Illinois General Assembly - Full Text of HB2147
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Full Text of HB2147  103rd General Assembly




HB2147 EnrolledLRB103 25501 RPS 51850 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 adding
5Section 8-108.3 and by changing Sections 16-118, 16-127, and
616-132 as follows:
7    (40 ILCS 5/8-108.3 new)
8    Sec. 8-108.3. Credit for service as a part-time employee
9of the Board of Education of the city. An employee of the Board
10of Education of the city, regardless of his or her position,
11may establish up to 2 years of service credit in the Fund for
12part-time employment with the Board of Education of the city
13prior to becoming an employee by applying no later than 6
14months after the effective date of this amendatory Act of the
15103rd General Assembly and paying to the Fund for that
16employment an amount equal to the (1) employee contributions
17based on the actual compensation received and the rate of
18contribution in effect on the date of payment; plus (2) an
19amount representing employer contributions determined by the
20retirement board; plus (3) interest at the effective rate from
21the date of service to the date of payment. However, service
22credit shall not be granted under this Section for any such
23prior employment for which the applicant received credit under



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1any other provision of this Code or during which the applicant
2was on a leave of absence.
3    (40 ILCS 5/16-118)  (from Ch. 108 1/2, par. 16-118)
4    Sec. 16-118. Retirement. "Retirement": Entry upon a
5retirement annuity or receipt of a single-sum retirement
6benefit granted under this Article after termination of active
7service as a teacher.
8    (a) An annuitant receiving a retirement annuity other than
9a disability retirement annuity may accept employment as a
10teacher from a school board or other employer specified in
11Section 16-106 without impairing retirement status, if that
13        (1) is not within the school year during which service
14    was terminated; and
15        (2) does not exceed the following:
16            (i) before July 1, 2001, 100 paid days or 500 paid
17        hours in any school year;
18            (ii) during the period beginning July 1, 2001
19        through June 30, 2011, 120 paid days or 600 paid hours
20        in each school year;
21            (iii) during the period beginning July 1, 2011
22        through June 30, 2018, 100 paid days or 500 paid hours
23        in each school year;
24            (iv) beginning July 1, 2018 through June 30, 2026
25        2023, 120 paid days or 600 paid hours in each school



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1        year, but not more than 100 paid days in the same
2        classroom;
3            (v) (blank); and during the period between July 1,
4        2021 and June 30, 2022, an additional 20 paid days or
5        100 paid hours shall be added to item (iv) of this
6        paragraph (2) to assist with addressing the substitute
7        teacher shortage that has been exacerbated by the
8        ongoing global pandemic; and
9            (vi) beginning July 1, 2026 2023, 100 paid days or
10        500 paid hours in each school year.
11    Where such permitted employment is partly on a daily and
12partly on an hourly basis, a day shall be considered as 5
14    (b) Subsection (a) does not apply to an annuitant who
15returns to teaching under the program established in Section
1616-150.1, for the duration of his or her participation in that
18(Source: P.A. 101-645, eff. 6-26-20; 102-537, eff. 8-20-21;
19102-709, eff. 4-22-22.)
20    (40 ILCS 5/16-127)  (from Ch. 108 1/2, par. 16-127)
21    Sec. 16-127. Computation of creditable service.
22    (a) Each member shall receive regular credit for all
23service as a teacher from the date membership begins, for
24which satisfactory evidence is supplied and all contributions
25have been paid.



