99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
HB4398

 

Introduced , by Rep. Elaine Nekritz

 

SYNOPSIS AS INTRODUCED:
 
40 ILCS 5/7-114  from Ch. 108 1/2, par. 7-114
40 ILCS 5/7-116  from Ch. 108 1/2, par. 7-116
40 ILCS 5/7-139  from Ch. 108 1/2, par. 7-139
40 ILCS 5/9-219  from Ch. 108 1/2, par. 9-219
40 ILCS 5/9-220  from Ch. 108 1/2, par. 9-220
40 ILCS 5/14-104.3  from Ch. 108 1/2, par. 14-104.3
40 ILCS 5/14-106  from Ch. 108 1/2, par. 14-106
40 ILCS 5/15-112  from Ch. 108 1/2, par. 15-112
40 ILCS 5/15-113.4  from Ch. 108 1/2, par. 15-113.4
40 ILCS 5/16-121  from Ch. 108 1/2, par. 16-121
40 ILCS 5/16-127  from Ch. 108 1/2, par. 16-127
40 ILCS 5/17-116  from Ch. 108 1/2, par. 17-116
40 ILCS 5/17-134  from Ch. 108 1/2, par. 17-134

    Amends the Illinois Municipal Retirement Fund (IMRF), Cook County, State Employees, State Universities, Downstate Teachers, and Chicago Teachers Articles of the Illinois Pension Code. For participants who first become participants on or after the effective date of the amendatory Act, prohibits (i) payments for unused sick or vacation time from being used to calculate pensionable earnings and salary and (ii) unused sick or vacation time from being used to establish service credit. Effective immediately.


LRB099 15024 RPS 39226 b

FISCAL NOTE ACT MAY APPLY
PENSION IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB4398LRB099 15024 RPS 39226 b

1    AN ACT concerning public employee benefits.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Pension Code is amended by changing
5Sections 7-114, 7-116, 7-139, 9-219, 9-220, 14-104.3, 14-106,
615-112, 15-113.4, 16-121, 16-127, 17-116, and 17-134 as
7follows:
 
8    (40 ILCS 5/7-114)  (from Ch. 108 1/2, par. 7-114)
9    (Text of Section WITHOUT the changes made by P.A. 98-599,
10which has been held unconstitutional)
11    Sec. 7-114. Earnings. "Earnings":
12    (a) An amount to be determined by the board, equal to the
13sum of:
14        1. The total amount of money paid to an employee for
15    personal services or official duties as an employee (except
16    those employed as independent contractors) paid out of the
17    general fund, or out of any special funds controlled by the
18    municipality, or by any instrumentality thereof, or
19    participating instrumentality, including compensation,
20    fees, allowances, or other emolument paid for official
21    duties (but not including automobile maintenance, travel
22    expense, or reimbursements for expenditures incurred in
23    the performance of duties, or, in the case of a person who

 

 

HB4398- 2 -LRB099 15024 RPS 39226 b

1    first becomes a participant on or after the effective date
2    of this amendatory Act of the 99th General Assembly,
3    payments for unused sick or vacation time) and, for fee
4    offices, the fees or earnings of the offices to the extent
5    such fees are paid out of funds controlled by the
6    municipality, or instrumentality or participating
7    instrumentality; and
8        2. The money value, as determined by rules prescribed
9    by the governing body of the municipality, or
10    instrumentality thereof, of any board, lodging, fuel,
11    laundry, and other allowances provided an employee in lieu
12    of money.
13    (b) For purposes of determining benefits payable under this
14fund payments to a person who is engaged in an independently
15established trade, occupation, profession or business and who
16is paid for his service on a basis other than a monthly or
17other regular salary, are not earnings.
18    (c) If a disabled participating employee is eligible to
19receive Workers' Compensation for an accidental injury and the
20participating municipality or instrumentality which employed
21the participating employee when injured continues to pay the
22participating employee regular salary or other compensation or
23pays the employee an amount in excess of the Workers'
24Compensation amount, then earnings shall be deemed to be the
25total payments, including an amount equal to the Workers'
26Compensation payments. These payments shall be subject to

 

 

HB4398- 3 -LRB099 15024 RPS 39226 b

1employee contributions and allocated as if paid to the
2participating employee when the regular payroll amounts would
3have been paid if the participating employee had continued
4working, and creditable service shall be awarded for this
5period.
6    (d) If an elected official who is a participating employee
7becomes disabled but does not resign and is not removed from
8office, then earnings shall include all salary payments made
9for the remainder of that term of office and the official shall
10be awarded creditable service for the term of office.
11    (e) If a participating employee is paid pursuant to "An Act
12to provide for the continuation of compensation for law
13enforcement officers, correctional officers and firemen who
14suffer disabling injury in the line of duty", approved
15September 6, 1973, as amended, the payments shall be deemed
16earnings, and the participating employee shall be awarded
17creditable service for this period.
18    (f) Additional compensation received by a person while
19serving as a supervisor of assessments, assessor, deputy
20assessor or member of a board of review from the State of
21Illinois pursuant to Section 4-10 or 4-15 of the Property Tax
22Code shall not be earnings for purposes of this Article and
23shall not be included in the contribution formula or
24calculation of benefits for such person pursuant to this
25Article.
26(Source: P.A. 87-740; 88-670, eff. 12-2-94.)
 

 

 

HB4398- 4 -LRB099 15024 RPS 39226 b

1    (40 ILCS 5/7-116)  (from Ch. 108 1/2, par. 7-116)
2    (Text of Section WITHOUT the changes made by P.A. 98-599,
3which has been held unconstitutional)
4    Sec. 7-116. "Final rate of earnings":
5    (a) For retirement and survivor annuities, the monthly
6earnings obtained by dividing the total earnings received by
7the employee during the period of either (1) the 48 consecutive
8months of service within the last 120 months of service in
9which his total earnings were the highest or (2) the employee's
10total period of service, by the number of months of service in
11such period.
12    (b) For death benefits, the higher of the rate determined
13under paragraph (a) of this Section or total earnings received
14in the last 12 months of service divided by twelve. If the
15deceased employee has less than 12 months of service, the
16monthly final rate shall be the monthly rate of pay the
17employee was receiving when he began service.
18    (c) For disability benefits, the total earnings of a
19participating employee in the last 12 calendar months of
20service prior to the date he becomes disabled divided by 12.
21    (d) In computing the final rate of earnings: (1) the
22earnings rate for all periods of prior service shall be
23considered equal to the average earnings rate for the last 3
24calendar years of prior service for which creditable service is
25received under Section 7-139 or, if there is less than 3 years

 

 

HB4398- 5 -LRB099 15024 RPS 39226 b

1of creditable prior service, the average for the total prior
2service period for which creditable service is received under
3Section 7-139; (2) for out of state service and authorized
4leave, the earnings rate shall be the rate upon which service
5credits are granted; (3) periods of military leave shall not be
6considered; (4) the earnings rate for all periods of disability
7shall be considered equal to the rate of earnings upon which
8the employee's disability benefits are computed for such
9periods; (5) the earnings to be considered for each of the
10final three months of the final earnings period for persons who
11first became participants before January 1, 2012 and the
12earnings to be considered for each of the final 24 months for
13participants who first become participants on or after January
141, 2012 shall not exceed 125% of the highest earnings of any
15other month in the final earnings period; and (6) the annual
16amount of final rate of earnings shall be the monthly amount
17multiplied by the number of months of service normally required
18by the position in a year; and (7) in the case of a person who
19first becomes a participant on or after the effective date of
20this amendatory Act of the 99th General Assembly, payments for
21unused sick or vacation time shall not be considered.
22(Source: P.A. 97-609, eff. 1-1-12.)
 
