93RD GENERAL ASSEMBLY
State of Illinois
2003 and 2004
HB4013

 

Introduced 1/14/2004, by Roger L. Eddy

 

SYNOPSIS AS INTRODUCED:
 
40 ILCS 5/16-127   from Ch. 108 1/2, par. 16-127

    Amends the Downstate Teacher Article of the Illinois Pension Code. Increases the maximum permitted amount of out-of-state service for which credit may be established, from 10 to 15 years, and from 2/5 to 3/5 of the person's total service. Effective immediately.


LRB093 15385 LRD 40988 b

FISCAL NOTE ACT MAY APPLY
PENSION IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB4013 LRB093 15385 LRD 40988 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 changing
5 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 which
10 satisfactory evidence is supplied and all contributions have
11 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 of
23     the United States, or under the auspices of any agency or
24     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 State
27     or any other State, territory, dependency or possession of
28     the United States, and service prior to February 1, 1951 as
29     a recreation worker for the Illinois Department of Public
30     Safety, for a period not exceeding the lesser of 3/5 2/5 of
31     the total creditable service of the member or 15 10 years.
32     The maximum service of 15 10 years which is allowable under

 

 

HB4013 - 2 - LRB093 15385 LRD 40988 b

1     this paragraph shall be reduced by the service credit which
2     is validated by other retirement systems under paragraph
3     (i) of Section 15-113 and paragraph 1 of Section 17-133.
4     Credit granted under this paragraph may not be used in
5     determination of a retirement annuity or disability
6     benefits unless the member has at least 5 years of
7     creditable service earned subsequent to this employment
8     with one or more of the following systems: Teachers'
9     Retirement System of the State of Illinois, State
10     Universities Retirement System, and the Public School
11     Teachers' Pension and Retirement Fund of Chicago. Whenever
12     such service credit exceeds the maximum allowed for all
13     purposes of this Article, the first service rendered in
14     point of time shall be considered. The changes to this
15     subdivision (b)(2) made by Public Act 86-272 shall apply
16     not only to persons who on or after its effective date
17     (August 23, 1989) are in service as a teacher under the
18     System, but also to persons whose status as such a teacher
19     terminated prior to such effective date, whether or not
20     such person is an annuitant on that date.
21         (3) Any periods immediately following teaching
22     service, under this System or under Article 17, (or
23     immediately following service prior to February 1, 1951 as
24     a recreation worker for the Illinois Department of Public
25     Safety) spent in active service with the military forces of
26     the United States; periods spent in educational programs
27     that prepare for return to teaching sponsored by the
28     federal government following such active military service;
29     if a teacher returns to teaching service within one
30     calendar year after discharge or after the completion of
31     the educational program, a further period, not exceeding
32     one calendar year, between time spent in military service
33     or in such educational programs and the return to
34     employment as a teacher under this System; and a period of
35     up to 2 years of active military service not immediately
36     following employment as a teacher.

 

 

HB4013 - 3 - LRB093 15385 LRD 40988 b

1         The changes to this Section and Section 16-128 relating
2     to military service made by P.A. 87-794 shall apply not
3     only to persons who on or after its effective date are in
4     service as a teacher under the System, but also to persons
5     whose status as a teacher terminated prior to that date,
6     whether or not the person is an annuitant on that date. In
7     the case of an annuitant who applies for credit allowable
8     under this Section for a period of military service that
9     did not immediately follow employment, and who has made the
10     required contributions for such credit, the annuity shall
11     be recalculated to include the additional service credit,
12     with the increase taking effect on the date the System
13     received written notification of the annuitant's intent to
14     purchase the credit, if payment of all the required
15     contributions is made within 60 days of such notice, or
16     else on the first annuity payment date following the date
17     of payment of the required contributions. In calculating
18     the automatic annual increase for an annuity that has been
19     recalculated under this Section, the increase attributable
20     to the additional service allowable under P.A. 87-794 shall
21     be included in the calculation of automatic annual
22     increases accruing after the effective date of the
23     recalculation.
24         Credit for military service shall be determined as
25     follows: if entry occurs during the months of July, August,
26     or September and the member was a teacher at the end of the
27     immediately preceding school term, credit shall be granted
28     from July 1 of the year in which he or she entered service;
29     if entry occurs during the school term and the teacher was
30     in teaching service at the beginning of the school term,
31     credit shall be granted from July 1 of such year. In all
32     other cases where credit for military service is allowed,
33     credit shall be granted from the date of entry into the
34     service.
35         The total period of military service for which credit
36     is granted shall not exceed 5 years for any member unless