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1    (b) The following periods of service shall earn optional
2credit and each member shall receive credit for all such
3service for which satisfactory evidence is supplied and all
4contributions have been paid as of the date specified:
5        (1) Prior service as a teacher.
6        (2) Service in a capacity essentially similar or
7    equivalent to that of a teacher, in the public common
8    schools in school districts in this State not included
9    within the provisions of this System, or of any other
10    State, territory, dependency or possession of the United
11    States, or in schools operated by or under the auspices of
12    the United States, or under the auspices of any agency or
13    department of any other State, and service during any
14    period of professional speech correction or special
15    education experience for a public agency within this State
16    or any other State, territory, dependency or possession of
17    the United States, and service prior to February 1, 1951
18    as a recreation worker for the Illinois Department of
19    Public Safety, for a period not exceeding the lesser of
20    2/5 of the total creditable service of the member or 10
21    years. The maximum service of 10 years which is allowable
22    under this paragraph shall be reduced by the service
23    credit which is validated by other retirement systems
24    under paragraph (i) of Section 15-113 and paragraph 1 of
25    Section 17-133. Credit granted under this paragraph may
26    not be used in determination of a retirement annuity or



HB2147 Enrolled- 5 -LRB103 25501 RPS 51850 b

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



HB2147 Enrolled- 6 -LRB103 25501 RPS 51850 b

1    exceeding one calendar year, between time spent in
2    military service or in such educational programs and the
3    return to employment as a teacher under this System; and a
4    period of up to 2 years of active military service not
5    immediately following employment as a teacher.
6        The changes to this Section and Section 16-128
7    relating to military service made by P.A. 87-794 shall
8    apply not only to persons who on or after its effective
9    date are in service as a teacher under the System, but also
10    to persons whose status as a teacher terminated prior to
11    that date, whether or not the person is an annuitant on
12    that date. In the case of an annuitant who applies for
13    credit allowable under this Section for a period of
14    military service that did not immediately follow
15    employment, and who has made the required contributions
16    for such credit, the annuity shall be recalculated to
17    include the additional service credit, with the increase
18    taking effect on the date the System received written
19    notification of the annuitant's intent to purchase the
20    credit, if payment of all the required contributions is
21    made within 60 days of such notice, or else on the first
22    annuity payment date following the date of payment of the
23    required contributions. In calculating the automatic
24    annual increase for an annuity that has been recalculated
25    under this Section, the increase attributable to the
26    additional service allowable under P.A. 87-794 shall be



HB2147 Enrolled- 7 -LRB103 25501 RPS 51850 b

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



HB2147 Enrolled- 8 -LRB103 25501 RPS 51850 b

1    as such a teacher terminated prior to such effective date,
2    whether or not such person is an annuitant on that date.
3        (4) Any periods served as a member of the General
4    Assembly.
5        (5)(i) Any periods for which a teacher, as defined in
6    Section 16-106, is granted a leave of absence, provided he
7    or she returns to teaching service creditable under this
8    System or the State Universities Retirement System
9    following the leave; (ii) periods during which a teacher
10    is involuntarily laid off from teaching, provided he or
11    she returns to teaching following the lay-off; (iii)
12    periods prior to July 1, 1983 during which a teacher
13    ceased covered employment due to pregnancy, provided that
14    the teacher returned to teaching service creditable under
15    this System or the State Universities Retirement System
16    following the pregnancy and submits evidence satisfactory
17    to the Board documenting that the employment ceased due to
18    pregnancy; and (iv) periods prior to July 1, 1983 during
19    which a teacher ceased covered employment for the purpose
20    of adopting an infant under 3 years of age or caring for a
21    newly adopted infant under 3 years of age, provided that
22    the teacher returned to teaching service creditable under
23    this System or the State Universities Retirement System
24    following the adoption and submits evidence satisfactory
25    to the Board documenting that the employment ceased for
26    the purpose of adopting an infant under 3 years of age or