23    (40 ILCS 5/7-139)  (from Ch. 108 1/2, par. 7-139)
24    (Text of Section WITHOUT the changes made by P.A. 98-599,
25which has been held unconstitutional)

 

 

HB4398- 6 -LRB099 15024 RPS 39226 b

1    Sec. 7-139. Credits and creditable service to employees.
2    (a) Each participating employee shall be granted credits
3and creditable service, for purposes of determining the amount
4of any annuity or benefit to which he or a beneficiary is
5entitled, as follows:
6        1. For prior service: Each participating employee who
7    is an employee of a participating municipality or
8    participating instrumentality on the effective date shall
9    be granted creditable service, but no credits under
10    paragraph 2 of this subsection (a), for periods of prior
11    service for which credit has not been received under any
12    other pension fund or retirement system established under
13    this Code, as follows:
14        If the effective date of participation for the
15    participating municipality or participating
16    instrumentality is on or before January 1, 1998, creditable
17    service shall be granted for the entire period of prior
18    service with that employer without any employee
19    contribution.
20        If the effective date of participation for the
21    participating municipality or participating
22    instrumentality is after January 1, 1998, creditable
23    service shall be granted for the last 20% of the period of
24    prior service with that employer, but no more than 5 years,
25    without any employee contribution. A participating
26    employee may establish creditable service for the

 

 

HB4398- 7 -LRB099 15024 RPS 39226 b

1    remainder of the period of prior service with that employer
2    by making an application in writing, accompanied by payment
3    of an employee contribution in an amount determined by the
4    Fund, based on the employee contribution rates in effect at
5    the time of application for the creditable service and the
6    employee's salary rate on the effective date of
7    participation for that employer, plus interest at the
8    effective rate from the date of the prior service to the
9    date of payment. Application for this creditable service
10    may be made at any time while the employee is still in
11    service.
12        A municipality that (i) has at least 35 employees; (ii)
13    is located in a county with at least 2,000,000 inhabitants;
14    and (iii) maintains an independent defined benefit pension
15    plan for the benefit of its eligible employees may restrict
16    creditable service in whole or in part for periods of prior
17    service with the employer if the governing body of the
18    municipality adopts an irrevocable resolution to restrict
19    that creditable service and files the resolution with the
20    board before the municipality's effective date of
21    participation.
22        Any person who has withdrawn from the service of a
23    participating municipality or participating
24    instrumentality prior to the effective date, who reenters
25    the service of the same municipality or participating
26    instrumentality after the effective date and becomes a

 

 

HB4398- 8 -LRB099 15024 RPS 39226 b

1    participating employee is entitled to creditable service
2    for prior service as otherwise provided in this subdivision
3    (a)(1) only if he or she renders 2 years of service as a
4    participating employee after the effective date.
5    Application for such service must be made while in a
6    participating status. The salary rate to be used in the
7    calculation of the required employee contribution, if any,
8    shall be the employee's salary rate at the time of first
9    reentering service with the employer after the employer's
10    effective date of participation.
11        2. For current service, each participating employee
12    shall be credited with:
13            a. Additional credits of amounts equal to each
14        payment of additional contributions received from him
15        under Section 7-173, as of the date the corresponding
16        payment of earnings is payable to him.
17            b. Normal credits of amounts equal to each payment
18        of normal contributions received from him, as of the
19        date the corresponding payment of earnings is payable
20        to him, and normal contributions made for the purpose
21        of establishing out-of-state service credits as
22        permitted under the conditions set forth in paragraph 6
23        of this subsection (a).
24            c. Municipality credits in an amount equal to 1.4
25        times the normal credits, except those established by
26        out-of-state service credits, as of the date of

 

 

HB4398- 9 -LRB099 15024 RPS 39226 b

1        computation of any benefit if these credits would
2        increase the benefit.
3            d. Survivor credits equal to each payment of
4        survivor contributions received from the participating
5        employee as of the date the corresponding payment of
6        earnings is payable, and survivor contributions made
7        for the purpose of establishing out-of-state service
8        credits.
9        3. For periods of temporary and total and permanent
10    disability benefits, each employee receiving disability
11    benefits shall be granted creditable service for the period
12    during which disability benefits are payable. Normal and
13    survivor credits, based upon the rate of earnings applied
14    for disability benefits, shall also be granted if such
15    credits would result in a higher benefit to any such
16    employee or his beneficiary.
17        4. For authorized leave of absence without pay: A
18    participating employee shall be granted credits and
19    creditable service for periods of authorized leave of
20    absence without pay under the following conditions:
21            a. An application for credits and creditable
22        service is submitted to the board while the employee is
23        in a status of active employment.
24            b. Not more than 12 complete months of creditable
25        service for authorized leave of absence without pay
26        shall be counted for purposes of determining any

 

 

HB4398- 10 -LRB099 15024 RPS 39226 b

1        benefits payable under this Article.
2            c. Credits and creditable service shall be granted
3        for leave of absence only if such leave is approved by
4        the governing body of the municipality, including
5        approval of the estimated cost thereof to the
6        municipality as determined by the fund, and employee
7        contributions, plus interest at the effective rate
8        applicable for each year from the end of the period of
9        leave to date of payment, have been paid to the fund in
10        accordance with Section 7-173. The contributions shall
11        be computed upon the assumption earnings continued
12        during the period of leave at the rate in effect when
13        the leave began.
14            d. Benefits under the provisions of Sections
15        7-141, 7-146, 7-150 and 7-163 shall become payable to
16        employees on authorized leave of absence, or their
17        designated beneficiary, only if such leave of absence
18        is creditable hereunder, and if the employee has at
19        least one year of creditable service other than the
20        service granted for leave of absence. Any employee
21        contributions due may be deducted from any benefits
22        payable.
23            e. No credits or creditable service shall be
24        allowed for leave of absence without pay during any
25        period of prior service.
26        5. For military service: The governing body of a

 

 

HB4398- 11 -LRB099 15024 RPS 39226 b

1    municipality or participating instrumentality may elect to
2    allow creditable service to participating employees who
3    leave their employment to serve in the armed forces of the
4    United States for all periods of such service, provided
5    that the person returns to active employment within 90 days
6    after completion of full time active duty, but no
7    creditable service shall be allowed such person for any
8    period that can be used in the computation of a pension or
9    any other pay or benefit, other than pay for active duty,
10    for service in any branch of the armed forces of the United
11    States. If necessary to the computation of any benefit, the
12    board shall establish municipality credits for
13    participating employees under this paragraph on the
14    assumption that the employee received earnings at the rate
15    received at the time he left the employment to enter the
16    armed forces. A participating employee in the armed forces
17    shall not be considered an employee during such period of
18    service and no additional death and no disability benefits
19    are payable for death or disability during such period.
20        Any participating employee who left his employment
21    with a municipality or participating instrumentality to
22    serve in the armed forces of the United States and who
23    again became a participating employee within 90 days after
24    completion of full time active duty by entering the service
25    of a different municipality or participating
26    instrumentality, which has elected to allow creditable

 

 

HB4398- 12 -LRB099 15024 RPS 39226 b

1    service for periods of military service under the preceding
2    paragraph, shall also be allowed creditable service for his
3    period of military service on the same terms that would
4    apply if he had been employed, before entering military
5    service, by the municipality or instrumentality which
6    employed him after he left the military service and the
7    employer costs arising in relation to such grant of
8    creditable service shall be charged to and paid by that
9    municipality or instrumentality.
10        Notwithstanding the foregoing, any participating
11    employee shall be entitled to creditable service as
12    required by any federal law relating to re-employment
13    rights of persons who served in the United States Armed
14    Services. Such creditable service shall be granted upon
15    payment by the member of an amount equal to the employee
16    contributions which would have been required had the
17    employee continued in service at the same rate of earnings
18    during the military leave period, plus interest at the
19    effective rate.
20        5.1. In addition to any creditable service established
21    under paragraph 5 of this subsection (a), creditable
22    service may be granted for up to 48 months of service in
23    the armed forces of the United States.
24        In order to receive creditable service for military
25    service under this paragraph 5.1, a participating employee
26    must (1) apply to the Fund in writing and provide evidence

 

 

HB4398- 13 -LRB099 15024 RPS 39226 b

1    of the military service that is satisfactory to the Board;
2    (2) obtain the written approval of the current employer;
3    and (3) make contributions to the Fund equal to (i) the
4    employee contributions that would have been required had
5    the service been rendered as a member, plus (ii) an amount
6    determined by the board to be equal to the employer's
7    normal cost of the benefits accrued for that military
8    service, plus (iii) interest on items (i) and (ii) from the
9    date of first membership in the Fund to the date of
10    payment. The required interest shall be calculated at the
11    regular interest rate.
12        The changes made to this paragraph 5.1 by Public Acts
13    95-483 and 95-486 apply only to participating employees in
14    service on or after August 28, 2007 (the effective date of
15    those Public Acts).
16        6. For out-of-state service: Creditable service shall
17    be granted for service rendered to an out-of-state local
18    governmental body under the following conditions: The
19    employee had participated and has irrevocably forfeited
20    all rights to benefits in the out-of-state public employees
21    pension system; the governing body of his participating
22    municipality or instrumentality authorizes the employee to
23    establish such service; the employee has 2 years current
24    service with this municipality or participating
25    instrumentality; the employee makes a payment of
26    contributions, which shall be computed at 8% (normal) plus

 

 

