Full Text of HB2147 103rd General Assembly
HB2147enr 103RD GENERAL ASSEMBLY |
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| 1 | | AN ACT concerning public employee benefits.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Illinois Pension Code is amended by adding | 5 | | Section 8-108.3 and by changing Sections 16-118, 16-127, and | 6 | | 16-132 as follows: | 7 | | (40 ILCS 5/8-108.3 new) | 8 | | Sec. 8-108.3. Credit for service as a part-time employee | 9 | | of the Board of Education of the city. An employee of the Board | 10 | | of Education of the city, regardless of his or her position, | 11 | | may establish up to 2 years of service credit in the Fund for | 12 | | part-time employment with the Board of Education of the city | 13 | | prior to becoming an employee by applying no later than 6 | 14 | | months after the effective date of this amendatory Act of the | 15 | | 103rd General Assembly and paying to the Fund for that | 16 | | employment an amount equal to the (1) employee contributions | 17 | | based on the actual compensation received and the rate of | 18 | | contribution in effect on the date of payment; plus (2) an | 19 | | amount representing employer contributions determined by the | 20 | | retirement board; plus (3) interest at the effective rate from | 21 | | the date of service to the date of payment. However, service | 22 | | credit shall not be granted under this Section for any such | 23 | | prior employment for which the applicant received credit under |
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| 1 | | any other provision of this Code or during which the applicant | 2 | | was 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 | 5 | | retirement annuity
or receipt of a single-sum retirement | 6 | | benefit granted under this Article
after termination of active | 7 | | service as a teacher.
| 8 | | (a) An annuitant receiving a retirement annuity other than | 9 | | a disability
retirement annuity may accept employment as a | 10 | | teacher from a school board
or other employer specified in | 11 | | Section 16-106 without impairing retirement
status, if that | 12 | | employment: | 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 | 12 | | partly on an hourly basis,
a day shall be considered as 5 | 13 | | hours.
| 14 | | (b) Subsection (a) does not apply to an annuitant who | 15 | | returns to teaching
under the program established in Section | 16 | | 16-150.1, for the duration of his or
her participation in that | 17 | | program.
| 18 | | (Source: P.A. 101-645, eff. 6-26-20; 102-537, eff. 8-20-21; | 19 | | 102-709, 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
| 23 | | service as a teacher from the date membership begins, for | 24 | | which
satisfactory evidence is supplied and all contributions | 25 | | have been paid.
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| 1 | | (b) The following periods of service shall earn optional | 2 | | credit and
each member shall receive credit for all such | 3 | | service for which
satisfactory evidence is supplied and all | 4 | | contributions 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 |
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| 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 |
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| 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 |
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| 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 |
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| 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 |
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| 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 |
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| 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.
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| 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. |
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| 1 | | (b-1) A member may establish optional credit for up to 2 | 2 | | years of service
as a teacher or administrator employed by a | 3 | | private school recognized by the
Illinois State Board of | 4 | | Education, provided that the teacher (i) was certified
under | 5 | | the law governing the certification of teachers at the time | 6 | | the service
was rendered, (ii) applies in writing on or before | 7 | | June 30, 2023, (iii) supplies satisfactory evidence of the | 8 | | employment, (iv)
completes at least 10 years of contributing | 9 | | service as a teacher as defined in
Section 16-106, and (v) pays | 10 | | the contribution required in subsection (d-5) of
Section | 11 | | 16-128. The member may apply for credit under this subsection | 12 | | and pay
the required contribution before completing the 10 | 13 | | years of contributing
service required under item (iv), but | 14 | | the credit may not be used until the
item (iv) contributing | 15 | | service requirement has been met.
| 16 | | (c) The service credits specified in this Section shall be | 17 | | granted only
if: (1) such service credits are not used for | 18 | | credit in any other statutory
tax-supported public employee | 19 | | retirement system other than the federal Social
Security | 20 | | program; and (2) the member makes the required contributions | 21 | | as
specified in Section 16-128. Except as provided in | 22 | | subsection (b-1) of
this Section, the service credit shall be | 23 | | effective as of the date the
required contributions are | 24 | | completed.
| 25 | | Any service credits granted under this Section shall | 26 | | terminate upon
cessation of membership for any cause.
