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90_HB1005sam003
SRS90HB1005KScham02
1 AMENDMENT TO HOUSE BILL 1005
2 AMENDMENT NO. . Amend House Bill 1005, AS AMENDED,
3 by adding immediately after the enacting clause with the
4 following:
5 "Section 3. The Illinois Pension Code is amended by
6 changing Sections 17-106, 17-114, 17-115, 17-116, 17-116.1,
7 17-117, 17-117.1, 17-118, 17-119, 17-120, 17-122, 17-123,
8 17-124, 17-125, 17-126, 17-127, 17-127.1, 17-129, 17-130,
9 17-130.1, 17-131, 17-132, 17-133, 17-134, 17-135, 17-137,
10 17-138, 17-139, 17-140, 17-141, 17-142, 17-142.1, 17-143.1,
11 17-144, 17-145, 17-146, 17-146.1, 17-146.2, 17-147, 17-149,
12 17-150, 17-151, 17-153, 17-154, 17-156, and 17-158 and adding
13 Section 17-105.1 as follows:
14 (40 ILCS 5/17-105.1 new)
15 Sec. 17-105.1. Employer. "Employer": The Board of
16 Education and a charter school as defined under the
17 provisions of Section 27a-5 of the School Code.
18 (40 ILCS 5/17-106) (from Ch. 108 1/2, par. 17-106)
19 Sec. 17-106. Contributor, member or teacher.
20 "Contributor", "member" or "teacher": All members of the
21 teaching force of the city, including principals, assistant
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1 principals, the general superintendent of schools, deputy
2 superintendents of schools, associate superintendents of
3 schools, assistant and district superintendents of schools,
4 members of the Board of Examiners, all other persons whose
5 employment requires a teaching certificate issued under the
6 laws governing the certification of teachers by the Board of
7 Examiners, any educational, administrative, professional, or
8 other staff employed in a charter school operating in
9 compliance with the Charter Schools Law who is certified
10 under the law governing the certification of teachers, and
11 employees of the Board of Trustees, but excluding persons
12 contributing concurrently to any other public employee
13 pension system in Illinois or receiving retirement pensions
14 under another Article of this Code (unless the person's
15 eligibility to participate in that other pension system
16 arises from the holding of an elective public office, and the
17 person has held that public office for at least 10 years),
18 persons employed on an hourly basis, and persons receiving
19 pensions from the Fund fund who are employed temporarily by
20 an Employer the Board of Education for 100 days or less in
21 any school year and not on an annual basis.
22 In the case of a person who has been making contributions
23 and otherwise participating in this Fund prior to the
24 effective date of this amendatory Act of 1991, and whose
25 right to participate in the Fund is established or confirmed
26 by this amendatory Act, such prior participation in the Fund,
27 including all contributions previously made and service
28 credits previously earned by the person, are hereby
29 validated.
30 (Source: P.A. 89-450, eff. 4-10-96; 90-32, eff. 6-27-97.)
31 (40 ILCS 5/17-114) (from Ch. 108 1/2, par. 17-114)
32 Sec. 17-114. Computation of service.
33 When computing validated service, 10 months or more shall
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1 constitute one year of service unless a lesser number of
2 months is established as a school year by an Employer the
3 Board of Education. Salary representing 5 days' or more
4 employment paid in a semi-monthly or bi-weekly payroll
5 period, whichever the case may be, shall be considered for
6 the purpose of computing service credit and shall entitle a
7 contributor to 1/2 month of service. When computing total
8 service rendered, 3 to 10 days' employment in the final total
9 of such service shall entitle a contributor to 1/2 month of
10 service.
11 (Source: P. A. 76-742.)
12 (40 ILCS 5/17-115) (from Ch. 108 1/2, par. 17-115)
13 Sec. 17-115. Eligibility for service retirement pension.
14 (a) The Board shall find a contributor eligible for
15 service retirement pension when he has:
16 (1) Left the employment of an Employer the Board of
17 Education or the board after completing 5 or more years
18 of service.
19 (2) Contributed to the Fund fund the total sums
20 provided in this Article.
21 (3) Contributed as a member of the teaching force
22 in the public schools of the City or to the State
23 Universities Retirement System or to the Teachers'
24 Retirement System of the State of Illinois during the
25 last 5 years of his term of service.
26 (4) Filed a written application for pension.
27 (b) In computing the years of service for which annuity
28 is granted, the following conditions shall apply:
29 (1) No more than 10 years of teaching service in
30 public schools of the several states or in schools
31 operated by or under the auspices of the United States
32 shall be allowed. This maximum shall be reduced by the
33 service credit which is validated under paragraph (i) of
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1 Section 15-113 and paragraph (3) of Section 16-127 of
2 this Code. Three-fifths of the term of service for which
3 an annuity is granted shall have been rendered in the
4 public schools of the city. No portion of any such
5 service shall be included in the total period of service
6 for which a pension is payable or paid by some other
7 public retirement system; provided that this shall not
8 apply to any benefit payable only after the teacher's
9 death or to any compensation or annuity paid by an
10 employer the Board of Education after retirement from
11 active service.
12 (2) Up to 5 years of military active service, if
13 preceded by service as a teacher under this Fund fund or
14 under Article 16, shall be included in the total period
15 of service even though it can otherwise be used in the
16 computation of a pension or other benefit provided for
17 service in any branch of the armed forces of the United
18 States.
19 (Source: P.A. 90-32, eff. 6-27-97.)
20 (40 ILCS 5/17-116) (from Ch. 108 1/2, par. 17-116)
21 Sec. 17-116. Service retirement pension. Each teacher
22 having 20 years of service upon attainment of age 55, or who
23 thereafter attains age 55 shall be entitled to a service
24 retirement pension upon or after attainment of age 55; and
25 each teacher in service on or after July 1, 1971, with 5 or
26 more but less than 20 years of service shall be entitled to
27 receive a service retirement pension upon or after attainment
28 of age 62. Such pension is to be calculated as follows:
29 Beginning as of June 25, 1971, the service retirement
30 pension for a teacher who retires on or after such date, at
31 age 60 or over, shall be 1.67% for each of the first 10 years
32 of service; 1.90% for each of the next 10 years of service;
33 2.10% for each year of service in excess of 20 but not
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1 exceeding 30; and 2.30% for each year of service in excess of
2 30, based upon average salary as herein defined. When
3 computing such service retirement pensions, the following
4 conditions shall apply:
5 1. Average salary shall consist of the average annual
6 rate of salary for the 4 consecutive years of validated
7 service within the last 10 years of service when such average
8 annual rate was highest. In the determination of average
9 salary for retirement allowance purposes, for members who
10 commenced employment after August 31, 1979, that part of the
11 salary for any year shall be excluded which exceeds the
12 annual full-time salary rate for the preceding year by more
13 than 20%. In the case of a member who commenced employment
14 before August 31, 1979 and who receives salary during any
15 year after September 1, 1983 which exceeds the annual full
16 time salary rate for the preceding year by more than 20%, an
17 Employer and other employers of eligible contributors as
18 defined in Section 17-106 the Board of Education or employer
19 shall pay to the Fund an amount equal to the present value of
20 the additional service retirement pension resulting from such
21 excess salary. The present value of the additional service
22 retirement pension shall be computed by the Board on the
23 basis of actuarial tables adopted by the Board. If a member
24 elects to receive a pension from this Fund fund provided by
25 Section 20-121, his salary under the State Universities
26 Retirement System and the Teachers' Retirement System of the
27 State of Illinois shall be considered in determining such
28 average salary. Amounts paid after the effective date of
29 this amendatory Act of 1991 for unused vacation time earned
30 after that effective date shall not under any circumstances
31 be included in the calculation of average salary or the
32 annual rate of salary for the purposes of this Article.
33 2. Proportionate credit shall be given for validated
34 service of less than one year.
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1 3. For retirement at age 60 or over the pension shall be
2 payable at the full rate.
3 4. For separation from service below age 60 to a minimum
4 age of 55, the pension shall be discounted at the rate of
5 1/2 of one per cent for each month that the age of the
6 contributor is less than 60, but a teacher may elect to defer
7 the effective date of pension in order to eliminate or reduce
8 this discount. This discount shall not be applicable to any
9 participant who has at least 35 years of service on the date
10 the retirement annuity begins.
11 5. No additional pension shall be granted for service
12 exceeding 45 years. Beginning June 26, 1971 no pension shall
13 exceed the greater of $1,500 per month or 75% of average
14 salary as herein defined.
15 6. Service retirement pensions shall begin on the
16 effective date of resignation, retirement, the day following
17 the close of the payroll period for which service credit was
18 validated, or the time the person resigning or retiring
19 attains age 55, or on a date elected by the teacher,
20 whichever shall be latest.
21 (Source: P.A. 86-1488.)
22 (40 ILCS 5/17-116.1) (from Ch. 108 1/2, par. 17-116.1)
23 (Text of Section from P.A. 90-32)
24 Sec. 17-116.1. Early retirement without discount.
25 (a) A member retiring after June 1, 1980 and before June
26 30, 1995 and within 6 months of the last day of teaching for
27 which retirement contributions were required, may elect at
28 the time of application to make a one time employee
29 contribution to the system and thereby avoid the early
30 retirement reduction in allowance specified in paragraph (4)
31 of Section 17-116 of this Article. The exercise of the
32 election shall obligate the last Employer employer to also
33 make a one time non-refundable contribution to the Fund fund.
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1 (b) Subject to authorization by the Employer employer as
2 provided in subsection (c), a member retiring on or after
3 June 30, 1995 and on or before June 30, 2000 and within 6
4 months of the last day of teaching for which retirement
5 contributions were required may elect at the time of
6 application to make a one-time employee contribution to the
7 Fund and thereby avoid the early retirement reduction in
8 allowance specified in paragraph (4) of Section 17-116. The
9 exercise of the election shall obligate the last Employer
10 employer to also make a one-time nonrefundable contribution
11 to the Fund.
12 (c) The benefits provided in subsection (b) are
13 available only to members who retire, during a specified
14 period, from employment with an Employer employer that has
15 adopted and filed with the Board board of the Fund a
16 resolution expressly providing for the creation of an early
17 retirement without discount program under this Section for
18 that period.
