093_HB0437
LRB093 06407 EFG 06529 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 Sections 16-106, 16-113, 16-127, 16-129.1, 16-133.2,
6 16-136.4, 16-149.2, 16-150, 16-151, 16-182, 16-184, 16-185,
7 and 16-186.3 as follows:
8 (40 ILCS 5/16-106) (from Ch. 108 1/2, par. 16-106)
9 Sec. 16-106. Teacher. "Teacher": The following
10 individuals, provided that, for employment prior to July 1,
11 1990, they are employed on a full-time basis, or if not
12 full-time, on a permanent and continuous basis in a position
13 in which services are expected to be rendered for at least
14 one school term:
15 (1) Any educational, administrative, professional
16 or other staff employed in the public common schools
17 included within this system in a position requiring
18 certification under the law governing the certification
19 of teachers;
20 (2) Any educational, administrative, professional
21 or other staff employed in any facility of the Department
22 of Children and Family Services or the Department of
23 Human Services, in a position requiring certification
24 under the law governing the certification of teachers,
25 and any person who (i) works in such a position for the
26 Department of Corrections, (ii) was a member of this
27 System on May 31, 1987, and (iii) did not elect to become
28 a member of the State Employees' Retirement System
29 pursuant to Section 14-108.2 of this Code; except that
30 "teacher" does not include any person who (A) becomes a
31 security employee of the Department of Human Services, as
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1 defined in Section 14-110, after June 28, 2001 (the
2 effective date of Public Act 92-14), or (B) becomes a
3 member of the State Employees' Retirement System pursuant
4 to Section 14-108.2c of this Code;
5 (3) Any regional superintendent of schools,
6 assistant regional superintendent of schools, State
7 Superintendent of Education; any person employed by the
8 State Board of Education as an executive; any executive
9 of the boards engaged in the service of public common
10 school education in school districts covered under this
11 system of which the State Superintendent of Education is
12 an ex-officio member;
13 (4) Any employee of a school board association
14 operating in compliance with Article 23 of the School
15 Code who is certificated under the law governing the
16 certification of teachers;
17 (5) Any person employed by the retirement system
18 who:
19 (i) was an employee of and a participant in
20 the system on August 17, 2001 (the effective date of
21 Public Act 92-416), or
22 (ii) was an employee of but not a participant
23 in the system on the effective date of this
24 amendatory Act of the 93rd General Assembly, and has
25 thereafter become employed by the system in a
26 different position and made an irrevocable election
27 to begin participating in the system, or
28 (iii) becomes an employee of the system on or
29 after August 17, 2001;
30 (6) Any educational, administrative, professional
31 or other staff employed by and under the supervision and
32 control of a regional superintendent of schools, provided
33 such employment position requires the person to be
34 certificated under the law governing the certification of
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1 teachers and is in an educational program serving 2 or
2 more districts in accordance with a joint agreement
3 authorized by the School Code or by federal legislation;
4 (7) Any educational, administrative, professional
5 or other staff employed in an educational program
6 serving 2 or more school districts in accordance with a
7 joint agreement authorized by the School Code or by
8 federal legislation and in a position requiring
9 certification under the laws governing the certification
10 of teachers;
11 (8) Any officer or employee of a statewide teacher
12 organization or officer of a national teacher
13 organization who is certified under the law governing
14 certification of teachers, provided: (i) the individual
15 had previously established creditable service under this
16 Article, (ii) the individual files with the system an
17 irrevocable election to become a member, and (iii) the
18 individual does not receive credit for such service under
19 any other Article of this Code;
20 (9) Any educational, administrative, professional,
21 or other staff employed in a charter school operating in
22 compliance with the Charter Schools Law who is
23 certificated under the law governing the certification of
24 teachers.
25 An annuitant receiving a retirement annuity under this
26 Article or under Article 17 of this Code who is temporarily
27 employed by a board of education or other employer not
28 exceeding that permitted under Section 16-118 is not a
29 "teacher" for purposes of this Article. A person who has
30 received a single-sum retirement benefit under Section
31 16-136.4 of this Article is not a "teacher" for purposes of
32 this Article.
33 (Source: P.A. 92-14, eff. 6-28-01; 92-416, eff. 8-17-01;
34 92-651, eff. 7-11-02.)
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1 (40 ILCS 5/16-113) (from Ch. 108 1/2, par. 16-113)
2 Sec. 16-113. Accumulated contributions. "Accumulated
3 contributions": The sum of all contributions to this System
4 made by or on behalf of a member in respect to membership
5 service and credited to his or her account in the Benefit
6 Trust Reserve Members' Contribution Reserve, together with
7 regular interest thereon.
8 (Source: P.A. 83-1440.)
9 (40 ILCS 5/16-127) (from Ch. 108 1/2, par. 16-127)
10 Sec. 16-127. Computation of creditable service.
11 (a) Each member shall receive regular credit for all
12 service as a teacher from the date membership begins, for
13 which satisfactory evidence is supplied and all contributions
14 have been paid.
