Personnel and Pensions Committee

Filed: 3/5/2009

 

 


 

 


 
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1
AMENDMENT TO HOUSE BILL 1148

2     AMENDMENT NO. ______. Amend House Bill 1148 by replacing
3 everything after the enacting clause with the following:
 
4     "Section 5. The Illinois Pension Code is amended by
5 changing Sections 16-127 and 16-128 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.

 

 

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1         (2) Service in a capacity essentially similar or
2     equivalent to that of a teacher, in the public common
3     schools in school districts in this State not included
4     within the provisions of this System, or of any other
5     State, territory, dependency or possession of the United
6     States, or in schools operated by or under the auspices of
7     the United States, or under the auspices of any agency or
8     department of any other State, and service during any
9     period of professional speech correction or special
10     education experience for a public agency within this State
11     or any other State, territory, dependency or possession of
12     the United States, and service prior to February 1, 1951 as
13     a recreation worker for the Illinois Department of Public
14     Safety, for a period not exceeding the lesser of 2/5 of the
15     total creditable service of the member or 10 years. The
16     maximum service of 10 years which is allowable under this
17     paragraph shall be reduced by the service credit which is
18     validated by other retirement systems under paragraph (i)
19     of Section 15-113 and paragraph 1 of Section 17-133. Credit
20     granted under this paragraph may not be used in
21     determination of a retirement annuity or disability
22     benefits unless the member has at least 5 years of
23     creditable service earned subsequent to this employment
24     with one or more of the following systems: Teachers'
25     Retirement System of the State of Illinois, State
26     Universities Retirement System, and the Public School

 

 

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1     Teachers' Pension and Retirement Fund of Chicago. Whenever
2     such service credit exceeds the maximum allowed for all
3     purposes of this Article, the first service rendered in
4     point of time shall be considered. The changes to this
5     subdivision (b)(2) made by Public Act 86-272 shall apply
6     not only to persons who on or after its effective date
7     (August 23, 1989) are in service as a teacher under the
8     System, but also to persons whose status as such a teacher
9     terminated prior to such effective date, whether or not
10     such person is an annuitant on that date.
11         (3) Any periods immediately following teaching
12     service, under this System or under Article 17, (or
13     immediately following service prior to February 1, 1951 as
14     a recreation worker for the Illinois Department of Public
15     Safety) spent in active service with the military forces of
16     the United States; periods spent in educational programs
17     that prepare for return to teaching sponsored by the
18     federal government following such active military service;
19     if a teacher returns to teaching service within one
20     calendar year after discharge or after the completion of
21     the educational program, a further period, not exceeding
22     one calendar year, between time spent in military service
23     or in such educational programs and the return to
24     employment as a teacher under this System; and a period of
25     up to 2 years of active military service not immediately
26     following employment as a teacher.

 

 

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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

 

 

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1     immediately preceding school term, credit shall be granted
2     from July 1 of the year in which he or she entered service;
3     if entry occurs during the school term and the teacher was
4     in teaching service at the beginning of the school term,
5     credit shall be granted from July 1 of such year. In all
6     other cases where credit for military service is allowed,
7     credit shall be granted from the date of entry into the
8     service.
9         The total period of military service for which credit
10     is granted shall not exceed 5 years for any member unless
11     the service: (A) is validated before July 1, 1964, and (B)
12     does not extend beyond July 1, 1963. Credit for military
13     service shall be granted under this Section only if not
14     more than 5 years of the military service for which credit
15     is granted under this Section is used by the member to
16     qualify for a military retirement allotment from any branch
17     of the armed forces of the United States. The changes to
18     this subdivision (b)(3) made by Public Act 86-272 shall
19     apply not only to persons who on or after its effective
20     date (August 23, 1989) are in service as a teacher under
21     the System, but also to persons whose status as such a
22     teacher terminated prior to such effective date, whether or
23     not such person is an annuitant on that date.
24         (4) Any periods served as a member of the General
25     Assembly.
26         (5)(i) Any periods for which a teacher, as defined in

 

 

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1     Section 16-106, is granted a leave of absence, provided he
2     or she returns to teaching service creditable under this
3     System or the State Universities Retirement System
4     following the leave; (ii) periods during which a teacher is
5     involuntarily laid off from teaching, provided he or she
6     returns to teaching following the lay-off; (iii) periods
7     prior to July 1, 1983 during which a teacher ceased covered
8     employment due to pregnancy, provided that the teacher
9     returned to teaching service creditable under this System
10     or the State Universities Retirement System following the
11     pregnancy and submits evidence satisfactory to the Board
12     documenting that the employment ceased due to pregnancy;
13     and (iv) periods prior to July 1, 1983 during which a
14     teacher ceased covered employment for the purpose of
15     adopting an infant under 3 years of age or caring for a
16     newly adopted infant under 3 years of age, provided that
17     the teacher returned to teaching service creditable under
18     this System or the State Universities Retirement System
19     following the adoption and submits evidence satisfactory
20     to the Board documenting that the employment ceased for the
21     purpose of adopting an infant under 3 years of age or
22     caring for a newly adopted infant under 3 years of age.
23     However, total credit under this paragraph (5) may not
24     exceed 3 years.
25         Any qualified member or annuitant may apply for credit
26     under item (iii) or (iv) of this paragraph (5) without