HB4398- 14 -LRB099 15024 RPS 39226 b

1    2% (survivor) times length of service purchased times the
2    average rate of earnings for the first 2 years of service
3    with the municipality or participating instrumentality
4    whose governing body authorizes the service established
5    plus interest at the effective rate on the date such
6    credits are established, payable from the date the employee
7    completes the required 2 years of current service to date
8    of payment. In no case shall more than 120 months of
9    creditable service be granted under this provision.
10        7. For retroactive service: Any employee who could have
11    but did not elect to become a participating employee, or
12    who should have been a participant in the Municipal Public
13    Utilities Annuity and Benefit Fund before that fund was
14    superseded, may receive creditable service for the period
15    of service not to exceed 50 months; however, a current or
16    former elected or appointed official of a participating
17    municipality may establish credit under this paragraph 7
18    for more than 50 months of service as an official of that
19    municipality, if the excess over 50 months is approved by
20    resolution of the governing body of the affected
21    municipality filed with the Fund before January 1, 2002.
22        Any employee who is a participating employee on or
23    after September 24, 1981 and who was excluded from
24    participation by the age restrictions removed by Public Act
25    82-596 may receive creditable service for the period, on or
26    after January 1, 1979, excluded by the age restriction and,

 

 

HB4398- 15 -LRB099 15024 RPS 39226 b

1    in addition, if the governing body of the participating
2    municipality or participating instrumentality elects to
3    allow creditable service for all employees excluded by the
4    age restriction prior to January 1, 1979, for service
5    during the period prior to that date excluded by the age
6    restriction. Any employee who was excluded from
7    participation by the age restriction removed by Public Act
8    82-596 and who is not a participating employee on or after
9    September 24, 1981 may receive creditable service for
10    service after January 1, 1979. Creditable service under
11    this paragraph shall be granted upon payment of the
12    employee contributions which would have been required had
13    he participated, with interest at the effective rate for
14    each year from the end of the period of service established
15    to date of payment.
16        8. For accumulated unused sick leave: A participating
17    employee who first becomes a participating employee before
18    the effective date of this amendatory Act of the 99th
19    General Assembly and who is applying for a retirement
20    annuity shall be entitled to creditable service for that
21    portion of the employee's accumulated unused sick leave for
22    which payment is not received, as follows:
23            a. Sick leave days shall be limited to those
24        accumulated under a sick leave plan established by a
25        participating municipality or participating
26        instrumentality which is available to all employees or

 

 

HB4398- 16 -LRB099 15024 RPS 39226 b

1        a class of employees.
2            b. Except as provided in item b-1, only sick leave
3        days accumulated with a participating municipality or
4        participating instrumentality with which the employee
5        was in service within 60 days of the effective date of
6        his retirement annuity shall be credited; If the
7        employee was in service with more than one employer
8        during this period only the sick leave days with the
9        employer with which the employee has the greatest
10        number of unpaid sick leave days shall be considered.
11            b-1. If the employee was in the service of more
12        than one employer as defined in item (2) of paragraph
13        (a) of subsection (A) of Section 7-132, then the sick
14        leave days from all such employers shall be credited,
15        as long as the creditable service attributed to those
16        sick leave days does not exceed the limitation in item
17        f of this paragraph 8. In calculating the creditable
18        service under this item b-1, the sick leave days from
19        the last employer shall be considered first, then the
20        remaining sick leave days shall be considered until
21        there are no more days or the maximum creditable sick
22        leave threshold under item f of this paragraph 8 has
23        been reached.
24            c. The creditable service granted shall be
25        considered solely for the purpose of computing the
26        amount of the retirement annuity and shall not be used

 

 

HB4398- 17 -LRB099 15024 RPS 39226 b

1        to establish any minimum service period required by any
2        provision of the Illinois Pension Code, the effective
3        date of the retirement annuity, or the final rate of
4        earnings.
5            d. The creditable service shall be at the rate of
6        1/20 of a month for each full sick day, provided that
7        no more than 12 months may be credited under this
8        subdivision 8.
9            e. Employee contributions shall not be required
10        for creditable service under this subdivision 8.
11            f. Each participating municipality and
12        participating instrumentality with which an employee
13        has service within 60 days of the effective date of his
14        retirement annuity shall certify to the board the
15        number of accumulated unpaid sick leave days credited
16        to the employee at the time of termination of service.
17        9. For service transferred from another system:
18    Credits and creditable service shall be granted for service
19    under Article 4, 5, 8, 14, or 16 of this Act, to any active
20    member of this Fund, and to any inactive member who has
21    been a county sheriff, upon transfer of such credits
22    pursuant to Section 4-108.3, 5-235, 8-226.7, 14-105.6, or
23    16-131.4, and payment by the member of the amount by which
24    (1) the employer and employee contributions that would have
25    been required if he had participated in this Fund as a
26    sheriff's law enforcement employee during the period for

 

 

HB4398- 18 -LRB099 15024 RPS 39226 b

1    which credit is being transferred, plus interest thereon at
2    the effective rate for each year, compounded annually, from
3    the date of termination of the service for which credit is
4    being transferred to the date of payment, exceeds (2) the
5    amount actually transferred to the Fund. Such transferred
6    service shall be deemed to be service as a sheriff's law
7    enforcement employee for the purposes of Section 7-142.1.
8        10. (Blank).
9        11. For service transferred from an Article 3 system
10    under Section 3-110.3: Credits and creditable service
11    shall be granted for service under Article 3 of this Act as
12    provided in Section 3-110.3, to any active member of this
13    Fund, upon transfer of such credits pursuant to Section
14    3-110.3. If the board determines that the amount
15    transferred is less than the true cost to the Fund of
16    allowing that creditable service to be established, then in
17    order to establish that creditable service, the member must
18    pay to the Fund an additional contribution equal to the
19    difference, as determined by the board in accordance with
20    the rules and procedures adopted under this paragraph. If
21    the member does not make the full additional payment as
22    required by this paragraph prior to termination of his
23    participation with that employer, then his or her
24    creditable service shall be reduced by an amount equal to
25    the difference between the amount transferred under
26    Section 3-110.3, including any payments made by the member

 

 

HB4398- 19 -LRB099 15024 RPS 39226 b

1    under this paragraph prior to termination, and the true
2    cost to the Fund of allowing that creditable service to be
3    established, as determined by the board in accordance with
4    the rules and procedures adopted under this paragraph.
5        The board shall establish by rule the manner of making
6    the calculation required under this paragraph 11, taking
7    into account the appropriate actuarial assumptions; the
8    member's service, age, and salary history, and any other
9    factors that the board determines to be relevant.
10        12. For omitted service: Any employee who was employed
11    by a participating employer in a position that required
12    participation, but who was not enrolled in the Fund, may
13    establish such credits under the following conditions:
14            a. Application for such credits is received by the
15        Board while the employee is an active participant of
16        the Fund or a reciprocal retirement system.
17            b. Eligibility for participation and earnings are
18        verified by the Authorized Agent of the participating
19        employer for which the service was rendered.
20        Creditable service under this paragraph shall be
21    granted upon payment of the employee contributions that
22    would have been required had he participated, which shall
23    be calculated by the Fund using the member contribution
24    rate in effect during the period that the service was
25    rendered.
26    (b) Creditable service - amount:

 

 

HB4398- 20 -LRB099 15024 RPS 39226 b

1        1. One month of creditable service shall be allowed for
2    each month for which a participating employee made
3    contributions as required under Section 7-173, or for which
4    creditable service is otherwise granted hereunder. Not
5    more than 1 month of service shall be credited and counted
6    for 1 calendar month, and not more than 1 year of service
7    shall be credited and counted for any calendar year. A
8    calendar month means a nominal month beginning on the first
9    day thereof, and a calendar year means a year beginning
10    January 1 and ending December 31.
11        2. A seasonal employee shall be given 12 months of
12    creditable service if he renders the number of months of
13    service normally required by the position in a 12-month
14    period and he remains in service for the entire 12-month
15    period. Otherwise a fractional year of service in the
16    number of months of service rendered shall be credited.
17        3. An intermittent employee shall be given creditable
18    service for only those months in which a contribution is
19    made under Section 7-173.
20    (c) No application for correction of credits or creditable
21service shall be considered unless the board receives an
22application for correction while (1) the applicant is a
23participating employee and in active employment with a
24participating municipality or instrumentality, or (2) while
25the applicant is actively participating in a pension fund or
26retirement system which is a participating system under the

 

 

HB4398- 21 -LRB099 15024 RPS 39226 b

1Retirement Systems Reciprocal Act. A participating employee or
2other applicant shall not be entitled to credits or creditable
3service unless the required employee contributions are made in
4a lump sum or in installments made in accordance with board
5rule.
6    (d) Upon the granting of a retirement, surviving spouse or
7child annuity, a death benefit or a separation benefit, on
8account of any employee, all individual accumulated credits
9shall thereupon terminate. Upon the withdrawal of additional
10contributions, the credits applicable thereto shall thereupon
11terminate. Terminated credits shall not be applied to increase
12the benefits any remaining employee would otherwise receive
13under this Article.
14(Source: P.A. 97-415, eff. 8-16-11; 98-439, eff. 8-16-13;
1598-932, eff. 8-15-14.)
 
