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92nd General Assembly

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Public Act 92-0416

HB2157 Enrolled                                LRB9205315LDcs

    AN ACT in relation to public employee benefits.

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

    Section  5.   The  Illinois  Pension  Code  is amended by
changing Sections 16-106, 16-118, 16-129.1, 17-106, 17-116.3,
17-116.4, 17-119.1, 17-121, and 17-149 as follows:

    (40 ILCS 5/16-106) (from Ch. 108 1/2, par. 16-106)
    Sec.   16-106.  Teacher.    "Teacher":   The    following
individuals,  provided  that, for employment prior to July 1,
1990, they are employed on  a  full-time  basis,  or  if  not
full-time,  on a permanent and continuous basis in a position
in which services are expected to be rendered  for  at  least
one school term:
         (1)  Any  educational,  administrative, professional
    or other staff employed  in  the  public  common  schools
    included  within  this  system  in  a  position requiring
    certification under the law governing  the  certification
    of teachers;
         (2)  Any  educational,  administrative, professional
    or other staff employed in any facility of the Department
    of Children and Family  Services  or  the  Department  of
    Human  Services,  in  a  position requiring certification
    under the law governing the  certification  of  teachers,
    and  any  person who (i) works in such a position for the
    Department of Corrections, (ii)  was  a  member  of  this
    System on May 31, 1987, and (iii) did not elect to become
    a  member  of  the  State  Employees'  Retirement  System
    pursuant to Section 14-108.2 of this Code;
         (3)  Any   regional   superintendent   of   schools,
    assistant   regional  superintendent  of  schools,  State
    Superintendent of Education; any person employed  by  the
    State  Board  of Education as an executive; any executive
    of the boards engaged in the  service  of  public  common
    school  education  in school districts covered under this
    system of which the State Superintendent of Education  is
    an ex-officio member;
         (4)  Any  employee  of  a  school  board association
    operating in compliance with Article  23  of  the  School
    Code  who  is  certificated  under  the law governing the
    certification of teachers;
         (5)  Any person employed by  the  retirement  system
    who:
              (i)  was  an  employee  of and a participant in
         the system on the effective date of this  amendatory
         Act of the 92nd General Assembly, or
              (ii)  becomes  an  employee of the system on or
         after the effective date of this amendatory  Act  of
         the  92nd General Assembly; as an executive, and any
         person employed by  the  retirement  system  who  is
         certificated    under    the   law   governing   the
         certification of teachers;
         (6)  Any educational,  administrative,  professional
    or  other staff employed by and under the supervision and
    control of a regional superintendent of schools, provided
    such  employment  position  requires  the  person  to  be
    certificated under the law governing the certification of
    teachers and is in an educational program  serving  2  or
    more  districts  in  accordance  with  a  joint agreement
    authorized by the School Code or by federal legislation;
         (7)  Any educational,  administrative,  professional
    or  other  staff  employed  in   an  educational  program
    serving  2  or more school districts in accordance with a
    joint agreement authorized  by  the  School  Code  or  by
    federal   legislation   and   in   a  position  requiring
    certification under the laws governing the  certification
    of teachers;
         (8)  Any  officer or employee of a statewide teacher
    organization   or   officer   of   a   national   teacher
    organization who is certified  under  the  law  governing
    certification  of  teachers, provided: (i) the individual
    had previously established creditable service under  this
    Article,  (ii)  the  individual  files with the system an
    irrevocable election to become a member,  and  (iii)  the
    individual does not receive credit for such service under
    any other Article of this Code;
         (9)  Any  educational, administrative, professional,
    or other staff employed in a charter school operating  in
    compliance   with   the   Charter   Schools  Law  who  is
    certificated under the law governing the certification of
    teachers.
    An annuitant receiving a retirement  annuity  under  this
Article  or  under Article 17 of this Code who is temporarily
employed by a  board  of  education  or  other  employer  not
exceeding  that  permitted  under  Section  16-118  is  not a
"teacher" for purposes of this Article.   A  person  who  has
received   a  single-sum  retirement  benefit  under  Section
16-136.4 of this Article is not a "teacher" for  purposes  of
this Article.
(Source: P.A.  89-450,  eff.  4-10-96;  89-507,  eff. 7-1-97;
90-14, eff. 7-1-97; 90-448, eff. 8-16-97.)

