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91_SB0450
LRB9105808EGfg
1 AN ACT to amend the Illinois Pension Code by changing
2 Section 17-134 and to amend the State Mandates Act.
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 17-134 as follows:
7 (40 ILCS 5/17-134) (from Ch. 108 1/2, par. 17-134)
8 Sec. 17-134. Contributions for leaves of absence;
9 military service; computing service. In computing service
10 for pension purposes the following periods of service shall
11 stand in lieu of a like number of years of teaching service
12 upon payment therefor in the manner hereinafter provided: (a)
13 time spent on a leave sabbatical leaves of absence granted by
14 the employer, sick leaves or maternity or paternity leaves;
15 (b) service with teacher or labor organizations based upon
16 special leaves of absence therefor granted by an Employer;
17 (c) a maximum of 5 years spent in the military service of the
18 United States, of which up to 2 years may have been served
19 outside the pension period; (d) unused sick days at
20 termination of service to a maximum of 244 days; (e) time
21 lost due to layoff and curtailment of the school term from
22 June 6 through June 21, 1976; and (f) time spent after June
23 30, 1982 as a member of the Board of Education, if required
24 to resign from an administrative or teaching position in
25 order to qualify as a member of the Board of Education.
26 (1) For time spent on or after September 6, 1948 on
27 sabbatical leaves of absence or sick leaves, for which
28 salaries are paid, an Employer shall make payroll
29 deductions at the applicable rates in effect during such
30 periods.
31 (2) For time spent on leaves of absence granted by
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1 the employer sabbatical or sick leaves commencing on or
2 after September 1, 1961, and for time spent on maternity
3 or paternity leaves, for which no salaries are paid,
4 teachers desiring credit therefor shall pay the required
5 contributions at the rates in effect during such periods
6 as though they were in teaching service. If an Employer
7 pays salary for vacations which occur during a teacher's
8 sick leave or maternity or paternity leave without
9 salary, vacation pay for which the teacher would have
10 qualified while in active service shall be considered
11 part of the teacher's total salary for pension purposes.
12 No more than 36 12 months of sick leave or maternity or
13 paternity leave credit may be allowed any person during
14 the entire term of service. Sabbatical leave credit
15 shall be limited to the time the person on leave without
16 salary under an Employer's rules is allowed to engage in
17 an activity for which he receives salary or compensation.
18 Notwithstanding Section 17-157, until January 1,
19 2001 a person receiving a retirement pension under this
20 Article may apply to establish credit under this
21 paragraph (2). In the case of a pensioner who
22 establishes credit under this paragraph (2), the
23 retirement pension shall be recalculated to include the
24 additional service credit. The increase in pension shall
25 take effect on the date the Fund receives written
26 notification of the pensioner's intent to purchase the
27 credit, if the required evidence is submitted and the
28 required contribution paid within 60 days of that
29 notification, otherwise on the first pension payment date
30 following the Fund's receipt of the required evidence and
31 contribution. The increase in a pension recalculated
32 under this provision shall be included in the calculation
33 of automatic annual increases in the pension accruing
34 after the effective date of the recalculation.
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1 (3) For time spent prior to September 6, 1948, on
2 sabbatical leaves of absence or sick leaves for which
3 salaries were paid, teachers desiring service credit
4 therefor shall pay the required contributions at the
5 maximum applicable rates in effect during such periods.
6 (4) For service with teacher or labor organizations
7 authorized by special leaves of absence, for which no
8 payroll deductions are made by an Employer, teachers
9 desiring service credit therefor shall contribute to the
10 Fund upon the basis of the actual salary received from
11 such organizations at the percentage rates in effect
12 during such periods for certified positions with such
13 Employer. To the extent the actual salary exceeds the
14 regular salary, which shall be defined as the salary
15 rate, as calculated by the Board, in effect for the
16 teacher's regular position in teaching service on
17 September 1, 1983 or on the effective date of the leave
18 with the organization, whichever is later, the
19 organization shall pay to the Fund the employer's normal
20 cost as set by the Board on the increment.