16    (40 ILCS 5/9-219)  (from Ch. 108 1/2, par. 9-219)
17    (Text of Section WITHOUT the changes made by P.A. 98-599,
18which has been held unconstitutional)
19    Sec. 9-219. Computation of service.
20    (1) In computing the term of service of an employee prior
21to the effective date, the entire period beginning on the date
22he was first appointed and ending on the day before the
23effective date, except any intervening period during which he
24was separated by withdrawal from service, shall be counted for
25all purposes of this Article.

 

 

HB4398- 22 -LRB099 15024 RPS 39226 b

1    (2) In computing the term of service of any employee on or
2after the effective date, the following periods of time shall
3be counted as periods of service for age and service, widow's
4and child's annuity purposes:
5        (a) The time during which he performed the duties of
6    his position.
7        (b) Vacations, leaves of absence with whole or part
8    pay, and leaves of absence without pay not longer than 90
9    days.
10        (c) For an employee who is a member of a county police
11    department or a correctional officer with the county
12    department of corrections, approved leaves of absence
13    without pay during which the employee serves as a full-time
14    officer or employee of an employee association, the
15    membership of which consists of other participants in the
16    Fund, provided that the employee contributes to the Fund
17    (1) the amount that he would have contributed had he
18    remained an active employee in the position he occupied at
19    the time the leave of absence was granted, (2) an amount
20    calculated by the Board representing employer
21    contributions, and (3) regular interest thereon from the
22    date of service to the date of payment. However, if the
23    employee's application to establish credit under this
24    subsection is received by the Fund on or after July 1, 2002
25    and before July 1, 2003, the amount representing employer
26    contributions specified in item (2) shall be waived.

 

 

HB4398- 23 -LRB099 15024 RPS 39226 b

1        For a former member of a county police department who
2    has received a refund under Section 9-164, periods during
3    which the employee serves as head of an employee
4    association, the membership of which consists of other
5    police officers, provided that the employee contributes to
6    the Fund (1) the amount that he would have contributed had
7    he remained an active member of the county police
8    department in the position he occupied at the time he left
9    service, (2) an amount calculated by the Board representing
10    employer contributions, and (3) regular interest thereon
11    from the date of service to the date of payment. However,
12    if the former member of the county police department
13    retires on or after January 1, 1993 but no later than March
14    1, 1993, the amount representing employer contributions
15    specified in item (2) shall be waived.
16        For leaves of absence to which this item (c) applies
17    and for other periods to which this item (c) applies,
18    including those leaves of absence and other periods of
19    service beginning before the effective date of this
20    amendatory Act of the 97th General Assembly, the employee
21    or former member must continue to remain in sworn status,
22    subject to the professional standards of the public
23    employer or those terms established in statute.
24        (d) Any period of disability for which he received
25    disability benefit or whole or part pay.
26        (e) For a person who first becomes an employee before

 

 

HB4398- 24 -LRB099 15024 RPS 39226 b

1    the effective date of this amendatory Act of the 99th
2    General Assembly, accumulated Accumulated vacation or
3    other time for which an employee who retires on or after
4    November 1, 1990 receives a lump sum payment at the time of
5    retirement, provided that contributions were made to the
6    fund at the time such lump sum payment was received. The
7    service granted for the lump sum payment shall not change
8    the employee's date of withdrawal for computing the
9    effective date of the annuity.
10        (f) An employee who first becomes an employee before
11    the effective date of this amendatory Act of the 99th
12    General Assembly may receive service credit for annuity
13    purposes for accumulated sick leave as of the date of the
14    employee's withdrawal from service, not to exceed a total
15    of 180 days, provided that the amount of such accumulated
16    sick leave is certified by the County Comptroller to the
17    Board and the employee pays an amount equal to 8.5% (9% for
18    members of the County Police Department who are eligible to
19    receive an annuity under Section 9-128.1) of the amount
20    that would have been paid had such accumulated sick leave
21    been paid at the employee's final rate of salary. Such
22    payment shall be made within 30 days after the date of
23    withdrawal and prior to receipt of the first annuity check.
24    The service credit granted for such accumulated sick leave
25    shall not change the employee's date of withdrawal for the
26    purpose of computing the effective date of the annuity.

 

 

HB4398- 25 -LRB099 15024 RPS 39226 b

1    (3) In computing the term of service of an employee on or
2after the effective date for ordinary disability benefit
3purposes, the following periods of time shall be counted as
4periods of service:
5        (a) Unless otherwise specified in Section 9-157, the
6    time during which he performed the duties of his position.
7        (b) Paid vacations and leaves of absence with whole or
8    part pay.
9        (c) Any period for which he received duty disability
10    benefit.
11        (d) Any period of disability for which he received
12    whole or part pay.
13    (4) For an employee who on January 1, 1958, was transferred
14by Act of the 70th General Assembly from his position in a
15department of welfare of any city located in the county in
16which this Article is in force and effect to a similar position
17in a department of such county, service shall also be credited
18for ordinary disability benefit and child's annuity for such
19period of department of welfare service during which period he
20was a contributor to a statutory annuity and benefit fund in
21such city and for which purposes service credit would otherwise
22not be credited by virtue of such involuntary transfer.
23    (5) An employee described in subsection (e) of Section
249-108 shall receive credit for child's annuity and ordinary
25disability benefit for the period of time for which he was
26credited with service in the fund from which he was

 

 

HB4398- 26 -LRB099 15024 RPS 39226 b

1involuntarily separated through class or group transfer;
2provided, that no such credit shall be allowed to the extent
3that it results in a duplication of credits or benefits, and
4neither shall such credit be allowed to the extent that it was
5or may be forfeited by the application for and acceptance of a
6refund from the fund from which the employee was transferred.
7    (6) Overtime or extra service shall not be included in
8computing service. Not more than 1 year of service shall be
9allowed for service rendered during any calendar year.
10    (7) Unused sick or vacation time shall not be used to
11compute the service of an employee who first becomes an
12employee on or after the effective date of this amendatory Act
13of the 99th General Assembly.
14(Source: P.A. 97-651, eff. 1-5-12.)
 
15    (40 ILCS 5/9-220)  (from Ch. 108 1/2, par. 9-220)
16    (Text of Section WITHOUT the changes made by P.A. 98-599,
17which has been held unconstitutional)
18    Sec. 9-220. Basis of service credit.
19    (a) In computing the period of service of any employee for
20annuity purposes under Section 9-134, the following provisions
21shall govern:
22        (1) All periods prior to the effective date shall be
23    computed in accordance with the provisions governing the
24    computation of such service.
25        (2) Service on or after the effective date shall

 

 

HB4398- 27 -LRB099 15024 RPS 39226 b

1    include:
2            (i) The actual period of time the employee
3        contributes or has contributed to the fund for service
4        rendered to age 65 plus the actual period of time after
5        age 65 for which the employee performs the duties of
6        his position or performs such duties and is given a
7        county contribution for age and service annuity or
8        minimum annuity purposes.
9            (ii) Leaves of absence from duty, or vacation, for
10        which an employee receives all or part of his salary.
11            (iii) For a person who first becomes an employee
12        before the effective date of this amendatory Act of the
13        99th General Assembly, accumulated Accumulated
14        vacation or other time for which an employee who
15        retires on or after November 1, 1990 receives a lump
16        sum payment at the time of retirement, provided that
17        contributions were made to the fund at the time such
18        lump sum payment was received. The service granted for
19        the lump sum payment shall not change the employee's
20        date of withdrawal for computing the effective date of
21        the annuity.
22            (iv) For a person who first becomes an employee
23        before the effective date of this amendatory Act of the
24        99th General Assembly, accumulated Accumulated sick
25        leave as of the date of the employee's withdrawal from
26        service, not to exceed a total of 180 days, provided

 

 

HB4398- 28 -LRB099 15024 RPS 39226 b

1        that the amount of such accumulated sick leave is
2        certified by the County Comptroller to the Board and
3        the employee pays an amount equal to 8.5% (9% for
4        members of the County Police Department who are
5        eligible to receive an annuity under Section 9-128.1)
6        of the amount that would have been paid had such
7        accumulated sick leave been paid at the employee's
8        final rate of salary. Such payment shall be made within
9        30 days after the date of withdrawal and prior to
10        receipt of the first annuity check. The service credit
11        granted for such accumulated sick leave shall not
12        change the employee's date of withdrawal for the
13        purpose of computing the effective date of the annuity.
14            (v) Periods during which the employee has had
15        contributions for annuity purposes made for him in
16        accordance with law while on military leave of absence
17        during World War II.
18            (vi) Periods during which the employee receives a
19        disability benefit under this Article.
20            (vii) For any person who first becomes a member on
21        or after January 1, 2011, the actual period of time the
22        employee contributes or has contributed to the fund for
23        service rendered up to the limitation on salary in
24        subsection (b-5) of Section 1-160 plus the actual
25        period of time thereafter for which the employee
26        performs the duties of his position and ceased