15 (b) The following periods of service shall earn optional
16 credit and each member shall receive credit for all such
17 service for which satisfactory evidence is supplied and all
18 contributions have been paid as of the date specified:
19 (1) Prior service as a teacher.
20 (2) Service in a capacity essentially similar or
21 equivalent to that of a teacher, in the public common
22 schools in school districts in this State not included
23 within the provisions of this System, or of any other
24 State, territory, dependency or possession of the United
25 States, or in schools operated by or under the auspices
26 of the United States, or under the auspices of any agency
27 or department of any other State, and service during any
28 period of professional speech correction or special
29 education experience for a public agency within this
30 State or any other State, territory, dependency or
31 possession of the United States, and service prior to
32 February 1, 1951 as a recreation worker for the Illinois
33 Department of Public Safety, for a period not exceeding
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1 the lesser of 2/5 of the total creditable service of the
2 member or 10 years. The maximum service of 10 years
3 which is allowable under this paragraph shall be reduced
4 by the service credit which is validated by other
5 retirement systems under paragraph (i) of Section 15-113
6 and paragraph 1 of Section 17-133. Credit granted under
7 this paragraph may not be used in determination of a
8 retirement annuity or disability benefits unless the
9 member has at least 5 years of creditable service earned
10 subsequent to this employment with one or more of the
11 following systems: Teachers' Retirement System of the
12 State of Illinois, State Universities Retirement System,
13 and the Public School Teachers' Pension and Retirement
14 Fund of Chicago. Whenever such service credit exceeds
15 the maximum allowed for all purposes of this Article, the
16 first service rendered in point of time shall be
17 considered. The changes to this subdivision (b)(2) made
18 by Public Act 86-272 shall apply not only to persons who
19 on or after its effective date (August 23, 1989) are in
20 service as a teacher under the System, but also to
21 persons whose status as such a teacher terminated prior
22 to such effective date, whether or not such person is an
23 annuitant on that date.
24 (3) Any periods immediately following teaching
25 service, under this System or under Article 17, (or
26 immediately following service prior to February 1, 1951
27 as a recreation worker for the Illinois Department of
28 Public Safety) spent in active service with the military
29 forces of the United States; periods spent in educational
30 programs that prepare for return to teaching sponsored by
31 the federal government following such active military
32 service; if a teacher returns to teaching service within
33 one calendar year after discharge or after the completion
34 of the educational program, a further period, not
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1 exceeding one calendar year, between time spent in
2 military service or in such educational programs and the
3 return to employment as a teacher under this System; and
4 a period of up to 2 years of active military service not
5 immediately following employment as a teacher.
6 The changes to this Section and Section 16-128
7 relating to military service made by P.A. 87-794 shall
8 apply not only to persons who on or after its effective
9 date are in service as a teacher under the System, but
10 also to persons whose status as a teacher terminated
11 prior to that date, whether or not the person is an
12 annuitant on that date. In the case of an annuitant who
13 applies for credit allowable under this Section for a
14 period of military service that did not immediately
15 follow employment, and who has made the required
16 contributions for such credit, the annuity shall be
17 recalculated to include the additional service credit,
18 with the increase taking effect on the date the System
19 received written notification of the annuitant's intent
20 to purchase the credit, if payment of all the required
21 contributions is made within 60 days of such notice, or
22 else on the first annuity payment date following the date
23 of payment of the required contributions. In calculating
24 the automatic annual increase for an annuity that has
25 been recalculated under this Section, the increase
26 attributable to the additional service allowable under
27 P.A. 87-794 shall be included in the calculation of
28 automatic annual increases accruing after the effective
29 date of the recalculation.
30 Credit for military service shall be determined as
31 follows: if entry occurs during the months of July,
32 August, or September and the member was a teacher at the
33 end of the immediately preceding school term, credit
34 shall be granted from July 1 of the year in which he or
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1 she entered service; if entry occurs during the school
2 term and the teacher was in teaching service at the
3 beginning of the school term, credit shall be granted
4 from July 1 of such year. In all other cases where credit
5 for military service is allowed, credit shall be granted
6 from the date of entry into the service.
7 The total period of military service for which
8 credit is granted shall not exceed 5 years for any member
9 unless the service: (A) is validated before July 1,
10 1964, and (B) does not extend beyond July 1, 1963.
11 Credit for military service shall be granted under this
12 Section only if not more than 5 years of the military
13 service for which credit is granted under this Section is
14 used by the member to qualify for a military retirement
15 allotment from any branch of the armed forces of the
16 United States. The changes to this subdivision (b)(3)
17 made by Public Act 86-272 shall apply not only to persons
18 who on or after its effective date (August 23, 1989) are
19 in 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 (4) Any periods served as a member of the General