    (40 ILCS 5/16-118) (from Ch. 108 1/2, par. 16-118)
    Sec. 16-118.   Retirement.  "Retirement":  Entry  upon  a
retirement  annuity  or  receipt  of  a single-sum retirement
benefit granted  under  this  Article  after  termination  of
active service as a teacher.
    An  annuitant receiving a retirement annuity other than a
disability retirement annuity  may  accept  employment  as  a
teacher  from  a  school board or other employer specified in
Section 16-106 without impairing retirement  status  if  that
employment:  (1)  is  not within the school year during which
service was terminated; and (2) does not exceed 100 paid days
or 500 paid hours in  any  school  year  (during  the  period
beginning  July  1, 2001 through June 30, 2006, 120 paid days
or 600 paid hours in each school year).  Where such permitted
employment is partly on a  daily  and  partly  on  an  hourly
basis, a day shall be considered as 5 hours.
(Source: P.A. 86-273; 87-11; 87-794; 87-895.)

    (40 ILCS 5/16-129.1)
    Sec. 16-129.1.  Optional increase in retirement annuity.
    (a)  A member of the System may qualify for the augmented
rate  under  subdivision  (a)(B)(1) of Section 16-133 for all
years of creditable service earned before  July  1,  1998  by
making the optional contribution specified in subsection (b).
A  member may not elect to qualify for the augmented rate for
only a portion of his or her creditable service earned before
July 1, 1998.
    (b)  The contribution shall be an amount equal to 1.0% of
the member's highest salary rate in the 4 consecutive  school
years  immediately prior to but not including the school year
in which the application occurs, multiplied by the number  of
years  of creditable service earned by the member before July
1, 1998 or 20, whichever is less.  This contribution shall be
reduced by 1.0% of that salary rate for every 3 full years of
creditable service earned by the member after June 30,  1998.
The  contribution shall be further reduced at the rate of 25%
of the contribution (as reduced for service  after  June  30,
1998)  for each year of the member's total creditable service
in excess of 34 years.  The contribution  shall  not  in  any
event exceed 20% of that salary rate.
    The  member  shall  pay  to  the System the amount of the
contribution as calculated at the time of  application  under
this  Section.   The  amount  of  the contribution determined
under this subsection shall be recalculated at  the  time  of
retirement, and if the System determines that the amount paid
by  the  member  exceeds  the recalculated amount, the System
shall refund  the  difference  to  the  member  with  regular
interest from the date of payment to the date of refund.
    The  contribution  required  by  this subsection shall be
paid in one of the following ways or in a combination of  the
following ways that does not extend over more than 5 years:
         (i)  in  a  lump  sum  on  or  before  the  date  of
    retirement;
         (ii)  in  substantially  equal  installments  over a
    period of time not to exceed 5 years, as a deduction from
    salary in  accordance  with  subsection  (b)  of  Section
    16-154;
         (iii)  if  the  member  becomes  an annuitant before
    June   30,   2003,   in   substantially   equal   monthly
    installments over a  24-month  period,  by  reducing  the
    annuitant's monthly benefit over a 24-month period by the
    amount  of  the  otherwise  applicable contribution.  For
    federal and Illinois tax purposes, the monthly amount  by
    which  the  annuitant's  benefit  is reduced shall not be
    treated as a contribution by the annuitant, but rather as
    a reduction of the annuitant's monthly benefit.
    (c)  If the member fails to make  the  full  contribution
under  this  Section  in  a timely fashion, the payments made
under this Section shall be refunded to the  member,  without
interest.    If  the  member  dies  before  making  the  full
contribution, the payments made under this Section,  together
with  regular  interest  thereon,  shall  be  refunded to the
member's designated beneficiary for  benefits  under  Section
16-138.
    (d)  For   purposes   of  this  Section  and  subdivision
(a)(B)(1) of  Section  16-133,  optional  creditable  service
established  by  a member shall be deemed to have been earned
at the time of the employment or other qualifying event  upon
which  the  service  is  based,  rather  than at the time the
credit was established in this System.
    (e)  The contributions required under  this  Section  are
the  responsibility  of  the  teacher  and  not the teacher's
employer.  However, an employer of teachers  may,  after  the
effective  date  of this amendatory Act of 1998, specifically
agree, through collective bargaining or  otherwise,  to  make
the contributions required by this Section on behalf of those
teachers.
    (f)  A  person  who,  on or after July 1, 1998 and before
June 4, 1999, began receiving a retirement annuity calculated
at the augmented rate  may  apply  in  writing  to  have  the
annuity  recalculated  to reflect the changes to this Section
and Section 16-133 that were enacted  in  Public  Act  91-17.
The   amount  of  any  resulting  decrease  in  the  optional
contribution shall be  refunded  to  the  annuitant,  without
interest.  Any resulting increase in retirement annuity shall
take  effect  on  the next annuity payment date following the
date of application under this subsection.
(Source: P.A. 90-582, eff. 5-27-98; 91-17, eff. 6-4-99.)

