence that was filed with the 30 Board of Education within the time provided by law 31 resulting in disability is filed with the board within 9032 days of the date thereof. 33 The benefit shall be payable during disability and shall -6- SDS/90HB0313pam1/bkp 1 be 75% of the salary in effect at date of disability, payable 2 until the teacher's attainment of age 65. At such time if 3 disability still exists, the teacher shall become entitled to 4 a service retirement pension. Creditable service shall accrue 5 during the period the disability benefit is payable. 6 Before any action is taken by the board on an application 7 for a duty disability benefit, the teacher shall file a claim 8 with the Industrial Commission to establish that the 9 disability was incurred while the teacher was acting within 10 the scope of and in the course of his duties under the terms 11 of the Workers' Compensation or Occupational Diseases Acts, 12 whichever may be applicable. The benefit shall be payable 13 after a finding by the Commission that the claim was 14 compensable under either of the aforesaid Acts; but if such 15 finding is appealed the benefit shall be payable only upon 16 affirmance of the Commission's finding. After the teacher has 17 made timely application for a duty disability benefit 18 supported by the certificate of two or more physicians, he 19 shall be entitled to a disability retirement pension provided 20 in Section 17-117 of this Act until such time as the 21 Industrial Commission award finding that his disability is 22 duty-connected as provided in this Section becomes final. 23 Any amounts provided for the teacher under such Acts 24 shall be applied as an offset to the duty disability benefit 25 payable hereunder in such manner as may be prescribed by the 26 rules of the board. 27 (Source: P.A. 81-992.) 28 (40 ILCS 5/17-120) (from Ch. 108 1/2, par. 17-120) 29 Sec. 17-120. Reversionary pension. Any contributor, at 30 any time prior to retirement on a service retirement pension, 31 may exercise an option of taking a lesser amount of service 32 retirement pension and providing with the remainder of his 33 equity, determined on an actuarial equivalent basis, a -7- SDS/90HB0313pam1/bkp 1 reversionary pension benefit for any person named in a 2 written designation filed by the contributor with the board, 3 provided that the pension resulting from such election is not 4 less than $40 per month, or more than the reduced pension 5 payable after the exercise of the option. If the reduced 6 pension to the retired teacher is less than that provided for 7 a beneficiary, whether or not the aforesaid minimum amount is 8 payable, the election shall be void. 9 The pension to a beneficiary shall begin on the first day 10 of the month next following the month in which the retired 11 teacher dies. 12 If the beneficiary survives the date of retirement of the 13 teacher, but does not survive the retired teacher, no 14 reversionary pensions shall be payable, and no change shall15 be made in the rate of pension granted previously to the16 retired teacher if the reversionary annuity was elected prior17 to January 1, 1984. If the reversionary annuity was elected18 on or after January 1, 1984 and the beneficiary survives the19 date of retirement of the teacher, but does not survive the20 retired teacher,the teacher's service pension shall be 21 restored to the full service pension amount beginning on the 22 first day of the month next following the month in which the 23 beneficiary dies or on the effective date of this amendatory 24 Act of 1997, whichever occurs later , provided that the Board25 adopts actuarial factors that take into account the26 additional cost involved. 27 If the beneficiary dies after the suchelection but 28 before the retirement of the teacher, the election shall be 29 void. No change shall be permitted in the written 30 designation filed with the board. 31 In the case of a reversionary annuity elected on or after 32 January 1, 1984, no reversionary annuity shall be paid if the 33 teacher dies before the expiration of 730 days from the date 34 that a written designation was filed with the board, even -8- SDS/90HB0313pam1/bkp 1 though the teacher was receiving a reduced annuity. 2 Sections 1-103.1 and 17-157 do not apply to the changes 3 made to this Section by this amendatory Act of 1997. 4 (Source: P.A. 83-812.) 5 (40 ILCS 5/17-122) (from Ch. 108 1/2, par. 17-122) 6 Sec. 17-122. Survivor's and children's pensions - Amount. 