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1 | AN ACT concerning public employee benefits.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Illinois Pension Code is amended by changing | ||||||
5 | Sections 16-127 and 16-128 and by adding Section 16-203.1 as | ||||||
6 | follows:
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7 | (40 ILCS 5/16-127) (from Ch. 108 1/2, par. 16-127)
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8 | Sec. 16-127. Computation of creditable service.
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9 | (a) Each member shall receive regular credit for all
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10 | service as a teacher from the date membership begins, for which
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11 | satisfactory evidence is supplied and all contributions have | ||||||
12 | been paid.
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13 | (b) The following periods of service shall earn optional | ||||||
14 | credit and
each member shall receive credit for all such | ||||||
15 | service for which
satisfactory evidence is supplied and all | ||||||
16 | contributions have been paid as
of the date specified:
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17 | (1) Prior service as a teacher.
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18 | (2) Service in a capacity essentially similar or | ||||||
19 | equivalent to that of a
teacher, in the public common | ||||||
20 | schools in school districts in this State not
included | ||||||
21 | within the provisions of this System, or of any other | ||||||
22 | State,
territory, dependency or possession of the United | ||||||
23 | States, or in schools
operated by or under the auspices of |
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1 | the United States, or under the
auspices of any agency or | ||||||
2 | department of any other State, and service during
any | ||||||
3 | period of professional speech correction or special | ||||||
4 | education
experience for a public agency within this State | ||||||
5 | or any other State,
territory, dependency or possession of | ||||||
6 | the United States, and service prior
to February 1, 1951 as | ||||||
7 | a recreation worker for the Illinois Department of
Public | ||||||
8 | Safety, for a period not exceeding the lesser of 2/5 of the | ||||||
9 | total
creditable service of the member or 10 years. The | ||||||
10 | maximum service of 10
years which is allowable under this | ||||||
11 | paragraph shall be reduced by the
service credit which is | ||||||
12 | validated by other retirement systems under
paragraph (i) | ||||||
13 | of Section 15-113 and paragraph 1 of Section 17-133. Credit
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14 | granted under this paragraph may not be used in | ||||||
15 | determination of a
retirement annuity or disability | ||||||
16 | benefits unless the member has at least 5
years of | ||||||
17 | creditable service earned subsequent to this employment | ||||||
18 | with one
or more of the following systems: Teachers' | ||||||
19 | Retirement System of the State
of Illinois, State | ||||||
20 | Universities Retirement System, and the Public School
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21 | Teachers' Pension and Retirement Fund of Chicago. Whenever | ||||||
22 | such service
credit exceeds the maximum allowed for all | ||||||
23 | purposes of this Article, the
first service rendered in | ||||||
24 | point of time shall be considered.
The changes to this | ||||||
25 | subdivision (b)(2) made by Public Act 86-272 shall
apply | ||||||
26 | not only to persons who on or after its effective date |
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1 | (August 23,
1989) are in service as a teacher under the | ||||||
2 | System, but also to persons
whose status as such a teacher | ||||||
3 | terminated prior to such effective date,
whether or not | ||||||
4 | such person is an annuitant on that date.
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5 | (3) Any periods immediately following teaching | ||||||
6 | service, under this
System or under Article 17, (or | ||||||
7 | immediately following service prior to
February 1, 1951 as | ||||||
8 | a recreation worker for the Illinois Department of
Public | ||||||
9 | Safety) spent in active service with the military forces of | ||||||
10 | the
United States; periods spent in educational programs | ||||||
11 | that prepare for
return to teaching sponsored by the | ||||||
12 | federal government following such
active military service; | ||||||
13 | if a teacher returns to teaching service within
one | ||||||
14 | calendar year after discharge or after the completion of | ||||||
15 | the
educational program, a further period, not exceeding | ||||||
16 | one calendar year,
between time spent in military service | ||||||
17 | or in such educational programs and
the return to | ||||||
18 | employment as a teacher under this System; and a period of | ||||||
19 | up
to 2 years of active military service not immediately | ||||||
20 | following employment
as a teacher.