 

 

HB4398- 29 -LRB099 15024 RPS 39226 b

1        contributing due to the salary limitation in
2        subsection (b-5) of Section 1-160.
3        (3) The right to have certain periods of time
4    considered as service as stated in paragraph (2) of Section
5    9-164 shall not apply for annuity purposes unless the
6    refunds shall have been repaid in accordance with this
7    Article.
8        (4) All service shall be computed in whole calendar
9    months, and at least 15 days of service in any one calendar
10    month shall constitute one calendar month of service, and 1
11    year of service shall be equal to the number of months,
12    days or hours for which an appropriation was made in the
13    annual appropriation ordinance for the position held by the
14    employee.
15        (5) Unused sick or vacation time shall not be used to
16    compute the service of an employee who first becomes an
17    employee on or after the effective date of this amendatory
18    Act of the 99th General Assembly.
19    (b) For all other annuity purposes of this Article the
20following schedule shall govern the computation of a year of
21service of an employee whose salary or wages is on the basis
22stated, and any fractional part of a year of service shall be
23determined according to said schedule:
24    Annual or Monthly Basis: Service during 4 months in any 1
25calendar year;
26    Weekly Basis: Service during any 17 weeks of any 1 calendar

 

 

HB4398- 30 -LRB099 15024 RPS 39226 b

1year, and service during any week shall constitute a week of
2service;
3    Daily Basis: Service during 100 days in any 1 calendar
4year, and service during any day shall constitute a day of
5service;
6    Hourly Basis: Service during 800 hours in any 1 calendar
7year, and service during any hour shall constitute an hour of
8service.
9(Source: P.A. 96-1490, eff. 1-1-11.)
 
10    (40 ILCS 5/14-104.3)  (from Ch. 108 1/2, par. 14-104.3)
11    (Text of Section WITHOUT the changes made by P.A. 98-599,
12which has been held unconstitutional)
13    Sec. 14-104.3. Notwithstanding provisions contained in
14Section 14-103.10, any person who first becomes a member before
15the effective date of this amendatory Act of the 99th General
16Assembly and member who at the time of retirement and after
17December 6, 1983 receives compensation in a lump sum for
18accumulated vacation, sickness, or personal business may
19receive service credit for such periods by making contributions
20within 90 days of withdrawal, based on the rate of compensation
21in effect immediately prior to retirement and the contribution
22rate then in effect. Any person who first becomes a member on
23or after the effective date of this amendatory Act of the 99th
24General Assembly and who receives compensation in a lump sum
25for accumulated vacation, sickness, or personal business may

 

 

HB4398- 31 -LRB099 15024 RPS 39226 b

1not receive service credit for such periods. Exercising the
2option provided in this Section shall not change a member's
3date of withdrawal or final average compensation for purposes
4of computing the amount or effective date of a retirement
5annuity. Any annuitant who establishes service credit as herein
6provided shall have his retirement annuity adjusted
7retroactively to the date of retirement.
8(Source: P.A. 83-1362.)
 
9    (40 ILCS 5/14-106)  (from Ch. 108 1/2, par. 14-106)
10    (Text of Section WITHOUT the changes made by P.A. 98-599,
11which has been held unconstitutional)
12    Sec. 14-106. Membership service credit.
13    (a) After January 1, 1944, all service of a member since he
14last became a member with respect to which contributions are
15made shall count as membership service; provided, that for
16service on and after July 1, 1950, 12 months of service shall
17constitute a year of membership service, the completion of 15
18days or more of service during any month shall constitute 1
19month of membership service, 8 to 15 days shall constitute 1/2
20month of membership service and less than 8 days shall
21constitute 1/4 month of membership service. The payroll record
22of each department shall constitute conclusive evidence of the
23record of service rendered by a member.
24    (b) For a member who is employed and paid on an
25academic-year basis rather than on a 12-month annual basis,

 

 

HB4398- 32 -LRB099 15024 RPS 39226 b

1employment for a full academic year shall constitute a full
2year of membership service, except that the member shall not
3receive more than one year of membership service credit (plus
4any additional service credit granted for unused sick leave)
5for service during any 12-month period. This subsection (b)
6applies to all such service for which the member has not begun
7to receive a retirement annuity before January 1, 2001.
8    (c) A person who first becomes a member before the
9effective date of this amendatory Act of the 99th General
10Assembly member shall be entitled to additional service credit,
11under rules prescribed by the Board, for accumulated unused
12sick leave credited to his account in the last Department on
13the date of withdrawal from service or for any period for which
14he would have been eligible to receive benefits under a sick
15pay plan authorized by law, if he had suffered a sickness or
16accident on the date of withdrawal from service. It shall be
17the responsibility of the last Department to certify to the
18Board the length of time salary or benefits would have been
19paid to the member based upon the accumulated unused sick leave
20or the applicable sick pay plan if he had become entitled
21thereto because of sickness on the date that his status as an
22employee terminated. This period of service credit granted
23under this paragraph shall not be considered in determining the
24date the retirement annuity is to begin, or final average
25compensation.
26    (d) A person who first becomes a member on or after the

 

 

HB4398- 33 -LRB099 15024 RPS 39226 b

1effective date of this amendatory Act of the 99th General
2Assembly shall not be entitled to additional service credit for
3accumulated unused sick leave.
4(Source: P.A. 92-14, eff. 6-28-01.)
 
5    (40 ILCS 5/15-112)  (from Ch. 108 1/2, par. 15-112)
6    Sec. 15-112. Final rate of earnings. "Final rate of
7earnings":
8    (a) This subsection (a) applies only to a Tier 1 member.
9    For an employee who is paid on an hourly basis or who
10receives an annual salary in installments during 12 months of
11each academic year, the average annual earnings during the 48
12consecutive calendar month period ending with the last day of
13final termination of employment or the 4 consecutive academic
14years of service in which the employee's earnings were the
15highest, whichever is greater. For any other employee, the
16average annual earnings during the 4 consecutive academic years
17of service in which his or her earnings were the highest. For
18an employee with less than 48 months or 4 consecutive academic
19years of service, the average earnings during his or her entire
20period of service. The earnings of an employee with more than
2136 months of service under item (a) of Section 15-113.1 prior
22to the date of becoming a participant are, for such period,
23considered equal to the average earnings during the last 36
24months of such service.
25    (b) This subsection (b) applies to a Tier 2 member.

 

 

HB4398- 34 -LRB099 15024 RPS 39226 b

1    For an employee who is paid on an hourly basis or who
2receives an annual salary in installments during 12 months of
3each academic year, the average annual earnings obtained by
4dividing by 8 the total earnings of the employee during the 96
5consecutive months in which the total earnings were the highest
6within the last 120 months prior to termination.
7    For any other employee, the average annual earnings during
8the 8 consecutive academic years within the 10 years prior to
9termination in which the employee's earnings were the highest.
10For an employee with less than 96 consecutive months or 8
11consecutive academic years of service, whichever is necessary,
12the average earnings during his or her entire period of
13service.
14    (c) For an employee on leave of absence with pay, or on
15leave of absence without pay who makes contributions during
16such leave, earnings are assumed to be equal to the basic
17compensation on the date the leave began.
18    (d) For an employee on disability leave, earnings are
19assumed to be equal to the basic compensation on the date
20disability occurs or the average earnings during the 24 months
21immediately preceding the month in which disability occurs,
22whichever is greater.
23    (e) For a Tier 1 member who retires on or after the
24effective date of this amendatory Act of 1997 with at least 20
25years of service as a firefighter or police officer under this
26Article, the final rate of earnings shall be the annual rate of

 

 

HB4398- 35 -LRB099 15024 RPS 39226 b

1earnings received by the participant on his or her last day as
2a firefighter or police officer under this Article, if that is
3greater than the final rate of earnings as calculated under the
4other provisions of this Section.
5    (f) If a Tier 1 member is an employee for at least 6 months
6during the academic year in which his or her employment is
7terminated, the annual final rate of earnings shall be 25% of
8the sum of (1) the annual basic compensation for that year, and
9(2) the amount earned during the 36 months immediately
10preceding that year, if this is greater than the final rate of
11earnings as calculated under the other provisions of this
12Section.
13    (g) In the determination of the final rate of earnings for
14an employee, that part of an employee's earnings for any
15academic year beginning after June 30, 1997, which exceeds the
16employee's earnings with that employer for the preceding year
17by more than 20 percent shall be excluded; in the event that an
18employee has more than one employer this limitation shall be
19calculated separately for the earnings with each employer. In
20making such calculation, only the basic compensation of
21employees shall be considered, without regard to vacation or
22overtime or to contracts for summer employment.
23    (h) The following are not considered as earnings in
24determining final rate of earnings: (1) severance or separation
25pay, (2) retirement pay, (3) payment for unused sick leave, and
26(4) payments from an employer for the period used in

 

 

HB4398- 36 -LRB099 15024 RPS 39226 b

1determining final rate of earnings for any purpose other than
2(i) services rendered, (ii) leave of absence or vacation
3granted during that period, and (iii) vacation of up to 56 work
4days allowed upon termination of employment; except that, if
5the benefit has been collectively bargained between the
6employer and the recognized collective bargaining agent
7pursuant to the Illinois Educational Labor Relations Act,
8payment received during a period of up to 2 academic years for
9unused sick leave may be considered as earnings in accordance
10with the applicable collective bargaining agreement, subject
11to the 20% increase limitation of this Section, and if the
12person first becomes a participant on or after the effective
13date of this amendatory Act of the 99th General Assembly,
14payments for unused sick or vacation time shall not be
15considered as earnings. Any unused sick leave considered as
16earnings under this Section shall not be taken into account in
17calculating service credit under Section 15-113.4.
18    (i) Intermittent periods of service shall be considered as
19consecutive in determining final rate of earnings.
20(Source: P.A. 98-92, eff. 7-16-13; 99-450, eff. 8-24-15.)
 