    (40 ILCS 5/17-106) (from Ch. 108 1/2, par. 17-106)
    Sec.   17-106.   Contributor,    member    or    teacher.
"Contributor",  "member"  or  "teacher":   All members of the
teaching force of the city, including  principals,  assistant
principals,  the  general  superintendent  of schools, deputy
superintendents  of  schools,  associate  superintendents  of
schools, assistant and district superintendents  of  schools,
members  of  the  Board of Examiners, all other persons whose
employment requires a teaching certificate issued  under  the
laws   governing   the   certification   of   teachers,   any
educational,  administrative,  professional,  or  other staff
employed in a charter school operating in compliance with the
Charter Schools Law who is certified under the law  governing
the  certification  of  teachers, and employees of the Board,
but excluding persons contributing concurrently to any  other
public  employee  pension  system  in  Illinois  for the same
employment or receiving  retirement  pensions  under  another
Article  of  this  Code  for  that  same  employment, persons
employed on an hourly basis, and persons  receiving  pensions
from the Fund who are employed temporarily by an Employer for
150  100 days or less in any school year and not on an annual
basis.
    In the case of a person who has been making contributions
and  otherwise  participating  in  this  Fund  prior  to  the
effective date of this amendatory Act  of  the  91st  General
Assembly,  and  whose  right  to  participate  in the Fund is
established or confirmed by this amendatory Act,  such  prior
participation   in  the  Fund,  including  all  contributions
previously made and service credits previously earned by  the
person, are hereby validated.
    The  changes  made  to this Section and Section 17-149 by
this amendatory  Act  of  the  92nd  General  Assembly  apply
without  regard  to  whether  the person was in service on or
after  the   effective   date   of   this   amendatory   Act,
notwithstanding Sections 1-103.1 and 17-157.
(Source:  P.A.  90-32,  eff.  6-27-97;  90-566,  eff. 1-2-98;
91-887, eff. 7-6-00.)