24 Assembly.
25 (5)(i) Any periods for which a teacher, as defined
26 in Section 16-106, is granted a leave of absence,
27 provided he or she returns to teaching service creditable
28 under this System or the State Universities Retirement
29 System following the leave; (ii) periods during which a
30 teacher is involuntarily laid off from teaching, provided
31 he or she returns to teaching following the lay-off;
32 (iii) periods prior to July 1, 1983 during which a
33 teacher ceased covered employment under this Article or
34 Article 17 due to pregnancy, provided that the teacher
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1 returned to teaching service creditable under this System
2 or the State Universities Retirement System following the
3 pregnancy and submits evidence satisfactory to the Board
4 documenting that the employment ceased due to pregnancy;
5 and (iv) periods prior to July 1, 1983 during which a
6 teacher ceased covered employment for the purpose of
7 adopting an infant under 3 years of age or caring for a
8 newly adopted infant under 3 years of age, provided that
9 the teacher returned to teaching service creditable under
10 this System or the State Universities Retirement System
11 following the adoption and submits evidence satisfactory
12 to the Board documenting that the employment ceased for
13 the purpose of adopting an infant under 3 years of age or
14 caring for a newly adopted infant under 3 years of age.
15 However, total credit under this paragraph (5) may not
16 exceed 3 years.
17 Any qualified member or annuitant may apply for
18 credit under item (iii) or (iv) of this paragraph (5)
19 without regard to whether service was terminated before
20 the effective date of this amendatory Act of 1997. In
21 the case of an annuitant who establishes credit under
22 item (iii) or (iv), the annuity shall be recalculated to
23 include the additional service credit. The increase in
24 annuity shall take effect on the date the System receives
25 written notification of the annuitant's intent to
26 purchase the credit, if the required evidence is
27 submitted and the required contribution paid within 60
28 days of that notification, otherwise on the first annuity
29 payment date following the System's receipt of the
30 required evidence and contribution. The increase in an
31 annuity recalculated under this provision shall be
32 included in the calculation of automatic annual increases
33 in the annuity accruing after the effective date of the
34 recalculation.
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1 Optional credit may be purchased under this
2 subsection (b)(5) for periods during which a teacher has
3 been granted a leave of absence pursuant to Section 24-13
4 of the School Code. A teacher whose service under this
5 Article terminated prior to the effective date of P.A.
6 86-1488 shall be eligible to purchase such optional
7 credit. If a teacher who purchases this optional credit
8 is already receiving a retirement annuity under this
9 Article, the annuity shall be recalculated as if the
10 annuitant had applied for the leave of absence credit at
11 the time of retirement. The difference between the
12 entitled annuity and the actual annuity shall be credited
13 to the purchase of the optional credit. The remainder of
14 the purchase cost of the optional credit shall be paid on
15 or before April 1, 1992.
16 The change in this paragraph made by Public Act
17 86-273 shall be applicable to teachers who retire after
18 June 1, 1989, as well as to teachers who are in service
19 on that date.
20 (6) Any days of unused and uncompensated
21 accumulated sick leave earned by a teacher. The service
22 credit granted under this paragraph shall be the ratio of
23 the number of unused and uncompensated accumulated sick
24 leave days to 170 days, subject to a maximum of 2 years
25 of service credit. Prior to the member's retirement,
26 each former employer shall certify to the System the
27 number of unused and uncompensated accumulated sick leave
28 days credited to the member at the time of termination of
29 service. The period of unused sick leave shall not be
30 considered in determining the effective date of
31 retirement. A member is not required to make
32 contributions in order to obtain service credit for
33 unused sick leave.
34 Credit for sick leave shall, at retirement, be
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1 granted by the System for any retiring regional or
2 assistant regional superintendent of schools at the rate
3 of 6 days per year of creditable service or portion
4 thereof established while serving as such superintendent
5 or assistant superintendent.
6 (7) Periods prior to February 1, 1987 served as an
7 employee of the Illinois Mathematics and Science Academy
8 for which credit has not been terminated under Section
9 15-113.9 of this Code.
10 (8) Service as a substitute teacher for work
11 performed prior to July 1, 1990.
12 (9) Service as a part-time teacher for work
13 performed prior to July 1, 1990.
14 (10) Up to 2 years of employment with Southern
15 Illinois University - Carbondale from September 1, 1959
16 to August 31, 1961, or with Governors State University
17 from September 1, 1972 to August 31, 1974, for which the
18 teacher has no credit under Article 15. To receive
19 credit under this item (10), a teacher must apply in
20 writing to the Board and pay the required contributions
21 before May 1, 1993 and have at least 12 years of service
22 credit under this Article.
23 (b-1) A member may establish optional credit for up to 2
24 years of service as a teacher or administrator employed by a
25 private school recognized by the Illinois State Board of
26 Education, provided that the teacher (i) was certified under
27 the law governing the certification of teachers at the time
28 the service was rendered, (ii) applies in writing on or after
29 June 1, 2002 and on or before June 1, 2005, (iii) supplies
30 satisfactory evidence of the employment, (iv) completes at
31 least 10 years of contributing service as a teacher as
32 defined in Section 16-106, and (v) pays the contribution
33 required in subsection (d-5) of Section 16-128. The member
34 may apply for credit under this subsection and pay the
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1 required contribution before completing the 10 years of
2 contributing service required under item (iv), but the credit
3 may not be used until the item (iv) contributing service
4 requirement has been met.