21    (40 ILCS 5/15-113.4)  (from Ch. 108 1/2, par. 15-113.4)
22    (Text of Section WITHOUT the changes made by P.A. 98-599,
23which has been held unconstitutional)
24    Sec. 15-113.4. Service for unused sick leave. "Service for
25unused sick leave": A person who first becomes a participant

 

 

HB4398- 37 -LRB099 15024 RPS 39226 b

1before the effective date of this amendatory Act of the 99th
2General Assembly and participant who is an employee under this
3System or one of the other systems subject to Article 20 of
4this Code within 60 days immediately preceding the date on
5which his or her retirement annuity begins, is entitled to
6credit for service for that portion of unused sick leave earned
7in the course of employment with an employer and credited on
8the date of termination of employment by an employer for which
9payment is not received, in accordance with the following
10schedule: 30 through 90 full calendar days and 20 through 59
11full work days of unused sick leave, 1/4 of a year of service;
1291 through 180 full calendar days and 60 through 119 full work
13days, 1/2 of a year of service; 181 through 270 full calendar
14days and 120 through 179 full work days, 3/4 of a year of
15service; 271 through 360 full calendar days and 180 through 240
16full work days, one year of service. Only uncompensated, unused
17sick leave earned in accordance with an employer's sick leave
18accrual policy generally applicable to employees or a class of
19employees shall be taken into account in calculating service
20credit under this Section. Any uncompensated, unused sick leave
21granted by an employer to facilitate the hiring, retirement,
22termination, or other special circumstances of an employee
23shall not be taken into account in calculating service credit
24under this Section. If a participant transfers from one
25employer to another, the unused sick leave credited by the
26previous employer shall be considered in determining service to

 

 

HB4398- 38 -LRB099 15024 RPS 39226 b

1be credited under this Section, even if the participant
2terminated service prior to the effective date of P.A. 86-272
3(August 23, 1989); if necessary, the retirement annuity shall
4be recalculated to reflect such sick leave credit. Each
5employer shall certify to the board the number of days of
6unused sick leave accrued to the participant's credit on the
7date that the participant's status as an employee terminated.
8This period of unused sick leave shall not be considered in
9determining the date the retirement annuity begins. A person
10who first becomes a participant on or after the effective date
11of this amendatory Act of the 99th General Assembly shall not
12receive service credit for unused sick leave.
13(Source: P.A. 90-65, eff. 7-7-97; 90-511, eff. 8-22-97.)
 
14    (40 ILCS 5/16-121)  (from Ch. 108 1/2, par. 16-121)
15    (Text of Section WITHOUT the changes made by P.A. 98-599,
16which has been held unconstitutional)
17    Sec. 16-121. Salary. "Salary": The actual compensation
18received by a teacher during any school year and recognized by
19the system in accordance with rules of the board. For purposes
20of this Section, "school year" includes the regular school term
21plus any additional period for which a teacher is compensated
22and such compensation is recognized by the rules of the board.
23    In the case of a person who first becomes a member on or
24after the effective date of this amendatory Act of the 99th
25General Assembly, "salary" shall not include any payment for

 

 

HB4398- 39 -LRB099 15024 RPS 39226 b

1unused sick or vacation time.
2(Source: P.A. 84-1028.)
 
3    (40 ILCS 5/16-127)  (from Ch. 108 1/2, par. 16-127)
4    (Text of Section WITHOUT the changes made by P.A. 98-599,
5which has been held unconstitutional)
6    Sec. 16-127. Computation of creditable service.
7    (a) Each member shall receive regular credit for all
8service as a teacher from the date membership begins, for which
9satisfactory evidence is supplied and all contributions have
10been paid.
11    (b) The following periods of service shall earn optional
12credit and each member shall receive credit for all such
13service for which satisfactory evidence is supplied and all
14contributions have been paid as of the date specified:
15        (1) Prior service as a teacher.
16        (2) Service in a capacity essentially similar or
17    equivalent to that of a teacher, in the public common
18    schools in school districts in this State not included
19    within the provisions of this System, or of any other
20    State, territory, dependency or possession of the United
21    States, or in schools operated by or under the auspices of
22    the United States, or under the auspices of any agency or
23    department of any other State, and service during any
24    period of professional speech correction or special
25    education experience for a public agency within this State

 

 

HB4398- 40 -LRB099 15024 RPS 39226 b

1    or any other State, territory, dependency or possession of
2    the United States, and service prior to February 1, 1951 as
3    a recreation worker for the Illinois Department of Public
4    Safety, for a period not exceeding the lesser of 2/5 of the
5    total creditable service of the member or 10 years. The
6    maximum service of 10 years which is allowable under this
7    paragraph shall be reduced by the service credit which is
8    validated by other retirement systems under paragraph (i)
9    of Section 15-113 and paragraph 1 of Section 17-133. Credit
10    granted under this paragraph may not be used in
11    determination of a retirement annuity or disability
12    benefits unless the member has at least 5 years of
13    creditable service earned subsequent to this employment
14    with one or more of the following systems: Teachers'
15    Retirement System of the State of Illinois, State
16    Universities Retirement System, and the Public School
17    Teachers' Pension and Retirement Fund of Chicago. Whenever
18    such service credit exceeds the maximum allowed for all
19    purposes of this Article, the first service rendered in
20    point of time shall be considered. The changes to this
21    subdivision (b)(2) made by Public Act 86-272 shall apply
22    not only to persons who on or after its effective date
23    (August 23, 1989) are in service as a teacher under the
24    System, but also to persons whose status as such a teacher
25    terminated prior to such effective date, whether or not
26    such person is an annuitant on that date.

 

 

HB4398- 41 -LRB099 15024 RPS 39226 b

1        (3) Any periods immediately following teaching
2    service, under this System or under Article 17, (or
3    immediately following service prior to February 1, 1951 as
4    a recreation worker for the Illinois Department of Public
5    Safety) spent in active service with the military forces of
6    the United States; periods spent in educational programs
7    that prepare for return to teaching sponsored by the
8    federal government following such active military service;
9    if a teacher returns to teaching service within one
10    calendar year after discharge or after the completion of
11    the educational program, a further period, not exceeding
12    one calendar year, between time spent in military service
13    or in such educational programs and the return to
14    employment as a teacher under this System; and a period of
15    up to 2 years of active military service not immediately
16    following employment as a teacher.
17        The changes to this Section and Section 16-128 relating
18    to military service made by P.A. 87-794 shall apply not
19    only to persons who on or after its effective date are in
20    service as a teacher under the System, but also to persons
21    whose status as a teacher terminated prior to that date,
22    whether or not the person is an annuitant on that date. In
23    the case of an annuitant who applies for credit allowable
24    under this Section for a period of military service that
25    did not immediately follow employment, and who has made the
26    required contributions for such credit, the annuity shall

 

 

HB4398- 42 -LRB099 15024 RPS 39226 b

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

 

 

HB4398- 43 -LRB099 15024 RPS 39226 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

 

 