7 Upon the death of a teacher who has completed at least 1 1/2 8 years of contributing service with either this Fund or the 9 State Universities Retirement System or the Teachers' 10 Retirement System of the State of Illinois, provided his 11 death occurred while (a) in active service covered by the 12 fund or during his first 18 months of continuous employment 13 without a break in service under any other participating 14 system as defined in the Illinois Retirement Systems 15 Reciprocal Act except the State Universities Retirement 16 System and the Teachers' Retirement System of the State of 17 Illinois, (b) on a creditable leave of absence, (c) on a 18 noncreditable leave of absence of no more than one year, or 19 (d) a pension was deferred or pending provided the teacher 20 had at least 10 years of validated service credit, or upon 21 the death of a pensioner otherwise qualified for such 22 benefit, the surviving spouse and unmarried minor children of 23 the deceased teacher under age 18 shall be entitled to 24 pensions, under the conditions stated hereinafter. Such 25 survivor's and children's pensions shall be based on the 26 average of the 4 highest consecutive years of salary in the 27 last 10 years of service or on the average salary for total 28 service, if total service has been less than 4 years, 29 according to the following percentages: 30 30% of average salary or 50% of the retirement pension 31 earned by the teacher, whichever is larger, subject to the 32 prescribed maximum monthly payment, for a surviving spouse 33 alone on attainment of age 50; -9- SDS/90HB0313pam1/bkp 1 60% of average salary for a surviving spouse and 2 eligible minor children of the deceased teacher. 3 If no eligible spouse survives, or the surviving spouse 4 remarries, or the parent of the children of the deceased 5 member is otherwise ineligible for a survivor's pension, a 6 children's pension for eligible minor children under age 18 7 shall be paid to their parent or legal guardian for their 8 benefit according to the following percentages: 9 30% of average salary for one child; 10 60% of average salary for 2 or more children. 11 On January 1, 1981, any survivor or child who was 12 receiving a survivor's or children's pension on or before 13 January 1, 1971, shall have his survivor's or children's 14 pension then being paid increased by 1% for each full year 15 which has elapsed from the date the pension began. On January 16 1, 1982, any survivor or child whose pension began after 17 January 1, 1971, but before January 1, 1981, shall have his 18 survivor's or children's pension then being paid increased 1% 19 for each full year which has elapsed from the date the 20 pension began. On January 1, 1987, any survivor or child 21 whose pension began on or before January 1, 1977, shall have 22 the monthly survivor's or children's pension increased by $1 23 for each full year which has elapsed since the pension began. 24 Beginning January 1, 1990, every survivor's and 25 children's pension shall be increased (1) on each January 1 26 occurring on or after the commencement of the pension if the 27 deceased teacher died while receiving a retirement pension, 28 or (2) in other cases, on each January 1 occurring on or 29 after the first anniversary of the commencement of the 30 pension, by an amount equal to 3% of the current amount of 31 the pension, including all increases previously granted under 32 this Article, notwithstanding Section 17-157. Such increases 33 shall apply without regard to whether the deceased teacher 34 was in service on or after the effective date of this -10- SDS/90HB0313pam1/bkp 1 amendatory Act of 1991, but shall not accrue for any period 2 prior to January 1, 1990. 3 Subject to the minimum established below, the maximum 4 amount of pension for a surviving spouse alone or one minor 5 child shall be $400 per month, and the maximum combined 6 pensions for a surviving spouse and children of the deceased 7 teacher shall be $600 per month, with individual pensions 8 adjusted for all beneficiaries pro rata to conform with this 9 limitation. If proration is unnecessary the minimum 10 survivor's and children's pensions shall be $40 per month. 11 The minimum total survivor's and children's pension payable 12 upon the death of a contributor or annuitant which occurs 13 after December 31, 1986, shall be 50% of the earned 14 retirement pension of such contributor or annuitant, 15 calculated without early retirement discount in the case of 16 death in service. 17 On death after retirement, the total survivor's and 18 children's pensions shall not exceed the monthly retirement 19 or disability pension paid to the deceased retirant. 20 Survivor's and children's benefits described in this Section 21 shall apply to all service and disability pensioners eligible 22 for a pension as of July 1, 1981. 23 (Source: P.A. 86-273; 86-1488.) 24 (40 ILCS 5/17-134) (from Ch. 108 1/2, par. 17-134) 25 Sec. 17-134. Contributions for leaves of absence; 26 military service; computing service. In computing service 27 for pension purposes the following periods of service shall 28 stand in lieu of a like number of years of teaching service 29 upon payment therefor in the manner hereinafter provided: (a) 30 time spent on sabbatical leaves of absence, sick leaves or 31 maternity or paternity leaves; (b) service with teacher or 32 labor organizations based upon special leaves of absence 33 therefor granted by the Board of Education; (c) a maximum of -11- SDS/90HB0313pam1/bkp 1 5 years spent in the military service of the United States, 2 of which up to 2 years may have been served outside the 3 pension period; (d) unused sick days at termination of 4 service to a maximum of 244 days; (e) time lost due to layoff 5 and curtailment of the school term from June 6 through June 6 21, 1976; and (f) time spent after June 30, 1982 as a member 7 of the Board of Education, if required to resign from an 8 administrative or teaching position in order to qualify as a 9 member of the Board of Education. 