5 (c) The service credits specified in this Section shall
6 be granted only if: (1) such service credits are not used for
7 credit in any other statutory tax-supported public employee
8 retirement system other than the federal Social Security
9 program; and (2) the member makes the required contributions
10 as specified in Section 16-128. Except as provided in
11 subsection (b-1) of this Section, the service credit shall be
12 effective as of the date the required contributions are
13 completed.
14 Any service credits granted under this Section shall
15 terminate upon cessation of membership for any cause.
16 Credit may not be granted under this Section covering any
17 period for which an age retirement or disability retirement
18 allowance has been paid.
19 (Source: P.A. 92-867, eff. 1-3-03.)
20 (40 ILCS 5/16-129.1)
21 Sec. 16-129.1. Optional increase in retirement annuity.
22 (a) A member of the System may qualify for the augmented
23 rate under subdivision (a)(B)(1) of Section 16-133 for all
24 years of creditable service earned before July 1, 1998 by
25 making the optional contribution specified in subsection (b).
26 A member may not elect to qualify for the augmented rate for
27 only a portion of his or her creditable service earned before
28 July 1, 1998.
29 (b) The contribution shall be an amount equal to 1.0% of
30 the member's highest salary rate in the 4 consecutive school
31 years immediately prior to but not including the school year
32 in which the application occurs, multiplied by the number of
33 years of creditable service earned by the member before July
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1 1, 1998 or 20, whichever is less. This contribution shall be
2 reduced by 1.0% of that salary rate for every 3 full years of
3 creditable service earned by the member after June 30, 1998.
4 The contribution shall be further reduced at the rate of 25%
5 of the contribution (as reduced for service after June 30,
6 1998) for each year of the member's total creditable service
7 in excess of 34 years. The contribution shall not in any
8 event exceed 20% of that salary rate.
9 The member shall pay to the System the amount of the
10 contribution as calculated at the time of application under
11 this Section. The amount of the contribution determined
12 under this subsection shall be recalculated at the time of
13 retirement, and if the System determines that the amount paid
14 by the member exceeds the recalculated amount, the System
15 shall refund the difference to the member with regular
16 interest from the date of payment to the date of refund.
17 The contribution required by this subsection shall be
18 paid in one of the following ways or in a combination of the
19 following ways that does not extend over more than 5 years:
20 (i) in a lump sum on or before the date of
21 retirement;
22 (ii) in substantially equal installments over a
23 period of time not to exceed 5 years, as a deduction from
24 salary in accordance with subsection (b) of Section
25 16-154;
26 (iii) if the member becomes an annuitant before
27 June 30, 2003, in substantially equal monthly
28 installments over a 24-month period, by reducing the
29 annuitant's monthly benefit over a 24-month period by the
30 amount of the otherwise applicable contribution. For
31 federal and Illinois tax purposes, the monthly amount by
32 which the annuitant's benefit is reduced shall not be
33 treated as a contribution by the annuitant, but rather as
34 a reduction of the annuitant's monthly benefit.
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1 (c) If the member fails to make the full contribution
2 under this Section in a timely fashion, the payments made
3 under this Section shall be refunded to the member, without
4 interest. If the member dies before making the full
5 contribution, the payments made under this Section, together
6 with regular interest thereon, shall be refunded to the
7 member's designated beneficiary for benefits under Section
8 16-138.
9 (d) For purposes of this Section and subdivision
10 (a)(B)(1) of Section 16-133, optional creditable service
11 established by a member shall be deemed to have been earned
12 at the time of the employment or other qualifying event upon
13 which the service is based, rather than at the time the
14 credit was established in this System.
15 (e) The contributions required under this Section are
16 the responsibility of the teacher and not the teacher's
17 employer. However, an employer of teachers may, after the
18 effective date of this amendatory Act of 1998, specifically
19 agree, through collective bargaining or otherwise, to make
20 the contributions required by this Section on behalf of those
21 teachers.
22 (f) A person who, on or after July 1, 1998 and before
23 June 4, 1999, began receiving a retirement annuity calculated
24 at the augmented rate may apply in writing to have the
25 annuity recalculated to reflect the changes to this Section
26 and Section 16-133 that were enacted in Public Act 91-17.
27 The amount of any resulting decrease in the optional
28 contribution shall be refunded to the annuitant, without
29 interest. Any resulting increase in retirement annuity shall
30 take effect on the next annuity payment date following the
31 date of application under this subsection.
32 (Source: P.A. 91-17, eff. 6-4-99; 92-416, eff. 8-17-01.)
