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91_HB2322 LRB9103338EGfg 1 AN ACT to amend the Illinois Pension Code by changing 2 Section 16-127. 3 Be it enacted by the People of the State of Illinois, 4 represented in the General Assembly: 5 Section 5. The Illinois Pension Code is amended by 6 changing Section 16-127 as follows: 7 (40 ILCS 5/16-127) (from Ch. 108 1/2, par. 16-127) 8 Sec. 16-127. Computation of creditable service. 9 (a) Each member shall receive regular credit for all 10 service as a teacher from the date membership begins, for 11 which satisfactory evidence is supplied and all contributions 12 have been paid. 13 (b) The following periods of service shall earn optional 14 credit and each member shall receive credit for all such 15 service for which satisfactory evidence is supplied and all 16 contributions have been paid as of the date specified: 17 (1) Prior service as a teacher. 18 (2) Service in a capacity essentially similar or 19 equivalent to that of a teacher, in the public common 20 schools in school districts in this State not included 21 within the provisions of this System, or of any other 22 State, territory, dependency or possession of the United 23 States, or in schools operated by or under the auspices 24 of the United States, or under the auspices of any agency 25 or department of any other State, and service during any 26 period of professional speech correction or special 27 education experience for a public agency within this 28 State or any other State, territory, dependency or 29 possession of the United States, and service prior to 30 February 1, 1951 as a recreation worker for the Illinois 31 Department of Public Safety, for a period not exceeding -2- LRB9103338EGfg 1 the lesser of 2/5 of the total creditable service of the 2 member or 10 years. The maximum service of 10 years 3 which is allowable under this paragraph shall be reduced 4 by the service credit which is validated by other 5 retirement systems under paragraph (i) of Section 15-113 6 and paragraph 1 of Section 17-133. Credit granted under 7 this paragraph may not be used in determination of a 8 retirement annuity or disability benefits unless the 9 member has at least 5 years of creditable service earned 10 subsequent to this employment with one or more of the 11 following systems: Teachers' Retirement System of the 12 State of Illinois, State Universities Retirement System, 13 and the Public School Teachers' Pension and Retirement 14 Fund of Chicago. Whenever such service credit exceeds 15 the maximum allowed for all purposes of this Article, the 16 first service rendered in point of time shall be 17 considered. The changes to this subdivision (b)(2) made 18 by Public Act 86-272 shall apply not only to persons who 19 on or after its effective date (August 23, 1989) are in 20 service as a teacher under the System, but also to 21 persons whose status as such a teacher terminated prior 22 to such effective date, whether or not such person is an 23 annuitant on that date. 24 (3) Any periods immediately following teaching 25 service, under this System or under Article 17, (or 26 immediately following service prior to February 1, 1951 27 as a recreation worker for the Illinois Department of 28 Public Safety) spent in active service with the military 29 forces of the United States; periods spent in educational 30 programs that prepare for return to teaching sponsored by 31 the federal government following such active military 32 service; if a teacher returns to teaching service within 33 one calendar year after discharge or after the completion 34 of the educational program, a further period, not -3- LRB9103338EGfg 1 exceeding one calendar year, between time spent in 2 military service or in such educational programs and the 3 return to employment as a teacher under this System; and 4 a period of up to 2 years of active military service not 5 immediately following employment as a teacher. 6 The changes to this Section and Section 16-128 7 relating to military service made by P.A. 87-794 shall 8 apply not only to persons who on or after its effective 9 date are in service as a teacher under the System, but 10 also to persons whose status as a teacher terminated 11 prior to that date, whether or not the person is an 12 annuitant on that date. In the case of an annuitant who 13 applies for credit allowable under this Section for a 14 period of military service that did not immediately 15 follow employment, and who has made the required 16 contributions for such credit, the annuity shall be 17 recalculated to include the additional service credit, 18 with the increase taking effect on the date the System 19 received written notification of the annuitant's intent 20 to purchase the credit, if payment of all the required 21 contributions is made within 60 days of such notice, or 22 else on the first annuity payment date following the date 23 of payment of the required contributions. In calculating 24 the automatic annual increase for an annuity that has 25 been recalculated under this Section, the increase 26 attributable to the additional service allowable under 27 P.A. 87-794 shall be included in the calculation of 28 automatic annual increases accruing after the effective 29 date of the recalculation. 30 Credit for military service shall be determined as 31 follows: if entry occurs during the months of July, 32 August, or September and the member was a teacher at the 33 end of the immediately preceding school term, credit 34 shall be granted from July 1 of the year in which he or -4- LRB9103338EGfg 1 she entered service; if entry occurs during the school 2 term and the teacher was in teaching service at the 3 beginning of the school term, credit shall be granted 4 from July 1 of such year. In all other cases where credit 5 for military service is allowed, credit shall be granted 6 from the date of entry into the service. 7 The total period of military service for which 8 credit is granted shall not exceed 5 years for any member 9 unless the service: (A) is validated before July 1, 10 1964, and (B) does not extend beyond July 1, 1963. 11 Credit for military service shall be granted under this 12 Section only if not more than 5 years of the military 13 service for which credit is granted under this Section is 14 used by the member to qualify for a military retirement 15 allotment from any branch of the armed forces of the 16 United States. The changes to this subdivision (b)(3) 17 made by Public Act 86-272 shall apply not only to persons 18 who on or after its effective date (August 23, 1989) are 19 in service as a teacher under the System, but also to 20 persons whose status as such a teacher terminated prior 21 to such effective date, whether or not such person is an 22 annuitant on that date. 23 (4) Any periods served as a member of the General 24 Assembly. 