HB4398- 44 -LRB099 15024 RPS 39226 b

1    pregnancy and submits evidence satisfactory to the Board
2    documenting that the employment ceased due to pregnancy;
3    and (iv) periods prior to July 1, 1983 during which a
4    teacher ceased covered employment for the purpose of
5    adopting an infant under 3 years of age or caring for a
6    newly adopted infant under 3 years of age, provided that
7    the teacher returned to teaching service creditable under
8    this System or the State Universities Retirement System
9    following the adoption and submits evidence satisfactory
10    to the Board documenting that the employment ceased for the
11    purpose of adopting an infant under 3 years of age or
12    caring for a newly adopted infant under 3 years of age.
13    However, total credit under this paragraph (5) may not
14    exceed 3 years.
15        Any qualified member or annuitant may apply for credit
16    under item (iii) or (iv) of this paragraph (5) without
17    regard to whether service was terminated before the
18    effective date of this amendatory Act of 1997. In the case
19    of an annuitant who establishes credit under item (iii) or
20    (iv), the annuity shall be recalculated to include the
21    additional service credit. The increase in annuity shall
22    take effect on the date the System receives written
23    notification of the annuitant's intent to purchase the
24    credit, if the required evidence is submitted and the
25    required contribution paid within 60 days of that
26    notification, otherwise on the first annuity payment date

 

 

HB4398- 45 -LRB099 15024 RPS 39226 b

1    following the System's receipt of the required evidence and
2    contribution. The increase in an annuity recalculated
3    under this provision shall be included in the calculation
4    of automatic annual increases in the annuity accruing after
5    the effective date of the recalculation.
6        Optional credit may be purchased under this subsection
7    (b)(5) for periods during which a teacher has been granted
8    a leave of absence pursuant to Section 24-13 of the School
9    Code. A teacher whose service under this Article terminated
10    prior to the effective date of P.A. 86-1488 shall be
11    eligible to purchase such optional credit. If a teacher who
12    purchases this optional credit is already receiving a
13    retirement annuity under this Article, the annuity shall be
14    recalculated as if the annuitant had applied for the leave
15    of absence credit at the time of retirement. The difference
16    between the entitled annuity and the actual annuity shall
17    be credited to the purchase of the optional credit. The
18    remainder of the purchase cost of the optional credit shall
19    be paid on or before April 1, 1992.
20        The change in this paragraph made by Public Act 86-273
21    shall be applicable to teachers who retire after June 1,
22    1989, as well as to teachers who are in service on that
23    date.
24        (6) For a person who first becomes a member before the
25    effective date of this amendatory Act of the 99th General
26    Assembly, any Any days of unused and uncompensated

 

 

HB4398- 46 -LRB099 15024 RPS 39226 b

1    accumulated sick leave earned by a teacher. The service
2    credit granted under this paragraph shall be the ratio of
3    the number of unused and uncompensated accumulated sick
4    leave days to 170 days, subject to a maximum of 2 years of
5    service credit. Prior to the member's retirement, each
6    former employer shall certify to the System the number of
7    unused and uncompensated accumulated sick leave days
8    credited to the member at the time of termination of
9    service. The period of unused sick leave shall not be
10    considered in determining the effective date of
11    retirement. A member is not required to make contributions
12    in order to obtain service credit for unused sick leave.
13        Credit for sick leave shall, at retirement, be granted
14    by the System for any retiring regional or assistant
15    regional superintendent of schools who first becomes a
16    member before the effective date of this amendatory Act of
17    the 99th General Assembly at the rate of 6 days per year of
18    creditable service or portion thereof established while
19    serving as such superintendent or assistant
20    superintendent.
21        (7) Periods prior to February 1, 1987 served as an
22    employee of the Illinois Mathematics and Science Academy
23    for which credit has not been terminated under Section
24    15-113.9 of this Code.
25        (8) Service as a substitute teacher for work performed
26    prior to July 1, 1990.

 

 

HB4398- 47 -LRB099 15024 RPS 39226 b

1        (9) Service as a part-time teacher for work performed
2    prior to July 1, 1990.
3        (10) Up to 2 years of employment with Southern Illinois
4    University - Carbondale from September 1, 1959 to August
5    31, 1961, or with Governors State University from September
6    1, 1972 to August 31, 1974, for which the teacher has no
7    credit under Article 15. To receive credit under this item
8    (10), a teacher must apply in writing to the Board and pay
9    the required contributions before May 1, 1993 and have at
10    least 12 years of service credit under this Article.
11    (b-1) A member may establish optional credit for up to 2
12years of service as a teacher or administrator employed by a
13private school recognized by the Illinois State Board of
14Education, provided that the teacher (i) was certified under
15the law governing the certification of teachers at the time the
16service was rendered, (ii) applies in writing on or after
17August 1, 2009 and on or before August 1, 2012, (iii) supplies
18satisfactory evidence of the employment, (iv) completes at
19least 10 years of contributing service as a teacher as defined
20in Section 16-106, and (v) pays the contribution required in
21subsection (d-5) of Section 16-128. The member may apply for
22credit under this subsection and pay the required contribution
23before completing the 10 years of contributing service required
24under item (iv), but the credit may not be used until the item
25(iv) contributing service requirement has been met.
26    (c) The service credits specified in this Section shall be

 

 

HB4398- 48 -LRB099 15024 RPS 39226 b

1granted only if: (1) such service credits are not used for
2credit in any other statutory tax-supported public employee
3retirement system other than the federal Social Security
4program; and (2) the member makes the required contributions as
5specified in Section 16-128. Except as provided in subsection
6(b-1) of this Section, the service credit shall be effective as
7of the date the required contributions are completed.
8    Any service credits granted under this Section shall
9terminate upon cessation of membership for any cause.
10    Credit may not be granted under this Section covering any
11period for which an age retirement or disability retirement
12allowance has been paid.
13(Source: P.A. 96-546, eff. 8-17-09.)
 
14    (40 ILCS 5/17-116)  (from Ch. 108 1/2, par. 17-116)
15    (Text of Section WITHOUT the changes made by P.A. 98-599,
16which has been held unconstitutional)
17    Sec. 17-116. Service retirement pension.
18    (a) Each teacher having 20 years of service upon attainment
19of age 55, or who thereafter attains age 55 shall be entitled
20to a service retirement pension upon or after attainment of age
2155; and each teacher in service on or after July 1, 1971, with
225 or more but less than 20 years of service shall be entitled
23to receive a service retirement pension upon or after
24attainment of age 62.
25    (b) The service retirement pension for a teacher who

 

 

HB4398- 49 -LRB099 15024 RPS 39226 b

1retires on or after June 25, 1971, at age 60 or over, shall be
2calculated as follows:
3        (1) For creditable service earned before July 1, 1998
4    that has not been augmented under Section 17-119.1: 1.67%
5    for each of the first 10 years of service; 1.90% for each
6    of the next 10 years of service; 2.10% for each year of
7    service in excess of 20 but not exceeding 30; and 2.30% for
8    each year of service in excess of 30, based upon average
9    salary as herein defined.
10        (2) For creditable service earned on or after July 1,
11    1998 by a member who has at least 30 years of creditable
12    service on July 1, 1998 and who does not elect to augment
13    service under Section 17-119.1: 2.3% of average salary for
14    each year of creditable service earned on or after July 1,
15    1998.
16        (3) For all other creditable service: 2.2% of average
17    salary for each year of creditable service.
18    (c) When computing such service retirement pensions, the
19following conditions shall apply:
20        1. Average salary shall consist of the average annual
21    rate of salary for the 4 consecutive years of validated
22    service within the last 10 years of service when such
23    average annual rate was highest. In the determination of
24    average salary for retirement allowance purposes, for
25    members who commenced employment after August 31, 1979,
26    that part of the salary for any year shall be excluded

 

 

HB4398- 50 -LRB099 15024 RPS 39226 b

1    which exceeds the annual full-time salary rate for the
2    preceding year by more than 20%. In the case of a member
3    who commenced employment before August 31, 1979 and who
4    receives salary during any year after September 1, 1983
5    which exceeds the annual full time salary rate for the
6    preceding year by more than 20%, an Employer and other
7    employers of eligible contributors as defined in Section
8    17-106 shall pay to the Fund an amount equal to the present
9    value of the additional service retirement pension
10    resulting from such excess salary. The present value of the
11    additional service retirement pension shall be computed by
12    the Board on the basis of actuarial tables adopted by the
13    Board. If a member elects to receive a pension from this
14    Fund provided by Section 20-121, his salary under the State
15    Universities Retirement System and the Teachers'
16    Retirement System of the State of Illinois shall be
17    considered in determining such average salary. Amounts
18    paid after the effective date of this amendatory Act of
19    1991 for unused vacation time earned after that effective
20    date shall not under any circumstances be included in the
21    calculation of average salary or the annual rate of salary
22    for the purposes of this Article.
23        2. Proportionate credit shall be given for validated
24    service of less than one year.
25        3. For retirement at age 60 or over the pension shall
26    be payable at the full rate.