33 (40 ILCS 5/16-133.2) (from Ch. 108 1/2, par. 16-133.2)
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1 Sec. 16-133.2. Early retirement without discount. A
2 member retiring after June 1, 1980 and on or before June 30,
3 2005, and applying for a retirement annuity within 6 months
4 of the last day of teaching for which retirement
5 contributions were required, may elect at the time of
6 application for a retirement annuity, to make a one time
7 member contribution to the System and thereby avoid the
8 reduction in the retirement annuity for retirement before age
9 60 specified in paragraph (B) of Section 16-133. The
10 exercise of the election shall also obligate the last
11 employer to make a one time non-refundable contribution to
12 the System. Substitute teachers wishing to exercise this
13 election must teach 85 or more days in one school term with
14 one employer, who shall be deemed the last employer for
15 purposes of this Section. The last day of teaching with that
16 employer must be within 6 months of the date of application
17 for retirement. All substitute teaching credit applied
18 toward the required 85 days must be earned after June 30,
19 1990.
20 The one time member and employer contributions shall be a
21 percentage of the retiring member's highest annual salary
22 rate used in the determination of the average salary for
23 retirement annuity purposes. However, when determining the
24 one-time member and employer contributions, that part of a
25 member's salary with the same employer which exceeds the
26 annual salary rate for the preceding year by more than 20%
27 shall be excluded. The member contribution shall be at the
28 rate of 7% for the lesser of the following 2 periods: (1)
29 for each year that the member is less than age 60; or (2) for
30 each year that the member's creditable service is less than
31 35 years. If a member is at least age 55 and has at least 34
32 years of creditable service, no member or employer
33 contribution for the early retirement option shall be
34 required. The employer contribution shall be at the rate of
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1 20% for each year the member is under age 60.
2 Upon receipt of the application and election, the System
3 shall determine the one time employee and employer
4 contributions required. The member contribution shall be
5 credited to the individual account of the member and the
6 employer contribution shall be credited to the Benefit Trust
7 Reserve Employer's Contribution Reserve. The provisions of
8 this Section shall not be applicable until the member's
9 contribution, if any, has been received by the System;
10 however, the date such contributions are received shall not
11 be considered in determining the effective date of
12 retirement.
13 The number of members working for a single employer who
14 may retire under this Section in any year may be limited at
15 the option of the employer to a specified percentage of those
16 eligible, not less than 30%, with the right to participate to
17 be allocated among those applying on the basis of seniority
18 in the service of the employer.
19 (Source: P.A. 90-582, eff. 5-27-98; 91-17, eff. 6-4-99.)
20 (40 ILCS 5/16-136.4) (from Ch. 108 1/2, par. 16-136.4)
21 Sec. 16-136.4. Single-sum retirement benefit.
22 (a) A member who has less than 5 years of creditable
23 service shall be entitled, upon written application to the
24 board, to receive a retirement benefit payable in a single
25 sum upon or after the member's attainment of age 65.
26 However, the benefit shall not be paid while the member is
27 employed as a teacher in the schools included under this
28 Article or Article 17, unless the System is required by
29 federal law to make payment due to the member's age.
30 (b) The retirement benefit shall consist of a single sum
31 that is the actuarial equivalent of a life annuity consisting
32 of 1.67% of the member's final average salary for each year
33 of creditable service earned before July 1, 1998 and 2.2% of
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1 the member's final average salary for each year of creditable
2 service earned after June 30, 1998. In determining the
3 amount of the benefit, a fractional year shall be granted
4 proportional credit.
5 For the purposes of this Section, final average salary
6 shall be the average salary of the member's highest 4
7 consecutive years of service as determined under rules of the
8 board. For a member with less than 4 consecutive years of
9 service, final average salary shall be the average salary
10 during the member's entire period of service. In the
11 determination of final average salary for members other than
12 elected officials and their appointees when such appointees
13 are allowed by statute, that part of a member's salary which
14 exceeds the member's annual full-time salary rate with the
15 same employer for the preceding year by more than 20% shall
16 be excluded. The exclusion shall not apply in any year in
17 which the member's creditable earnings are less than 50% of
18 the preceding year's mean salary for downstate teachers as
19 determined by the survey of school district salaries provided
20 in Section 2-3.103 of the School Code.
21 (c) The retirement benefit determined under this Section
22 shall be available to all members who render teaching service
23 after July 1, 1947 for which member contributions are
24 required.
25 (d) Upon acceptance of the retirement benefit, all of
26 the member's accrued rights and credits in the System are
27 forfeited. Receipt of a single-sum retirement benefit under
28 this Section does not make a person an "annuitant" for the
29 purposes of this Article, nor a "benefit recipient" for the
30 purposes of Sections 16-153.1 through 16-153.4.
31 (Source: P.A. 91-887, eff. 7-6-00.)
32 (40 ILCS 5/16-149.2) (from Ch. 108 1/2, par. 16-149.2)
33 Sec. 16-149.2. Disability retirement annuity.
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1 (a) A member whose disability benefit has been
2 terminated under the provisions of Section 16-149 may be
3 retired on a disability retirement annuity payable effective
4 the day following such termination provided the member
5 remains disabled under the standard of disability provided in
6 Section 16-149.
7 The disability retirement annuity shall be payable upon
8 receipt of written certificates from at least 2 licensed
9 physicians designated by the System verifying the
10 continuation of the disability condition. A disability
11 retirement annuity shall not be paid during any period for
12 which the member receives benefits under Section 16-133,
13 Section 16-149, or Section 16-149.1 or has a right to receive
14 a salary as a teacher, or is employed in any capacity as a
15 teacher by the employers included under this System or in an
16 equivalent capacity in any other public or private school,
17 college or university.