25 (5)(i) Any periods for which a teacher, as defined 26 in Section 16-106, is granted a leave of absence, 27 provided he or she returns to teaching service creditable 28 under this System or the State Universities Retirement 29 System following the leave; (ii) periods during which a 30 teacher is involuntarily laid off from teaching, provided 31 he or she returns to teaching following the lay-off; 32 (iii) periods prior to July 1, 1983 during which a 33 teacher ceased covered employment due to pregnancy, 34 provided that the teacher returned to teaching service -5- LRB9103338EGfg 1 creditable under this System or the State Universities 2 Retirement System following the pregnancy and submits 3 evidence satisfactory to the Board documenting that the 4 employment ceased due to pregnancy; and (iv) periods 5 prior to July 1, 1983 during which a teacher ceased 6 covered employment for the purpose of adopting an infant 7 under 3 years of age or caring for a newly adopted infant 8 under 3 years of age, provided that the teacher returned 9 to teaching service creditable under this System or the 10 State Universities Retirement System following the 11 adoption and submits evidence satisfactory to the Board 12 documenting that the employment ceased for the purpose of 13 adopting an infant under 3 years of age or caring for a 14 newly adopted infant under 3 years of age. However, 15 total credit under this paragraph (5) may not exceed 3 16 years. 17 Any qualified member or annuitant may apply for 18 credit under item (iii) or (iv) of this paragraph (5) 19 without regard to whether service was terminated before 20 the effective date of this amendatory Act of 1997. In 21 the case of an annuitant who establishes credit under 22 item (iii) or (iv), the annuity shall be recalculated to 23 include the additional service credit. The increase in 24 annuity shall take effect on the date the System receives 25 written notification of the annuitant's intent to 26 purchase the credit, if the required evidence is 27 submitted and the required contribution paid within 60 28 days of that notification, otherwise on the first annuity 29 payment date following the System's receipt of the 30 required evidence and contribution. The increase in an 31 annuity recalculated under this provision shall be 32 included in the calculation of automatic annual increases 33 in the annuity accruing after the effective date of the 34 recalculation. -6- LRB9103338EGfg 1 Optional credit may be purchased under this 2 subsection (b)(5) for periods during which a teacher has 3 been granted a leave of absence pursuant to Section 24-13 4 of the School Code. A teacher whose service under this 5 Article terminated prior to the effective date of P.A. 6 86-1488 shall be eligible to purchase such optional 7 credit. If a teacher who purchases this optional credit 8 is already receiving a retirement annuity under this 9 Article, the annuity shall be recalculated as if the 10 annuitant had applied for the leave of absence credit at 11 the time of retirement. The difference between the 12 entitled annuity and the actual annuity shall be credited 13 to the purchase of the optional credit. The remainder of 14 the purchase cost of the optional credit shall be paid on 15 or before April 1, 1992. 16 The change in this paragraph made by Public Act 17 86-273 shall be applicable to teachers who retire after 18 June 1, 1989, as well as to teachers who are in service 19 on that date. 20 (6) Any days of unused and uncompensated 21 accumulated sick leave earned by a teacher. The service 22 credit granted under this paragraph shall be the ratio of 23 the number of unused and uncompensated accumulated sick 24 leave days to 170 days, subject to a maximum of one year 25 of service credit. Prior to the member's retirement, 26 each former employer shall certify to the System the 27 number of unused and uncompensated accumulated sick leave 28 days credited to the member at the time of termination of 29 service. The period of unused sick leave shall not be 30 considered in determining the effective date of 31 retirement. A member is not required to make 32 contributions in order to obtain service credit for 33 unused sick leave. 34 Credit for sick leave shall, at retirement, be -7- LRB9103338EGfg 1 granted by the System for any retiring regional or 2 assistant regional superintendent of schools at the rate 3 of 6 days per year of creditable service or portion 4 thereof established while serving as such superintendent 5 or assistant superintendent. 6 (7) Periods prior to February 1, 1987 served as an 7 employee of the Illinois Mathematics and Science Academy 8 for which credit has not been terminated under Section 9 15-113.9 of this Code. 10 (8) Service as a substitute teacher for work 11 performed prior to July 1, 1990. 12 (9) Service as a part-time teacher for work 13 performed prior to July 1, 1990. 14 (10) Up to 2 years of employment with Southern 15 Illinois University - Carbondale from September 1, 1959 16 to August 31, 1961, or with Governors State University 17 from September 1, 1972 to August 31, 1974, for which the 18 teacher has no credit under Article 15. To receive 19 credit under this item (10), a teacher must apply in 20 writing to the Board and pay the required contributions 21 before May 1, 1993 and have at least 12 years of service 22 credit under this Article. 23 (11) Service in a capacity essentially similar or 24 equivalent to that of a teacher, which occurred in 25 another state with which Illinois has a reciprocal 26 agreement for teacher certification, and for which credit 27 is not available under any other provision of this 28 Article and has not been established under any other 29 provision of this Code. Service credit may be 30 established under this item (11) only if the applicant 31 has at least 5 years of contributing service under this 32 System. 33 (c) The service credits specified in this Section shall 34 be granted only if: (1) such service credits are not used -8- LRB9103338EGfg 1 for credit in any other statutory tax-supported public 2 employee retirement system other than the federal Social 3 Security program; and (2) the member makes the required 4 contributions as specified in Section 16-128. The service 5 credit shall be effective as of the date the required 6 contributions are completed. 7 Any service credits granted under this Section shall 8 terminate upon cessation of membership for any cause. 9 Credit may not be granted under this Section covering any 10 period for which an age retirement or disability retirement 11 allowance has been paid. 12 (Source: P.A. 89-430, eff. 12-15-95; 90-32, eff. 6-27-97.) 13 Section 99. Effective date. This Act takes effect upon 14 becoming law.