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| 1 | | Credit may not be granted under this Section covering any | 2 | | period for
which an age retirement or disability retirement | 3 | | allowance has been paid.
| 4 | | Credit may not be granted under this Section for service | 5 | | as an employee of an entity that provides substitute teaching | 6 | | services under Section 2-3.173 of the School Code and is not a | 7 | | school 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 | 11 | | has at least 20 years of creditable service is entitled to a
| 12 | | retirement annuity upon or after attainment of age 55.
A | 13 | | member who has at least 10 but less than 20 years of creditable | 14 | | service is
entitled to a retirement annuity upon or after | 15 | | attainment of age 60.
A member who has at least 5 but less than | 16 | | 10 years of creditable service is
entitled to a retirement | 17 | | annuity upon or after attainment of age 62.
A member who (i) | 18 | | has earned during the period immediately preceding the last
| 19 | | day of service at least one year of contributing creditable | 20 | | service as an
employee of a department as defined in Section | 21 | | 14-103.04, (ii) has earned at
least 5 years of contributing | 22 | | creditable service as an employee of a department
as defined | 23 | | in Section 14-103.04, and (iii) retires on or after January 1, | 24 | | 2001
is entitled to a retirement annuity upon or after | 25 | | attainment of an age which,
when added to the number of years |
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| 1 | | of his or her total creditable service,
equals at least 85. | 2 | | Portions of years shall be counted as decimal equivalents.
| 3 | | A member who is eligible to receive a retirement annuity | 4 | | of at least 74.6% of
final average salary and will attain age | 5 | | 55 on or before December 31 during the
year which commences on | 6 | | July 1 shall be deemed to attain age 55 on the
preceding June | 7 | | 1.
| 8 | | A member meeting the above eligibility conditions is | 9 | | entitled to a retirement
annuity upon written application to | 10 | | the board setting forth the date the member
wishes the | 11 | | retirement annuity to commence. However, the effective date of | 12 | | the
retirement annuity shall be no earlier than the day | 13 | | following the last day of
creditable service, regardless of | 14 | | the date of official termination of
employment; however, upon | 15 | | written application within 6 months after the effective date | 16 | | of this amendatory Act of the 103rd General Assembly by a | 17 | | member or annuitant, the creditable service and earnings | 18 | | received in the last fiscal year of employment may be | 19 | | disregarded when determining the retirement effective date and | 20 | | the retirement benefit except that the effective date of a | 21 | | retirement annuity may be after the date of official | 22 | | termination 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 | 25 | | employment includes only a fiscal year beginning on or after | 26 | | July 1, 2016 and ending before June 30,2023 compensation . The |
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| 1 | | retirement effective date may not, as a result of the | 2 | | application of this amendatory Act of the 103rd General | 3 | | Assembly, be earlier than July 1, 2016.
| 4 | | To be eligible for a retirement annuity, a member shall | 5 | | not be employed
as a teacher in the schools included under this | 6 | | System or under Article 17,
except (i) as provided in Section | 7 | | 16-118 or 16-150.1, (ii) if
the member is disabled (in which | 8 | | event, eligibility for salary must cease),
or (iii) if the | 9 | | System is required by federal law to commence
payment due to | 10 | | the member's age; the changes to this sentence made by this
| 11 | | amendatory Act of the 93rd General Assembly apply without
| 12 | | regard to whether the member terminated employment before or | 13 | | after its
effective date.
| 14 | | (Source: P.A. 102-871, eff. 5-13-22.)
| 15 | | Section 99. Effective date. This Act takes effect upon | 16 | | becoming law.
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