 

 

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1     regard to whether service was terminated before the
2     effective date of this amendatory Act of 1997. In the case
3     of an annuitant who establishes credit under item (iii) or
4     (iv), the annuity shall be recalculated to include the
5     additional service credit. The increase in annuity shall
6     take effect on the date the System receives written
7     notification of the annuitant's intent to purchase the
8     credit, if the required evidence is submitted and the
9     required contribution paid within 60 days of that
10     notification, otherwise on the first annuity payment date
11     following the System's receipt of the required evidence and
12     contribution. The increase in an annuity recalculated
13     under this provision shall be included in the calculation
14     of automatic annual increases in the annuity accruing after
15     the effective date of the recalculation.
16         Optional credit may be purchased under this subsection
17     (b)(5) for periods during which a teacher has been granted
18     a leave of absence pursuant to Section 24-13 of the School
19     Code. A teacher whose service under this Article terminated
20     prior to the effective date of P.A. 86-1488 shall be
21     eligible to purchase such optional credit. If a teacher who
22     purchases this optional credit is already receiving a
23     retirement annuity under this Article, the annuity shall be
24     recalculated as if the annuitant had applied for the leave
25     of absence credit at the time of retirement. The difference
26     between the entitled annuity and the actual annuity shall

 

 

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1     be credited to the purchase of the optional credit. The
2     remainder of the purchase cost of the optional credit shall
3     be paid on or before April 1, 1992.
4         The change in this paragraph made by Public Act 86-273
5     shall be applicable to teachers who retire after June 1,
6     1989, as well as to teachers who are in service on that
7     date.
8         (6) Any days of unused and uncompensated accumulated
9     sick leave earned by a teacher. The service credit granted
10     under this paragraph shall be the ratio of the number of
11     unused and uncompensated accumulated sick leave days to 170
12     days, subject to a maximum of 2 years of service credit.
13     Prior to the member's retirement, each former employer
14     shall certify to the System the number of unused and
15     uncompensated accumulated sick leave days credited to the
16     member at the time of termination of service. The period of
17     unused sick leave shall not be considered in determining
18     the effective date of retirement. A member is not required
19     to make contributions in order to obtain service credit for
20     unused sick leave.
21         Credit for sick leave shall, at retirement, be granted
22     by the System for any retiring regional or assistant
23     regional superintendent of schools at the rate of 6 days
24     per year of creditable service or portion thereof
25     established while serving as such superintendent or
26     assistant superintendent.

 

 

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1         (7) Periods prior to February 1, 1987 served as an
2     employee of the Illinois Mathematics and Science Academy
3     for which credit has not been terminated under Section
4     15-113.9 of this Code.
5         (8) Service as a substitute teacher for work performed
6     prior to July 1, 1990.
7         (9) Service as a part-time teacher for work performed
8     prior to July 1, 1990.
9         (10) Up to 2 years of employment with Southern Illinois
10     University - Carbondale from September 1, 1959 to August
11     31, 1961, or with Governors State University from September
12     1, 1972 to August 31, 1974, for which the teacher has no
13     credit under Article 15. To receive credit under this item
14     (10), a teacher must apply in writing to the Board and pay
15     the required contributions before May 1, 1993 and have at
16     least 12 years of service credit under this Article.
17     (b-1) A member may establish optional credit for up to 2
18 years of service as a teacher or administrator employed by a
19 private school recognized by the Illinois State Board of
20 Education, provided that the teacher (i) was certified under
21 the law governing the certification of teachers at the time the
22 service was rendered, (ii) applies in writing on or after
23 August 1, 2009 June 1, 2002 and on or before August 1, 2012
24 June 1, 2005, (iii) supplies satisfactory evidence of the
25 employment, (iv) completes at least 10 years of contributing
26 service as a teacher as defined in Section 16-106, and (v) pays

 

 

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1 the contribution required in subsection (d-5) of Section
2 16-128. The member may apply for credit under this subsection
3 and pay the required contribution before completing the 10
4 years of contributing service required under item (iv), but the
5 credit may not be used until the item (iv) contributing service
6 requirement has been met.
7     (c) The service credits specified in this Section shall be
8 granted only if: (1) such service credits are not used for
9 credit in any other statutory tax-supported public employee
10 retirement system other than the federal Social Security
11 program; and (2) the member makes the required contributions as
12 specified in Section 16-128. Except as provided in subsection
13 (b-1) of this Section, the service credit shall be effective as
14 of the date the required contributions are completed.
15     Any service credits granted under this Section shall
16 terminate upon cessation of membership for any cause.
17     Credit may not be granted under this Section covering any
18 period for which an age retirement or disability retirement
19 allowance has been paid.
20 (Source: P.A. 92-867, eff. 1-3-03.)
 