18 (b) The disability retirement annuity shall be equal to
19 the larger of: (1) 35% of the most recent annual contract
20 salary rate or for part-time and substitute members after
21 June 30, 1990, the most recent annualized salary rate; or (2)
22 if disability commences prior to the member's attainment of
23 age 55, the amount computed in accordance with Section
24 16-133, provided the amount computed under paragraph (B) of
25 Section 16-133 shall be reduced by 1/2 of 1% for each month
26 that the member is less than age 55; or (3) if disability
27 commences after the member's attainment of age 55, and the
28 member is not receiving a retirement annuity under Section
29 16-133, the amount computed in accordance with Section
30 16-133.
31 Prior to July 1, 1990, if the most recent period of
32 service of any member eligible to receive a disability
33 retirement annuity was rendered on a less than full-time but
34 not less than half-time basis, the amount of the disability
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1 retirement annuity payable shall be computed on the basis of
2 the salary received by such member for the member's last year
3 of service on a full-time basis if such salary was greater
4 than the member's most recent salary.
5 (c) If an annuitant receiving a disability retirement
6 annuity under this Section is engaged in or able to engage in
7 gainful employment paying more than the difference between
8 the disability retirement annuity and the salary rate upon
9 which the disability benefit is based, with no salary to be
10 considered less than the minimum prescribed in Section 24-8
11 of the School Code, the disability retirement annuity shall
12 be reduced to an amount which together with the amount earned
13 by the annuitant, equals the salary rate upon which the
14 disability benefit is based. However, for the purposes of
15 this subsection (c) only, the salary rate upon which the
16 benefit is based shall be deemed to increase by 15% on the
17 tenth anniversary of the commencement of the annuity.
18 Once each year during the first 5 years following
19 retirement on a disability retirement annuity, and once in
20 every 3-year period thereafter, the System may require an
21 annuitant to undergo a medical examination, by a physician or
22 physicians designated by the System. If the annuitant
23 refuses to submit to such medical examination, the annuity
24 shall be discontinued until such time as the annuitant
25 consents to the examination, and if refusal continues for one
26 year, all the rights to the annuity shall be revoked.
27 (d) If an annuitant in receipt of a disability
28 retirement annuity returns to active service as a teacher or
29 is no longer disabled, such annuity shall cease and the
30 annuitant shall again become a member of the Retirement
31 System and, if in active service as a teacher, shall make
32 regular contributions. The remaining accumulated
33 contributions shall be transferred to the Members'
34 Contribution Reserve from the Employer's Contribution
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1 Reserve. All service for which the annuitant had credit on
2 the date of disability shall be properly reestablished.
3 An annuitant in receipt of a disability retirement
4 annuity who returns to active service as a teacher and who
5 again becomes disabled shall not be entitled to a
6 recomputation of the disability retirement annuity based on
7 amendments enacted while the annuitant was in receipt of the
8 annuity unless at least one year of creditable service is
9 rendered after the latest re-entry into service.
10 (e) An annuitant in receipt of a disability retirement
11 annuity may, upon reaching retirement age as specified in
12 Section 16-132, apply for a retirement annuity which is to be
13 calculated as specified in Section 16-133. The disability
14 retirement annuity shall be discontinued upon commencement of
15 the retirement annuity.
16 (f) The board shall prescribe rules governing the
17 filing, investigation, control, and supervision of disability
18 retirement claims. The rules shall include specific
19 standards to be used when requesting additional medical
20 examinations, hospital records or other data necessary for
21 determining the employment capacity and condition of the
22 annuitant. Costs incurred by a claimant in connection with
23 completing a claim for disability benefits shall be paid by
24 the claimant.
25 The changes to this Section made by this amendatory Act
26 of 1991 shall apply not only to persons who on or after its
27 effective date are in service as a teacher under the System,
28 but also to persons whose status as a teacher terminated
29 prior to that date, whether or not the person is an annuitant
30 on that date.
31 (Source: P.A. 86-273; 86-1488; 87-794.)
32 (40 ILCS 5/16-150) (from Ch. 108 1/2, par. 16-150)
33 Sec. 16-150. Re-entry. If an annuitant under this
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1 System is again employed as a teacher for an aggregate period
2 exceeding that permitted by Section 16-118, his or her
3 retirement annuity shall be terminated and the annuitant
4 shall thereupon be regarded as an active member. The
5 annuitant's remaining accumulated contributions shall be
6 transferred to the Members' Contribution Reserve from the
7 Employer's Contribution Reserve.
8 Such annuitant is not entitled to a recomputation of his
9 or her retirement annuity unless at least one full year of
10 creditable service is rendered after the latest re-entry into
11 service and the annuitant must have rendered at least 3 years
12 of creditable service after last re-entry into service to
13 qualify for a recomputation of the retirement annuity based
14 on amendments enacted while in receipt of a retirement
15 annuity, except when retirement was due to disability.