19 The Employer employer has the full discretion and
20 authority to determine whether an early retirement without
21 discount program is in its best interest and to provide such
22 a program to its eligible employees in accordance with this
23 Section. The Employer employer may decide to authorize such
24 a program for one or more of the following periods: for the
25 period beginning July 1, 1997 and ending June 30, 1998, in
26 which case the resolution must be adopted by January 1, 1998;
27 for the period beginning July 1, 1998 and ending June 30,
28 1999, in which case the resolution must be adopted by March
29 31, 1998; and for the period beginning July 1, 1999 and
30 ending June 30, 2000, in which case the resolution must be
31 adopted by March 31, 1999. The resolution must be filed with
32 the Board board of the Fund within 10 days after it is
33 adopted. A single resolution may authorize an early
34 retirement without discount program as provided in this
-8- SRS90HB1005KScham02
1 Section for more than one period.
2 Notwithstanding Section 17-157, the Employer employer
3 shall also have full discretion and authority to determine
4 whether to allow its employees who withdrew from service on
5 or after June 30, 1995 and before June 27, the effective date
6 of this amendatory Act of 1997 to participate in an early
7 retirement without discount program under subsection (b). An
8 early retirement without discount program for those who
9 withdrew from service on or after June 30, 1995 and before
10 June 27, the effective date of this amendatory Act of 1997
11 may be authorized only by a resolution of the Employer
12 employer that is adopted by January 1, 1998 and filed with
13 the Board board of the Fund within 10 days after its
14 adoption. If such a resolution is duly adopted and filed, a
15 person who (i) withdrew from service with the Employer
16 employer on or after June 30, 1995 and before June 27, the
17 effective date of this amendatory Act of 1997, (ii) qualifies
18 for early retirement without discount under subsection (b),
19 (iii) applies to the Fund within 90 days after the
20 authorizing resolution is adopted, and (iv) pays the required
21 employee contribution shall have his or her retirement
22 pension recalculated in accordance with subsection (b). The
23 resulting increase shall be effective retroactively to the
24 starting date of the retirement pension.
25 (d) The one-time employee contribution shall be equal to
26 7% of the retiring member's highest full-time annual salary
27 rate used in the determination of the average salary rate for
28 retirement pension, or if not full-time then the full-time
29 equivalent, multiplied by (1) the number of years the teacher
30 is under age 60, or (2) the number of years the employee's
31 creditable service is less than 35 years, whichever is less.
32 The Employer employer contribution shall be 20% of such
33 salary multiplied by such number of years.
34 (e) Upon receipt of the application and election, the
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1 Board board shall determine the one time employee and
2 Employer employer contributions. The provisions of this
3 Section shall not be applicable until all the above outlined
4 contributions have been received by the Fund fund; however,
5 the date such contributions are received shall not be
6 considered in determining the effective date of retirement.
7 (f) The number of employees who may retire under this
8 Section in any year may be limited at the option of the
9 Employer employer to a specified percentage of those
10 eligible, not lower than 30%, with the right to participate
11 to be allocated among those applying on the basis of
12 seniority in the service of the Employer employer.
13 (Source: P.A. 90-32, eff. 6-27-97.)
14 (Text of Section from P.A. 90-448)
15 Sec. 17-116.1. Early retirement without discount.
16 (a) A member retiring after June 1, 1980 and before June
17 30, 1995 2005 and within 6 months of the last day of teaching
18 for which retirement contributions were required, may elect
19 at the time of application to make a one time employee
20 contribution to the system and thereby avoid the early
21 retirement reduction in allowance specified in paragraph (4)
22 of Section 17-116 of this Article. The exercise of the
23 election shall obligate the last Employer employer to also
24 make a one time non-refundable contribution to the Fund fund.
25 (b) Subject to authorization by the Employer as provided
26 in subsection (c), a member retiring on or after June 30,
27 1995 and on or before June 30, 2000 and within 6 months of
28 the last day of teaching for which retirement contributions
29 were required may elect at the time of application to make a
30 one-time employee contribution to the Fund and thereby avoid
31 the early retirement reduction in allowance specified in
32 paragraph (4) of Section 17-116. The exercise of the
33 election shall obligate the last Employer to also make a
34 one-time nonrefundable contribution to the Fund.
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1 (c) The benefits provided in subsection (b) are
2 available only to members who retire, during a specified
3 period, from employment with an Employer that has adopted and
4 filed with the Board a resolution expressly providing for the
5 creation of an early retirement without discount program
6 under this Section for that period.
7 The Employer has the full discretion and authority to
8 determine whether an early retirement without discount
9 program is in its best interest and to provide such a program
10 to its eligible employees in accordance with this Section.
11 The Employer may decide to authorize such a program for one
12 or more of the following periods: for the period beginning
13 July 1, 1997 and ending June 30, 1998, in which case the
14 resolution must be adopted by January 1, 1998; for the period
15 beginning July 1, 1998 and ending June 30, 1999, in which
16 case the resolution must be adopted by March 31, 1998; and
17 for the period beginning July 1, 1999 and ending June 30,
18 2000, in which case the resolution must be adopted by March
19 31, 1999. The resolution must be filed with the Board within
20 10 days after it is adopted. A single resolution may
21 authorize an early retirement without discount program as
22 provided in this Section for more than one period.
23 Notwithstanding Section 17-157, the Employer shall also
24 have full discretion and authority to determine whether to
25 allow its employees who withdrew from service on or after
26 June 30, 1995 and before June 27, 1997 to participate in an
27 early retirement without discount program under subsection
28 (b). An early retirement without discount program for those
29 who withdrew from service on or after June 30, 1995 and
30 before June 27, 1997 may be authorized only by a resolution
31 of the Employer that is adopted by January 1, 1998 and filed
32 with the Board within 10 days after its adoption. If such a
33 resolution is duly adopted and filed, a person who (i)
34 withdrew from service with the Employer on or after June 30,
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1 1995 and before June 27, 1997, (ii) qualifies for early
2 retirement without discount under subsection (b), (iii)
3 applies to the Fund within 90 days after the authorizing
4 resolution is adopted, and (iv) pays the required employee
5 contribution shall have his or her retirement pension
6 recalculated in accordance with subsection (b). The
7 resulting increase shall be effective retroactively to the
8 starting date of the retirement pension.
9 (d) The one-time employee contribution shall be equal to
10 7% of the retiring member's highest full-time annual salary
11 rate used in the determination of the average salary rate for
12 retirement pension, or if not full-time then the full-time
13 equivalent, multiplied by (1) the number of years the teacher
14 is under age 60, or (2) the number of years the employee's
15 creditable service is less than 35 years, whichever is less.
16 The Employer employer contribution shall be 20% of such
17 salary multiplied by such number of years.
18 (e) Upon receipt of the application and election, the
19 Board board shall determine the one time employee and
20 Employer employer contributions. The provisions of this
21 Section shall not be applicable until all the above outlined
22 contributions have been received by the Fund fund; however,
23 the date such contributions are received shall not be
24 considered in determining the effective date of retirement.
25 (f) The number of employees who may retire under this
26 Section in any year may be limited at the option of the
27 Employer employer to a specified percentage of those
28 eligible, not lower than 30%, with the right to participate
29 to be allocated among those applying on the basis of
30 seniority in the service of the Employer employer.
31 Notwithstanding Section 17-157, the extension of the
32 deadline for early retirement without discount under this
33 Section effected by this amendatory Act of 1997 also applies
34 to persons who withdrew from service on or after June 30,
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1 1995 and before the effective date of this amendatory Act of
2 1997. Any such person who qualifies for early retirement
3 without discount under this Section, applies to the Fund
4 within 90 days after the effective date of this amendatory
5 Act of 1997, and pays the required employee contribution may
6 have his or her retirement pension recalculated in accordance
7 with this Section; the resulting increase shall be effective
8 retroactively to the starting date of the retirement pension.
9 (Source: P.A. 90-448, eff. 8-16-97.)
10 (40 ILCS 5/17-117) (from Ch. 108 1/2, par. 17-117)
11 Sec. 17-117. Disability retirement pension.
12 (a) The conditions prescribed in items 1 and 2 in
13 Section 17-116 for computing service retirement pensions
14 shall apply in the computation of disability retirement
15 pensions.
16 (1) Each teacher retired or retiring after 10 years
17 of service and with less than 20 years of service because
18 of permanent disability not incurred as a proximate
19 result of the performance of duty shall receive a
20 disability retirement pension equal to 1 2/3% of average
21 salary for each year of service.
22 (2) If the total service is 20 years and less than
23 25 years and the teacher's age is under 55, the
24 disability retirement pension shall equal a service
25 retirement pension discounted 1/2 of 1% for each month
26 the age of the contributor is less than 55 down to a
27 minimum age of 50 years, provided the disability
28 retirement pension so computed shall not be less than the
29 amount payable under paragraph 1.
30 (3) If the total service is 20 years or more and
31 the teacher has attained age 55, and is under age 60, a
32 disability retirement pension shall equal a service
33 retirement pension without discount.
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1 (4) If the total service is 25 years or more
2 regardless of age, a disability pension shall equal a
3 service retirement pension without discount.
4 (5) If the total service is 20 years or more and
5 the teacher is age 60 or over, a service retirement
6 pension shall be payable.
7 (b) For disability retirement pensions, the following
8 further conditions shall apply:
9 (1) Written application shall be submitted within 3
10 years from the date of separation.
11 (2) The applicant shall submit to examination by
12 physicians appointed by the Board board within one year
13 from the date of their appointment.
14 (3) Two physicians, appointed by the Board board,
15 shall declare the applicant to be suffering from a
16 disability which wholly and presumably permanently
17 incapacitates him for teaching or for service as an
18 employee of the Board board. In the event of
19 disagreement by the physicians, a third physician,
20 appointed by the Board board, shall declare the applicant
21 wholly and presumably permanently incapacitated.
22 (c) Disability retirement pensions shall begin on the
23 effective date of resignation or the day following the close
24 of the payroll period for which credit was validated,
25 whichever is later.
26 (Source: P.A. 90-32; eff. 6-27-97.)
27 (40 ILCS 5/17-117.1) (from Ch. 108 1/2, par. 17-117.1)
28 Sec. 17-117.1. Duty disability. A teacher who becomes
29 wholly and presumably permanently incapacitated for duty
30 while under age 65 as the proximate result of injuries
31 sustained or a hazardous condition encountered in the
32 performance and within the scope of his duties, if such
33 injury or hazard was not the result of his own negligence,
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1 shall be entitled to a duty disability benefit, provided:
2 (1) application for the benefit is made to the
3 Board not more than 6 months after a final settlement or
4 an award from the Industrial Commission or within 6
5 months of the manifestation of an injury or illness that
6 can be traced directly to an injury or illness for which
7 a claim was filed with the Industrial Commission;
8 (2) certification is received from 2 or more
9 physicians designated by the Board board that the teacher
10 is physically incapacitated for teaching service; and
11 (3) the teacher provides the Board with a copy of
12 the notice of the occurrence that was filed with the
13 Employer Board of Education within the time provided by
14 law.
15 The benefit shall be payable during disability and shall
16 be 75% of the salary in effect at date of disability, payable
17 until the teacher's attainment of age 65. At such time if
18 disability still exists, the teacher shall become entitled to
19 a service retirement pension. Creditable service shall accrue
20 during the period the disability benefit is payable.
