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




HB2147 EngrossedLRB103 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
5changing Sections 16-118, 16-127, and 20-109 as follows:
6    (40 ILCS 5/16-118)  (from Ch. 108 1/2, par. 16-118)
7    Sec. 16-118. Retirement. "Retirement": Entry upon a
8retirement annuity or receipt of a single-sum retirement
9benefit granted under this Article after termination of active
10service as a teacher.
11    (a) An annuitant receiving a retirement annuity other than
12a disability retirement annuity may accept employment as a
13teacher from a school board or other employer specified in
14Section 16-106 without impairing retirement status, if that
16        (1) is not within the school year during which service
17    was terminated; and
18        (2) does not exceed the following:
19            (i) before July 1, 2001, 100 paid days or 500 paid
20        hours in any school year;
21            (ii) during the period beginning July 1, 2001
22        through June 30, 2011, 120 paid days or 600 paid hours
23        in each school year;



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1            (iii) during the period beginning July 1, 2011
2        through June 30, 2018, 100 paid days or 500 paid hours
3        in each school year;
4            (iv) beginning July 1, 2018 through June 30, 2026
5        2023, 120 paid days or 600 paid hours in each school
6        year, but not more than 100 paid days in the same
7        classroom;
8            (v) (blank); and during the period between July 1,
9        2021 and June 30, 2022, an additional 20 paid days or
10        100 paid hours shall be added to item (iv) of this
11        paragraph (2) to assist with addressing the substitute
12        teacher shortage that has been exacerbated by the
13        ongoing global pandemic; and
14            (vi) beginning July 1, 2026 2023, 100 paid days or
15        500 paid hours in each school year.
16    Where such permitted employment is partly on a daily and
17partly on an hourly basis, a day shall be considered as 5
19    (b) Subsection (a) does not apply to an annuitant who
20returns to teaching under the program established in Section
2116-150.1, for the duration of his or her participation in that
23(Source: P.A. 101-645, eff. 6-26-20; 102-537, eff. 8-20-21;
24102-709, eff. 4-22-22.)
25    (40 ILCS 5/16-127)  (from Ch. 108 1/2, par. 16-127)



HB2147 Engrossed- 3 -LRB103 25501 RPS 51850 b

1    Sec. 16-127. Computation of creditable service.
2    (a) Each member shall receive regular credit for all
3service as a teacher from the date membership begins, for
4which satisfactory evidence is supplied and all contributions
5have been paid.
6    (b) The following periods of service shall earn optional
7credit and each member shall receive credit for all such
8service for which satisfactory evidence is supplied and all
9contributions have been paid as of the date specified:
10        (1) Prior service as a teacher.
11        (2) Service in a capacity essentially similar or
12    equivalent to that of a teacher, in the public common
13    schools in school districts in this State not included
14    within the provisions of this System, or of any other
15    State, territory, dependency or possession of the United
16    States, or in schools operated by or under the auspices of
17    the United States, or under the auspices of any agency or
18    department of any other State, and service during any
19    period of professional speech correction or special
20    education experience for a public agency within this State
21    or any other State, territory, dependency or possession of
22    the United States, and service prior to February 1, 1951
23    as a recreation worker for the Illinois Department of
24    Public Safety, for a period not exceeding the lesser of
25    2/5 of the total creditable service of the member or 10
26    years. The maximum service of 10 years which is allowable



HB2147 Engrossed- 4 -LRB103 25501 RPS 51850 b

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



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



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1    annuity payment date following the date of payment of the
2    required contributions. In calculating the automatic
3    annual increase for an annuity that has been recalculated
4    under this Section, the increase attributable to the
5    additional service allowable under P.A. 87-794 shall be
6    included in the calculation of automatic annual increases
7    accruing after the effective date of the recalculation.
8        Credit for military service shall be determined as
9    follows: if entry occurs during the months of July,
10    August, or September and the member was a teacher at the
11    end of the immediately preceding school term, credit shall
12    be granted from July 1 of the year in which he or she
13    entered service; if entry occurs during the school term
14    and the teacher was in teaching service at the beginning
15    of the school term, credit shall be granted from July 1 of
16    such year. In all other cases where credit for military
17    service is allowed, credit shall be granted from the date
18    of entry into the service.
19        The total period of military service for which credit
20    is granted shall not exceed 5 years for any member unless
21    the service: (A) is validated before July 1, 1964, and (B)
22    does not extend beyond July 1, 1963. Credit for military
23    service shall be granted under this Section only if not
24    more than 5 years of the military service for which credit
25    is granted under this Section is used by the member to
26    qualify for a military retirement allotment from any



HB2147 Engrossed- 7 -LRB103 25501 RPS 51850 b

1    branch of the armed forces of the United States. The
2    changes to this subdivision (b)(3) made by Public Act
3    86-272 shall apply not only to persons who on or after its
4    effective date (August 23, 1989) are in service as a
5    teacher under the System, but also to persons whose status
6    as such a teacher terminated prior to such effective date,
7    whether or not such person is an annuitant on that date.
8        (4) Any periods served as a member of the General
9    Assembly.
10        (5)(i) Any periods for which a teacher, as defined in
11    Section 16-106, is granted a leave of absence, provided he
12    or she returns to teaching service creditable under this
13    System or the State Universities Retirement System
14    following the leave; (ii) periods during which a teacher
15    is involuntarily laid off from teaching, provided he or
16    she returns to teaching following the lay-off; (iii)
17    periods prior to July 1, 1983 during which a teacher
18    ceased covered employment due to pregnancy, provided that
19    the teacher returned to teaching service creditable under
20    this System or the State Universities Retirement System
21    following the pregnancy and submits evidence satisfactory
22    to the Board documenting that the employment ceased due to
23    pregnancy; and (iv) periods prior to July 1, 1983 during
24    which a teacher ceased covered employment for the purpose
25    of adopting an infant under 3 years of age or caring for a
26    newly adopted infant under 3 years of age, provided that