    (40 ILCS 5/17-116.3)
    Sec. 17-116.3. Early retirement incentives.
    (a)  A teacher who is covered by a collective  bargaining
agreement  shall  not  be  eligible  for the early retirement
incentives provided under this Section unless the  collective
bargaining agent and the Board of Education have entered into
an  agreement  under  which the agent agrees that any payment
for accumulated unused sick days to  which  the  employee  is
entitled  upon  withdrawal  from  service  may be paid by the
Board of Education in installments over a period of up  to  5
years,  and  a copy of this agreement has been filed with the
Board of the Fund.
    To be eligible for the benefits provided in this Section,
a person must:
         (1)  be a member of this Fund who, on or  after  May
    1, 1993, is (i) in active payroll status as a teacher, or
    (ii)  on  layoff status from such a position with a right
    of re-employment or recall to service, or (iii) on  leave
    of  absence  from such a position, but only if the member
    on leave has not  been  receiving  a  disability  benefit
    under  this Article for a continuous period of 2 years or
    more as of the date of application;
         (2)  have  not  previously  received  a   retirement
    pension under this Article;
         (3)  file with the Board and the Board of Education,
    before  August 15, 1993, a written application requesting
    the benefits provided in this Section  and  a  notice  of
    resignation  from employment, which resignation must take
    effect before September 1, 1993  unless  the  applicant's
    retirement is delayed under subsection (e), (f), or (f-5)
    of this Section;
         (4)  be  eligible  to  receive  a retirement pension
    under this Article (for which purpose any age enhancement
    or creditable service received under this Section may  be
    used)   and  elect  to  receive  the  retirement  pension
    beginning no earlier than June 1, 1993 and no later  than
    September   1,   1993   or  the  date  established  under
    subsection  (e),  (f),  or  (f-5)  of  this  Section,  if
    applicable;
         (5)  have attained age 50 (without the  use  of  any
    age enhancement or creditable service received under this
    Section) by the effective date of the retirement pension;
         (6)  have  at  least  5  years of creditable service
    under this Fund or any of the participating systems under
    the Retirement Systems Reciprocal Act (without the use of
    any creditable service received under  this  Section)  by
    the effective date of the retirement pension.
    (b)  An  eligible  person  may establish up to 5 years of
creditable service under this Section.  In addition, for each
period of creditable service established under this  Section,
a  person's age at retirement shall be deemed to be increased
by an equal period.
    The creditable service established under this Section may
be  used  for  all  purposes  under  this  Article  and   the
Retirement Systems Reciprocal Act, except for the purposes of
Section  17-116.1, and the determination of average salary or
compensation under this or any other Article of this Code.
    The age enhancement established under this Section may be
used  for  all  purposes  under   this   Article   (including
calculation  of  a proportionate pension payable by this Fund
under the Retirement  Systems  Reciprocal  Act),  except  for
purposes  of  the  reversionary pension under Section 17-120,
and distributions required by federal law on account of  age.
However, age enhancement established under this Section shall
not  be  used  in  determining  benefits  payable under other
Articles of this Code under the Retirement Systems Reciprocal
Act.
    (c)  For all creditable service  established  under  this
Section,  the  employer  must  pay  to  the  Fund an employer
contribution consisting of 12% of the member's highest annual
full-time rate of compensation for each  year  of  creditable
service granted under this Section.
    The  employer  contribution  shall be paid to the Fund in
one of the following ways:  (i) in a single sum at  the  time
of   the   member's   retirement,  (ii)  in  equal  quarterly
installments over a period  of  5  years  from  the  date  of
retirement,  or (iii) subject to the approval of the Board of
the Fund, in unequal installments over a period  of  no  more
than  5  years  from the date of retirement, as provided in a
payment plan designed by the Fund to accommodate the needs of
the employer.  The employer's failure to  make  the  required
contributions in a timely manner shall not affect the payment
of the retirement pension.
    For   all   creditable  service  established  under  this
Section, the employee  must  pay  to  the  Fund  an  employee
contribution  consisting of 4% of the member's highest annual
salary rate used  in  the  determination  of  the  retirement
pension  for  each  year  of creditable service granted under
this Section.  The employee contribution  shall  be  deducted
from the retirement annuity in 24 monthly installments.
    (d)  An annuitant who has received any age enhancement or
creditable  service  under  this Section and whose pension is
suspended or cancelled under Section 17-149 or  17-150  shall
thereby  forfeit  the age enhancement and creditable service.
The forfeiture of creditable service  under  this  subsection
shall  not  entitle  the employer to a refund of the employer
contribution paid under this Section, nor to  forgiveness  of
any  part  of  that  contribution  that  remains  unpaid. The
forfeiture of creditable service under this subsection  shall
not  entitle  the  employee  to  a  refund  of  the  employee
contribution paid under this Section.
    (e)  If the number of employees of an employer that apply
for  early retirement under this Section exceeds 30% of those
eligible, the employer may require that, for any  or  all  of
the  number of applicants in excess of that 30%, the starting
date of the retirement pension enhanced under this Section be
no earlier than June 1, 1994 and no later than  September  1,
1994.   The right to have the retirement pension begin before
June 1, 1994 shall be allocated among the applicants  on  the
basis of seniority in the service of that employer.
    This  delay  applies only to persons who are applying for
early retirement incentives under this Section, and does  not
prevent  a  person  whose  application  for  early retirement
incentives has been withdrawn from  beginning  to  receive  a
retirement pension on the earliest date upon which the person
is otherwise eligible under this Article.
    (f)  For  a  member  who is notified after July 30, 1993,
but before November 29, 1993, that he or she  will  become  a
supernumerary  or  reserve  teacher  in  the 1993-1994 school
year:  (1)  the  August  15,  1993  application  deadline  in
subdivision (a)(3) of this Section is  extended  to  December
14,  1993,  (2) the September 1, 1993 deadline in subdivision
(a)(4) of this Section is extended to December 14, 1993,  and
(3)  the  member  shall not be included in the calculation of
the 30% under subsection (e) and is not subject to  delay  in
retirement under that subsection.
    (f-5)  For  a  member  who  is  notified after January 1,
1994, but before March 1, 1994, that he or she will become  a
reserve  teacher in the 1993-1994 school year: (1) the August
15, 1993 application deadline in subdivision (a)(3)  of  this
Section  is  extended  to April 1, 1994; (2) the September 1,
1993 deadline  in  subdivision  (a)(4)  of  this  Section  is
extended  to  April  1, 1994; and (3) the member shall not be
included in the calculation of the 30% under  subsection  (e)
and  is  not  subject  to  delay  in  retirement  under  that
subsection.
    (g)  A member who receives any early retirement incentive
under  Section 17-116.4, 17-116.5 or 17-116.6 may not receive
any early retirement incentive under this Section.
    (h)  The version of this Section included in  Public  Act
88-85  is  intended  to and shall control over the version of
this Section included in Public  Act  88-89,  notwithstanding
Section 6 of the Statute on Statutes.  All persons qualifying
for  early  retirement incentives under this Section shall be
subject to the limitations and restrictions provided  in  the
version  of  this  Section  included  in Public Act 88-85, as
amended by Public Act 88-511.
    (i)  In addition to the benefits provided under the other
provisions of this Section, every person who  receives  early
retirement  benefits  under  this  Section is entitled to one
additional year of creditable  service  and  a  corresponding
year  of  additional age enhancement, for which no additional
contribution is required.  Every person  who  receives  early
retirement  benefits  under  this  Section  whose  retirement
annuity  has been calculated on the basis of a 4-year average
salary is also entitled to have the annuity  recalculated  on
the basis of the average salary for the 3 highest consecutive
years within the last 10 years of service.
    The  additional  benefits provided by this subsection (i)
shall begin to accrue on  the  date  the  retirement  annuity
began,   notwithstanding  Section  17-157.   The  Fund  shall
recalculate all annuities originally  calculated  under  this
Section  to  reflect  the  additional benefits provided under
this subsection and shall pay to the annuitant in a lump  sum
the  difference  between the annuity payments paid before the
date of the recalculation  and  the  recalculated  amount  of
those payments.
(Source: P.A. 88-85; 88-89; 88-511; 88-670, eff. 12-2-94.)