10 (1) 1.For time spent on or after September 6, 1948 11 on sabbatical leaves of absence or sick leaves, for which 12 salaries are paid, the Board of Education shall make 13 payroll deductions at the applicable rates in effect 14 during such periods. 15 (2) 2.For time spent on sabbatical or sick leaves 16 commencing on or after September 1, 1961, and for time 17 spent on maternity or paternity leaves, for which no 18 salaries are paid, teachers desiring credit therefor 19 shall pay the required contributions at the rates in 20 effect during such periods as though they were in 21 teaching service. If the Board of Education pays salary 22 for vacations which occur during a teacher's sick leave 23 or maternity or paternity leave without salary, vacation 24 pay for which the teacher would have qualified while in 25 active service shall be considered part of the teacher's 26 total salary for pension purposes. No more than 12 months 27 of sick leave or maternity or paternity leave credit may 28 be allowed any person during the entire term of service. 29 Sabbatical leave credit shall be limited to the time the 30 person on leave without salary under Board of Education 31 rules is allowed to engage in an activity for which he 32 receives salary or compensation. 33 (3) 3.For time spent prior to September 6, 1948, 34 on sabbatical leaves of absence or sick leaves for which -12- SDS/90HB0313pam1/bkp 1 salaries were paid, teachers desiring service credit 2 therefor shall pay the required contributions at the 3 maximum applicable rates in effect during such periods. 4 (4) 4.For service with teacher or labor 5 organizations authorized by special leaves of absence, 6 for which no payroll deductions are made by the Board of 7 Education, teachers desiring service credit therefor 8 shall contribute to the fund upon the basis of the actual 9 salary received from such organizations at the percentage 10 rates in effect during such periods for certified 11 positions with the Board of Education. To the extent the 12 actual salary exceeds the regular salary, which shall be 13 defined as the salary rate, as calculated by the board of 14 trustees, in effect for the teacher's regular position in 15 teaching service on September 1, 1983 or on the effective 16 date of the leave with the organization, whichever is 17 later, the organization shall pay to the fund the 18 employer's normal cost as set by the board of trustees on 19 the increment. 20 (5) 5.For time spent in the military service, 21 teachers entitled to and desiring credit therefor shall 22 contribute the amount required for each year of service 23 or fraction thereof at the rates in force (a) at the date 24 of appointment, or (b) on return to teaching service as a 25 regularly certified teacher, as the case may be; provided 26 such rates shall not be less than $450 per year of 27 service. These conditions shall apply unless the Board 28 of Education elects to and does pay into the fund the 29 amount which would have been due from such person had he 30 been employed as a teacher during such time. In the case 31 of credit for military service not during the pension 32 period, the teacher must also pay to the Fund an amount 33 determined by the board to be equal to the employer's 34 normal cost of the benefits accrued from such service, -13- SDS/90HB0313pam1/bkp 1 plus interest thereon at 5% per year, compounded 2 annually, from the date of appointment conclusion of the3 military serviceto the date of payment. 4 The changes to this Section made by Public Act 5 87-795 this amendatory Act of 1991shall apply not only 6 to persons who on or after its effective date are in 7 service under the Fund, but also to persons whose status 8 as a teacher terminated prior to that date, whether or 9 not the person is an annuitant on that date. In the case 10 of an annuitant who applies for credit allowable under 11 this Section for a period of military service that did 12 not immediately follow employment, and who has made the 13 required contributions for such credit, the annuity shall 14 be recalculated to include the additional service credit, 15 with the increase taking effect on the date the Fund 16 received written notification of the annuitant's intent 17 to purchase the credit, if payment of all the required 18 contributions is made within 60 days of such notice, or 19 else on the first annuity payment date following the date 20 of payment of the required contributions. In calculating 21 the automatic annual increase for an annuity that has 22 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. 27 The total credit for military service shall not 28 exceed 5 years, except that any teacher who on July 1, 29 1963, had validated credit for more than 5 years of 30 military service shall be entitled to the total amount of 31 such credit. 