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21 | The changes to this Section and Section 16-128 relating | ||||||
22 | to military
service made by P.A. 87-794 shall apply not | ||||||
23 | only to persons who on or after its
effective date are in | ||||||
24 | service as a teacher under the System, but also to
persons | ||||||
25 | whose status as a teacher terminated prior to that date, | ||||||
26 | whether or not
the person is an annuitant on that date. In |
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1 | the case of an annuitant who
applies for credit allowable | ||||||
2 | under this Section for a period of military
service that | ||||||
3 | did not immediately follow employment, and who has made the
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4 | required contributions for such credit, the annuity shall | ||||||
5 | be recalculated to
include the additional service credit, | ||||||
6 | with the increase taking effect on the
date the System | ||||||
7 | received written notification of the annuitant's intent to
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8 | purchase the credit, if payment of all the required | ||||||
9 | contributions is made
within 60 days of such notice, or | ||||||
10 | else on the first annuity payment date
following the date | ||||||
11 | of payment of the required contributions. In calculating
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12 | the automatic annual increase for an annuity that has been | ||||||
13 | recalculated under
this Section, the increase attributable | ||||||
14 | to the additional service allowable
under P.A. 87-794 shall | ||||||
15 | be included in the calculation of automatic annual
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16 | increases accruing after the effective date of the | ||||||
17 | recalculation.
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18 | Credit for military service shall be determined as | ||||||
19 | follows: if entry
occurs during the months of July, August, | ||||||
20 | or September and the member was a
teacher at the end of the | ||||||
21 | immediately preceding school term, credit shall
be granted | ||||||
22 | from July 1 of the year in which he or she entered service; | ||||||
23 | if
entry occurs during the school term and the teacher was | ||||||
24 | in teaching service
at the beginning of the school term, | ||||||
25 | credit shall be granted from July 1 of
such year. In all | ||||||
26 | other cases where credit for military service is allowed,
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1 | credit shall be granted from the date of entry into the | ||||||
2 | service.
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3 | The total period of military service for which credit | ||||||
4 | is granted shall
not exceed 5 years for any member unless | ||||||
5 | the service: (A) is validated
before July 1, 1964, and (B) | ||||||
6 | does not extend beyond July 1, 1963. Credit
for military | ||||||
7 | service shall be granted under this Section only if not | ||||||
8 | more
than 5 years of the military service for which credit | ||||||
9 | is granted under this
Section is used by the member to | ||||||
10 | qualify for a military retirement
allotment from any branch | ||||||
11 | of the armed forces of the United States. The
changes to | ||||||
12 | this subdivision (b)(3) made by Public Act 86-272 shall | ||||||
13 | apply
not only to persons who on or after its effective | ||||||
14 | date (August 23, 1989)
are in service as a teacher under | ||||||
15 | the System, but also to persons whose
status as such a | ||||||
16 | teacher terminated prior to such effective date, whether
or | ||||||
17 | not such person is an annuitant on that date.
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18 | (4) Any periods served as a member of the General | ||||||
19 | Assembly.
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20 | (5)(i) Any periods for which a teacher, as defined in | ||||||
21 | Section
16-106, is granted a leave of absence, provided he | ||||||
22 | or she returns to teaching
service creditable under this | ||||||
23 | System or the State Universities Retirement
System | ||||||
24 | following the leave; (ii) periods during which a teacher is
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25 | involuntarily laid off from teaching, provided he or she | ||||||
26 | returns to teaching
following the lay-off; (iii) periods |
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1 | prior to July 1, 1983 during which
a teacher ceased covered | ||||||
2 | employment due to pregnancy, provided that the teacher
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3 | returned to teaching service creditable under this System | ||||||
4 | or the State
Universities Retirement System following the | ||||||
5 | pregnancy and submits evidence
satisfactory to the Board | ||||||
6 | documenting that the employment ceased due to
pregnancy; | ||||||
7 | and (iv) periods prior to July 1, 1983 during which a | ||||||
8 | teacher
ceased covered employment for the purpose of | ||||||
9 | adopting an infant under 3 years
of age or caring for a | ||||||
10 | newly adopted infant under 3 years of age, provided that
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11 | the teacher returned to teaching service creditable under | ||||||
12 | this System or the
State Universities Retirement System | ||||||
13 | following the adoption and submits
evidence satisfactory | ||||||
14 | to the Board documenting that the employment ceased for
the | ||||||
15 | purpose of adopting an infant under 3 years of age or | ||||||
16 | caring for a newly
adopted infant under 3 years of age. | ||||||
17 | However, total credit under this
paragraph (5) may not | ||||||
18 | exceed 3 years.