21 Before any action is taken by the Board board on an
22 application for a duty disability benefit, the teacher shall
23 file a claim with the Industrial Commission to establish that
24 the disability was incurred while the teacher was acting
25 within the scope of and in the course of his duties under the
26 terms of the Workers' Compensation or Occupational Diseases
27 Acts, whichever may be applicable. The benefit shall be
28 payable after a finding by the Commission that the claim was
29 compensable under either of the aforesaid Acts; but if such
30 finding is appealed the benefit shall be payable only upon
31 affirmance of the Commission's finding. After the teacher has
32 made timely application for a duty disability benefit
33 supported by the certificate of two or more physicians, he
34 shall be entitled to a disability retirement pension provided
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1 in Section 17-117 of this Act until such time as the
2 Industrial Commission award finding that his disability is
3 duty-connected as provided in this Section becomes final.
4 Any amounts provided for the teacher under such Acts
5 shall be applied as an offset to the duty disability benefit
6 payable hereunder in such manner as may be prescribed by the
7 rules of the Board board.
8 (Source: P.A. 90-32, eff. 6-27-97.)
9 (40 ILCS 5/17-118) (from Ch. 108 1/2, par. 17-118)
10 Sec. 17-118. Disability pension administration. A
11 disability pensioner may be required to submit to an
12 examination periodically by a physician or physicians
13 appointed by the Board board. The purpose of the examination
14 is to establish whether the disability still exists and to
15 determine whether the person is still incapacitated for
16 teaching service or service as an employee of the Board
17 board. The Board board may require disability pensioners to
18 submit evidence of the continued existence of the disability.
19 The Board board may also employ investigative services to
20 determine whether such pensioners are employed elsewhere as
21 teachers or to establish whether they are still disabled.
22 The Board board shall cancel a disability pension upon
23 evidence that a pensioner is no longer incapacitated for
24 teaching or service as an employee of the Board board.
25 However, if a pensioner has attained age 55 and has 20 or
26 more years of service, the pension shall not be cancelled
27 unless he is re-employed as a teacher or as a
28 pensioner-substitute. If a disability pensioner is
29 re-employed as a teacher or pensioner-substitute, the pension
30 shall be cancelled on the first day of re-employment. The
31 pensioner shall reimburse the Fund for pension payments
32 received after the date of re-employment (if any), plus 5%
33 interest compounded annually beginning one year after the
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1 Fund's notification of the cancellation and indebtedness.
2 Upon cancellation of a disability pension, unless such person
3 re-enters service and becomes a contributor, a refund shall
4 be payable of the excess, if any, of the refundable
5 contributions paid by him over the amount paid in disability
6 pension.
7 (Source: P.A. 81-1536.)
8 (40 ILCS 5/17-119) (from Ch. 108 1/2, par. 17-119)
9 Sec. 17-119. Automatic annual increase in pension. Each
10 teacher retiring on or after September 1, 1959, is entitled
11 to the annual increase in pension, defined herein, while he
12 is receiving a pension from the Fund fund.
13 1. The term "base pension" means a service retirement or
14 disability retirement pension in the amount fixed and payable
15 at the date of retirement of a teacher.
16 2. The annual increase in pension shall be at the rate
17 of 1 1/2% of base pension. This increase shall first occur in
18 January of the year next following the first anniversary of
19 retirement. At such time the Fund fund shall pay the pro rata
20 part of the increase for the period from the first
21 anniversary date to the date of the first increase in
22 pension. Beginning January 1, 1972, the rate of annual
23 increase in pension shall be 2% of the base pension.
24 Beginning January 1, 1979, the rate of annual increase in
25 pension shall be 3% of the base pension. Beginning January 1,
26 1990, all automatic annual increases payable under this
27 Section shall be calculated as a percentage of the total
28 pension payable at the time of the increase, including all
29 increases previously granted under this Article,
30 notwithstanding Section 17-157.
31 3. An increase in pension shall be granted only if the
32 retired teacher is age 60 or over. If the teacher attains age
33 60 after retirement, the increase in pension shall begin in
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1 January of the year following the 61st birthday. At such time
2 the Fund fund also shall pay the pro rata part of the
3 increase from the 61st birthday to the date of first increase
4 in pension.
5 In addition to other increases which may be provided by
6 this Section, on January 1, 1981 any teacher who was
7 receiving a retirement pension on or before January 1, 1971
8 shall have his retirement pension then being paid increased
9 $1 per month for each year of creditable service. On January
10 1, 1982, any teacher whose retirement pension began on or
11 before January 1, 1977, shall have his retirement pension
12 then being paid increased $1 per month for each year of
13 creditable service.
14 On January 1, 1987, any teacher whose retirement pension
15 began on or before January 1, 1977, shall have the monthly
16 retirement pension increased by an amount equal to 8¢ per
17 year of creditable service times the number of years that
18 have elapsed since the retirement pension began.
19 (Source: P.A. 86-273.)
20 (40 ILCS 5/17-120) (from Ch. 108 1/2, par. 17-120)
21 Sec. 17-120. Reversionary pension. Any contributor, at
22 any time prior to retirement on a service retirement pension,
23 may exercise an option of taking a lesser amount of service
24 retirement pension and providing with the remainder of his
25 equity, determined on an actuarial equivalent basis, a
26 reversionary pension benefit for any person named in a
27 written designation filed by the contributor with the Board
28 board, provided that the pension resulting from such election
29 is not less than $40 per month, or more than the reduced
30 pension payable after the exercise of the option. If the
31 reduced pension to the retired teacher is less than that
32 provided for a beneficiary, whether or not the aforesaid
33 minimum amount is payable, the election shall be void.
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1 The pension to a beneficiary shall begin on the first day
2 of the month next following the month in which the retired
3 teacher dies.
4 If the beneficiary survives the date of retirement of the
5 teacher, but does not survive the retired teacher, no
6 reversionary pensions shall be payable, and the teacher's
7 service pension shall be restored to the full service pension
8 amount beginning on the first day of the month next following
9 the month in which the beneficiary dies or on the effective
10 date of this amendatory Act of 1997, whichever occurs later.
11 If the beneficiary dies after the election but before the
12 retirement of the teacher, the election shall be void. No
13 change shall be permitted in the written designation filed
14 with the Board board.
15 In the case of a reversionary annuity elected on or after
16 January 1, 1984, no reversionary annuity shall be paid if the
17 teacher dies before the expiration of 730 days from the date
18 that a written designation was filed with the Board board,
19 even though the teacher was receiving a reduced annuity.
20 Sections 1-103.1 and 17-157 do not apply to the changes
21 made to this Section by this amendatory Act of 1997.
22 (Source: P.A. 90-32, eff. 6-27-97.)
23 (40 ILCS 5/17-122) (from Ch. 108 1/2, par. 17-122)
24 Sec. 17-122. Survivor's and children's pensions - Amount.
25 Upon the death of a teacher who has completed at least 1 1/2
26 years of contributing service with either this Fund or the
27 State Universities Retirement System or the Teachers'
28 Retirement System of the State of Illinois, provided his
29 death occurred while (a) in active service covered by the
30 Fund fund or during his first 18 months of continuous
31 employment without a break in service under any other
32 participating system as defined in the Illinois Retirement
33 Systems Reciprocal Act except the State Universities
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1 Retirement System and the Teachers' Retirement System of the
2 State of Illinois, (b) on a creditable leave of absence, (c)
3 on a noncreditable leave of absence of no more than one year,
4 or (d) a pension was deferred or pending provided the teacher
5 had at least 10 years of validated service credit, or upon
6 the death of a pensioner otherwise qualified for such
7 benefit, the surviving spouse and unmarried minor children of
8 the deceased teacher under age 18 shall be entitled to
9 pensions, under the conditions stated hereinafter. Such
10 survivor's and children's pensions shall be based on the
11 average of the 4 highest consecutive years of salary in the
12 last 10 years of service or on the average salary for total
13 service, if total service has been less than 4 years,
14 according to the following percentages:
15 30% of average salary or 50% of the retirement pension
16 earned by the teacher, whichever is larger, subject to the
17 prescribed maximum monthly payment, for a surviving spouse
18 alone on attainment of age 50;
19 60% of average salary for a surviving spouse and
20 eligible minor children of the deceased teacher.
21 If no eligible spouse survives, or the surviving spouse
22 remarries, or the parent of the children of the deceased
23 member is otherwise ineligible for a survivor's pension, a
24 children's pension for eligible minor children under age 18
25 shall be paid to their parent or legal guardian for their
26 benefit according to the following percentages:
27 30% of average salary for one child;
28 60% of average salary for 2 or more children.
29 On January 1, 1981, any survivor or child who was
30 receiving a survivor's or children's pension on or before
31 January 1, 1971, shall have his survivor's or children's
32 pension then being paid increased by 1% for each full year
33 which has elapsed from the date the pension began. On January
34 1, 1982, any survivor or child whose pension began after
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1 January 1, 1971, but before January 1, 1981, shall have his
2 survivor's or children's pension then being paid increased 1%
3 for each full year which has elapsed from the date the
4 pension began. On January 1, 1987, any survivor or child
5 whose pension began on or before January 1, 1977, shall have
6 the monthly survivor's or children's pension increased by $1
7 for each full year which has elapsed since the pension began.
8 Beginning January 1, 1990, every survivor's and
9 children's pension shall be increased (1) on each January 1
10 occurring on or after the commencement of the pension if the
11 deceased teacher died while receiving a retirement pension,
12 or (2) in other cases, on each January 1 occurring on or
13 after the first anniversary of the commencement of the
14 pension, by an amount equal to 3% of the current amount of
15 the pension, including all increases previously granted under
16 this Article, notwithstanding Section 17-157. Such increases
17 shall apply without regard to whether the deceased teacher
18 was in service on or after the effective date of this
19 amendatory Act of 1991, but shall not accrue for any period
20 prior to January 1, 1990.
21 Subject to the minimum established below, the maximum
22 amount of pension for a surviving spouse alone or one minor
23 child shall be $400 per month, and the maximum combined
24 pensions for a surviving spouse and children of the deceased
25 teacher shall be $600 per month, with individual pensions
26 adjusted for all beneficiaries pro rata to conform with this
27 limitation. If proration is unnecessary the minimum
28 survivor's and children's pensions shall be $40 per month.
29 The minimum total survivor's and children's pension payable
30 upon the death of a contributor or annuitant which occurs
31 after December 31, 1986, shall be 50% of the earned
32 retirement pension of such contributor or annuitant,
33 calculated without early retirement discount in the case of
34 death in service.
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1 On death after retirement, the total survivor's and
2 children's pensions shall not exceed the monthly retirement
3 or disability pension paid to the deceased retirant.
4 Survivor's and children's benefits described in this Section
5 shall apply to all service and disability pensioners eligible
6 for a pension as of July 1, 1981.
7 (Source: P.A. 90-32, eff. 6-27-97.)