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



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1    (b)(5) for periods during which a teacher has been granted
2    a leave of absence pursuant to Section 24-13 of the School
3    Code. A teacher whose service under this Article
4    terminated prior to the effective date of P.A. 86-1488
5    shall be eligible to purchase such optional credit. If a
6    teacher who purchases this optional credit is already
7    receiving a retirement annuity under this Article, the
8    annuity shall be recalculated as if the annuitant had
9    applied for the leave of absence credit at the time of
10    retirement. The difference between the entitled annuity
11    and the actual annuity shall be credited to the purchase
12    of the optional credit. The remainder of the purchase cost
13    of the optional credit shall be paid on or before April 1,
14    1992.
15        The change in this paragraph made by Public Act 86-273
16    shall be applicable to teachers who retire after June 1,
17    1989, as well as to teachers who are in service on that
18    date.
19        (6) Any days of unused and uncompensated accumulated
20    sick leave earned by a teacher. The service credit granted
21    under this paragraph shall be the ratio of the number of
22    unused and uncompensated accumulated sick leave days to
23    170 days, subject to a maximum of 2 years of service
24    credit. Prior to the member's retirement, each former
25    employer shall certify to the System the number of unused
26    and uncompensated accumulated sick leave days credited to



HB2147 Engrossed- 10 -LRB103 25501 RPS 51850 b

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



HB2147 Engrossed- 11 -LRB103 25501 RPS 51850 b

1    1993 and have at least 12 years of service credit under
2    this Article.
3        (11) Periods of service as a student teacher as
4    described in Section 24-8.5 of the School Code for which
5    the student teacher received a salary.
6    (b-1) A member may establish optional credit for up to 2
7years of service as a teacher or administrator employed by a
8private school recognized by the Illinois State Board of
9Education, provided that the teacher (i) was certified under
10the law governing the certification of teachers at the time
11the service was rendered, (ii) applies in writing on or before
12June 30, 2023, (iii) supplies satisfactory evidence of the
13employment, (iv) completes at least 10 years of contributing
14service as a teacher as defined in Section 16-106, and (v) pays
15the contribution required in subsection (d-5) of Section
1616-128. The member may apply for credit under this subsection
17and pay the required contribution before completing the 10
18years of contributing service required under item (iv), but
19the credit may not be used until the item (iv) contributing
20service requirement has been met.
21    (c) The service credits specified in this Section shall be
22granted only if: (1) such service credits are not used for
23credit in any other statutory tax-supported public employee
24retirement system other than the federal Social Security
25program; and (2) the member makes the required contributions
26as specified in Section 16-128. Except as provided in



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1subsection (b-1) of this Section, the service credit shall be
2effective as of the date the required contributions are
4    Any service credits granted under this Section shall
5terminate upon cessation of membership for any cause.
6    Credit may not be granted under this Section covering any
7period for which an age retirement or disability retirement
8allowance has been paid.
9    Credit may not be granted under this Section for service
10as an employee of an entity that provides substitute teaching
11services under Section 2-3.173 of the School Code and is not a
12school district.
13(Source: P.A. 102-525, eff. 8-20-21.)
14    (40 ILCS 5/20-109)  (from Ch. 108 1/2, par. 20-109)
15    Sec. 20-109. "Pension credit": Credit or equities acquired
16by an employee in the form of contributions, earnings or
17service as defined under the law governing each of the systems
18in which he has credits or equities, except credits and
19equities (1) of less than one year in any one system, except
20that this one-year limitation shall not apply to (A) employees
21who transfer or are transferred, as a class, from one
22participating system to another or who are persons to whom
23Section 14-108.2a or 14-108.2b applies, or (B) persons who
24move from participation with a school district as a teacher
25aide under Article 7 to participation under Article 16, or (C)



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1persons who acquire credit as a substitute teacher covered
2under Article 16 and reach retirement eligibility under
3Article 7; or (2) which have previously been forfeited by
4acceptance of a refund or which have been applied towards a
5retirement annuity and have not been reestablished in
6accordance with the law governing the system from which the
7refund or retirement annuity had been received. If a
8retirement system provides no refund of contributions, the
9pension credit in the case of any employee who has
10participated in that system shall be considered effective for
11the purposes of this Article.
12(Source: P.A. 94-834, eff. 6-6-06.)
13    Section 90. The State Mandates Act is amended by adding
14Section 8.47 as follows:
15    (30 ILCS 805/8.47 new)
16    Sec. 8.47. Exempt mandate. Notwithstanding Sections 6 and
178 of this Act, no reimbursement by the State is required for
18the implementation of any mandate created by this amendatory
19Act of the 103rd General Assembly.
20    Section 99. Effective date. This Act takes effect upon
21becoming law.