HB2147 Enrolled- 9 -LRB103 25501 RPS 51850 b

1    caring for a newly adopted infant under 3 years of age.
2    However, total credit under this paragraph (5) may not
3    exceed 3 years.
4        Any qualified member or annuitant may apply for credit
5    under item (iii) or (iv) of this paragraph (5) without
6    regard to whether service was terminated before the
7    effective date of this amendatory Act of 1997. In the case
8    of an annuitant who establishes credit under item (iii) or
9    (iv), the annuity shall be recalculated to include the
10    additional service credit. The increase in annuity shall
11    take effect on the date the System receives written
12    notification of the annuitant's intent to purchase the
13    credit, if the required evidence is submitted and the
14    required contribution paid within 60 days of that
15    notification, otherwise on the first annuity payment date
16    following the System's receipt of the required evidence
17    and contribution. The increase in an annuity recalculated
18    under this provision shall be included in the calculation
19    of automatic annual increases in the annuity accruing
20    after the effective date of the recalculation.
21        Optional credit may be purchased under this subsection
22    (b)(5) for periods during which a teacher has been granted
23    a leave of absence pursuant to Section 24-13 of the School
24    Code. A teacher whose service under this Article
25    terminated prior to the effective date of P.A. 86-1488
26    shall be eligible to purchase such optional credit. If a



HB2147 Enrolled- 10 -LRB103 25501 RPS 51850 b

1    teacher who purchases this optional credit is already
2    receiving a retirement annuity under this Article, the
3    annuity shall be recalculated as if the annuitant had
4    applied for the leave of absence credit at the time of
5    retirement. The difference between the entitled annuity
6    and the actual annuity shall be credited to the purchase
7    of the optional credit. The remainder of the purchase cost
8    of the optional credit shall be paid on or before April 1,
9    1992.
10        The change in this paragraph made by Public Act 86-273
11    shall be applicable to teachers who retire after June 1,
12    1989, as well as to teachers who are in service on that
13    date.
14        (6) Any days of unused and uncompensated accumulated
15    sick leave earned by a teacher. The service credit granted
16    under this paragraph shall be the ratio of the number of
17    unused and uncompensated accumulated sick leave days to
18    170 days, subject to a maximum of 2 years of service
19    credit. Prior to the member's retirement, each former
20    employer shall certify to the System the number of unused
21    and uncompensated accumulated sick leave days credited to
22    the member at the time of termination of service. The
23    period of unused sick leave shall not be considered in
24    determining the effective date of retirement. A member is
25    not required to make contributions in order to obtain
26    service credit for unused sick leave.



HB2147 Enrolled- 11 -LRB103 25501 RPS 51850 b

1        Credit for sick leave shall, at retirement, be granted
2    by the System for any retiring regional or assistant
3    regional superintendent of schools at the rate of 6 days
4    per year of creditable service or portion thereof
5    established while serving as such superintendent or
6    assistant superintendent.
7        (7) Periods prior to February 1, 1987 served as an
8    employee of the Illinois Mathematics and Science Academy
9    for which credit has not been terminated under Section
10    15-113.9 of this Code.
11        (8) Service as a substitute teacher for work performed
12    prior to July 1, 1990.
13        (9) Service as a part-time teacher for work performed
14    prior to July 1, 1990.
15        (10) Up to 2 years of employment with Southern
16    Illinois University - Carbondale from September 1, 1959 to
17    August 31, 1961, or with Governors State University from
18    September 1, 1972 to August 31, 1974, for which the
19    teacher has no credit under Article 15. To receive credit
20    under this item (10), a teacher must apply in writing to
21    the Board and pay the required contributions before May 1,
22    1993 and have at least 12 years of service credit under
23    this Article.
24        (11) Periods of service as a student teacher as
25    described in Section 24-8.5 of the School Code for which
26    the student teacher received a salary.



HB2147 Enrolled- 12 -LRB103 25501 RPS 51850 b

1    (b-1) A member may establish optional credit for up to 2
2years of service as a teacher or administrator employed by a
3private school recognized by the Illinois State Board of
4Education, provided that the teacher (i) was certified under
5the law governing the certification of teachers at the time
6the service was rendered, (ii) applies in writing on or before
7June 30, 2023, (iii) supplies satisfactory evidence of the
8employment, (iv) completes at least 10 years of contributing
9service as a teacher as defined in Section 16-106, and (v) pays
10the contribution required in subsection (d-5) of Section
1116-128. The member may apply for credit under this subsection
12and pay the required contribution before completing the 10
13years of contributing service required under item (iv), but
14the credit may not be used until the item (iv) contributing
15service requirement has been met.
16    (c) The service credits specified in this Section shall be
17granted only if: (1) such service credits are not used for
18credit in any other statutory tax-supported public employee
19retirement system other than the federal Social Security
20program; and (2) the member makes the required contributions
21as specified in Section 16-128. Except as provided in
22subsection (b-1) of this Section, the service credit shall be
23effective as of the date the required contributions are
25    Any service credits granted under this Section shall
26terminate upon cessation of membership for any cause.