8 (40 ILCS 5/17-123) (from Ch. 108 1/2, par. 17-123)
9 Sec. 17-123. Death benefits - Death in service. If a
10 teacher dies (a) in service, (b) after resignation or (c)
11 after retirement but before receiving any pension payment,
12 his estate shall be paid a refund of the amounts he
13 contributed to the Fund fund less (1) any former refund that
14 has not been repaid, (2) the amount contributed for a
15 survivor's pension in the event such pension is payable under
16 Sections 121 and 122 of this Article and (3) pension payments
17 received; but if a written direction, signed by the
18 contributor before an officer authorized to take
19 acknowledgments and stating that the refund shall be paid to
20 named beneficiaries, was filed with the Board board prior to
21 his death, the refund shall be paid to such named
22 beneficiaries. If any of several named beneficiaries does not
23 survive the contributor and no directive was furnished by the
24 member to cover this contingency, the deceased beneficiary's
25 share of the refund shall be paid to the estate of the
26 contributor.
27 In addition to the payment provided in the foregoing
28 paragraph, if such teacher has received service credit within
29 13 calendar months of the date of death or was on a sick
30 leave authorized by the Employer Board of Education at the
31 time of death, and if no other pensions or benefits were
32 payable under the provisions of this Article or any other
33 participating system, as defined in the Illinois Retirement
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1 Systems Reciprocal Act, except a refund of contributions or a
2 survivor's pension, there shall be paid a single payment
3 death benefit. For a teacher who dies on or after the
4 effective date of this amendatory Act of 1991, this benefit
5 shall be equal to the last month's base rate of salary,
6 subject to the limitations and conditions set forth in this
7 Article, for each year of validated service, not to exceed 6
8 times such salary, or $10,000, whichever is less. The single
9 payment death benefit shall be paid in the manner prescribed
10 for a refund of contributions to the Fund fund.
11 Death benefits shall be paid only on written application
12 to the Board board.
13 (Source: P.A. 86-1488.)
14 (40 ILCS 5/17-124) (from Ch. 108 1/2, par. 17-124)
15 Sec. 17-124. Death Benefits - Death on pension. On
16 written application to the Board board, there shall be paid
17 to the estate of a deceased teacher-pensioner pension
18 payments, accrued, temporarily withheld or represented by
19 checks uncashed at the date of his death and the excess, if
20 any, of an amount equal to his refundable contributions for
21 service or disability retirement pension over pension to the
22 date of death; provided, that if there be filed with the
23 Board board prior to the death of the pensioner his written
24 direction, signed and acknowledged before an officer
25 authorized to take acknowledgments, that such payments be
26 paid to designated beneficiaries, they shall be so paid on
27 written application therefor to the Board board. If none of
28 several named beneficiaries survives the pensioner and no
29 directive was furnished by the member to cover this
30 contingency, the deceased beneficiary's share shall be paid
31 to the estate of the pensioner.
32 If a reversionary pension is payable upon death of a
33 pensioner, the determination and payment of any refund of
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1 contributions payable under this Section shall be made upon
2 death of the reversionary pensioner. At such time a refund of
3 contributions less (1) the amount contributed for annual
4 increases in pension and (2) total pension payments to the
5 teacher-pensioner and survivor shall be paid in the manner
6 provided in this Section to the designated beneficiaries, or
7 estate of the deceased survivor.
8 If a pension is payable to a surviving spouse and/or
9 minor children upon death of a pensioner, the determination
10 of any refund of contributions payable under this Section
11 shall be made upon death of the survivor and marriage or
12 attainment of age 18 of minor children. At that time a refund
13 of contributions for retirement and survivors' and children's
14 pensions less total pension payments to teacher-pensioner,
15 survivor and minor children shall be paid in the manner
16 provided in this Section to the designated beneficiaries, or
17 estate of the deceased survivor.
18 If eligible beneficiaries for survivors' or children's
19 benefits existed at the time of a pensioner's retirement but
20 not on the date of his death thereafter, the excess of total
21 contributions for retirement and survivors' and children's
22 pensions over pensions paid shall be determined upon death of
23 the pensioner and paid in the manner provided in this Section
24 to the designated beneficiaries, or estate of the deceased
25 teacher-pensioner.
26 Reversionary or survivor's pension payments accrued,
27 temporarily withheld, or represented by uncashed checks to
28 the date of death shall be paid to the reversionary
29 pensioner's or survivor's designated beneficiaries, or estate
30 in the manner provided in this Section.
31 On death of a retired teacher whose death occurs on or
32 after the effective date of this amendatory Act of 1991,
33 there shall be payable a lump sum death benefit equal to 6
34 times the teacher's salary rate for his last month of service
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1 or $10,000, whichever is less, upon death during the first
2 year on pension minus 1/5 of the death benefit, as defined
3 herein, for each year or fraction thereof on pension after
4 the first full year, to a minimum of $5,000.
5 Notwithstanding Section 17-157, the changes made in this
6 Section and Section 17-123 by this amendatory Act of 1991
7 shall apply to teachers dying on or after the effective date
8 of this amendatory Act of 1991 without regard to whether
9 service terminated prior to that date.
10 (Source: P.A. 86-1488.)
11 (40 ILCS 5/17-125) (from Ch. 108 1/2, par. 17-125)
12 Sec. 17-125. Refund of contributions. Upon certification
13 by the Employer On approval of his resignation by the Board
14 of Education or cancellation of his teaching certificate
15 prior to completion of the minimum term of service required
16 to establish eligibility for a pension and on written
17 application therefor, a teacher shall be paid a refund of all
18 the amounts he has contributed to the Fund fund, less any
19 former refund that has not been repaid.
20 Upon certification by the Employer On approval of his
21 resignation by the Board of Education or cancellation of his
22 teaching certificate after completion of the minimum term of
23 service required to establish eligibility for a pension and
24 on written application therefor, a teacher shall be paid a
25 refund of all the amounts he has contributed, less (1) any
26 former refund that has not been repaid, and (2) pension
27 payments received, provided he has executed and delivered to
28 the Board board his written receipt and release in that
29 behalf. Thereupon, he shall have no further interest in or
30 claim against the Fund fund.
31 A request for refund under either of the preceding
32 paragraphs shall be considered valid if withdrawal from
33 service occurred at least 2 months prior to the filing of
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1 such request.
2 Upon retirement of a teacher either on immediate or
3 deferred pension, if the teacher is not then married, or if
4 his spouse or children do not meet the qualifying conditions
5 for survivor's or children's pensions, the total amount
6 contributed by him or otherwise paid by deductions from
7 salary for survivor's pension, shall be refunded to him,
8 without interest. No survivor's or children's pension rights
9 shall be effective thereafter in such a case.
10 During a teacher's term of service, no refund is payable
11 except contributions made in error.
12 (Source: P.A. 84-1028.)
13 (40 ILCS 5/17-126) (from Ch. 108 1/2, par. 17-126)
14 Sec. 17-126. Repayment of refund. If any person who has
15 received a refund is reemployed by an Employer the Board of
16 Education and again becomes a contributor for a period of at
17 least 2 years, or has established credit of at least 2 years
18 of service subsequent to the date of such refund, in a
19 retirement system which has subscribed to the "Retirement
20 Systems Reciprocal Act" and is a contributor thereto, he may
21 repay to the Fund fund the amount he received as a refund,
22 together with interest thereon at 5% per annum compounded
23 annually from the time the refund was paid to the date of
24 repayment.
25 (Source: P.A. 80-570.)
26 (40 ILCS 5/17-127) (from Ch. 108 1/2, par. 17-127)
27 Sec. 17-127. Financing; revenues for the Fund.
28 (a) The revenues for the Fund shall consist of: (1)
29 amounts paid into the Fund by contributors thereto and from
30 taxes and State appropriations in accordance with this
31 Article; (2) amounts contributed to the Fund by an employer;
32 (3) amounts contributed to the Fund pursuant to any law now
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1 in force or hereafter to be enacted; (4) (3) contributions
2 from any other source; and (5) (4) the earnings on
3 investments.
4 (b) The General Assembly finds that for many years the
5 State has contributed to the Fund an annual amount that is
6 between 20% and 30% of the amount of the annual State
7 contribution to the Article 16 retirement system, and the
8 General Assembly declares that it is its goal and intention
9 to continue this level of contribution to the Fund in the
10 future.
11 (Source: P.A. 88-593, eff. 8-22-94.)
12 (40 ILCS 5/17-127.1) (from Ch. 108 1/2, par. 17-127.1)
13 Sec. 17-127.1. Special revenues. Donations, gifts, and
14 legacies received by the fund shall be held and accounted for
15 as the Board so provides of Trustees so provide by
16 appropriate resolution. Nothing in this Article shall be so
17 construed as to prevent the Board of Trustees from directing
18 such resources to be used for memorial or other commemorative
19 purposes honoring the grantors, while alive or posthumously,
20 of such special revenues.
21 (Source: P.A. 83-388.)
22 (40 ILCS 5/17-129) (from Ch. 108 1/2, par. 17-129)
23 Sec. 17-129. Employer contributions; deficiency in Fund.
24 (a) If in any fiscal year the total amounts paid to the
25 Fund from the Board board of Education education (other than
26 under this subsection, and other than amounts used for making
27 or "picking up" contributions on behalf of teachers) and from
28 the State do not equal the total contributions made by or on
29 behalf of the teachers for such year, or if the total income
30 of the Fund in any fiscal year from all sources is less than
31 the total expenditures by the Fund for such year, the Board
32 of Education shall, in the next succeeding year, in addition
-27- SRS90HB1005KScham02
1 to any other payment to the Fund set apart and appropriate
2 from moneys from its tax levy for educational purposes, a sum
3 sufficient to remove such deficiency or deficiencies, and
4 promptly pay such sum into the Fund in order to restore any
5 of the reserves of the Fund that may have been so temporarily
6 applied.
7 (b) For fiscal years 2011 through 2045, the minimum
8 contribution to the Fund to be made by the Board board of
9 Education education in each fiscal year shall be an amount
10 determined by the Fund to be sufficient to bring the total
11 assets of the Fund up to 90% of the total actuarial
12 liabilities of the Fund by the end of fiscal year 2045. In
13 making these determinations, the required Board board of
14 Education education contribution shall be calculated each
15 year as a level percentage of the applicable employee
16 payrolls payroll over the years remaining to and including
17 fiscal year 2045 and shall be determined under the projected
18 unit credit actuarial cost method.
19 For fiscal years 1999 through 2010, the Board board of
20 Education's education's contribution to the Fund, as a
21 percentage of the applicable employee payroll, shall be
22 increased in equal annual increments so that by fiscal year
23 2011, the Board board of Education education is contributing
24 at the rate required under this subsection.
25 Beginning in fiscal year 2046, the minimum Board board of
26 Education education contribution for each fiscal year shall
27 be the amount needed to maintain the total assets of the Fund
28 at 90% of the total actuarial liabilities of the Fund.
29 (c) The Board of Trustees shall determine the amount of
30 Board board of Education education contributions required for
31 each fiscal year on the basis of the actuarial tables and
32 other assumptions adopted by the Board and the
33 recommendations of the actuary, in order to meet the minimum
34 contribution requirements of subsections (a) and (b).