32 (6) 6.A maximum of 244 unused sick days credited 33 to his account by the Board of Education on the date of 34 termination of employment. Members, upon verification of -14- SDS/90HB0313pam1/bkp 1 unused sick days, may add this service time to total 2 creditable service. 3 (7) 7.In all cases where time spent on leave is 4 creditable and no payroll deductions therefor are made by 5 the Board of Education, persons desiring service credit 6 shall make the required contributions directly to the 7 fund. 8 (8) 8.For time lost without pay due to layoff and 9 curtailment of the school term from June 6 through June 10 21, 1976, as provided in item (e) of the first paragraph 11 of this Section, persons who were contributors on the 12 days immediately preceding such layoff shall receive 13 credit upon paying to the Fund a contribution based on 14 the rates of compensation and employee contributions in 15 effect at the time of such layoff, together with an 16 additional amount equal to 12.2% of the compensation 17 computed for such period of layoff, plus interest on the 18 entire amount at 5% per annum from January 1, 1978 to the 19 date of payment. If such contribution is paid, salary 20 for pension purposes for any year in which such a layoff 21 occurred shall include the compensation recognized for 22 purposes of computing that contribution. 23 (9) 9.For time spent after June 30, 1982, as a 24 nonsalaried member of the Board of Education, if required 25 to resign from an administrative or teaching position in 26 order to qualify as a member of the Board of Education, 27 an administrator or teacher desiring credit therefor 28 shall pay the required contributions at the rates and 29 salaries in effect during such periods as though the 30 member were in service. 31 Effective September 1, 1974, the interest charged for 32 validation of service described in paragraphs (2) through (5) 33 sub-paragraphs 2 through 5of this Section shall be 34 compounded annually at a rate of 5% commencing one year after -15- SDS/90HB0313pam1/bkp 1 the termination of the leave ,or return to service. 2 (Source: P.A. 86-272; 86-1488; 87-794.) 3 (40 ILCS 5/17-146) (from Ch. 108 1/2, par. 17-146) 4 Sec. 17-146. To make investments. To invest the moneys 5 of the fund, subject to the requirements and restrictions set 6 forth in this Article and in Sections 1-109, 1-109.1, 7 1-109.2, 1-110, 1-111, 1-114 and 1-115. The total book value8 of all stocks and convertible debt owned by the fund shall9 not exceed 50% of the aggregate book value of all investments10 of the fund, calculated on the basis of amortized cost.11 No bank or savings and loan association shall receive 12 investment funds as permitted by this Section, unless it has 13 complied with the requirements established pursuant to 14 Section 6 of the Public Funds Investment Act. Those 15 requirements shall be applicable only at the time of 16 investment and shall not require the liquidation of any 17 investment at any time. 18 The board shall have the authority to enter into any 19 agreements and to execute any documents that it determines to 20 be necessary to complete any investment transaction. 21 All investments shall be clearly held and accounted for 22 to indicate ownership by the fund. The board may direct the 23 registration of securities or the holding of interests in 24 real property in the name of the fund or in the name of a 25 nominee created for the express purpose of registering 26 securities or holding interests in real property by a 27 national or state bank or trust company authorized to conduct 28 a trust business in the State of Illinois. The board may 29 hold title to interests in real property in the name of the 30 fund or in the name of a title holding corporation created 31 for the express purpose of holding title to interests in real 32 property. 33 Investments shall be carried at cost or at a bookvalue -16- SDS/90HB0313pam1/bkp 1 determined in accordance with generally accepted accounting 2 principles and accounting procedures approved by the board. 3 No adjustments shall be made in investment carrying values4 for ordinary current market price fluctuations, but reserves5 may be provided to account for possible losses or unrealized6 gains.7 The bookvalue of investments held by the fund in one or 8 more commingled investment accounts shall be determined in 9 accordance with generally accepted accounting principles the10 cost of its units of participation in those commingled11 account or accounts. 12 The board of trustees of any fund established under this 13 Article may not transfer its investment authority, nor 14 transfer the assets of the fund to any other person or entity 15 for the purpose of consolidating or merging its assets and 16 management with any other pension fund or public investment 17 authority, unless the board resolution authorizing such 18 transfer is submitted for approval to the contributors and 19 pensioners of the fund at elections held not less than 30 20 days after the adoption of such resolution by the board, and 21 such resolution is approved by a majority of the votes cast 22 on the question in both the contributors election and the 23 pensioners election. The election procedures and 24 qualifications governing the election of trustees shall 25 govern the submission of resolutions for approval under this 26 paragraph, insofar as they may be made applicable. 