    (40 ILCS 5/17-116.4)
    Sec. 17-116.4. Early retirement incentives.
    (a)  A  teacher who is covered by a collective bargaining
agreement shall not be  eligible  for  the  early  retirement
incentives  provided under this Section unless the collective
bargaining agent and the Board of Education have entered into
an agreement under which the agent agrees  that  any  payment
for  accumulated  unused  sick  days to which the employee is
entitled upon withdrawal from service  may  be  paid  by  the
Board  of  Education in installments over a period of up to 5
years, and a copy of this agreement has been filed  with  the
Board of the Fund.
    To be eligible for the benefits provided in this Section,
a person must:
         (1)  be  a  member of this Fund who, on or after May
    1, 1994, is (i) in active payroll status as a teacher, or
    (ii) on layoff status from such a position with  a  right
    of  re-employment or recall to service, or (iii) on leave
    of absence from such a position, but only if  the  member
    on  leave  has  not  been  receiving a disability benefit
    under this Article for a continuous period of 2 years  or
    more as of the date of application;
         (2)  have   not  previously  received  a  retirement
    pension under this Article;
         (3)  file with the Board and the Board of Education,
    before March 1, 1994, a  written  application  requesting
    the  benefits  provided  in  this Section and a notice of
    resignation from employment, which resignation must  take
    effect  no  earlier  than  June 1, 1994 and no later than
    September 1, 1994 unless the  applicant's  retirement  is
    delayed under subsection (e) of this Section;
         (4)  be  eligible  to  receive  a retirement pension
    under this Article (for which purpose any age enhancement
    or creditable service received under this Section may  be
    used)   and  elect  to  receive  the  retirement  pension
    beginning no earlier than June 1, 1994 and no later  than
    September   1,   1994   or  the  date  established  under
    subsection (e) of this Section, if applicable;
         (5)  have attained age 50 (without the  use  of  any
    age enhancement or creditable service received under this
    Section)  after  September  1,  1993  and  no  later than
    September 1, 1994;
         (6)  have at least 5  years  of  creditable  service
    under this Fund or any of the participating systems under
    the Retirement Systems Reciprocal Act (without the use of
    any  creditable  service  received under this Section) by
    the effective date of the retirement pension.
    (b)  An eligible person may establish up to  5  years  of
creditable service under this Section.  In addition, for each
period  of creditable service established under this Section,
a person's age at retirement shall be deemed to be  increased
by an equal period.
    The creditable service established under this Section may
be   used  for  all  purposes  under  this  Article  and  the
Retirement Systems Reciprocal Act, except for the purposes of
Section 17-116.1, and the determination of average salary  or
compensation under this or any other Article of this Code.
    The age enhancement established under this Section may be
used   for   all   purposes  under  this  Article  (including
calculation of a proportionate pension payable by  this  Fund
under  the  Retirement  Systems  Reciprocal  Act), except for
purposes of the reversionary pension  under  Section  17-120,
and  distributions required by federal law on account of age.
However, age enhancement established under this Section shall
not be used  in  determining  benefits  payable  under  other
Articles of this Code under the Retirement Systems Reciprocal
Act.
    (c)  For  all  creditable  service established under this
Section, the employer  must  pay  to  the  Fund  an  employer
contribution consisting of 12% of the member's highest annual
full-time  rate  of  compensation for each year of creditable
service granted under this Section.
    The employer contribution shall be paid to  the  Fund  in
one  of  the following ways:  (i) in a single sum at the time
of  the  member's  retirement,  (ii)   in   equal   quarterly
installments  over  a  period  of  5  years  from the date of
retirement, or (iii) subject to the approval of the Board  of
the  Fund,  in  unequal installments over a period of no more
than 5 years from the date of retirement, as  provided  in  a
payment plan designed by the Fund to accommodate the needs of
the  employer.   The  employer's failure to make the required
contributions in a timely manner shall not affect the payment
of the retirement pension.
    For  all  creditable  service  established   under   this
Section,  the  employee  must  pay  to  the  Fund an employee
contribution consisting of 4% of the member's highest  annual
salary  rate  used  in  the  determination  of the retirement
pension for each year of  creditable  service  granted  under
this  Section.   The  employee contribution shall be deducted
from the retirement annuity in 24 monthly installments.
    (d)  An annuitant who has received any age enhancement or
creditable service under this Section and  whose  pension  is
suspended  or  cancelled under Section 17-149 or 17-150 shall
thereby forfeit the age enhancement and  creditable  service.
The  forfeiture  of  creditable service under this subsection
shall not entitle the employer to a refund  of  the  employer
contribution  paid  under this Section, nor to forgiveness of
any part  of  that  contribution  that  remains  unpaid.  The
forfeiture  of creditable service under this subsection shall
not  entitle  the  employee  to  a  refund  of  the  employee
contribution paid under this Section.
    (e)  If the number of employees of an employer that apply
for early retirement under this Section exceeds 30% of  those
eligible,  the  employer  may require that, for any or all of
the number of applicants in excess of that 30%, the  starting
date of the retirement pension enhanced under this Section be
no  earlier  than June 1, 1995 and no later than September 1,
1995.  The right to have the retirement pension begin  before
June  1,  1995 shall be allocated among the applicants on the
basis of seniority in the service of that employer.
    This delay applies only to persons who are  applying  for
early  retirement incentives under this Section, and does not
prevent a  person  whose  application  for  early  retirement
incentives  has  been  withdrawn  from beginning to receive a
retirement pension on the earliest date upon which the person
is otherwise eligible under this Article.
    (f)  A member who receives any early retirement incentive
under Section 17-116.3 may not receive any  early  retirement
incentive under this Section.
    (g)  Notwithstanding  Section  17-157,  a  person  who is
receiving early retirement benefits under  this  Section  may
establish service credit for a period of up to 3 weeks during
the  month  of  January,  1968,  during  which the person was
prevented from working due  to  civil  unrest  or  a  wildcat
strike.  A person wishing to establish this credit must apply
in  writing  to  the Board within 30 days after the effective
date of this amendatory Act of the 92nd General Assembly  and
pay  to  the  Fund an employee contribution calculated at the
rate and salary applicable to the employee at  the  time  for
which  credit is being established, without interest.  When a
person  establishes  additional  service  credit  under  this
subsection, the Fund shall recalculate the annuity originally
granted under this Section to reflect the  additional  credit
and  shall  pay to the annuitant in a lump sum the difference
between the annuity payments paid  before  the  date  of  the
recalculation and the recalculated amount of those payments.
(Source: P.A. 88-85.)