-28- SRS90HB1005KScham02
1 Annually, on or before February 28 November 15, the Board
2 shall certify to the Board board of Education education the
3 amount of the required Board board of Education education
4 contribution for the coming fiscal year. The certification
5 shall include a copy of the actuarial recommendations upon
6 which it is based.
7 (Source: P.A. 89-15, eff. 5-30-95.)
8 (40 ILCS 5/17-130) (from Ch. 108 1/2, par. 17-130)
9 Sec. 17-130. Participants' contributions by payroll
10 deductions. There shall be deducted from the salary of each
11 teacher 6 1/2% of his salary for service or disability
12 retirement pension and 1/2 of 1% of salary for the annual
13 increase in base pension.
14 In addition, there shall be deducted from the salary of
15 each teacher 1% of his salary for survivors' and children's
16 pensions.
17 An Employer and any employer of eligible contributors as
18 defined in Section 17-106 The board is authorized to make the
19 necessary deductions from the salaries of its teachers, to
20 receive any other contributions required to be made by them,
21 and to certify to the city treasurer the amounts so deducted
22 and contributed by them. Such amounts shall be included as a
23 part of the Fund fund. An Employer and any employer of
24 eligible contributors as defined in Section 17-106 The board
25 shall formulate such rules and regulations as may be
26 necessary to give effect to the provisions of this Section.
27 All persons employed as teachers shall, by such
28 employment, accept the provisions of this Article and of
29 Sections 34-83 to 34-87, inclusive, of "The School Code",
30 approved March 18, 1961, as amended, and thereupon become
31 contributors to the Fund fund in accordance with the terms
32 thereof. The provisions of this Article and of those Sections
33 shall become a part of the contract of employment.
-29- SRS90HB1005KScham02
1 (Source: P.A. 81-1536.)
2 (40 ILCS 5/17-130.1) (from Ch. 108 1/2, par. 17-130.1)
3 Sec. 17-130.1. Employer contributions on behalf of
4 employees. An Employer and the Board The Board of Education
5 may make and may incur an obligation to make contributions on
6 behalf of its employees in an amount not to exceed the
7 employee contributions required by Section 17-130 for all
8 compensation earned after September 21, 1981. If the
9 Employer or the Board of Education determines not to make
10 such contributions or incur an obligation to make such
11 contributions, the amount that it could have contributed on
12 behalf of its employees shall continue to be deducted from
13 salary. If contributions are made by an Employer or the
14 Board of Education on behalf of its employees they shall be
15 treated as employer contributions in determining tax
16 treatment under the United States Internal Revenue Code. An
17 Employer or the The Board of Education may make these
18 contributions on behalf of its employees by a reduction in
19 the cash salary of the employee or by an offset against a
20 future salary increase or by a combination of a reduction in
21 salary and offset against a future salary increase. An
22 Employer or the Board The employer shall pay these employee
23 contributions from the same source of funds which is used in
24 paying salary to the employee, or it may also or
25 alternatively make such contributions from the proceeds of
26 the tax authorized by Section 34-60 of the School Code.
27 Such If employee contributions are made by the Board of
28 Education on behalf of its employees, they shall be treated
29 for all purposes of this Article 17 in the same manner and to
30 the same extent as employee contributions made by employees
31 and deducted from salary; provided, however, that
32 contributions made by the Board of Education on behalf of its
33 employees which are to be paid from the proceeds of the tax,
-30- SRS90HB1005KScham02
1 as provided in Section 34-60 of the School Code, shall not be
2 treated as teachers' pension contributions for the purposes
3 of Section 17-132 of the Illinois Pension Code, and provided
4 further, that contributions which are made by the Board of
5 Education on behalf of its employees shall not be treated as
6 a pension or retirement obligation of the Board of Education
7 for purposes of Section 12 of "An Act in relation to State
8 revenue sharing with local governmental entities", approved
9 July 31, 1969.
10 (Source: P.A. 86-1471; 86-1488.)
11 (40 ILCS 5/17-131) (from Ch. 108 1/2, par. 17-131)
12 Sec. 17-131. Administration of payroll deductions.
13 During any period in which salaries are paid, such deductions
14 by an Employer or the Board of Education or the board shall
15 be made on the basis of the full salary rates, exclusive of
16 salaries for overtime, special services or any employment on
17 an optional basis, such as in summer school. If salaries
18 represent adjustments on account of error, deductions by the
19 Employer or the Board of Education shall be at rates in force
20 during the applicable payroll period. If teachers receive
21 salaries for the school year, as established by an Employer
22 the Board of Education, or if they receive salaries for more
23 than 10 calendar months, the amount required for each year of
24 service shall be deducted by such Employer the Board of
25 Education in installments. The total amounts for each
26 semimonthly payroll period, or bi-weekly payroll period, as
27 the case may be, shall be deducted only when salary payments
28 represent 5 days' pay or more. If an Employer or the Board
29 of Education pays salaries to members of the teaching force
30 for vacation periods, the salary shall be considered part of
31 the teacher's annual salary, shall be subject to the standard
32 deductions for pension contributions, and shall be considered
33 to represent pay for 5 or more days' employment in a
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1 bi-weekly or semi-monthly payroll period for purposes set
2 forth in this Section. If deductions from salaries result in
3 amounts of less than one cent, the fractional sums shall be
4 increased to the next higher cent. Any excess of these
5 fractional increases over the prescribed annual contributions
6 shall be credited to the teachers' accounts.
7 In the event that, pursuant to Section 17-130.1, employee
8 employer contributions are picked up or made by the Board of
9 Education on behalf of its employees from the proceeds of the
10 tax levied under Section 34-60 of the School Code, then the
11 amount of the employee contributions which are picked up or
12 made in that manner shall not be deducted from the salaries
13 of such employees.
14 (Source: P.A. 86-1471; 86-1488.)
15 (40 ILCS 5/17-132) (from Ch. 108 1/2, par. 17-132)
16 Sec. 17-132. Payments and certification of salary
17 deductions. An Employer The Board of Education shall cause
18 the Fund to receive all teachers' pension contributions
19 within 15 business days of the predesignated paydays. Amount
20 not received by the fifth day shall be deemed delinquent and
21 subject to late interest penalty (calculated at the average
22 short-term rate of interest earned by the Fund for the
23 calendar month preceding the calendar month in which the
24 delinquency occurs) starting from the predesignated payday
25 and ending on the date payment is received. The appropriate
26 officers of the Employer president and the secretary of the
27 Board of Education shall certify at least monthly to the Fund
28 city treasurer all amounts deducted from the salaries of
29 contributors. The certification shall constitute a
30 confirmation of the accuracy of such deductions according to
31 the provisions of this Article. For the purpose of this
32 Section the predesignated payday shall be determined in
33 accordance with each Employer's the Board of Education
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1 official payroll schedule for contributions to the Fund.
2 The Board has the authority to conduct payroll audits of
3 a charter school to determine the existence of any
4 delinquencies in contributions to the Fund, and such charter
5 school shall be required to provide such books and records
6 and contribution information as the Board or its authorized
7 representative may require. The Board is also authorized to
8 collect delinquent contributions from charter schools and
9 develop procedures for the collection of such delinquencies.
10 Collection procedures may include legal proceedings in the
11 courts of the State of Illinois. Expenses, including
12 reasonable attorneys' fees, incurred in the collection of
13 delinquent contributions may be assessed by the Board against
14 the charter school.
15 (Source: P.A. 82-581.)
16 (40 ILCS 5/17-133) (from Ch. 108 1/2, par. 17-133)
17 Sec. 17-133. Contributions for periods of outside and
18 other service. Regularly certified and appointed teachers who
19 desire to have the following described services credited for
20 pension purposes shall submit to the Board board evidence
21 thereof and pay into the Fund fund the amounts prescribed
22 herein:
23 1. For teaching service by a certified teacher in
24 the public schools of the several states or in schools
25 operated by or under the auspices of the United States, a
26 teacher shall pay the contributions at the rates in force
27 (a) on the date of appointment as a regularly certified
28 teacher after salary adjustments are completed, or (b) at
29 the time of reappointment after salary adjustments are
30 completed, whichever is later, but not less than $450 per
31 year of service. Upon the Board's board's approval of
32 such service and the payment of the required
33 contributions, service credit of not more than 10 years
-33- SRS90HB1005KScham02
1 shall be granted.
2 2. For service as a playground instructor in public
3 school playgrounds, teachers shall pay the contributions
4 prescribed in this Article (a) at the time of
5 appointment, as a regularly certified teacher after
6 salary adjustments are completed, or (b) on return to
7 service as a full time regularly certified teacher, as
8 the case may be, provided such rates or amounts shall not
9 be less than $450 per year.
10 3. For service prior to September 1, 1955, in the
11 public schools of the City as a substitute, evening
12 school or temporary teacher, or for service as an
13 Americanization teacher prior to December 31, 1955,
14 teachers shall pay the contributions prescribed in this
15 Article (a) at the time of appointment, as a regularly
16 certified teacher after salary adjustments are completed,
17 (b) on return to service as a full time regularly
18 certified teacher, as the case may be, provided such
19 rates or amounts shall not be less than $450 per year;
20 and provided further that for teachers employed on or
21 after September 1, 1953, rates shall not include
22 contributions for widows' pensions if the service
23 described in this sub-paragraph 3 was rendered before
24 that date. Any teacher entitled to repay a refund of
25 contributions under Section 126 of this Article may
26 validate service described in this paragraph by payment
27 of the amounts prescribed herein, together with the
28 repayment of the refund, provided that if such creditable
29 service was the last service rendered in the public
30 schools of the City and is not automatically reinstated
31 by repayment of the refund, the rates or amounts shall
32 not be less than $450 per year.
33 4. For service after June 30, 1982 as a member of
34 the Board of Education, if required to resign from an
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1 administrative or teaching position in order to qualify
2 as a member of the Board of Education.
3 For service described in sub-paragraphs 1, 2 and 3 of
4 this Section, interest shall be charged beginning one year
5 after the effective date of appointment or reappointment.
6 Effective September 1, 1974, the interest rate to be
7 charged by the Fund fund on contributions provided in
8 sub-paragraphs 1, 2, 3 and 4 shall be 5% per annum compounded
9 annually.
10 (Source: P.A. 87-794.)