16 However, regardless of age, an annuitant in receipt of a
17 retirement annuity may be given temporary employment by a
18 school board not exceeding that permitted under Section
19 16-118 and continue to receive the retirement annuity.
20 Unless retirement was necessitated by disability, a
21 retirement shall be considered cancelled and the retirement
22 allowance must be repaid in full if the annuitant is employed
23 as a teacher within the school year during which service was
24 terminated.
25 An annuitant's retirement which does not include a period
26 of at least one full and complete school year shall be
27 considered cancelled and the retirement annuity must be
28 repaid in full unless such retirement was necessitated by
29 disability.
30 (Source: P.A. 86-273; 87-794.)
31 (40 ILCS 5/16-151) (from Ch. 108 1/2, par. 16-151)
32 Sec. 16-151. Refund. Upon termination of employment as a
33 teacher for any cause other than death or retirement, a
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1 member shall be paid the following amount upon demand made at
2 least 4 months after ceasing to teach:
3 (1) from the Benefit Trust Reserve Members'
4 Contribution Reserve, the actual total contributions paid
5 by or on behalf of the member for membership service
6 which have not been previously refunded and which are
7 then credited to the member's individual account in the
8 Benefit Trust Reserve Members' Contribution Reserve,
9 without interest thereon, and
10 (2) from the Benefit Trust Reserve Employer's
11 Contribution Reserve, the actual contributions not
12 previously refunded, paid by or on behalf of the member
13 for prior service and towards the cost of the automatic
14 annual increase in retirement annuity as provided under
15 Section 16-152, without interest thereon.
16 Any such amounts may be paid to the member either in one
17 sum or, at the election of the board, in 4 quarterly
18 payments.
19 Contributions credited to a member for periods of
20 disability as provided in Sections 16-149 and 16-149.1 are
21 not refundable.
22 Upon acceptance of a refund, all accrued rights and
23 credits in the System are forfeited and may be reinstated
24 only if the refund is repaid together with interest from the
25 date of the refund to the date of repayment at the following
26 rates compounded annually: for periods prior to July 1,
27 1965, regular interest; for periods from July 1, 1965 to June
28 30, 1977, 4% per year; for periods on and after July 1, 1977,
29 regular interest. Repayment shall be permitted upon return to
30 membership; however, service credit previously forfeited by a
31 refund and subsequently reinstated may not be used as a basis
32 for the payment of benefits, other than a refund of
33 contributions, prior to the completion of one year of
34 creditable service following the refund, except when
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1 repayment is permitted under the provisions of the
2 "Retirement Systems Reciprocal Act" contained in Article 20.
3 (Source: P.A. 90-448, eff. 8-16-97.)
4 (40 ILCS 5/16-182) (from Ch. 108 1/2, par. 16-182)
5 Sec. 16-182. Members' Contribution Reserve.
6 (a) On July 1, 2003, the Members' Contribution Reserve
7 is abolished and the remaining balance shall be transferred
8 from that Reserve to the Benefit Trust Reserve. A Members'
9 Contribution Reserve shall be established for the purpose of
10 accumulating with regular interest the contributions of
11 members made prior to retirement.
12 This Reserve shall be credited with:
13 (1) The total accumulated contributions for
14 membership service, as of the date this reserve is
15 established, exclusive of contributions for annual
16 increases in retirement annuity and survivor benefits.
17 (2) The member contributions received under Section
18 16-133.2.
19 (3) The normal contributions under Section 16-128
20 and Section 16-131.2 together with regular interest.
21 (4) The total of all normal contributions for each
22 fiscal year as of the end of the fiscal year.
23 (5) The excess of the accumulated contributions of
24 an annuitant at retirement over the retirement annuity
25 payments received, to be computed upon re-entry into
26 service after termination of a retirement annuity as
27 provided in Section 16-150, or after termination of a
28 disability retirement annuity as provided in Section
29 16-149.2.
30 (6) Regular interest on the accumulated
31 contributions in the members' contribution reserve as of
32 the end of the previous fiscal year, credited to the date
33 of retirement or death for those retiring or dying during
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1 the fiscal year, and to the end of the fiscal year for
2 all other members.
3 (b) This Reserve shall be charged with:
4 (1) The accumulated contributions of members
5 retired under the provisions of Sections 16-133, 16-136.4
6 and 16-149.2.
7 (2) The accumulated contributions of members
8 granted a refund under the provisions of Section 16-151.
9 (3) The accumulated contributions of deceased
10 members upon payment of a refund as provided in Section
11 16-138.
12 (4) The accumulated contributions together with
13 regular interest as provided in Section 16-131.1.
14 (c) Upon the granting of a retirement annuity or the
15 payment of a single-sum retirement benefit or a death or
16 refund benefit, all individual accumulated credits of the
17 member concerned shall be terminated.
18 (d) Amounts credited to the account of a member under
19 this Reserve shall not be used until such member dies,
20 retires, accepts a refund, or requests a transfer of
21 contributions.