21     (40 ILCS 5/16-128)  (from Ch. 108 1/2, par. 16-128)
22     Sec. 16-128. Creditable service - required contributions.
23     (a) In order to receive the creditable service specified
24 under subsection (b) of Section 16-127, a member is required to
25 make the following contributions: (i) an amount equal to the

 

 

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1 contributions which would have been required had such service
2 been rendered as a member under this System; (ii) for military
3 service not immediately following employment and for service
4 established under subdivision (b)(10) of Section 16-127, an
5 amount determined by the Board to be equal to the employer's
6 normal cost of the benefits accrued for such service; and (iii)
7 interest from the date the contributions would have been due
8 (or, in the case of a person establishing credit for military
9 service under subdivision (b)(3) of Section 16-127, the date of
10 first membership in the System, if that date is later) to the
11 date of payment, at the following rate of interest, compounded
12 annually: for periods prior to July 1, 1965, regular interest;
13 from July 1, 1965 to June 30, 1977, 4% per year; on and after
14 July 1, 1977, regular interest.
15     (b) In order to receive creditable service under paragraph
16 (2) of subsection (b) of Section 16-127 for those who were not
17 members on June 30, 1963, the minimum required contribution
18 shall be $420 per year of service together with interest at 4%
19 per year compounded annually from July 1, preceding the date of
20 membership until June 30, 1977 and at regular interest
21 compounded annually thereafter to the date of payment.
22     (c) In determining the contribution required in order to
23 receive creditable service under paragraph (3) of subsection
24 (b) of Section 16-127, the salary rate for the remainder of the
25 school term in which a member enters military service shall be
26 assumed to be equal to the member's salary rate at the time of

 

 

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1 entering military service. However, for military service not
2 immediately following employment, the salary rate on the last
3 date as a participating teacher prior to such military service,
4 or on the first date as a participating teacher after such
5 military service, whichever is greater, shall be assumed to be
6 equal to the member's salary rate at the time of entering
7 military service. For each school term thereafter, the member's
8 salary rate shall be assumed to be 5% higher than the salary
9 rate in the previous school term.
10     (d) In determining the contribution required in order to
11 receive creditable service under paragraph (5) of subsection
12 (b) of Section 16-127, a member's salary rate during the period
13 for which credit is being established shall be assumed to be
14 equal to the member's last salary rate immediately preceding
15 that period.
16     (d-5) For each year of service credit to be established
17 under subsection (b-1) of Section 16-127, a member is required
18 to contribute to the System (i) the employee and employer
19 contribution that would have been required had such service
20 been rendered as a member based on the annual salary rate
21 during the first year of full-time employment as a teacher
22 under this Article following the private or parochial school
23 service, plus (ii) interest thereon at the actuarially assumed
24 rate from the date of first full-time employment as a teacher
25 under this Article following the private or parochial school
26 service to the date of payment, compounded annually, at a rate

 

 

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1 determined by the Board (i) 16.5% of the annual salary rate
2 during the first year of full-time employment as a teacher
3 under this Article following the private school service, plus
4 (ii) interest thereon from the date of first full-time
5 employment as a teacher under this Article following the
6 private school service to the date of payment, compounded
7 annually, at the rate of 8.5% per year for periods before the
8 effective date of this amendatory Act of the 92nd General
9 Assembly, and for subsequent periods at a rate equal to the
10 System's actuarially assumed rate of return on investments.
11     (d-10) For service credit established under paragraph (6)
12 of subsection (b) of Section 16-127 for days granted by an
13 employer in excess of the member's normal annual sick leave
14 allotment, the employer is required to pay the normal cost of
15 benefits based upon such service credit. This subsection (d-10)
16 does not apply to sick leave granted to teachers under
17 contracts or collective bargaining agreements entered into,
18 amended, or renewed before June 1, 2005 (the effective date of
19 Public Act 94-4). The employer contributions required under
20 this subsection (d-10) shall be paid in the form of a lump sum
21 within 30 days after receipt of the bill after the teacher
22 begins receiving benefits under this Article.
23     (e) Except for contributions under subsection (d-10), the
24 contributions required under this Section may be made from the
25 date the statement for such creditable service is issued until
26 retirement date. All such required contributions must be made

 

 

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1 before any retirement annuity is granted.
2 (Source: P.A. 94-4, eff. 6-1-05; 94-1057, eff. 7-31-06.)
 
3     Section 99. Effective date. This Act takes effect upon
4 becoming law.".