State of Illinois
92nd General Assembly
Legislation

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92_SB0097

 
                                               LRB9201205EGfg

 1        AN ACT in relation to public employee benefits.

 2        Be  it  enacted  by  the People of the State of Illinois,
 3    represented in the General Assembly:

 4        Section 5.  The  Illinois  Pension  Code  is  amended  by
 5    changing Sections 16-127 and 16-128 as follows:

 6        (40 ILCS 5/16-127) (from Ch. 108 1/2, par. 16-127)
 7        Sec. 16-127.  Computation of creditable service.
 8        (a)  Each  member  shall  receive  regular credit for all
 9    service as a teacher from the  date  membership  begins,  for
10    which satisfactory evidence is supplied and all contributions
11    have been paid.
12        (b)  The following periods of service shall earn optional
13    credit  and  each  member  shall  receive credit for all such
14    service for which satisfactory evidence is supplied  and  all
15    contributions have been paid as of the date specified:
16             (1)  Prior service as a teacher.
17             (2)  Service  in  a  capacity essentially similar or
18        equivalent to that of a teacher,  in  the  public  common
19        schools  in  school  districts in this State not included
20        within the provisions of this System,  or  of  any  other
21        State,  territory, dependency or possession of the United
22        States, or in schools operated by or under  the  auspices
23        of the United States, or under the auspices of any agency
24        or  department of any other State, and service during any
25        period  of  professional  speech  correction  or  special
26        education experience for  a  public  agency  within  this
27        State  or  any  other  State,  territory,  dependency  or
28        possession  of  the  United  States, and service prior to
29        February 1, 1951 as a recreation worker for the  Illinois
30        Department  of  Public Safety, for a period not exceeding
31        the lesser of 2/5 of the total creditable service of  the
 
                            -2-                LRB9201205EGfg
 1        member  or  10  years.   The  maximum service of 10 years
 2        which is allowable under this paragraph shall be  reduced
 3        by  the  service  credit  which  is  validated  by  other
 4        retirement  systems under paragraph (i) of Section 15-113
 5        and paragraph 1 of Section 17-133.  Credit granted  under
 6        this  paragraph  may  not  be  used in determination of a
 7        retirement annuity  or  disability  benefits  unless  the
 8        member  has at least 5 years of creditable service earned
 9        subsequent to this employment with one  or  more  of  the
10        following  systems:  Teachers'  Retirement  System of the
11        State of Illinois, State Universities Retirement  System,
12        and  the  Public  School Teachers' Pension and Retirement
13        Fund of Chicago.  Whenever such  service  credit  exceeds
14        the maximum allowed for all purposes of this Article, the
15        first   service  rendered  in  point  of  time  shall  be
16        considered. The changes to this subdivision  (b)(2)  made
17        by  Public Act 86-272 shall apply not only to persons who
18        on or after its effective date (August 23, 1989)  are  in
19        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             (3)  Any  periods  immediately  following   teaching
24        service,  under  this  System  or  under  Article 17, (or
25        immediately following service prior to February  1,  1951
26        as  a  recreation  worker  for the Illinois Department of
27        Public Safety) spent in active service with the  military
28        forces of the United States; periods spent in educational
29        programs that prepare for return to teaching sponsored by
30        the  federal  government  following  such active military
31        service; if a teacher returns to teaching service  within
32        one calendar year after discharge or after the completion
33        of   the  educational  program,  a  further  period,  not
34        exceeding  one  calendar  year,  between  time  spent  in
 