11 (40 ILCS 5/17-134) (from Ch. 108 1/2, par. 17-134)
12 Sec. 17-134. Contributions for leaves of absence;
13 military service; computing service. In computing service
14 for pension purposes the following periods of service shall
15 stand in lieu of a like number of years of teaching service
16 upon payment therefor in the manner hereinafter provided: (a)
17 time spent on sabbatical leaves of absence, sick leaves or
18 maternity or paternity leaves; (b) service with teacher or
19 labor organizations based upon special leaves of absence
20 therefor granted by an Employer the Board of Education; (c) a
21 maximum of 5 years spent in the military service of the
22 United States, of which up to 2 years may have been served
23 outside the pension period; (d) unused sick days at
24 termination of service to a maximum of 244 days; (e) time
25 lost due to layoff and curtailment of the school term from
26 June 6 through June 21, 1976; and (f) time spent after June
27 30, 1982 as a member of the Board of Education, if required
28 to resign from an administrative or teaching position in
29 order to qualify as a member of the Board of Education.
30 (1) For time spent on or after September 6, 1948 on
31 sabbatical leaves of absence or sick leaves, for which
32 salaries are paid, an Employer the Board of Education
33 shall make payroll deductions at the applicable rates in
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1 effect during such periods.
2 (2) For time spent on sabbatical or sick leaves
3 commencing on or after September 1, 1961, and for time
4 spent on maternity or paternity leaves, for which no
5 salaries are paid, teachers desiring credit therefor
6 shall pay the required contributions at the rates in
7 effect during such periods as though they were in
8 teaching service. If an Employer the Board of Education
9 pays salary for vacations which occur during a teacher's
10 sick leave or maternity or paternity leave without
11 salary, vacation pay for which the teacher would have
12 qualified while in active service shall be considered
13 part of the teacher's total salary for pension purposes.
14 No more than 12 months of sick leave or maternity or
15 paternity leave credit may be allowed any person during
16 the entire term of service. Sabbatical leave credit shall
17 be limited to the time the person on leave without salary
18 under an Employer's Board of Education rules is allowed
19 to engage in an activity for which he receives salary or
20 compensation.
21 (3) For time spent prior to September 6, 1948, on
22 sabbatical leaves of absence or sick leaves for which
23 salaries were paid, teachers desiring service credit
24 therefor shall pay the required contributions at the
25 maximum applicable rates in effect during such periods.
26 (4) For service with teacher or labor organizations
27 authorized by special leaves of absence, for which no
28 payroll deductions are made by an Employer the Board of
29 Education, teachers desiring service credit therefor
30 shall contribute to the Fund fund upon the basis of the
31 actual salary received from such organizations at the
32 percentage rates in effect during such periods for
33 certified positions with such Employer the Board of
34 Education. To the extent the actual salary exceeds the
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1 regular salary, which shall be defined as the salary
2 rate, as calculated by the Board board of trustees, in
3 effect for the teacher's regular position in teaching
4 service on September 1, 1983 or on the effective date of
5 the leave with the organization, whichever is later, the
6 organization shall pay to the Fund the employer's normal
7 cost as set by the Board fund the employer's normal cost
8 as set by the board of trustees on the increment.
9 (5) For time spent in the military service,
10 teachers entitled to and desiring credit therefor shall
11 contribute the amount required for each year of service
12 or fraction thereof at the rates in force (a) at the date
13 of appointment, or (b) on return to teaching service as a
14 regularly certified teacher, as the case may be; provided
15 such rates shall not be less than $450 per year of
16 service. These conditions shall apply unless an Employer
17 the Board of Education elects to and does pay into the
18 Fund fund the amount which would have been due from such
19 person had he been employed as a teacher during such
20 time. In the case of credit for military service not
21 during the pension period, the teacher must also pay to
22 the Fund an amount determined by the Board board to be
23 equal to the employer's normal cost of the benefits
24 accrued from such service, plus interest thereon at 5%
25 per year, compounded annually, from the date of
26 appointment to the date of payment.
27 The changes to this Section made by Public Act
28 87-795 shall apply not only to persons who on or after
29 its effective date are in service under the Fund, but
30 also to persons whose status as a teacher terminated
31 prior to that date, whether or not the person is an
32 annuitant on that date. In the case of an annuitant who
33 applies for credit allowable under this Section for a
34 period of military service that did not immediately
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1 follow employment, and who has made the required
2 contributions for such credit, the annuity shall be
3 recalculated to include the additional service credit,
4 with the increase taking effect on the date the Fund
5 received written notification of the annuitant's intent
6 to purchase the credit, if payment of all the required
7 contributions is made within 60 days of such notice, or
8 else on the first annuity payment date following the date
9 of payment of the required contributions. In calculating
10 the automatic annual increase for an annuity that has
11 been recalculated under this Section, the increase
12 attributable to the additional service allowable under
13 this amendatory Act of 1991 shall be included in the
14 calculation of automatic annual increases accruing after
15 the effective date of the recalculation.
16 The total credit for military service shall not
17 exceed 5 years, except that any teacher who on July 1,
18 1963, had validated credit for more than 5 years of
19 military service shall be entitled to the total amount of
20 such credit.
21 (6) A maximum of 244 unused sick days credited to
22 his account by an Employer the Board of Education on the
23 date of termination of employment. Members, upon
24 verification of unused sick days, may add this service
25 time to total creditable service.
26 (7) In all cases where time spent on leave is
27 creditable and no payroll deductions therefor are made by
28 the an Employer Board of Education, persons desiring
29 service credit shall make the required contributions
30 directly to the Fund fund.
31 (8) For time lost without pay due to layoff and
32 curtailment of the school term from June 6 through June
33 21, 1976, as provided in item (e) of the first paragraph
34 of this Section, persons who were contributors on the
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1 days immediately preceding such layoff shall receive
2 credit upon paying to the Fund a contribution based on
3 the rates of compensation and employee contributions in
4 effect at the time of such layoff, together with an
5 additional amount equal to 12.2% of the compensation
6 computed for such period of layoff, plus interest on the
7 entire amount at 5% per annum from January 1, 1978 to the
8 date of payment. If such contribution is paid, salary
9 for pension purposes for any year in which such a layoff
10 occurred shall include the compensation recognized for
11 purposes of computing that contribution.
12 (9) For time spent after June 30, 1982, as a
13 nonsalaried member of the Board of Education, if required
14 to resign from an administrative or teaching position in
15 order to qualify as a member of the Board of Education,
16 an administrator or teacher desiring credit therefor
17 shall pay the required contributions at the rates and
18 salaries in effect during such periods as though the
19 member were in service.
20 Effective September 1, 1974, the interest charged for
21 validation of service described in paragraphs (2) through (5)
22 of this Section shall be compounded annually at a rate of 5%
23 commencing one year after the termination of the leave or
24 return to service.
25 (Source: P.A. 90-32, eff. 6-27-97.)
26 (40 ILCS 5/17-135) (from Ch. 108 1/2, par. 17-135)
27 Sec. 17-135. Contributions for other service credits. On
28 payment at the rates prescribed herein on the date of
29 appointment or employment as teachers, or as such rates are
30 adjusted by the Board of Education, but not less than $450
31 per year of service, members shall be entitled to have
32 credited for pension purposes service as: (a) a civil service
33 librarian in the public schools of the city, or in such city;
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1 (b) a playground or recreational instructor for such city or
2 the Park District in such city; (c) a school clerk, employed
3 by the Board of Education; and (d) a lunchroom manager for
4 the Board of Education. Interest on such payments shall be
5 charged commencing one year after the date of such
6 appointment or employment.
7 Effective September 1, 1974, the interest rate to be
8 charged by the Fund fund shall be 5% per annum compounded
9 annually.
10 (Source: P.A. 80-570.)
11 (40 ILCS 5/17-137) (from Ch. 108 1/2, par. 17-137)
12 Sec. 17-137. Board created. There shall be elected a
13 Board of Trustees, herein also referred to as the "Board"
14 "board", to administer and control the Fund fund created by
15 this Article. The Board of Trustees shall consist of 12
16 members, 2 of whom shall be members of the Board of
17 Education, 6 of whom shall be contributors who are not
18 principals, one of whom shall be a contributor who is a
19 principal, and 3 of whom shall be pensioners, all to be
20 chosen as provided in this Article.
21 (Source: P.A. 89-136, eff. 7-14-95.)
22 (40 ILCS 5/17-138) (from Ch. 108 1/2, par. 17-138)
23 Sec. 17-138. Board membership. At the first meeting of
24 the Board of Education in November of each year, the Board of
25 Education shall appoint one of its members to serve, while a
26 member of the Board of Education, on the Board of Trustees
27 for a term of 2 years.
28 On the last school day of the 4th week of October of each
29 year there shall be elected 2 members of the Board of
30 Trustees from the teachers other than principals, who shall
31 hold office for terms of 3 years while retaining their status
32 as teachers other than principals, and other members to fill
-40- SRS90HB1005KScham02
1 unexpired terms. In the event that schools are not in
2 session on or during the week prior to the last Friday in
3 October, this election shall be held on the Friday of the
4 first subsequent full week of school. The election shall be
5 by secret ballot and shall be held in such manner as the
6 Board of Trustees by bylaws or rules shall provide. Only
7 teachers who are not principals shall be eligible to vote in
8 the election.
9 During the first week of November of 1995 and every third
10 year thereafter, one contributor who is a principal shall be
11 elected a member of the Board of Trustees. This trustee
12 shall hold office for a term of 3 years while retaining his
13 or her status as a principal. The election shall be by mail
14 ballot and only contributors who are principals shall be
15 eligible to vote. The election shall be held in the manner
16 provided by the Board of Trustees by rule or bylaw.
17 During the first week of November of each odd-numbered
18 year there shall be elected 3 members of the Board of
19 Trustees from the pensioners, who shall hold office for a
20 term of 2 years while retaining their status as pensioners.
21 The election shall be by mail ballot to all service and
22 disability pensioners, and shall be held in such manner as
23 the Board of Trustees by bylaws or rules shall provide.
24 All trustees, while members of the Board of Education or
25 while principals, teachers other than principals, or
26 pensioners, as the case may be, shall hold their offices
27 until their successors shall have been appointed or elected
28 and qualified by subscribing to the constitutional oath of
29 office at the immediately succeeding regular meeting of the
30 Board board.
31 (Source: P.A. 89-136, eff. 7-14-95.)
32 (40 ILCS 5/17-139) (from Ch. 108 1/2, par. 17-139)
33 Sec. 17-139. Board elections and vacancies.
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1 (1) Contributors other than principals election. Every
2 member who is not a principal may vote at the election for as
3 many persons as there are trustees to be elected by the
4 contributors who are not principals. The name of a candidate
5 shall not be printed upon the ballot unless he or she has
6 been assigned on a regular certificate for at least 10 years
7 in the Chicago public schools or charter schools and
8 nominated by a petition signed by not less than 200
9 contributors who are not principals.
10 Petitions shall be filed with the recording secretary of
11 the Fund fund on or after September 15 of each year and not
12 later than October 1st of that year. No more than one
13 candidate may be nominated by any one petition. If the
14 nominations do not exceed the number of candidates to be
15 elected, the canvassing board shall declare the nominated
16 candidates elected. Otherwise, candidates receiving the
17 highest number of votes cast for their respective terms shall
18 be declared elected. The location and number of polling
19 places shall be designated by the Board board. The election
20 shall be conducted by the teachers who are not principals,
21 and the judges of the election shall be selected from the
22 teachers who are not principals, in such manner as the board
23 in its bylaws or rules provides.
