State of Illinois
90th General Assembly

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[ Senate Amendment 001 ]


 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 75 days 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 regular
24        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  than  5 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 totally  incapacitated  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  the
23        occurrence  of an injury disability or 6 months after the
24        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 90
32        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 shall
15    be made in the rate of  pension  granted  previously  to  the
16    retired teacher if the reversionary annuity was elected prior
17    to  January 1, 1984.  If the reversionary annuity was elected
18    on or after January 1, 1984 and the beneficiary survives  the
19    date  of  retirement of the teacher, but does not survive the
20    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  Board
25    adopts   actuarial   factors   that  take  into  account  the
26    additional cost involved.
27        If the beneficiary  dies  after  the  such  election  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  the
 3        military service to the date of payment.
 4             The  changes  to  this  Section  made  by Public Act
 5        87-795 this amendatory Act of 1991 shall 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  5  of  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 value
 8    of  all  stocks  and convertible debt owned by the fund shall
 9    not exceed 50% of the aggregate book value of all investments
10    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 book value
                            -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  values
 4    for  ordinary current market price fluctuations, but reserves
 5    may be provided to account for possible losses or  unrealized
 6    gains.
 7        The  book value 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 the
10    cost of  its  units  of  participation  in  those  commingled
11    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  commingled
 2    equity  participations  plus  the  book  value of other stock
 3    investments owned by this system shall not exceed the maximum
 4    permissible percentage rate for equity investments prescribed
 5    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 75 days 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  75  days'
 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  75  days'
15    employment  and  then  is  reinstated as a contributor to the
16    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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