    (40 ILCS 5/17-119.1)
    Sec. 17-119.1.  Optional increase in retirement annuity.
    (a)  A  member  of the Fund may qualify for the augmented
rate under subdivision (b)(3) of Section 17-116 for all years
of creditable service earned before July 1,  1998  by  making
the optional contribution specified in subsection (b); except
that  a  member  who retires on or after July 1, 1998 with at
least 30 years of creditable service at retirement  qualifies
for  the augmented rate without making any contribution under
subsection (b).  Any member who retires on or after  July  1,
1998  and before the effective date of this amendatory Act of
the  92nd  General  Assembly  with  at  least  30  years   of
creditable  service  shall  be  paid  a lump sum equal to the
amount he or she would have received under the augmented rate
minus the amount he or she actually received.  A  member  may
not  elect  to  qualify  for  the  augmented  rate for only a
portion of his or her creditable service earned  before  July
1, 1998.
    (b)  The contribution shall be an amount equal to 1.0% of
the  member's highest salary rate in the 4 consecutive school
years immediately prior to but not including the school  year
in  which the application occurs, multiplied by the number of
years of creditable service earned by the member before  July
1, 1998 or 20, whichever is less.  This contribution shall be
reduced by 1.0% of that salary rate for every 3 full years of
creditable  service earned by the member after June 30, 1998.
The contribution shall be further reduced at the rate of  25%
of  the  contribution  (as reduced for service after June 30,
1998) for each year of the member's total creditable  service
in  excess  of  34  years.  The contribution shall not in any
event exceed 20% of that salary rate.
    The member shall pay  to  the  Fund  the  amount  of  the
contribution  as  calculated at the time of application under
this Section.  The  amount  of  the  contribution  determined
under  this  subsection  shall be recalculated at the time of
retirement, and if the Fund determines that the  amount  paid
by the member exceeds the recalculated amount, the Fund shall
refund  the  difference  to  the member with regular interest
from the date of payment to the date of refund.
    The contribution required by  this  subsection  shall  be
paid  in one of the following ways or in a combination of the
following ways that does not extend over more than 5 years:
         (i)  in  a  lump  sum  on  or  before  the  date  of
    retirement;
         (ii)  in substantially  equal  installments  over  a
    period of time not to exceed 5 years, as a deduction from
    salary in accordance with Section 17-130.2;
         (iii)  if  the  member  becomes  an annuitant before
    June   30,   2003,   in   substantially   equal   monthly
    installments over a 24-month period, by a deduction  from
    the annuitant's monthly benefit.
    (c)  If  the  member  fails to make the full contribution
under this Section in a timely  fashion,  the  payments  made
under  this  Section shall be refunded to the member, without
interest.   If  the  member  dies  before  making  the   full
contribution,  the  payments made under this Section shall be
refunded to the member's designated beneficiary.
    (d)  For purposes of this Section and subsection  (b)  of
Section  17-116, optional creditable service established by a
member shall be deemed to have been earned at the time of the
employment or other qualifying event upon which  the  service
is  based, rather than at the time the credit was established
in this Fund.
    (e)  The contributions required under  this  Section  are
the  responsibility  of  the  teacher  and  not the teacher's
employer.  However, an employer of teachers  3ay,  after  the
effective  date  of this amendatory Act of 1998, specifically
agree, through collective bargaining or  otherwise,  to  make
the contributions required by this Section on behalf of those
teachers.
(Source: P.A. 90-582, eff. 5-27-98; 91-17, eff. 6-4-99.)