22 (Source: P.A. 87-11.)
23 (40 ILCS 5/16-184) (from Ch. 108 1/2, par. 16-184)
24 Sec. 16-184. Supplementary Annuity Reserve.
25 (a) Except as provided in subsection (b), a Reserve to
26 be known as the Supplementary Annuity Reserve is established
27 for the purpose of crediting funds received and charging
28 disbursements made for supplementary annuities under Section
29 16-135 and Section 16-149.4.
30 This Reserve shall be credited with:
31 (1) The total of all contributions made by
32 annuitants to qualify for supplementary annuities.
33 (2) Amounts contributed to the System by the State
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1 of Illinois that are sufficient to assure payment of the
2 supplementary annuities.
3 (3) Regular interest computed annually on the
4 average balance in this reserve.
5 This Reserve shall be charged with all supplemental
6 annuity payments under Section 16-135 and Section 16-149.4.
7 (b) On the July 1, 2003 next occurring after the
8 effective date of this amendatory Act of the 91st General
9 Assembly, the Supplemental Annuity Reserve is abolished and
10 any remaining balance shall be transferred from that Reserve
11 to the Benefit Trust Reserve Employer's Contribution Reserve.
12 (Source: P.A. 91-887, eff. 7-6-00.)
13 (40 ILCS 5/16-185) (from Ch. 108 1/2, par. 16-185)
14 Sec. 16-185. Benefit Trust Employer's Contribution
15 Reserve.
16 (a) On July 1, 2003, the Employer's Contribution Reserve
17 shall be renamed the Benefit Trust Reserve. The Benefit
18 Trust Reserve shall serve as a clearing account for income
19 and expenses of the System as well as transfers to and from
20 the other reserve accounts established under this Article and
21 adjustments thereto.
22 (b) This Reserve shall be credited with all
23 contributions, investment income, and other income received
24 by the System, except as otherwise required by this Article.:
25 (1) All amounts contributed by the State, except
26 those credited to other reserve accounts as provided in
27 this Article.
28 (2) The total member and employer contributions
29 except those required by other reserve accounts.
30 (3) The total income from invested assets of the
31 System, and other miscellaneous income.
32 (4) The interest portion of the accumulated
33 contributions of members granted refunds.
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1 (5) Contributions made by annuitants to qualify for
2 automatic annual increases in annuity, except those
3 required by other reserve accounts.
4 (c) This Reserve shall be charged with all benefits and
5 refunds paid and all other expenses of the System, except as
6 otherwise required under this Article.:
7 (1) All amounts necessary to be transferred to the
8 Members' Contribution Reserve.
9 (2) All retirement annuity, single-sum retirement
10 benefit and disability retirement annuity payments,
11 including automatic annual increases in annuities, except
12 as provided by other reserve accounts.
13 (3) All amounts necessary to be refunded to
14 withdrawing members except as provided by the Members'
15 Contribution Reserve.
16 (4) All benefits paid to temporarily or
17 accidentally disabled members of this System, and all
18 amounts credited to the accounts of such disabled members
19 in lieu of contributions.
20 (5) All amounts payable as death benefits except as
21 provided by the Members' Contribution Reserve.
22 (6) All amounts necessary for the payment of costs
23 for the health insurance program as provided under this
24 Article.
25 (7) All survivor benefit contributions refunded to
26 an annuitant as provided under Section 16-143.2.
27 (8) All amounts paid in accordance with Section
28 16-131.1 except as provided by the Members' Contribution
29 Reserve.
30 (9) Interest to be credited to other reserve
31 accounts as specified in this Article.
32 (10) Recognition of unrealized gains or losses in
33 market value, upon adoption of generally accepted
34 accounting principles that allow for such recognition.
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1 (Source: P.A. 89-235, eff. 8-4-95; 90-448, eff. 8-16-97.)
2 (40 ILCS 5/16-186.3) (from Ch. 108 1/2, par. 16-186.3)
3 Sec. 16-186.3. Reserve for minimum retirement annuity.
4 (a) A Minimum Retirement Annuity Reserve is established
5 for the purpose of crediting funds received and charging
6 disbursements for minimum retirement annuity payments under
7 Section 16-136.2 and Section 16-136.3.
8 This Reserve shall be credited with:
9 (1) The total of all contributions made by
10 annuitants to qualify for the minimum retirement annuity.
11 (2) Amounts contributed to the System by the State
12 of Illinois that are sufficient to assure payment of the
13 minimum retirement annuity payments under Section
14 16-136.2 and Section 16-136.3.
15 (3) Regular interest computed annually on the
16 average balance in this Reserve.
17 This Reserve shall be charged with all minimum retirement
18 annuity payments under Section 16-136.2 and Section 16-136.3.
19 (b) After all minimum retirement annuity payments have
20 been completed, any remaining funds shall be transferred from
21 this Reserve to the Benefit Trust Reserve Employer's
22 Contribution Reserve.
23 (Source: P.A. 88-593, eff. 8-22-94.)
24 Section 99. Effective date. This Act takes effect upon
25 becoming law.