 

 

HB4013 - 4 - LRB093 15385 LRD 40988 b

1     the service: (A) is validated before July 1, 1964, and (B)
2     does not extend beyond July 1, 1963. Credit for military
3     service shall be granted under this Section only if not
4     more than 5 years of the military service for which credit
5     is granted under this Section is used by the member to
6     qualify for a military retirement allotment from any branch
7     of the armed forces of the United States. The changes to
8     this subdivision (b)(3) made by Public Act 86-272 shall
9     apply not only to persons who on or after its effective
10     date (August 23, 1989) are in service as a teacher under
11     the System, but also to persons whose status as such a
12     teacher terminated prior to such effective date, whether or
13     not such person is an annuitant on that date.
14         (4) Any periods served as a member of the General
15     Assembly.
16         (5)(i) Any periods for which a teacher, as defined in
17     Section 16-106, is granted a leave of absence, provided he
18     or she returns to teaching service creditable under this
19     System or the State Universities Retirement System
20     following the leave; (ii) periods during which a teacher is
21     involuntarily laid off from teaching, provided he or she
22     returns to teaching following the lay-off; (iii) periods
23     prior to July 1, 1983 during which a teacher ceased covered
24     employment due to pregnancy, provided that the teacher
25     returned to teaching service creditable under this System
26     or the State Universities Retirement System following the
27     pregnancy and submits evidence satisfactory to the Board
28     documenting that the employment ceased due to pregnancy;
29     and (iv) periods prior to July 1, 1983 during which a
30     teacher ceased covered employment for the purpose of
31     adopting an infant under 3 years of age or caring for a
32     newly adopted infant under 3 years of age, provided that
33     the teacher returned to teaching service creditable under
34     this System or the State Universities Retirement System
35     following the adoption and submits evidence satisfactory
36     to the Board documenting that the employment ceased for the

 

 

HB4013 - 5 - LRB093 15385 LRD 40988 b

1     purpose of adopting an infant under 3 years of age or
2     caring for a newly adopted infant under 3 years of age.
3     However, total credit under this paragraph (5) may not
4     exceed 3 years.
5         Any qualified member or annuitant may apply for credit
6     under item (iii) or (iv) of this paragraph (5) without
7     regard to whether service was terminated before the
8     effective date of this amendatory Act of 1997. In the case
9     of an annuitant who establishes credit under item (iii) or
10     (iv), the annuity shall be recalculated to include the
11     additional service credit. The increase in annuity shall
12     take effect on the date the System receives written
13     notification of the annuitant's intent to purchase the
14     credit, if the required evidence is submitted and the
15     required contribution paid within 60 days of that
16     notification, otherwise on the first annuity payment date
17     following the System's receipt of the required evidence and
18     contribution. The increase in an annuity recalculated
19     under this provision shall be included in the calculation
20     of automatic annual increases in the annuity accruing after
21     the effective date of the recalculation.
22         Optional credit may be purchased under this subsection
23     (b)(5) for periods during which a teacher has been granted
24     a leave of absence pursuant to Section 24-13 of the School
25     Code. A teacher whose service under this Article terminated
26     prior to the effective date of P.A. 86-1488 shall be
27     eligible to purchase such optional credit. If a teacher who
28     purchases this optional credit is already receiving a
29     retirement annuity under this Article, the annuity shall be
30     recalculated as if the annuitant had applied for the leave
31     of absence credit at the time of retirement. The difference
32     between the entitled annuity and the actual annuity shall
33     be credited to the purchase of the optional credit. The
34     remainder of the purchase cost of the optional credit shall
35     be paid on or before April 1, 1992.
36         The change in this paragraph made by Public Act 86-273