27 (Source: P.A. 89-636, eff. 8-9-96.) 28 (40 ILCS 5/17-146.1) (from Ch. 108 1/2, par. 17-146.1) 29 Sec. 17-146.1. Participation in commingled investment 30 funds; transfer of investment functions and securities. 31 (a) The retirement board may invest in any commingled 32 investment fund or funds established and maintained by the 33 Illinois State Board of Investment under the provisions of -17- SDS/90HB0313pam1/bkp 1 Article 22A of this Code. The book value of all commingled2 equity participations plus the book value of other stock3 investments owned by this system shall not exceed the maximum4 permissible percentage rate for equity investments prescribed5 in Section 17-146.All commingled fund participations shall 6 be subject to the law governing the Illinois State Board of 7 Investment and the rules, policies and directives of that 8 Board. 9 (b) The retirement board may, by resolution duly adopted 10 by a majority vote of its membership, transfer to the 11 Illinois State Board of Investment created by Article 22A of 12 this Code, for management and administration, all investments 13 owned by the Fund of every kind and character. Upon 14 completion of such transfer, the authority of the retirement 15 board to make investments shall terminate. Thereafter, all 16 investments of the reserves of the Fund shall be made by the 17 Illinois State Board of Investment in accordance with the 18 provisions of Article 22A of this Code. 19 Such transfer shall be made not later than the first day 20 of the fourth month next following the date of such 21 resolution. Before such transfer an audit of such investments 22 shall be completed by a certified public accountant selected 23 by the Illinois State Board of Investment and approved by the 24 Auditor General of the State of Illinois. The expense of such 25 audit shall be defrayed by the retirement board. 26 (Source: P. A. 78-645.) 27 (40 ILCS 5/17-149) (from Ch. 108 1/2, par. 17-149) 28 Sec. 17-149. Cancellation of pensions. 29 If any person receiving a service or disability 30 retirement pension from the fund is re-employed as a teacher 31 by the Board of Education, the pension shall be cancelled on 32 the date the re-employment begins, or on the first day of a 33 payroll period for which service credit was validated, -18- SDS/90HB0313pam1/bkp 1 whichever is earlier. However, beginning August 23, 1989, 2 the pension shall not be cancelled in case of a service 3 retirement pensioner who is temporarily re-employed for not 4 more than 100 75days during any school year or on an hourly 5 basis and is not a contributor, provided the pensioner does 6 not receive salary in any school year of an amount more than 7 that payable to a substitute teacher for 100 75days' 8 employment. A service retirement pensioner who is 9 temporarily re-employed for not more than 100 days during any 10 school year or on an hourly basis shall be entitled, at the 11 end of the school year, to a refund of any contributions made 12 to the fund during that school year. 13 If the pensioner does receive salary from the Board of 14 Education in any school year for more than 100 75days' 15 employment and then is reinstated as a contributor to the16 fund, the pensioner shall be deemed to have returned to 17 service on the first day of employment as a 18 pensioner-substitute. The pensioner shall reimburse the fund 19 for pension payments received after the return to service and 20 shall pay to the fund the participant's contributions 21 prescribed in Section 17-130 of this Article. 22 If the date of re-employment occurs within 5 school 23 months after the date of previous retirement, exclusive of 24 any vacation period, the member shall be deemed to have been 25 out of service only temporarily and not permanently retired. 26 Such person shall be entitled to pension payments for the 27 time he could have been employed as a teacher and received 28 salary, but shall not be entitled to pension for or during 29 the summer vacation prior to his return to service. 30 When the member again retires on pension, the time of 31 service and the money contributed by him during re-employment 32 shall be added to the time and money previously credited. 33 Such person must acquire 3 consecutive years of additional 34 contributing service before he may retire again on a pension -19- SDS/90HB0313pam1/bkp 1 at a rate and under conditions other than those in force or 2 attained at the time of his previous retirement. 3 Notwithstanding Sections 1-103.1 and 17-157, the changes 4 to this Section made by this amendatory Act of 1997 shall 5 apply without regard to whether termination of service 6 occurred before the effective date of this amendatory Act and 7 shall apply retroactively to August 23, 1989. 8 (Source: P.A. 76-742.)".
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