                            -3-                LRB9201205EGfg
 1        military service or in such educational programs and  the
 2        return  to employment as a teacher under this System; and
 3        a period of up to 2 years of active military service  not
 4        immediately following employment as a teacher.
 5             The  changes  to  this  Section  and  Section 16-128
 6        relating to military service made by  P.A.  87-794  shall
 7        apply  not  only to persons who on or after its effective
 8        date are in service as a teacher under  the  System,  but
 9        also  to  persons  whose  status  as a teacher terminated
10        prior to that date, whether  or  not  the  person  is  an
11        annuitant  on that date.  In the case of an annuitant who
12        applies for credit allowable under  this  Section  for  a
13        period  of  military  service  that  did  not immediately
14        follow  employment,  and  who  has  made   the   required
15        contributions  for  such  credit,  the  annuity  shall be
16        recalculated to include the  additional  service  credit,
17        with  the  increase  taking effect on the date the System
18        received written notification of the  annuitant's  intent
19        to  purchase  the  credit, if payment of all the required
20        contributions is made within 60 days of such  notice,  or
21        else on the first annuity payment date following the date
22        of payment of the required contributions.  In calculating
23        the  automatic  annual  increase  for an annuity that has
24        been recalculated  under    this  Section,  the  increase
25        attributable  to  the  additional service allowable under
26        P.A. 87-794 shall  be  included  in  the  calculation  of
27        automatic  annual  increases accruing after the effective
28        date of the recalculation.
29             Credit for military service shall be  determined  as
30        follows:  if  entry  occurs  during  the  months of July,
31        August, or September and the member was a teacher at  the
32        end  of  the  immediately  preceding  school term, credit
33        shall be granted from July 1 of the year in which  he  or
34        she  entered  service;  if entry occurs during the school
 
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 1        term and the teacher  was  in  teaching  service  at  the
 2        beginning  of  the  school  term, credit shall be granted
 3        from July 1 of such year. In all other cases where credit
 4        for military service is allowed, credit shall be  granted
 5        from the date of entry into the service.
 6             The  total  period  of  military  service  for which
 7        credit is granted shall not exceed 5 years for any member
 8        unless the service:  (A)  is  validated  before  July  1,
 9        1964,  and  (B)  does  not  extend  beyond  July 1, 1963.
10        Credit for military service shall be granted  under  this
11        Section  only  if  not  more than 5 years of the military
12        service for which credit is granted under this Section is
13        used by the member to qualify for a  military  retirement
14        allotment  from  any  branch  of  the armed forces of the
15        United States. The changes  to  this  subdivision  (b)(3)
16        made by Public Act 86-272 shall apply not only to persons
17        who  on or after its effective date (August 23, 1989) are
18        in service as a teacher under the  System,  but  also  to
19        persons  whose  status as such a teacher terminated prior
20        to such effective date, whether or not such person is  an
21        annuitant on that date.
22             (4)  Any  periods  served as a member of the General
23        Assembly.
24             (5)(i)  Any periods for which a teacher, as  defined
25        in  Section  16-106,  is  granted  a  leave  of  absence,
26        provided he or she returns to teaching service creditable
27        under  this  System  or the State Universities Retirement
28        System following the leave; (ii) periods during  which  a
29        teacher is involuntarily laid off from teaching, provided
30        he  or  she  returns  to  teaching following the lay-off;
31        (iii) periods prior  to  July  1,  1983  during  which  a
32        teacher  ceased  covered  employment  due  to  pregnancy,
33        provided  that  the  teacher returned to teaching service
34        creditable under this System or  the  State  Universities
 
                            -5-                LRB9201205EGfg
 1        Retirement  System  following  the  pregnancy and submits
 2        evidence satisfactory to the Board documenting  that  the
 3        employment  ceased  due  to  pregnancy;  and (iv) periods
 4        prior to July 1,  1983  during  which  a  teacher  ceased
 5        covered  employment for the purpose of adopting an infant
 6        under 3 years of age or caring for a newly adopted infant
 7        under 3 years of age, provided that the teacher  returned
 8        to  teaching  service creditable under this System or the
 9        State  Universities  Retirement  System   following   the
10        adoption  and  submits evidence satisfactory to the Board
11        documenting that the employment ceased for the purpose of
12        adopting an infant under 3 years of age or caring  for  a
13        newly  adopted  infant  under  3  years of age.  However,
14        total credit under this paragraph (5) may  not  exceed  3
15        years.
16             Any  qualified  member  or  annuitant  may apply for
17        credit under item (iii) or (iv)  of  this  paragraph  (5)
18        without  regard  to whether service was terminated before
19        the effective date of this amendatory Act  of  1997.   In
20        the  case  of  an  annuitant who establishes credit under
21        item (iii) or (iv), the annuity shall be recalculated  to
22        include  the  additional service credit.  The increase in
23        annuity shall take effect on the date the System receives
24        written  notification  of  the  annuitant's   intent   to
25        purchase   the   credit,  if  the  required  evidence  is
26        submitted and the required contribution  paid  within  60
27        days of that notification, otherwise on the first annuity
28        payment  date  following  the  System's  receipt  of  the
29        required  evidence  and contribution.  The increase in an
30        annuity  recalculated  under  this  provision  shall   be
31        included in the calculation of automatic annual increases
32        in  the  annuity accruing after the effective date of the
33        recalculation.
34             Optional  credit  may  be   purchased   under   this
 