    (40 ILCS 5/17-121) (from Ch. 108 1/2, par. 17-121)
    Sec.   17-121.   Survivor's  and  Children's  pensions  -
Eligibility.  A  surviving  spouse  of  a  teacher  shall  be
entitled  to  a  survivor's pension only if he was married to
the contributor for at least 1 1/2 years immediately prior to
his death or retirement, whichever first occurs, and also  on
the date of the last termination of his service.
    If  the surviving spouse is under age 50 and there are no
eligible minor children born to or  legally  adopted  by  the
contributor   and   his  surviving  spouse,  payment  of  the
survivor's pension shall  begin  when  the  surviving  spouse
attains age 50.
    Remarriage  of the surviving spouse prior to September 1,
1983  while  in  receipt  of  a  survivor's   pension   shall
permanently  terminate  payment  thereof,  regardless  of any
subsequent  change  in  marital  status;  however,  beginning
September 1, 1983, remarriage of  a  surviving  spouse  after
attainment  of  age  55  shall  not  terminate the survivor's
pension.
    A surviving spouse whose pension  was  terminated  on  or
after September 1, 1983 due to remarriage after attainment of
age  55,  and  who  applies for reinstatement of that pension
before January 1, 1990, shall be entitled to have the pension
reinstated effective January 1, 1990.
    A surviving spouse of a member or  annuitant  under  this
Fund who is also a dependent beneficiary under the provisions
of  Section  16-140  is  eligible for a reciprocal survivor's
pension, provided  that  any  refund  of  survivor's  pension
contributions  is  repaid to the Fund and application is made
within 30 days after the effective date  of  this  amendatory
Act of the 92nd General Assembly.
(Source: P.A. 86-273.)