 

 

HB4398- 51 -LRB099 15024 RPS 39226 b

1        4. For separation from service below age 60 to a
2    minimum age of 55, the pension shall be discounted at the
3    rate of 1/2 of one per cent for each month that the age of
4    the contributor is less than 60, but a teacher may elect to
5    defer the effective date of pension in order to eliminate
6    or reduce this discount. This discount shall not be
7    applicable to any participant who has at least 34 years of
8    service or a retirement pension of at least 74.6% of
9    average salary on the date the retirement annuity begins.
10        5. No additional pension shall be granted for service
11    exceeding 45 years. Beginning June 26, 1971 no pension
12    shall exceed the greater of $1,500 per month or 75% of
13    average salary as herein defined.
14        6. Service retirement pensions shall begin on the
15    effective date of resignation, retirement, the day
16    following the close of the payroll period for which service
17    credit was validated, or the time the person resigning or
18    retiring attains age 55, or on a date elected by the
19    teacher, whichever shall be latest.
20        7. A member who is eligible to receive a retirement
21    pension of at least 74.6% of average salary and will attain
22    age 55 on or before December 31 during the year which
23    commences on July 1 shall be deemed to attain age 55 on the
24    preceding June 1.
25        8. A member retiring after the effective date of this
26    amendatory Act of 1998 shall receive a pension equal to 75%

 

 

HB4398- 52 -LRB099 15024 RPS 39226 b

1    of average salary if the member is qualified to receive a
2    retirement pension equal to at least 74.6% of average
3    salary under this Article or as proportional annuities
4    under Article 20 of this Code.
5        9. In the case of a person who first becomes a
6    participant on or after the effective date of this
7    amendatory Act of the 99th General Assembly, payments for
8    unused sick or vacation time shall not be used in the
9    calculation of average salary.
10(Source: P.A. 90-566, eff. 1-2-98; 90-582, eff. 5-27-98.)
 
11    (40 ILCS 5/17-134)  (from Ch. 108 1/2, par. 17-134)
12    (Text of Section WITHOUT the changes made by P.A. 98-599,
13which has been held unconstitutional)
14    Sec. 17-134. Contributions for leaves of absence; military
15service; computing service. In computing service for pension
16purposes the following periods of service shall stand in lieu
17of a like number of years of teaching service upon payment
18therefor in the manner hereinafter provided: (a) time spent on
19a leave of absence granted by the employer; (b) service with
20teacher or labor organizations based upon special leaves of
21absence therefor granted by an Employer; (c) a maximum of 5
22years spent in the military service of the United States, of
23which up to 2 years may have been served outside the pension
24period; (d) unused sick days at termination of service to a
25maximum of 244 days; (e) time lost due to layoff and

 

 

HB4398- 53 -LRB099 15024 RPS 39226 b

1curtailment of the school term from June 6 through June 21,
21976; and (f) time spent after June 30, 1982 as a member of the
3Board of Education, if required to resign from an
4administrative or teaching position in order to qualify as a
5member of the Board of Education.
6        (1) For time spent on or after September 6, 1948 on
7    sabbatical leaves of absence or sick leaves, for which
8    salaries are paid, an Employer shall make payroll
9    deductions at the applicable rates in effect during such
10    periods.
11        (2) For time spent on a leave of absence granted by the
12    employer for which no salaries are paid, teachers desiring
13    credit therefor shall pay the required contributions at the
14    rates in effect during such periods as though they were in
15    teaching service. If an Employer pays salary for vacations
16    which occur during a teacher's sick leave or maternity or
17    paternity leave without salary, vacation pay for which the
18    teacher would have qualified while in active service shall
19    be considered part of the teacher's total salary for
20    pension purposes. No more than 36 months of leave credit
21    may be allowed any person during the entire term of
22    service. Sabbatical leave credit shall be limited to the
23    time the person on leave without salary under an Employer's
24    rules is allowed to engage in an activity for which he
25    receives salary or compensation.
26        (3) For time spent prior to September 6, 1948, on

 

 

HB4398- 54 -LRB099 15024 RPS 39226 b

1    sabbatical leaves of absence or sick leaves for which
2    salaries were paid, teachers desiring service credit
3    therefor shall pay the required contributions at the
4    maximum applicable rates in effect during such periods.
5        (4) For service with teacher or labor organizations
6    authorized by special leaves of absence, for which no
7    payroll deductions are made by an Employer, teachers
8    desiring service credit therefor shall contribute to the
9    Fund upon the basis of the actual salary received from such
10    organizations at the percentage rates in effect during such
11    periods for certified positions with such Employer. To the
12    extent the actual salary exceeds the regular salary, which
13    shall be defined as the salary rate, as calculated by the
14    Board, in effect for the teacher's regular position in
15    teaching service on September 1, 1983 or on the effective
16    date of the leave with the organization, whichever is
17    later, the organization shall pay to the Fund the
18    employer's normal cost as set by the Board on the
19    increment. Notwithstanding any other provision of this
20    subdivision (4), teachers are only eligible for credit for
21    service under this subdivision (4) if the special leave of
22    absence begins before the effective date of this amendatory
23    Act of the 97th General Assembly.
24        (5) For time spent in the military service, teachers
25    entitled to and desiring credit therefor shall contribute
26    the amount required for each year of service or fraction

 

 

HB4398- 55 -LRB099 15024 RPS 39226 b

1    thereof at the rates in force (a) at the date of
2    appointment, or (b) on return to teaching service as a
3    regularly certified teacher, as the case may be; provided
4    such rates shall not be less than $450 per year of service.
5    These conditions shall apply unless an Employer elects to
6    and does pay into the Fund the amount which would have been
7    due from such person had he been employed as a teacher
8    during such time. In the case of credit for military
9    service not during the pension period, the teacher must
10    also pay to the Fund an amount determined by the Board to
11    be equal to the employer's normal cost of the benefits
12    accrued from such service, plus interest thereon at 5% per
13    year, compounded annually, from the date of appointment to
14    the date of payment.
15        The changes to this Section made by Public Act 87-795
16    shall apply not only to persons who on or after its
17    effective date are in service under the Fund, but also to
18    persons whose status as a teacher terminated prior to that
19    date, whether or not the person is an annuitant on that
20    date. In the case of an annuitant who applies for credit
21    allowable under this Section for a period of military
22    service that did not immediately follow employment, and who
23    has made the required contributions for such credit, the
24    annuity shall be recalculated to include the additional
25    service credit, with the increase taking effect on the date
26    the Fund received written notification of the annuitant's

 

 

HB4398- 56 -LRB099 15024 RPS 39226 b

1    intent to purchase the credit, if payment of all the
2    required contributions is made within 60 days of such
3    notice, or else on the first annuity payment date following
4    the date of payment of the required contributions. In
5    calculating the automatic annual increase for an annuity
6    that has been recalculated under this Section, the increase
7    attributable to the additional service allowable under
8    this amendatory Act of 1991 shall be included in the
9    calculation of automatic annual increases accruing after
10    the effective date of the recalculation.
11        The total credit for military service shall not exceed
12    5 years, except that any teacher who on July 1, 1963, had
13    validated credit for more than 5 years of military service
14    shall be entitled to the total amount of such credit.
15        (6) For persons who first become teachers before the
16    effective date of this amendatory Act of the 99th General
17    Assembly, a A maximum of 244 unused sick days credited to
18    his account by an Employer on the date of termination of
19    employment. Members, upon verification of unused sick
20    days, may add this service time to total creditable
21    service.
22        (7) In all cases where time spent on leave is
23    creditable and no payroll deductions therefor are made by
24    an Employer, persons desiring service credit shall make the
25    required contributions directly to the Fund.
26        (8) For time lost without pay due to layoff and

 

 

HB4398- 57 -LRB099 15024 RPS 39226 b

1    curtailment of the school term from June 6 through June 21,
2    1976, as provided in item (e) of the first paragraph of
3    this Section, persons who were contributors on the days
4    immediately preceding such layoff shall receive credit
5    upon paying to the Fund a contribution based on the rates
6    of compensation and employee contributions in effect at the
7    time of such layoff, together with an additional amount
8    equal to 12.2% of the compensation computed for such period
9    of layoff, plus interest on the entire amount at 5% per
10    annum from January 1, 1978 to the date of payment. If such
11    contribution is paid, salary for pension purposes for any
12    year in which such a layoff occurred shall include the
13    compensation recognized for purposes of computing that
14    contribution.
15        (9) For time spent after June 30, 1982, as a
16    nonsalaried member of the Board of Education, if required
17    to resign from an administrative or teaching position in
18    order to qualify as a member of the Board of Education, an
19    administrator or teacher desiring credit therefor shall
20    pay the required contributions at the rates and salaries in
21    effect during such periods as though the member were in
22    service.
23    Effective September 1, 1974, the interest charged for
24validation of service described in paragraphs (2) through (5)
25of this Section shall be compounded annually at a rate of 5%
26commencing one year after the termination of the leave or

 

 

HB4398- 58 -LRB099 15024 RPS 39226 b

1return to service.
2(Source: P.A. 97-651, eff. 1-5-12.)
 
3    Section 99. Effective date. This Act takes effect upon
4becoming law.