                            -6-                LRB9201205EGfg
 1        subsection  (b)(5) for periods during which a teacher has
 2        been granted a leave of absence pursuant to Section 24-13
 3        of the School Code.  A teacher whose service  under  this
 4        Article  terminated  prior  to the effective date of P.A.
 5        86-1488 shall  be  eligible  to  purchase  such  optional
 6        credit.   If a teacher who purchases this optional credit
 7        is already receiving  a  retirement  annuity  under  this
 8        Article,  the  annuity  shall  be  recalculated as if the
 9        annuitant had applied for the leave of absence credit  at
10        the  time  of  retirement.   The  difference  between the
11        entitled annuity and the actual annuity shall be credited
12        to the purchase of the optional credit.  The remainder of
13        the purchase cost of the optional credit shall be paid on
14        or before April 1, 1992.
15             The change in this  paragraph  made  by  Public  Act
16        86-273  shall  be applicable to teachers who retire after
17        June 1, 1989, as well as to teachers who are  in  service
18        on that date.
19             (6)  Any    days   of   unused   and   uncompensated
20        accumulated sick leave earned by a teacher.  The  service
21        credit granted under this paragraph shall be the ratio of
22        the  number  of unused and uncompensated accumulated sick
23        leave days to 170 days, subject to a maximum of one  year
24        of  service  credit.   Prior  to the member's retirement,
25        each former employer shall  certify  to  the  System  the
26        number of unused and uncompensated accumulated sick leave
27        days credited to the member at the time of termination of
28        service.  The  period  of  unused sick leave shall not be
29        considered  in  determining   the   effective   date   of
30        retirement.    A   member   is   not   required  to  make
31        contributions in  order  to  obtain  service  credit  for
32        unused sick leave.
33             Credit  for  sick  leave  shall,  at  retirement, be
34        granted by  the  System  for  any  retiring  regional  or
 
                            -7-                LRB9201205EGfg
 1        assistant  regional superintendent of schools at the rate
 2        of 6 days per  year  of  creditable  service  or  portion
 3        thereof  established while serving as such superintendent
 4        or assistant superintendent.
 5             (7)  Periods prior to February 1, 1987 served as  an
 6        employee  of the Illinois Mathematics and Science Academy
 7        for which credit has not been  terminated  under  Section
 8        15-113.9 of this Code.
 9             (8)  Service   as  a  substitute  teacher  for  work
10        performed prior to July 1, 1990.
11             (9)  Service  as  a  part-time  teacher   for   work
12        performed prior to July 1, 1990.
13             (10)  Up  to  2  years  of  employment with Southern
14        Illinois University - Carbondale from September  1,  1959
15        to  August  31,  1961, or with Governors State University
16        from September 1, 1972 to August 31, 1974, for which  the
17        teacher  has  no  credit  under  Article  15.  To receive
18        credit under this item (10),  a  teacher  must  apply  in
19        writing  to  the Board and pay the required contributions
20        before May 1, 1993 and have at least 12 years of  service
21        credit under this Article.
22        (b-1)  A member may establish optional credit for up to 3
23    years  of service as a teacher or administrator employed by a
24    private school recognized by  the  Illinois  State  Board  of
25    Education,  provided that the teacher (i) was certified under
26    the law governing the certification of teachers at  the  time
27    the service was rendered, (ii) applies in writing on or after
28    June  1,  2001  and on or before June 1, 2004, (iii) supplies
29    satisfactory evidence of the employment,  (iv)  completes  at
30    least 5 years of contributing service as a teacher as defined
31    in  Section 16-106, and (v) pays the contribution required in
32    subsection (d-5) of Section 16-128.  The member may apply for
33    credit  under  this   subsection   and   pay   the   required
34    contribution  before  completing  the 5 years of contributing
 
                            -8-                LRB9201205EGfg
 1    service required under item (iv), but the credit may  not  be
 2    used until the item (iv) contributing service requirement has
 3    been met.
 4        (c)  The  service credits specified in this Section shall
 5    be granted only if: (1) such service credits are not used for
 6    credit in any other statutory tax-supported  public  employee
 7    retirement  system  other  than  the  federal Social Security
 8    program; and (2) the member makes the required  contributions
 9    as  specified  in  Section  16-128.   Except  as  provided in
10    subsection (b-1) of this Section, the service credit shall be
11    effective as of  the  date  the  required  contributions  are
12    completed.
13        Any  service  credits  granted  under  this Section shall
14    terminate upon cessation of membership for any cause.
15        Credit may not be granted under this Section covering any
16    period for which an age retirement or  disability  retirement
17    allowance has been paid.
18    (Source: P.A. 89-430, eff. 12-15-95; 90-32, eff. 6-27-97.)