24 Elections to fill vacancies on the Board board shall be
25 held at the next annual election.
26 (2) Pensioners election. The name of a candidate shall
27 not be printed on the ballot unless he or she has been
28 nominated by a petition signed by not less than 100
29 pensioners of the Fund fund. Petitions shall be filed with
30 the recording secretary of the Fund fund on or before October
31 1 of the odd-numbered year. If the nominations do not exceed
32 3 2, the mailing of ballots shall be eliminated and the
33 nominated candidates shall be declared elected. Otherwise,
34 the 3 2 candidates receiving the highest number of votes cast
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1 shall be declared elected. The mailing and counting of the
2 ballots shall be conducted by the office of the Fund fund
3 with volunteer assistance from pensioners at the request of
4 the Board trustees.
5 (3) Principals election. The name of a candidate shall
6 not be printed on the ballot unless he or she has been
7 nominated by a petition signed by at least 25 contributors
8 who are principals. Petitions shall be filed with the
9 recording secretary of the Fund on or before October 1 of the
10 election year. If only one eligible candidate is nominated,
11 the election shall not be held and the nominated candidate
12 shall be declared elected. Otherwise, the candidate
13 receiving the highest number of votes cast shall be declared
14 elected. The mailing and counting of the ballots shall be
15 conducted by the office of the Fund.
16 (4) Vacancies. The Board of Trustees may fill vacancies
17 occurring in the membership of the Board elected by the
18 principals, teachers other than principals, or pensioners at
19 any regular meeting of the Board. The Board of Education may
20 fill vacancies occurring in the membership of the Board of
21 Trustees appointed by the Board of Education at any regular
22 meeting of the Board of Education.
23 (Source: P.A. 89-136, eff. 7-14-95.)
24 (40 ILCS 5/17-140) (from Ch. 108 1/2, par. 17-140)
25 Sec. 17-140. Board officers.
26 The president, recording secretary and other officers of
27 the Board board shall be elected by and from the members of
28 the board at the first meeting of the Board board after the
29 election of trustees.
30 In case any officer whose signature appears upon any
31 check or draft, issued pursuant to this Article, ceases
32 (after attaching his signature) to hold his office before the
33 delivery thereof to the payee, his signature nevertheless
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1 shall be valid and sufficient for all purposes with the same
2 effect as if he had remained in office until delivery
3 thereof.
4 (Source: P. A. 78-638.)
5 (40 ILCS 5/17-141) (from Ch. 108 1/2, par. 17-141)
6 Sec. 17-141. Board's powers and duties.
7 The Board board shall have the powers and duties stated
8 in Sections 17-142 to 17-146, inclusive, in addition to the
9 other powers and duties provided in this Article.
10 (Source: Laws 1963, p. 161.)
11 (40 ILCS 5/17-142) (from Ch. 108 1/2, par. 17-142)
12 Sec. 17-142. To make payments.
13 To make payments from the Fund fund of pensions and other
14 benefits provided in this Article.
15 (Source: Laws 1963, p. 161.)
16 (40 ILCS 5/17-142.1) (from Ch. 108 1/2, par. 17-142.1)
17 Sec. 17-142.1. To defray health insurance costs. To
18 provide for the partial reimbursement of health insurance
19 costs.
20 (1) On the first day of September of each year,
21 beginning in 1988, the Board board may, by separate warrant,
22 pay to each recipient of a service retirement, disability
23 retirement or survivor's pension an amount to be determined
24 by the Board board, which shall represent partial
25 reimbursement for the cost of the recipient's health
26 insurance coverage.
27 (2) In lieu of the annual payment authorized in
28 subdivision (1), for pensioners enrolled in the Fund's
29 regular health care deduction plans, the Fund may pay the
30 health insurance premium reimbursement on a monthly rather
31 than annual basis, at the percentage rate established from
-44- SRS90HB1005KScham02
1 time to time by the Board. If the Board so directs, these
2 monthly payments may be made in the form of a direct payment
3 of premium and a reduction in the amount deducted from the
4 annuity, rather than in the form of reimbursement by separate
5 warrant.
6 (3) Total payments under this Section in any year may
7 not exceed $25,000,000 plus any amount that was authorized to
8 be paid under this Section in the preceding year but was not
9 actually paid by the Board.
10 (Source: P.A. 86-1488; 87-794; 87-1265.)
11 (40 ILCS 5/17-143.1) (from Ch. 108 1/2, par. 17-143.1)
12 Sec. 17-143.1. Office. To rent, lease, or acquire office
13 space as may be necessary for the proper administration of
14 the Fund fund.
15 (Source: P.A. 83-792.)
16 (40 ILCS 5/17-144) (from Ch. 108 1/2, par. 17-144)
17 Sec. 17-144. To fill vacancies. To fill any vacancies
18 occurring in the Board of Trustees of members elected from
19 the teachers or pensioners, until the next annual election,
20 when the vacancies shall be filled as provided by this
21 Article.
22 (Source: P.A. 82-260.)
23 (40 ILCS 5/17-145) (from Ch. 108 1/2, par. 17-145)
24 Sec. 17-145. To adopt rules.
25 To adopt such by-laws and rules for the administration of
26 the Fund fund as it deems advisable.
27 (Source: Laws 1963, p. 161.)
28 (40 ILCS 5/17-146) (from Ch. 108 1/2, par. 17-146)
29 Sec. 17-146. To make investments. To invest the moneys
30 of the Fund fund, subject to the requirements and
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1 restrictions set forth in this Article and in Sections 1-109,
2 1-109.1, 1-109.2, 1-110, 1-111, 1-114 and 1-115.
3 No bank or savings and loan association shall receive
4 investment funds as permitted by this Section, unless it has
5 complied with the requirements established pursuant to
6 Section 6 of the Public Funds Investment Act. Those
7 requirements shall be applicable only at the time of
8 investment and shall not require the liquidation of any
9 investment at any time.
10 The Board board shall have the authority to enter into
11 any agreements and to execute any documents that it
12 determines to be necessary to complete any investment
13 transaction.
14 All investments shall be clearly held and accounted for
15 to indicate ownership by the Fund fund. The Board board may
16 direct the registration of securities or the holding of
17 interests in real property in the name of the Fund fund or in
18 the name of a nominee created for the express purpose of
19 registering securities or holding interests in real property
20 by a national or state bank or trust company authorized to
21 conduct a trust business in the State of Illinois. The Board
22 board may hold title to interests in real property in the
23 name of the fund or in the name of a title holding
24 corporation created for the express purpose of holding title
25 to interests in real property.
26 Investments shall be carried at cost or at a value
27 determined in accordance with generally accepted accounting
28 principles and accounting procedures approved by the Board
29 board.
30 The value of investments held by the Fund fund in one or
31 more commingled investment accounts shall be determined in
32 accordance with generally accepted accounting principles.
33 The Board board of trustees of any fund established under
34 this Article may not transfer its investment authority, nor
-46- SRS90HB1005KScham02
1 transfer the assets of the Fund fund to any other person or
2 entity for the purpose of consolidating or merging its assets
3 and management with any other pension fund or public
4 investment authority, unless the Board board resolution
5 authorizing such transfer is submitted for approval to the
6 contributors and pensioners of the Fund fund at elections
7 held not less than 30 days after the adoption of such
8 resolution by the Board board, and such resolution is
9 approved by a majority of the votes cast on the question in
10 both the contributors election and the pensioners election.
11 The election procedures and qualifications governing the
12 election of trustees shall govern the submission of
13 resolutions for approval under this paragraph, insofar as
14 they may be made applicable.
15 (Source: P.A. 89-636, eff. 8-9-96; 90-19, eff. 6-20-97;
16 90-32, eff. 6-27-97.)
17 (40 ILCS 5/17-146.1) (from Ch. 108 1/2, par. 17-146.1)
18 Sec. 17-146.1. Participation in commingled investment
19 funds; transfer of investment functions and securities.
20 (a) The Board retirement board may invest in any
21 commingled investment fund or funds established and
22 maintained by the Illinois State Board of Investment under
23 the provisions of Article 22A of this Code. All commingled
24 fund participations shall be subject to the law governing the
25 Illinois State Board of Investment and the rules, policies
26 and directives of that Board.
27 (b) The Board retirement board may, by resolution duly
28 adopted by a majority vote of its membership, transfer to the
29 Illinois State Board of Investment created by Article 22A of
30 this Code, for management and administration, all investments
31 owned by the Fund of every kind and character. Upon
32 completion of such transfer, the authority of the Board
33 retirement board to make investments shall terminate.
-47- SRS90HB1005KScham02
1 Thereafter, all investments of the reserves of the Fund shall
2 be made by the Illinois State Board of Investment in
3 accordance with the provisions of Article 22A of this Code.
4 Such transfer shall be made not later than the first day
5 of the fourth month next following the date of such
6 resolution. Before such transfer an audit of such
7 investments shall be completed by a certified public
8 accountant selected by the Illinois State Board of Investment
9 and approved by the Auditor General of the State of Illinois.
10 The expense of such audit shall be defrayed by the retirement
11 Board board.
12 (Source: P.A. 90-19, eff. 6-20-97; 90-32, eff. 6-27-97.)
13 (40 ILCS 5/17-146.2) (from Ch. 108 1/2, par. 17-146.2)
14 Sec. 17-146.2. To lend securities. The Board board of
15 trustees may lend securities owned by the Fund to a borrower
16 upon such written terms and conditions as may be mutually
17 agreed. The agreement shall provide that during the period
18 of the loan the Fund (or the custodian of the Fund, or agent
19 thereof, as applicable) shall retain the right to receive or
20 collect from the borrower all dividends, interest and
21 distributions to which the Fund would have otherwise been
22 entitled. The borrower shall deposit with the Fund
23 collateral for the loan equal to the market value of the
24 securities at the time the loan is made, and shall increase
25 the amount of collateral if the Board requests an additional
26 amount because of subsequent increased market value of the
27 securities. The Board may accept from the borrower cash
28 collateral or collateral consisting of assets described in
29 Section 1-113 of this Act. To the extent that the Fund
30 participates in a securities lending program established and
31 maintained by (1) a national or State bank which is
32 authorized to do business in the State of Illinois, or (2) an
33 investment manager, the Board may accept collateral
-48- SRS90HB1005KScham02
1 consisting of an undivided interest in a pool of commingled
2 collateral that has been established by the bank or
3 investment manager for the purpose of pooling collateral
4 received for the loans of securities owned by substantially
5 all of the participants in such bank's or investment
6 manager's securities lending program. Nothing in Sections
7 1-109, 1-110 or 1-113 of this Act shall be construed to
8 prohibit the Fund's lending of securities in accordance with
9 this Section.