 

 

HB4013 - 6 - LRB093 15385 LRD 40988 b

1     shall be applicable to teachers who retire after June 1,
2     1989, as well as to teachers who are in service on that
3     date.
4         (6) Any days of unused and uncompensated accumulated
5     sick leave earned by a teacher. The service credit granted
6     under this paragraph shall be the ratio of the number of
7     unused and uncompensated accumulated sick leave days to 170
8     days, subject to a maximum of 2 years of service credit.
9     Prior to the member's retirement, each former employer
10     shall certify to the System the number of unused and
11     uncompensated accumulated sick leave days credited to the
12     member at the time of termination of service. The period of
13     unused sick leave shall not be considered in determining
14     the effective date of retirement. A member is not required
15     to make contributions in order to obtain service credit for
16     unused sick leave.
17         Credit for sick leave shall, at retirement, be granted
18     by the System for any retiring regional or assistant
19     regional superintendent of schools at the rate of 6 days
20     per year of creditable service or portion thereof
21     established while serving as such superintendent or
22     assistant superintendent.
23         (7) Periods prior to February 1, 1987 served as an
24     employee of the Illinois Mathematics and Science Academy
25     for which credit has not been terminated under Section
26     15-113.9 of this Code.
27         (8) Service as a substitute teacher for work performed
28     prior to July 1, 1990.
29         (9) Service as a part-time teacher for work performed
30     prior to July 1, 1990.
31         (10) Up to 2 years of employment with Southern Illinois
32     University - Carbondale from September 1, 1959 to August
33     31, 1961, or with Governors State University from September
34     1, 1972 to August 31, 1974, for which the teacher has no
35     credit under Article 15. To receive credit under this item
36     (10), a teacher must apply in writing to the Board and pay

 

 

HB4013 - 7 - LRB093 15385 LRD 40988 b

1     the required contributions before May 1, 1993 and have at
2     least 12 years of service credit under this Article.
3     (b-1) A member may establish optional credit for up to 2
4 years of service as a teacher or administrator employed by a
5 private school recognized by the Illinois State Board of
6 Education, provided that the teacher (i) was certified under
7 the law governing the certification of teachers at the time the
8 service was rendered, (ii) applies in writing on or after June
9 1, 2002 and on or before June 1, 2005, (iii) supplies
10 satisfactory evidence of the employment, (iv) completes at
11 least 10 years of contributing service as a teacher as defined
12 in Section 16-106, and (v) pays the contribution required in
13 subsection (d-5) of Section 16-128. The member may apply for
14 credit under this subsection and pay the required contribution
15 before completing the 10 years of contributing service required
16 under item (iv), but the credit may not be used until the item
17 (iv) contributing service requirement has been met.
18     (c) The service credits specified in this Section shall be
19 granted only if: (1) such service credits are not used for
20 credit in any other statutory tax-supported public employee
21 retirement system other than the federal Social Security
22 program; and (2) the member makes the required contributions as
23 specified in Section 16-128. Except as provided in subsection
24 (b-1) of this Section, the service credit shall be effective as
25 of the date the required contributions are completed.
26     Any service credits granted under this Section shall
27 terminate upon cessation of membership for any cause.
28     Credit may not be granted under this Section covering any
29 period for which an age retirement or disability retirement
30 allowance has been paid.
31 (Source: P.A. 92-867, eff. 1-3-03.)
 
32     Section 99. Effective date. This Act takes effect upon
33 becoming law.