19        (40 ILCS 5/16-128) (from Ch. 108 1/2, par. 16-128)
20        Sec.     16-128.  Creditable     service    -    required
21    contributions.
22        (a)  In order to receive the creditable service specified
23    under subsection (b) of Section 16-127, a member is  required
24    to  make  the following contributions: (i) an amount equal to
25    the contributions which would have  been  required  had  such
26    service been rendered as a member under this System; (ii) for
27    military service not immediately following employment and for
28    service  established  under  subdivision  (b)(10)  of Section
29    16-127, an amount determined by the Board to be equal to  the
30    employer's  normal  cost  of  the  benefits  accrued for such
31    service; and (iii) interest from the date  the  contributions
32    would have been due (or, in the case of a person establishing
33    credit  for  military  service  under  subdivision  (b)(3) of
 
                            -9-                LRB9201205EGfg
 1    Section 16-127, the date of first membership in  the  System,
 2    if  that  date  is  later)  to  the  date  of payment, at the
 3    following rate of interest, compounded annually:  for periods
 4    prior to July 1, 1965, regular interest; from July 1, 1965 to
 5    June 30, 1977, 4% per  year;  on  and  after  July  1,  1977,
 6    regular interest.
 7        (b)  In   order   to  receive  creditable  service  under
 8    paragraph (2) of subsection (b) of Section 16-127  for  those
 9    who  were  not members on June 30, 1963, the minimum required
10    contribution shall be $420 per year of service together  with
11    interest  at  4%  per  year  compounded annually from July 1,
12    preceding the date of membership until June 30, 1977  and  at
13    regular  interest  compounded annually thereafter to the date
14    of payment.
15        (c)  In determining the contribution required in order to
16    receive creditable service under paragraph (3) of  subsection
17    (b)  of  Section 16-127, the salary rate for the remainder of
18    the school term in which a  member  enters  military  service
19    shall  be  assumed to be equal to the member's salary rate at
20    the time of entering military service.  However, for military
21    service not immediately following employment, the salary rate
22    on the last date as a participating  teacher  prior  to  such
23    military  service,  or  on  the first date as a participating
24    teacher after such military service,  whichever  is  greater,
25    shall  be  assumed to be equal to the member's salary rate at
26    the time of entering military service.  For each school  term
27    thereafter,  the  member's salary rate shall be assumed to be
28    5% higher than the salary rate in the previous school term.
29        (d)  In determining the contribution required in order to
30    receive creditable service under paragraph (5) of  subsection
31    (b)  of  Section  16-127,  a  member's salary rate during the
32    period for which credit is being established shall be assumed
33    to be equal to the  member's  last  salary  rate  immediately
34    preceding that period.
 
                            -10-               LRB9201205EGfg
 1        (d-5)  For  each year of service credit to be established
 2    under  subsection  (b-1)  of  Section  16-127,  a  member  is
 3    required to contribute to the System (i) 16.5% of the  annual
 4    salary  rate during the first year of full-time employment as
 5    a teacher under this Article  following  the  private  school
 6    service,  plus  (ii)  interest thereon from the date of first
 7    full-time  employment  as  a  teacher  under   this   Article
 8    following  the private school service to the date of payment,
 9    compounded annually, at the rate of 8.5% per year for periods
10    before the effective date of this amendatory Act of the  92nd
11    General  Assembly, and for subsequent periods at a rate equal
12    to  the  System's  actuarially  assumed  rate  of  return  on
13    investments.
14        (e)  The contributions required under this Section may be
15    made from the date the statement for such creditable  service
16    is   issued   until   retirement  date.   All  such  required
17    contributions must be made before any retirement  annuity  is
18    granted.
19    (Source: P.A. 89-430, eff. 12-15-95.)

20        Section  99.  Effective date.  This Act takes effect upon
21    becoming law.

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