Personnel and Pensions Committee

Adopted in House Comm. on Mar 13, 2008

 

 


 

 


 
09500HB5142ham001 LRB095 18517 AMC 48294 a

1
AMENDMENT TO HOUSE BILL 5142

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:
 
5     "(40 ILCS 5/16-128)  (from Ch. 108 1/2, par. 16-128)
6     Sec. 16-128. Creditable service - required contributions.
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
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)
17 interest from the date the contributions would have been due

 

 

09500HB5142ham001 - 2 - LRB095 18517 AMC 48294 a

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.
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.
25     (c) In determining the contribution required in order to
26 receive creditable service under paragraph (3) of subsection

 

 

09500HB5142ham001 - 3 - LRB095 18517 AMC 48294 a

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
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.
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
17 assumed to be equal to the member's last salary rate
18 immediately preceding that period.
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
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

 

 

09500HB5142ham001 - 4 - LRB095 18517 AMC 48294 a

1 annually, at the rate of 8.5% per year for periods before the
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.
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.
17     (e) Except for contributions under subsection (d-10), the
18 contributions required under this Section may be made from the
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.
22 (Source: P.A. 94-4, eff. 6-1-05; 94-1057, eff. 7-31-06.)".