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1    Credit may not be granted under this Section covering any
2period for which an age retirement or disability retirement
3allowance has been paid.
4    Credit may not be granted under this Section for service
5as an employee of an entity that provides substitute teaching
6services under Section 2-3.173 of the School Code and is not a
7school district.
8(Source: P.A. 102-525, eff. 8-20-21.)
9    (40 ILCS 5/16-132)  (from Ch. 108 1/2, par. 16-132)
10    Sec. 16-132. Retirement annuity eligibility. A member who
11has at least 20 years of creditable service is entitled to a
12retirement annuity upon or after attainment of age 55. A
13member who has at least 10 but less than 20 years of creditable
14service is entitled to a retirement annuity upon or after
15attainment of age 60. A member who has at least 5 but less than
1610 years of creditable service is entitled to a retirement
17annuity upon or after attainment of age 62. A member who (i)
18has earned during the period immediately preceding the last
19day of service at least one year of contributing creditable
20service as an employee of a department as defined in Section
2114-103.04, (ii) has earned at least 5 years of contributing
22creditable service as an employee of a department as defined
23in Section 14-103.04, and (iii) retires on or after January 1,
242001 is entitled to a retirement annuity upon or after
25attainment of an age which, when added to the number of years



HB2147 Enrolled- 14 -LRB103 25501 RPS 51850 b

1of his or her total creditable service, equals at least 85.
2Portions of years shall be counted as decimal equivalents.
3    A member who is eligible to receive a retirement annuity
4of at least 74.6% of final average salary and will attain age
555 on or before December 31 during the year which commences on
6July 1 shall be deemed to attain age 55 on the preceding June
8    A member meeting the above eligibility conditions is
9entitled to a retirement annuity upon written application to
10the board setting forth the date the member wishes the
11retirement annuity to commence. However, the effective date of
12the retirement annuity shall be no earlier than the day
13following the last day of creditable service, regardless of
14the date of official termination of employment; however, upon
15written application within 6 months after the effective date
16of this amendatory Act of the 103rd General Assembly by a
17member or annuitant, the creditable service and earnings
18received in the last fiscal year of employment may be
19disregarded when determining the retirement effective date and
20the retirement benefit except that the effective date of a
21retirement annuity may be after the date of official
22termination of employment as long as such employment is for
23(1) less than 10 days in length; and (2) less than $2,500
24$2,000 in creditable earnings; and (3) the last fiscal year of
25employment includes only a fiscal year beginning on or after
26July 1, 2016 and ending before June 30,2023 compensation. The



HB2147 Enrolled- 15 -LRB103 25501 RPS 51850 b

1retirement effective date may not, as a result of the
2application of this amendatory Act of the 103rd General
3Assembly, be earlier than July 1, 2016.
4    To be eligible for a retirement annuity, a member shall
5not be employed as a teacher in the schools included under this
6System or under Article 17, except (i) as provided in Section
716-118 or 16-150.1, (ii) if the member is disabled (in which
8event, eligibility for salary must cease), or (iii) if the
9System is required by federal law to commence payment due to
10the member's age; the changes to this sentence made by this
11amendatory Act of the 93rd General Assembly apply without
12regard to whether the member terminated employment before or
13after its effective date.
14(Source: P.A. 102-871, eff. 5-13-22.)
15    Section 99. Effective date. This Act takes effect upon
16becoming law.