21 (5) For time spent in the military service,
22 teachers entitled to and desiring credit therefor shall
23 contribute the amount required for each year of service
24 or fraction thereof at the rates in force (a) at the date
25 oF appointment, or (b) on return to teaching service as a
26 regularly certified teacher, as the case may be; provided
27 such rates shall not be less than $450 per year of
28 service. These conditions shall apply unless an Employer
29 elects to and does pay into the Fund the amount which
30 would have been due from such person had he been employed
31 as a teacher during such time. In the case of credit for
32 military service not during the pension period, the
33 teacher must also pay to the Fund an amount determined by
34 the Board to be equal to the employer's normal cost of
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1 the benefits accrued from such service, plus interest
2 thereon at 5% per year, compounded annually, from the
3 date of appointment to the date of payment.
4 The changes to this Section made by Public Act
5 87-795 shall apply not only to persons who on or after
6 its effective date are in service under the Fund, but
7 also to persons whose status as a teacher terminated
8 prior to that date, whether or not the person is an
9 annuitant on that date. In the case of an annuitant who
10 applies for credit allowable under this Section for a
11 period of military service that did not immediately
12 follow employment, and who has made the required
13 contributions for such credit, the annuity shall be
14 recalculated to include the additional service credit,
15 with the increase taking effect on the date the Fund
16 received written notification of the annuitant's intent
17 to purchase the credit, if payment of all the required
18 contributions is made within 60 days of such notice, or
19 else on the first annuity payment date following the date
20 of payment of the required contributions. In calculating
21 the automatic annual increase for an annuity that has
22 been recalculated under this Section, the increase
23 attributable to the additional service allowable under
24 this amendatory Act of 1991 shall be included in the
25 calculation of automatic annual increases accruing after
26 the effective date of the recalculation.
27 The total credit for military service shall not
28 exceed 5 years, except that any teacher who on July 1,
29 1963, had validated credit for more than 5 years of
30 military service shall be entitled to the total amount of
31 such credit.
32 (6) A maximum of 244 unused sick days credited to
33 his account by an Employer on the date of termination of
34 employment. Members, upon verification of unused sick
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1 days, may add this service time to total creditable
2 service.
3 (7) In all cases where time spent on leave is
4 creditable and no payroll deductions therefor are made by
5 an Employer, persons desiring service credit shall make
6 the required contributions directly to the Fund.
7 (8) For time lost without pay due to layoff and
8 curtailment of the school term from June 6 through June
9 21, 1976, as provided in item (e) of the first paragraph
10 of this Section, persons who were contributors on the
11 days immediately preceding such layoff shall receive
12 credit upon paying to the Fund a contribution based on
13 the rates of compensation and employee contributions in
14 effect at the time of such layoff, together with an
15 additional amount equal to 12.2% of the compensation
16 computed for such period of layoff, plus interest on the
17 entire amount at 5% per annum from January 1, 1978 to the
18 date of payment. If such contribution is paid, salary
19 for pension purposes for any year in which such a layoff
20 occurred shall include the compensation recognized for
21 purposes of computing that contribution.
22 (9) For time spent after June 30, 1982, as a
23 nonsalaried member of the Board of Education, if required
24 to resign from an administrative or teaching position in
25 order to qualify as a member of the Board of Education,
26 an administrator or teacher desiring credit therefor
27 shall pay the required contributions at the rates and
28 salaries in effect during such periods as though the
29 member were in service.
30 Effective September 1, 1974, the interest charged for
31 validation of service described in paragraphs (2) through (5)
32 of this Section shall be compounded annually at a rate of 5%
33 commencing one year after the termination of the leave or
34 return to service.
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1 (Source: P.A. 90-32, eff. 6-27-97; 90-566, eff. 1-2-98.)
2 Section 90. The State Mandates Act is amended by adding
3 Section 8.23 as follows:
4 (30 ILCS 805/8.23 new)
5 Sec. 8.23. Exempt mandate. Notwithstanding Sections 6
6 and 8 of this Act, no reimbursement by the State is required
7 for the implementation of any mandate created by this
8 amendatory Act of the 91st General Assembly.
9 Section 99. Effective date. This Act takes effect upon
10 becoming law.