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19 | Any qualified member or annuitant may apply for credit | ||||||
20 | under item (iii)
or (iv) of this paragraph (5) without | ||||||
21 | regard to whether service was
terminated before the | ||||||
22 | effective date of this amendatory Act of 1997. In the case | ||||||
23 | of an annuitant who establishes credit under item (iii)
or | ||||||
24 | (iv), the annuity shall be recalculated to include the | ||||||
25 | additional
service credit. The increase in annuity shall | ||||||
26 | take effect on the date the
System receives written |
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1 | notification of the annuitant's intent to purchase the
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2 | credit, if the required evidence is submitted and the | ||||||
3 | required contribution
paid within 60 days of that | ||||||
4 | notification, otherwise on the first annuity
payment date | ||||||
5 | following the System's receipt of the required evidence and
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6 | contribution. The increase in an annuity recalculated | ||||||
7 | under this provision
shall be included in the calculation | ||||||
8 | of automatic annual increases in the
annuity accruing after | ||||||
9 | the effective date of the recalculation.
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10 | Optional credit may be purchased under this subsection | ||||||
11 | (b)(5) for
periods during which a teacher has been granted | ||||||
12 | a leave of absence pursuant
to Section 24-13 of the School | ||||||
13 | Code. A teacher whose service under this
Article terminated | ||||||
14 | prior to the effective date of P.A. 86-1488 shall be
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15 | eligible to purchase such optional credit. If a teacher who | ||||||
16 | purchases this
optional credit is already receiving a | ||||||
17 | retirement annuity under this Article,
the annuity shall be | ||||||
18 | recalculated as if the annuitant had applied for the leave
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19 | of absence credit at the time of retirement. The difference | ||||||
20 | between the
entitled annuity and the actual annuity shall | ||||||
21 | be credited to the purchase of
the optional credit. The | ||||||
22 | remainder of the purchase cost of the optional credit
shall | ||||||
23 | be paid on or before April 1, 1992.
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24 | The change in this paragraph made by Public Act 86-273 | ||||||
25 | shall
be applicable to teachers who retire after June 1, | ||||||
26 | 1989, as well as to
teachers who are in service on that |
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1 | date.
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2 | (5.1) A leave of absence during which a teacher ceases | ||||||
3 | covered employment as defined in paragraph (2) of | ||||||
4 | subsection (b) due to pregnancy, returns to teaching | ||||||
5 | service as stated in paragraph (2) of subsection (b) | ||||||
6 | following the pregnancy, and submits evidence satisfactory | ||||||
7 | to the Board documenting that the leave of absence was due | ||||||
8 | to pregnancy. However, total credit under paragraph (5) and | ||||||
9 | this paragraph (5.1) may not exceed 3 years.
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10 | (6) Any days of unused and uncompensated accumulated | ||||||
11 | sick leave earned
by a teacher. The service credit granted | ||||||
12 | under this paragraph shall be the
ratio of the number of | ||||||
13 | unused and uncompensated accumulated sick leave days
to 170 | ||||||
14 | days, subject to a maximum of 2 years of service
credit. | ||||||
15 | Prior to the member's retirement, each former employer | ||||||
16 | shall
certify to the System the number of unused and | ||||||
17 | uncompensated accumulated
sick leave days credited to the | ||||||
18 | member at the time of termination of service.
The period of | ||||||
19 | unused sick leave shall not be considered in determining
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20 | the effective date of retirement. A member is not required | ||||||
21 | to make
contributions in order to obtain service credit for | ||||||
22 | unused sick leave.
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23 | Credit for sick leave shall, at retirement, be granted | ||||||
24 | by the System
for any retiring regional or assistant | ||||||
25 | regional superintendent of schools
at the rate of 6 days | ||||||
26 | per year of creditable service or portion thereof
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1 | established while serving as such superintendent or | ||||||
2 | assistant
superintendent.
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3 | (7) Periods prior to February 1, 1987 served as an | ||||||
4 | employee of the
Illinois Mathematics and Science Academy | ||||||
5 | for which credit has not been
terminated under Section | ||||||
6 | 15-113.9 of this Code.
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7 | (8) Service as a substitute teacher for work performed
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8 | prior to July 1, 1990.
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9 | (9) Service as a part-time teacher for work performed
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10 | prior to July 1, 1990.
