093_HB0258 LRB093 02053 LRD 02054 b 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 Section 16-127 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- LRB093 02053 LRD 02054 b 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- LRB093 02053 LRD 02054 b 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- LRB093 02053 LRD 02054 b 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 4 credit for military service is allowed, credit shall be 5 granted from the date of entry into the service; except 6 that if, during his or her last year of service, a person 7 establishes military service credit of at least 335 days 8 but less than one year, then credit shall be granted for 9 an entire year. 10 The total period of military service for which 11 credit is granted shall not exceed 5 years for any member 12 unless the service: (A) is validated before July 1, 13 1964, and (B) does not extend beyond July 1, 1963. 14 Credit for military service shall be granted under this 15 Section only if not more than 5 years of the military 16 service for which credit is granted under this Section is 17 used by the member to qualify for a military retirement 18 allotment from any branch of the armed forces of the 19 United States. The changes to this subdivision (b)(3) 20 made by Public Act 86-272 shall apply not only to persons 21 who on or after its effective date (August 23, 1989) are 22 in service as a teacher under the System, but also to 23 persons whose status as such a teacher terminated prior 24 to such effective date, whether or not such person is an 25 annuitant on that date. 26 (4) Any periods served as a member of the General 27 Assembly. 28 (5)(i) Any periods for which a teacher, as defined 29 in Section 16-106, is granted a leave of absence, 30 provided he or she returns to teaching service creditable 31 under this System or the State Universities Retirement 32 System following the leave; (ii) periods during which a 33 teacher is involuntarily laid off from teaching, provided 34 he or she returns to teaching following the lay-off; -5- LRB093 02053 LRD 02054 b 1 (iii) periods prior to July 1, 1983 during which a 2 teacher ceased covered employment due to pregnancy, 3 provided that the teacher returned to teaching service 4 creditable under this System or the State Universities 5 Retirement System following the pregnancy and submits 6 evidence satisfactory to the Board documenting that the 7 employment ceased due to pregnancy; and (iv) periods 8 prior to July 1, 1983 during which a teacher ceased 9 covered employment for the purpose of adopting an infant 10 under 3 years of age or caring for a newly adopted infant 11 under 3 years of age, provided that the teacher returned 12 to teaching service creditable under this System or the 13 State Universities Retirement System following the 14 adoption and submits evidence satisfactory to the Board 15 documenting that the employment ceased for the purpose of 16 adopting an infant under 3 years of age or caring for a 17 newly adopted infant under 3 years of age. However, 18 total credit under this paragraph (5) may not exceed 3 19 years. 20 Any qualified member or annuitant may apply for 21 credit under item (iii) or (iv) of this paragraph (5) 22 without regard to whether service was terminated before 23 the effective date of this amendatory Act of 1997. In 24 the case of an annuitant who establishes credit under 25 item (iii) or (iv), the annuity shall be recalculated to 26 include the additional service credit. The increase in 27 annuity shall take effect on the date the System receives 28 written notification of the annuitant's intent to 29 purchase the credit, if the required evidence is 30 submitted and the required contribution paid within 60 31 days of that notification, otherwise on the first annuity 32 payment date following the System's receipt of the 33 required evidence and contribution. The increase in an 34 annuity recalculated under this provision shall be -6- LRB093 02053 LRD 02054 b 1 included in the calculation of automatic annual increases 2 in the annuity accruing after the effective date of the 3 recalculation. 4 Optional credit may be purchased under this 5 subsection (b)(5) for periods during which a teacher has 6 been granted a leave of absence pursuant to Section 24-13 7 of the School Code. A teacher whose service under this 8 Article terminated prior to the effective date of P.A. 9 86-1488 shall be eligible to purchase such optional 10 credit. If a teacher who purchases this optional credit 11 is already receiving a retirement annuity under this 12 Article, the annuity shall be recalculated as if the 13 annuitant had applied for the leave of absence credit at 14 the time of retirement. The difference between the 15 entitled annuity and the actual annuity shall be credited 16 to the purchase of the optional credit. The remainder of 17 the purchase cost of the optional credit shall be paid on 18 or before April 1, 1992. 19 The change in this paragraph made by Public Act 20 86-273 shall be applicable to teachers who retire after 21 June 1, 1989, as well as to teachers who are in service 22 on that date. 23 (6) Any days of unused and uncompensated 24 accumulated sick leave earned by a teacher. The service 25 credit granted under this paragraph shall be the ratio of 26 the number of unused and uncompensated accumulated sick 27 leave days to 170 days, subject to a maximum of one year 28 of service credit. Prior to the member's retirement, 29 each former employer shall certify to the System the 30 number of unused and uncompensated accumulated sick leave 31 days credited to the member at the time of termination of 32 service. The period of unused sick leave shall not be 33 considered in determining the effective date of 34 retirement. A member is not required to make -7- LRB093 02053 LRD 02054 b 1 contributions in order to obtain service credit for 2 unused sick leave. 3 Credit for sick leave shall, at retirement, be 4 granted by the System for any retiring regional or 5 assistant regional superintendent of schools at the rate 6 of 6 days per year of creditable service or portion 7 thereof established while serving as such superintendent 8 or assistant superintendent. 9 (7) Periods prior to February 1, 1987 served as an 10 employee of the Illinois Mathematics and Science Academy 11 for which credit has not been terminated under Section 12 15-113.9 of this Code. 13 (8) Service as a substitute teacher for work 14 performed prior to July 1, 1990. 15 (9) Service as a part-time teacher for work 16 performed prior to July 1, 1990. 17 (10) Up to 2 years of employment with Southern 18 Illinois University - Carbondale from September 1, 1959 19 to August 31, 1961, or with Governors State University 20 from September 1, 1972 to August 31, 1974, for which the 21 teacher has no credit under Article 15. To receive 22 credit under this item (10), a teacher must apply in 23 writing to the Board and pay the required contributions 24 before May 1, 1993 and have at least 12 years of service 25 credit under this Article. 26 (c) The service credits specified in this Section shall 27 be granted only if: (1) such service credits are not used 28 for credit in any other statutory tax-supported public 29 employee retirement system other than the federal Social 30 Security program; and (2) the member makes the required 31 contributions as specified in Section 16-128. The service 32 credit shall be effective as of the date the required 33 contributions are completed. 34 Any service credits granted under this Section shall -8- LRB093 02053 LRD 02054 b 1 terminate upon cessation of membership for any cause. 2 Credit may not be granted under this Section covering any 3 period for which an age retirement or disability retirement 4 allowance has been paid. 5 (Source: P.A. 89-430, eff. 12-15-95; 90-32, eff. 6-27-97.) 6 Section 99. Effective date. This Act takes effect upon 7 becoming law.