Personnel and Pensions Committee
Adopted in House Comm. on Mar 13, 2008
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1 | AMENDMENT TO HOUSE BILL 5142
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2 | AMENDMENT NO. ______. Amend House Bill 5142 by replacing | ||||||
3 | line 22 on page 10 through line 23 on page 13 with the | ||||||
4 | following:
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5 | "(40 ILCS 5/16-128) (from Ch. 108 1/2, par. 16-128)
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6 | Sec. 16-128. Creditable service - required contributions.
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7 | (a) In order to receive the creditable service specified | ||||||
8 | under
subsection (b) of Section 16-127 (other than paragraph | ||||||
9 | (5.1) of subsection (b)) , a member is required to make the
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10 | following contributions: (i) an amount equal to the | ||||||
11 | contributions
which would have been required had such service | ||||||
12 | been rendered as a member
under this System; (ii)
for military | ||||||
13 | service not immediately following
employment and for service | ||||||
14 | established under subdivision (b)(10) of
Section 16-127, an | ||||||
15 | amount determined by the Board to be equal to the
employer's | ||||||
16 | normal cost of the benefits accrued for such service; and (iii)
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17 | interest from the date the contributions would have been due |
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1 | (or, in the case
of a person establishing credit for military | ||||||
2 | service under subdivision (b)(3)
of Section 16-127, the date of | ||||||
3 | first membership in the System, if that date
is later) to the | ||||||
4 | date of payment, at the following rate of interest,
compounded | ||||||
5 | annually: for periods prior to July 1, 1965, regular interest; | ||||||
6 | from
July 1, 1965 to June 30, 1977, 4% per year; on and after | ||||||
7 | July 1, 1977, regular
interest.
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8 | (a-5) In order to receive the creditable service specified | ||||||
9 | in paragraph (5.1) of subsection (b) of Section 16-127, a | ||||||
10 | member is required to make the
following contributions: (i) an | ||||||
11 | amount equal to the contributions
which would have been | ||||||
12 | required had such service been rendered as a member
under this | ||||||
13 | System; (ii)
an amount determined by the Board to be equal to | ||||||
14 | the
employer's normal cost of the benefits accrued for such | ||||||
15 | service; and (iii)
interest from the date the contributions | ||||||
16 | would have been due to the date of payment at the actuarially | ||||||
17 | assumed interest rate. | ||||||
18 | (b) In order to receive creditable service under paragraph | ||||||
19 | (2) of
subsection (b) of Section 16-127 for those who were not | ||||||
20 | members on June 30,
1963, the minimum required contribution | ||||||
21 | shall be $420 per year of service
together with interest at 4% | ||||||
22 | per year compounded annually from July 1,
preceding the date of | ||||||
23 | membership until June 30, 1977 and at regular
interest | ||||||
24 | compounded annually thereafter to the date of payment.
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25 | (c) In determining the contribution required in order to | ||||||
26 | receive creditable
service under paragraph (3) of subsection |
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1 | (b) of Section 16-127, the salary
rate for the remainder of the | ||||||
2 | school term in which a member enters military
service shall be | ||||||
3 | assumed to be equal to the member's salary rate at the
time of | ||||||
4 | entering military service. However, for military service not
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5 | immediately following employment, the salary rate on the last | ||||||
6 | date as a
participating teacher prior to such military service, | ||||||
7 | or on the first date
as a participating teacher after such | ||||||
8 | military service, whichever is
greater, shall be assumed to be | ||||||
9 | equal to the member's salary rate at the
time of entering | ||||||
10 | military service. For each school term thereafter, the
member's | ||||||
11 | salary rate shall be assumed to be 5% higher than the salary | ||||||
12 | rate
in the previous school term.
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13 | (d) In determining the contribution required in order to | ||||||
14 | receive creditable
service under paragraph (5) and (5.1) of | ||||||
15 | subsection (b) of Section 16-127, a member's
salary rate during | ||||||
16 | the period for which credit is being established shall be
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17 | assumed to be equal to the member's last salary
rate | ||||||
18 | immediately preceding that period.
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19 | (d-5) For each year of service credit to be established | ||||||
20 | under subsection
(b-1) of Section 16-127, a member is required | ||||||
21 | to contribute to the System (i)
16.5% of the annual salary rate | ||||||
22 | during the first year of full-time employment
as a teacher | ||||||
23 | under this Article following the private school service, plus
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24 | (ii) interest thereon from the date of first full-time | ||||||
25 | employment as a teacher
under this Article following the | ||||||
26 | private school service to the date of payment,
compounded |
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1 | annually, at the rate of 8.5% per year for periods before the
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2 | effective date of this amendatory Act of the 92nd General | ||||||
3 | Assembly, and for
subsequent periods at a rate equal to the | ||||||
4 | System's actuarially assumed rate of
return on investments.
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5 | (d-10) For service credit established under paragraph (6) | ||||||
6 | of subsection (b) of Section 16-127 for days granted by an | ||||||
7 | employer in excess of the member's normal annual sick leave | ||||||
8 | allotment, the employer is required to pay the normal cost of | ||||||
9 | benefits based upon such service credit. This subsection (d-10) | ||||||
10 | does not apply to sick leave granted to teachers under | ||||||
11 | contracts or collective bargaining agreements entered into, | ||||||
12 | amended, or renewed before June 1, 2005 (the effective date of | ||||||
13 | Public Act 94-4).
The employer contributions required under | ||||||
14 | this subsection (d-10) shall be paid in the form of a lump sum | ||||||
15 | within 30 days after receipt of the bill after the teacher | ||||||
16 | begins receiving benefits under this Article.
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17 | (e) Except for contributions under subsection (d-10), the | ||||||
18 | contributions required under this Section may be made from the
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19 | date the statement for such creditable service is issued until | ||||||
20 | retirement
date. All such required contributions must be made | ||||||
21 | before any retirement
annuity is granted.
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22 | (Source: P.A. 94-4, eff. 6-1-05; 94-1057, eff. 7-31-06.)".
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