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11 | (10) Up to 2 years of employment with Southern Illinois | ||||||
12 | University -
Carbondale from September 1, 1959 to August | ||||||
13 | 31, 1961, or with Governors
State University from September | ||||||
14 | 1, 1972 to August 31, 1974, for which the
teacher has no | ||||||
15 | credit under Article 15. To receive credit under this item
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16 | (10), a teacher must apply in writing to the Board and pay | ||||||
17 | the required
contributions before May 1, 1993 and have at | ||||||
18 | least 12 years of service
credit under this Article.
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19 | (b-1) A member may establish optional credit for up to 2 | ||||||
20 | years of service
as a teacher or administrator employed by a | ||||||
21 | private school recognized by the
Illinois State Board of | ||||||
22 | Education, provided that the teacher (i) was certified
under | ||||||
23 | the law governing the certification of teachers at the time the | ||||||
24 | service
was rendered, (ii) applies in writing on or after June | ||||||
25 | 1, 2002 and on or before
June 1, 2005, (iii) supplies | ||||||
26 | satisfactory evidence of the employment, (iv)
completes at |
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1 | least 10 years of contributing service as a teacher as defined | ||||||
2 | in
Section 16-106, and (v) pays the contribution required in | ||||||
3 | subsection (d-5) of
Section 16-128. The member may apply for | ||||||
4 | credit under this subsection and pay
the required contribution | ||||||
5 | before completing the 10 years of contributing
service required | ||||||
6 | under item (iv), but the credit may not be used until the
item | ||||||
7 | (iv) contributing service requirement has been met.
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8 | (c) The service credits specified in this Section shall be | ||||||
9 | granted only
if: (1) such service credits are not used for | ||||||
10 | credit in any other statutory
tax-supported public employee | ||||||
11 | retirement system other than the federal Social
Security | ||||||
12 | program; and (2) the member makes the required contributions as
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13 | specified in Section 16-128. Except as provided in subsection | ||||||
14 | (b-1) of
this Section, the service credit shall be effective as | ||||||
15 | of the date the
required contributions are completed.
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16 | Any service credits granted under this Section shall | ||||||
17 | terminate upon
cessation of membership for any cause.
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18 | Credit may not be granted under this Section covering any | ||||||
19 | period for
which an age retirement or disability retirement | ||||||
20 | allowance has been paid.
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21 | (Source: P.A. 92-867, eff. 1-3-03.)
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22 | (40 ILCS 5/16-128) (from Ch. 108 1/2, par. 16-128)
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23 | Sec. 16-128. Creditable service - required contributions.
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24 | (a) In order to receive the creditable service specified | ||||||
25 | under
subsection (b) of Section 16-127 (other than paragraph |
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1 | (5.1) of subsection (b)) , a member is required to make the
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2 | following contributions: (i) an amount equal to the | ||||||
3 | contributions
which would have been required had such service | ||||||
4 | been rendered as a member
under this System; (ii)
for military | ||||||
5 | service not immediately following
employment and for service | ||||||
6 | established under subdivision (b)(10) of
Section 16-127, an | ||||||
7 | amount determined by the Board to be equal to the
employer's | ||||||
8 | normal cost of the benefits accrued for such service; and (iii)
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9 | interest from the date the contributions would have been due | ||||||
10 | (or, in the case
of a person establishing credit for military | ||||||
11 | service under subdivision (b)(3)
of Section 16-127, the date of | ||||||
12 | first membership in the System, if that date
is later) to the | ||||||
13 | date of payment, at the following rate of interest,
compounded | ||||||
14 | annually: for periods prior to July 1, 1965, regular interest; | ||||||
15 | from
July 1, 1965 to June 30, 1977, 4% per year; on and after | ||||||
16 | July 1, 1977, regular
interest.
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17 | (a-5) In order to receive the creditable service specified | ||||||
18 | in paragraph (5.1) of subsection (b) of Section 16-127, a | ||||||
19 | member is required to make the
following contributions: (i) an | ||||||
20 | amount equal to the contributions
which would have been | ||||||
21 | required had such service been rendered as a member
under this | ||||||
22 | System; (ii)
an amount determined by the Board to be equal to | ||||||
23 | the
employer's normal cost of the benefits accrued for such | ||||||
24 | service; and (iii)
interest from the date the contributions | ||||||
25 | would have been due to the date of payment at the actuarially | ||||||
26 | assumed interest rate. |
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1 | (b) In order to receive creditable service under paragraph | ||||||
2 | (2) of
subsection (b) of Section 16-127 for those who were not | ||||||
3 | members on June 30,
1963, the minimum required contribution | ||||||
4 | shall be $420 per year of service
together with interest at 4% | ||||||
5 | per year compounded annually from July 1,
preceding the date of | ||||||
6 | membership until June 30, 1977 and at regular
interest | ||||||
7 | compounded annually thereafter to the date of payment.