10 (Source: P.A. 86-1488.)
11 (40 ILCS 5/17-147) (from Ch. 108 1/2, par. 17-147)
12 Sec. 17-147. Custody of Fund fund - Bonds - Legal
13 proceedings. The city treasurer, ex-officio, shall be the
14 custodian of the Fund fund, and shall secure and safely keep
15 it, subject to the control and direction of the Board board.
16 He shall keep his books and accounts concerning the Fund fund
17 in the manner prescribed by the Board board. The books and
18 accounts shall always be subject to the inspection of the
19 Board board or any member thereof. The city treasurer shall
20 be liable on his official bond for the proper performance of
21 his duties and the conservation of the Fund fund.
22 Payments from the Fund fund shall be made upon warrants
23 signed by the president and the secretary of the Board of
24 Education, the president of the Board of Trustees, and
25 countersigned by the executive director or by such person as
26 the Board of Trustees may designate from time to time by
27 appropriate resolution.
28 Neither the treasurer nor any other officer having the
29 custody of the Fund fund is entitled to retain any interest
30 accruing thereon, but such interest shall accrue and inure to
31 the benefit of such Fund fund, become a part thereof, subject
32 to the purposes of this Article.
33 Any legal proceedings necessary for the enforcement of
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1 the provisions of this Article shall be brought by and in the
2 name of the Board of Trustees of the Fund fund.
3 (Source: P.A. 80-570.)
4 (40 ILCS 5/17-149) (from Ch. 108 1/2, par. 17-149)
5 Sec. 17-149. Cancellation of pensions.
6 If any person receiving a service or disability
7 retirement pension from the Fund fund is re-employed as a
8 teacher by an Employer the Board of Education, the pension
9 shall be cancelled on the date the re-employment begins, or
10 on the first day of a payroll period for which service credit
11 was validated, whichever is earlier. However, beginning
12 August 23, 1989, the pension shall not be cancelled in case
13 of a service retirement pensioner who is temporarily
14 re-employed for not more than 100 days during any school year
15 or on an hourly basis, provided the pensioner does not
16 receive salary in any school year of an amount more than that
17 payable to a substitute teacher for 100 days' employment. A
18 service retirement pensioner who is temporarily re-employed
19 for not more than 100 days during any school year or on an
20 hourly basis shall be entitled, at the end of the school
21 year, to a refund of any contributions made to the Fund fund
22 during that school year.
23 If the pensioner does receive salary from an employer the
24 Board of Education in any school year for more than 100 days'
25 employment, the pensioner shall be deemed to have returned to
26 service on the first day of employment as a
27 pensioner-substitute. The pensioner shall reimburse the Fund
28 fund for pension payments received after the return to
29 service and shall pay to the Fund fund the participant's
30 contributions prescribed in Section 17-130 of this Article.
31 If the date of re-employment occurs within 5 school
32 months after the date of previous retirement, exclusive of
33 any vacation period, the member shall be deemed to have been
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1 out of service only temporarily and not permanently retired.
2 Such person shall be entitled to pension payments for the
3 time he could have been employed as a teacher and received
4 salary, but shall not be entitled to pension for or during
5 the summer vacation prior to his return to service.
6 When the member again retires on pension, the time of
7 service and the money contributed by him during re-employment
8 shall be added to the time and money previously credited.
9 Such person must acquire 3 consecutive years of additional
10 contributing service before he may retire again on a pension
11 at a rate and under conditions other than those in force or
12 attained at the time of his previous retirement.
13 Notwithstanding Sections 1-103.1 and 17-157, the changes
14 to this Section made by this amendatory Act of 1997 shall
15 apply without regard to whether termination of service
16 occurred before the effective date of this amendatory Act and
17 shall apply retroactively to August 23, 1989.
18 (Source: P.A. 90-32, eff. 6-27-97.)
19 (40 ILCS 5/17-150) (from Ch. 108 1/2, par. 17-150)
20 Sec. 17-150. Suspension of pensions. Pension payments,
21 exclusive of those made to the survivors of persons who were
22 contributors, shall be suspended while the recipient is
23 employed in a teaching capacity, outside the City in which
24 the Fund fund exists, by any public school or charter school
25 in this State, unless the recipient is so employed
26 temporarily as a substitute teacher for 100 days or less in a
27 school year or on an hourly basis with earnings not in excess
28 of the sum payable for 100 days' substitute service.
29 (Source: P.A. 86-273; 87-794.)
30 (40 ILCS 5/17-151) (from Ch. 108 1/2, par. 17-151)
31 Sec. 17-151. Annuities, etc. - Exempt. All pensions,
32 annuities, refunds, or death benefits granted under the
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1 provisions of this Article are exempt from State and
2 municipal taxes and are exempt from attachment or garnishment
3 process. They shall not be seized or levied upon by virtue of
4 any judgment or any process or proceedings issued out of or
5 by any court for the payment or satisfaction in whole or in
6 part of any debt, claim, damage, demand or judgment.
7 No pensioner has the right to transfer or assign his
8 pension or any part thereof by way of mortgage or otherwise
9 except for the purpose (1) of establishing and maintaining
10 membership in nonprofit group health or hospital plans
11 approved by the Board board and (2) of establishing a living
12 trust, the trustee of which is authorized to engage in the
13 trust business, provided all pension payments so assigned are
14 required to be paid monthly to the trustor or, in the event
15 of his incapacity, expended for his benefit. The Board board
16 is hereby authorized to administer all the details involved
17 in establishing and maintaining membership in such health or
18 hospital plans for the benefit of the annuitants, but it
19 shall not be obligated to do so or to continue doing so, if
20 in its judgment such continuance is not desirable.
21 (Source: P.A. 84-546.)
22 (40 ILCS 5/17-153) (from Ch. 108 1/2, par. 17-153)
23 Sec. 17-153. Accounting - Audits. The assets of the Fund
24 fund shall be held for the express purposes set forth in the
25 provisions of this Article subject to the conditions
26 prescribed herein. An adequate system of accounts and records
27 shall be established and maintained that will give effect to
28 the requirements hereof. All assets of the Fund fund shall be
29 credited to designated reserve accounts according to the
30 purposes for which they are held.
31 Appropriate reserves shall be maintained representing
32 member contributions and other revenues accruing from taxes,
33 state appropriations and miscellaneous sources.
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1 At the end of each fiscal year the Board board of
2 trustees shall have the accounts and records of the Fund fund
3 audited by certified public accountants selected by the Board
4 board. Within 2 weeks after receiving the audit report, the
5 Board board shall file a copy of the audit report with the
6 State Superintendent of Education and the Auditor General.
7 (Source: P.A. 82-581.)
8 (40 ILCS 5/17-154) (from Ch. 108 1/2, par. 17-154)
9 Sec. 17-154. Retired teachers supplementary payments.
10 All persons who were on June 30, 1975, entitled to a service
11 retirement pension or disability retirement pension, under
12 this Fund fund or any fund of which this Fund fund is a
13 continuation, and who meet the conditions prescribed
14 hereinafter, shall receive supplementary payments as follows:
15 (1) In the case of any such retired person, who attained
16 or shall attain after June 30, 1975, the age of 60 years, who
17 was in receipt of a service retirement pension, the payment
18 pursuant to this section shall be an amount equal to the
19 difference between (a) his annual service retirement pension
20 from the Fund fund plus any annual payment received under the
21 provisions of Section 34-87 of "The School Code", approved
22 March 18, 1961, as amended, if the total of such amounts is
23 less than $4500 per year, and (b) an amount equal to $100 for
24 each year of validated teaching service forming the basis of
25 the service retirement pension up to a maximum of 45 years of
26 such service;
27 (2) In the case of any such retired person, who was in
28 receipt on June 30, 1975, of a disability retirement pension,
29 the payment shall be equal to the difference between (a) his
30 total annual disability retirement pension and (b) an amount
31 equal to $100 for each year of validated teaching service
32 forming the basis of the disability retirement pension.
33 (Source: P.A. 79-206.)
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1 (40 ILCS 5/17-156) (from Ch. 108 1/2, par. 17-156)
2 Sec. 17-156. Retired Teachers Supplementary Payment
3 Fund.) A fund to be known as the Retired Teachers
4 Supplementary Payment Fund shall be established for the
5 purpose of making the supplementary payments for service and
6 disability retirement under Section 17-154.
7 1. This fund shall be credited with:
8 (a) the contributions made by retired persons to
9 establish their right to the supplementary payment;
10 (b) amounts appropriated by the State of Illinois for
11 the purpose of providing for the supplementary payment;
12 (c) any interest accruing to this fund.
13 2. This fund shall be charged with all supplementary
14 payments as they are made.
15 3. All supplementary payments shall be paid in the order
16 that the payments become due and payable from the Retired
17 Teachers Supplementary Payment Fund. In the event that the
18 moneys in the fund are insufficient to make full
19 supplementary payments to all persons entitled thereto, a
20 proportionate amount, determined by the ratio of the moneys
21 available in the fund to the total supplementary payments
22 then due, shall be payable. Thereafter supplementary payments
23 shall cease and shall not be resumed until further funds are
24 made available for this purpose through appropriation by the
25 State of Illinois. After all supplementary payments to all
26 persons entitled thereto have been completed, any remaining
27 moneys in this fund shall be transferred to the Public School
28 Teachers' Pension and Retirement Fund established by this
29 Article; provided that, notwithstanding any provision of law
30 to the contrary, in the event such a transfer shall have been
31 made in prior biennia, and there is insufficient moneys
32 available in the supplementary payment fund to make full
33 statutory payments to persons entitled thereto in the current
34 biennium, the Public School Teachers' Pension and Retirement
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1 Fund established by this Article may transfer back to the
2 supplemental payment fund moneys in an amount not exceeding
3 the amount so transferred to it at the close of prior
4 biennia.
5 4. Supplementary payments shall be suspended while the
6 recipient is employed by the City in which the fund exists,
7 by any other municipal corporation coterminous with the City
8 or by any public school or charter school in this State,
9 unless the recipient is so employed temporarily as a
10 substitute teacher for 100 days or less in a school year or
11 on an hourly basis with earnings not in excess of the sum
12 payable for 100 days' substitute service.
13 5. The Retired Teachers Supplementary Payment Fund shall
14 be held and administered by the Public School Teachers'
15 Pension and Retirement Fund established by this Article.
16 (Source: P.A. 79-1055.)
17 (40 ILCS 5/17-158) (from Ch. 108 1/2, par. 17-158)
18 Sec. 17-158. Administrative review. The provisions of
19 the Administrative Review Law, and all amendments and
20 modifications thereof and the rules adopted pursuant thereto,
21 shall apply to and govern all proceedings for the judicial
22 review of final administrative decisions of the Board
23 retirement board provided for under this Article. The term
24 "administrative decision" is as defined in Section 3-101 of
25 the Code of Civil Procedure.
26 (Source: P.A. 82-783.)".