    (40 ILCS 5/17-149) (from Ch. 108 1/2, par. 17-149)
    Sec.  17-149.  Cancellation  of  pensions.  If any person
receiving a service or disability retirement pension from the
Fund is re-employed as a teacher by an Employer, the  pension
shall  be  cancelled on the date the re-employment begins, or
on the first day of a payroll period for which service credit
was validated,  whichever  is  earlier.   However,  beginning
August  23,  1989, the pension shall not be cancelled in case
of  a  service  retirement  pensioner  who   is   temporarily
re-employed  for not more than 150 100 days during any school
year or on an hourly basis, provided the pensioner  does  not
receive salary in any school year of an amount more than that
payable to a substitute teacher for 150 100 days' employment.
A service retirement pensioner who is temporarily re-employed
for  not  more than 150 100 days during any school year or on
an hourly basis shall be entitled, at the end of  the  school
year,  to  a  refund  of  any  contributions made to the Fund
during that school year.
    If the pensioner does receive salary from an Employer  in
any  school  year for more than 150 100 days' employment, the
pensioner shall be deemed to have returned to service on  the
first  day  of  employment  as  a  pensioner-substitute.  The
pensioner shall  reimburse  the  Fund  for  pension  payments
received  after  the  return  to service and shall pay to the
Fund the participant's contributions  prescribed  in  Section
17-130 of this Article.
    If  the  date  of  re-employment  occurs  within 5 school
months after the date of previous  retirement,  exclusive  of
any  vacation period, the member shall be deemed to have been
out of service only temporarily and not permanently  retired.
Such  person  shall  be  entitled to pension payments for the
time he could have been employed as a  teacher  and  received
salary,  but  shall  not be entitled to pension for or during
the summer vacation prior to his return to service.
    When the member again retires on  pension,  the  time  of
service and the money contributed by him during re-employment
shall  be  added  to  the time and money previously credited.
Such person must acquire 3 consecutive  years  of  additional
contributing  service before he may retire again on a pension
at a rate and under conditions other than those in  force  or
attained at the time of his previous retirement.
    Notwithstanding  Sections 1-103.1 and 17-157, the changes
to this Section made by this amendatory  Act  of  1997  shall
apply  without  regard  to  whether  termination  of  service
occurred before the effective date of this amendatory Act and
shall apply retroactively to August 23, 1989.
(Source: P.A. 90-32, eff. 6-27-97; 90-566, eff. 1-2-98.)

    Section  90.  The State Mandates Act is amended by adding
Section 8.25 as follows:

    (30 ILCS 805/8.25 new)
    Sec. 8.25. Exempt mandate.   Notwithstanding  Sections  6
and  8 of this Act, no reimbursement by the State is required
for  the  implementation  of  any  mandate  created  by  this
amendatory Act of the 92nd General Assembly.

    Section 99.  Effective date.  This Act takes effect  upon
becoming law.
    Passed in the General Assembly May 31, 2001.
    Approved August 17, 2001.

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