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8 | (c) In determining the contribution required in order to | ||||||
9 | receive creditable
service under paragraph (3) of subsection | ||||||
10 | (b) of Section 16-127, the salary
rate for the remainder of the | ||||||
11 | school term in which a member enters military
service shall be | ||||||
12 | assumed to be equal to the member's salary rate at the
time of | ||||||
13 | entering military service. However, for military service not
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14 | immediately following employment, the salary rate on the last | ||||||
15 | date as a
participating teacher prior to such military service, | ||||||
16 | or on the first date
as a participating teacher after such | ||||||
17 | military service, whichever is
greater, shall be assumed to be | ||||||
18 | equal to the member's salary rate at the
time of entering | ||||||
19 | military service. For each school term thereafter, the
member's | ||||||
20 | salary rate shall be assumed to be 5% higher than the salary | ||||||
21 | rate
in the previous school term.
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22 | (d) In determining the contribution required in order to | ||||||
23 | receive creditable
service under paragraph (5) and (5.1) of | ||||||
24 | subsection (b) of Section 16-127, a member's
salary rate during | ||||||
25 | the period for which credit is being established shall be
| ||||||
26 | assumed to be equal to the member's last salary
rate |
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1 | immediately preceding that period.
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2 | (d-5) For each year of service credit to be established | ||||||
3 | under subsection
(b-1) of Section 16-127, a member is required | ||||||
4 | to contribute to the System (i)
16.5% of the annual salary rate | ||||||
5 | during the first year of full-time employment
as a teacher | ||||||
6 | under this Article following the private school service, plus
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7 | (ii) interest thereon from the date of first full-time | ||||||
8 | employment as a teacher
under this Article following the | ||||||
9 | private school service to the date of payment,
compounded | ||||||
10 | annually, at the rate of 8.5% per year for periods before the
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11 | effective date of this amendatory Act of the 92nd General | ||||||
12 | Assembly, and for
subsequent periods at a rate equal to the | ||||||
13 | System's actuarially assumed rate of
return on investments.
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14 | (d-10) For service credit established under paragraph (6) | ||||||
15 | of subsection (b) of Section 16-127 for days granted by an | ||||||
16 | employer in excess of the member's normal annual sick leave | ||||||
17 | allotment, the employer is required to pay the normal cost of | ||||||
18 | benefits based upon such service credit. This subsection (d-10) | ||||||
19 | does not apply to sick leave granted to teachers under | ||||||
20 | contracts or collective bargaining agreements entered into, | ||||||
21 | amended, or renewed before June 1, 2005 (the effective date of | ||||||
22 | Public Act 94-4).
The employer contributions required under | ||||||
23 | this subsection (d-10) shall be paid in the form of a lump sum | ||||||
24 | within 30 days after receipt of the bill after the teacher | ||||||
25 | begins receiving benefits under this Article.
| ||||||
26 | (e) Except for contributions under subsection (d-10), the |
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1 | contributions required under this Section may be made from the
| ||||||
2 | date the statement for such creditable service is issued until | ||||||
3 | retirement
date. All such required contributions must be made | ||||||
4 | before any retirement
annuity is granted.
| ||||||
5 | (Source: P.A. 94-4, eff. 6-1-05; 94-1057, eff. 7-31-06.)
| ||||||
6 | (40 ILCS 5/16-203.1 new)
| ||||||
7 | Sec. 16-203.1. New benefit increases. The General Assembly | ||||||
8 | finds and declares that the amendment to Section 16-127 made by | ||||||
9 | this amendatory Act of the 95th General Assembly that allows a | ||||||
10 | teacher to establish credit for a leave of absence due to a | ||||||
11 | pregnancy constitutes a new benefit increase within the meaning | ||||||
12 | of Section 16-203. This new benefit increase will expire 5 | ||||||
13 | years after the effective date of this amendatory Act. The | ||||||
14 | additional funding required under Section 16-203 for this new | ||||||
15 | benefit increase shall be provided by the contributions from | ||||||
16 | the employee required under Section 16-128.
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17 | Section 99. Effective date. This Act takes effect upon | ||||||
18 | becoming law.
|