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92_SB0380 LRB9207592EGfg 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- LRB9207592EGfg 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- LRB9207592EGfg 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 -4- LRB9207592EGfg 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- LRB9207592EGfg 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- LRB9207592EGfg 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 (5.1) Up to 2 years prior to July 1, 1983 during 20 which the applicant was not employed as a teacher and 21 during which the applicant was (i) pregnant, (ii) 22 adopting a child under 3 years of age, or (iii) engaged 23 in the care of the applicant's natural or adopted child 24 under 3 years of age. The credit allowed under this 25 subsection may begin up to 6 months before the date of 26 birth, miscarriage, stillbirth, or adoption of the child 27 and, when added to any credit established under 28 subdivision (b)(5) of this Section, shall not exceed a 29 total of 3 years. An applicant may not establish credit 30 under this subdivision (b)(5.1) unless he or she has at 31 least one year of service credit under this System for 32 service following the period for which credit is to be 33 established under this subdivision. 34 (6) Any days of unused and uncompensated -7- LRB9207592EGfg 1 accumulated sick leave earned by a teacher. The service 2 credit granted under this paragraph shall be the ratio of 3 the number of unused and uncompensated accumulated sick 4 leave days to 170 days, subject to a maximum of one year 5 of service credit. Prior to the member's retirement, 6 each former employer shall certify to the System the 7 number of unused and uncompensated accumulated sick leave 8 days credited to the member at the time of termination of 9 service. The period of unused sick leave shall not be 10 considered in determining the effective date of 11 retirement. A member is not required to make 12 contributions in order to obtain service credit for 13 unused sick leave. 14 Credit for sick leave shall, at retirement, be 15 granted by the System for any retiring regional or 16 assistant regional superintendent of schools at the rate 17 of 6 days per year of creditable service or portion 18 thereof established while serving as such superintendent 19 or assistant superintendent. 20 (7) Periods prior to February 1, 1987 served as an 21 employee of the Illinois Mathematics and Science Academy 22 for which credit has not been terminated under Section 23 15-113.9 of this Code. 24 (8) Service as a substitute teacher for work 25 performed prior to July 1, 1990. 26 (9) Service as a part-time teacher for work 27 performed prior to July 1, 1990. 28 (10) Up to 2 years of employment with Southern 29 Illinois University - Carbondale from September 1, 1959 30 to August 31, 1961, or with Governors State University 31 from September 1, 1972 to August 31, 1974, for which the 32 teacher has no credit under Article 15. To receive 33 credit under this item (10), a teacher must apply in 34 writing to the Board and pay the required contributions -8- LRB9207592EGfg 1 before May 1, 1993 and have at least 12 years of service 2 credit under this Article. 3 (c) The service credits specified in this Section shall 4 be granted only if: (1) such service credits are not used 5 for credit in any other statutory tax-supported public 6 employee retirement system other than the federal Social 7 Security program; and (2) the member makes the required 8 contributions as specified in Section 16-128. The service 9 credit shall be effective as of the date the required 10 contributions are completed. 11 Any service credits granted under this Section shall 12 terminate upon cessation of membership for any cause. 13 Credit may not be granted under this Section covering any 14 period for which an age retirement or disability retirement 15 allowance has been paid. 16 (Source: P.A. 89-430, eff. 12-15-95; 90-32, eff. 6-27-97.) 17 (40 ILCS 5/16-128) (from Ch. 108 1/2, par. 16-128) 18 Sec. 16-128. Creditable service - required 19 contributions. 20 (a) In order to receive the creditable service specified 21 under subsection (b) of Section 16-127, a member is required 22 to make the following contributions: (i) an amount equal to 23 the contributions which would have been required had such 24 service been rendered as a member under this System; (ii) for 25 military service not immediately following employment and for 26 service established under subdivision (b)(10) of Section 27 16-127, an amount determined by the Board to be equal to the 28 employer's normal cost of the benefits accrued for such 29 service; and (iii) interest from the date the contributions 30 would have been due (or, in the case of a person establishing 31 credit for military service under subdivision (b)(3) of 32 Section 16-127, the date of first membership in the System, 33 if that date is later) to the date of payment, at the -9- LRB9207592EGfg 1 following rate of interest, compounded annually: for periods 2 prior to July 1, 1965, regular interest; from July 1, 1965 to 3 June 30, 1977, 4% per year; on and after July 1, 1977, 4 regular interest. 5 (b) In order to receive creditable service under 6 paragraph (2) of subsection (b) of Section 16-127 for those 7 who were not members on June 30, 1963, the minimum required 8 contribution shall be $420 per year of service together with 9 interest at 4% per year compounded annually from July 1, 10 preceding the date of membership until June 30, 1977 and at 11 regular interest compounded annually thereafter to the date 12 of payment. 13 (c) In determining the contribution required in order to 14 receive creditable service under paragraph (3) of subsection 15 (b) of Section 16-127, the salary rate for the remainder of 16 the school term in which a member enters military service 17 shall be assumed to be equal to the member's salary rate at 18 the time of entering military service. However, for military 19 service not immediately following employment, the salary rate 20 on the last date as a participating teacher prior to such 21 military service, or on the first date as a participating 22 teacher after such military service, whichever is greater, 23 shall be assumed to be equal to the member's salary rate at 24 the time of entering military service. For each school term 25 thereafter, the member's salary rate shall be assumed to be 26 5% higher than the salary rate in the previous school term. 27 (d) In determining the contribution required in order to 28 receive creditable service under paragraph (5) of subsection 29 (b) of Section 16-127, a member's salary rate during the 30 period for which credit is being established shall be assumed 31 to be equal to the member's last salary rate immediately 32 preceding that period. 33 (d-5) In determining the contribution required in order 34 to receive creditable service under subdivision (b)(5.1) of -10- LRB9207592EGfg 1 Section 16-127, a member's salary rate during the period for 2 which credit is being established shall be assumed to be 3 equal to the member's salary rate upon first returning to 4 service after that period. 5 (e) The contributions required under this Section may be 6 made from the date the statement for such creditable service 7 is issued until retirement date. All such required 8 contributions must be made before any retirement annuity is 9 granted. 10 (Source: P.A. 89-430, eff. 12-15-95.) 11 Section 99. Effective date. This Act takes effect upon 12 becoming law.
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