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92_SB0739 LRB9206628EGfg 1 AN ACT in relation to 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 5 changing Sections 16-106, 16-113, 16-127, 16-133.2, 16-136.4, 6 16-149.2, 16-150, 16-151, 16-172, 16-182, 16-184, 16-185, and 7 16-186.3 as follows: 8 (40 ILCS 5/16-106) (from Ch. 108 1/2, par. 16-106) 9 Sec. 16-106. Teacher. "Teacher": The following 10 individuals, provided that, for employment prior to July 1, 11 1990, they are employed on a full-time basis, or if not 12 full-time, on a permanent and continuous basis in a position 13 in which services are expected to be rendered for at least 14 one school term: 15 (1) Any educational, administrative, professional 16 or other staff employed in the public common schools 17 included within this system in a position requiring 18 certification under the law governing the certification 19 of teachers; 20 (2) Any educational, administrative, professional 21 or other staff employed in any facility of the Department 22 of Children and Family Services or the Department of 23 Human Services, in a position requiring certification 24 under the law governing the certification of teachers, 25 and any person who (i) works in such a position for the 26 Department of Corrections, (ii) was a member of this 27 System on May 31, 1987, and (iii) did not elect to become 28 a member of the State Employees' Retirement System 29 pursuant to Section 14-108.2 of this Code; 30 (3) Any regional superintendent of schools, 31 assistant regional superintendent of schools, State -2- LRB9206628EGfg 1 Superintendent of Education; any person employed by the 2 State Board of Education as an executive; any executive 3 of the boards engaged in the service of public common 4 school education in school districts covered under this 5 system of which the State Superintendent of Education is 6 an ex-officio member; 7 (4) Any employee of a school board association 8 operating in compliance with Article 23 of the School 9 Code who is certificated under the law governing the 10 certification of teachers; 11 (5) Any person employed by the retirement system as 12 an executive, and any person employed by the retirement 13 system who is certificated under the law governing the 14 certification of teachers; 15 (6) Any educational, administrative, professional 16 or other staff employed by and under the supervision and 17 control of a regional superintendent of schools, provided 18 such employment position requires the person to be 19 certificated under the law governing the certification of 20 teachers and is in an educational program serving 2 or 21 more districts in accordance with a joint agreement 22 authorized by the School Code or by federal legislation; 23 (7) Any educational, administrative, professional 24 or other staff employed in an educational program 25 serving 2 or more school districts in accordance with a 26 joint agreement authorized by the School Code or by 27 federal legislation and in a position requiring 28 certification under the laws governing the certification 29 of teachers; 30 (8) Any officer or employee of a statewide teacher 31 organization or officer of a national teacher 32 organization who is certified under the law governing 33 certification of teachers, provided: (i) the individual 34 had previously established creditable service under this -3- LRB9206628EGfg 1 Article, (ii) the individual files with the system an 2 irrevocable election to become a member, and (iii) the 3 individual does not receive credit for such service under 4 any other Article of this Code; 5 (9) Any educational, administrative, professional, 6 or other staff employed in a charter school operating in 7 compliance with the Charter Schools Law who is 8 certificated under the law governing the certification of 9 teachers. 10 An annuitant receiving a retirement annuity under this 11 Article
or under Article 17 of this Codewho is temporarily 12 employed by a board of education or other employer not 13 exceeding that permitted under Section 16-118 is not a 14 "teacher" for purposes of this Article. A person who has 15 received a single-sum retirement benefit under Section 16 16-136.4 of this Article is not a "teacher" for purposes of 17 this Article. 18 (Source: P.A. 89-450, eff. 4-10-96; 89-507, eff. 7-1-97; 19 90-14, eff. 7-1-97; 90-448, eff. 8-16-97.) 20 (40 ILCS 5/16-113) (from Ch. 108 1/2, par. 16-113) 21 Sec. 16-113. Accumulated contributions. "Accumulated 22 contributions": The sum of all contributions to this System 23 made by or on behalf of a member in respect to membership 24 service and credited to his or her account in the Benefit 25 Trust Reserve Members' Contribution Reserve, together with 26 regular interest thereon. 27 (Source: P.A. 83-1440.) 28 (40 ILCS 5/16-127) (from Ch. 108 1/2, par. 16-127) 29 Sec. 16-127. Computation of creditable service. 30 (a) Each member shall receive regular credit for all 31 service as a teacher from the date membership begins, for 32 which satisfactory evidence is supplied and all contributions -4- LRB9206628EGfg 1 have been paid. 2 (b) The following periods of service shall earn optional 3 credit and each member shall receive credit for all such 4 service for which satisfactory evidence is supplied and all 5 contributions have been paid as of the date specified: 6 (1) Prior service as a teacher. 7 (2) Service in a capacity essentially similar or 8 equivalent to that of a teacher, in the public common 9 schools in school districts in this State not included 10 within the provisions of this System, or of any other 11 State, territory, dependency or possession of the United 12 States, or in schools operated by or under the auspices 13 of the United States, or under the auspices of any agency 14 or department of any other State, and service during any 15 period of professional speech correction or special 16 education experience for a public agency within this 17 State or any other State, territory, dependency or 18 possession of the United States, and service prior to 19 February 1, 1951 as a recreation worker for the Illinois 20 Department of Public Safety, for a period not exceeding 21 the lesser of 2/5 of the total creditable service of the 22 member or 10 years. The maximum service of 10 years 23 which is allowable under this paragraph shall be reduced 24 by the service credit which is validated by other 25 retirement systems under paragraph (i) of Section 15-113 26 and paragraph 1 of Section 17-133. Credit granted under 27 this paragraph may not be used in determination of a 28 retirement annuity or disability benefits unless the 29 member has at least 5 years of creditable service earned 30 subsequent to this employment with one or more of the 31 following systems: Teachers' Retirement System of the 32 State of Illinois, State Universities Retirement System, 33 and the Public School Teachers' Pension and Retirement 34 Fund of Chicago. Whenever such service credit exceeds -5- LRB9206628EGfg 1 the maximum allowed for all purposes of this Article, the 2 first service rendered in point of time shall be 3 considered. The changes to this subdivision (b)(2) made 4 by Public Act 86-272 shall apply not only to persons who 5 on or after its effective date (August 23, 1989) are in 6 service as a teacher under the System, but also to 7 persons whose status as such a teacher terminated prior 8 to such effective date, whether or not such person is an 9 annuitant on that date. 10 (3) Any periods immediately following teaching 11 service, under this System or under Article 17, (or 12 immediately following service prior to February 1, 1951 13 as a recreation worker for the Illinois Department of 14 Public Safety) spent in active service with the military 15 forces of the United States; periods spent in educational 16 programs that prepare for return to teaching sponsored by 17 the federal government following such active military 18 service; if a teacher returns to teaching service within 19 one calendar year after discharge or after the completion 20 of the educational program, a further period, not 21 exceeding one calendar year, between time spent in 22 military service or in such educational programs and the 23 return to employment as a teacher under this System; and 24 a period of up to 2 years of active military service not 25 immediately following employment as a teacher. 26 The changes to this Section and Section 16-128 27 relating to military service made by P.A. 87-794 shall 28 apply not only to persons who on or after its effective 29 date are in service as a teacher under the System, but 30 also to persons whose status as a teacher terminated 31 prior to that date, whether or not the person is an 32 annuitant on that date. In the case of an annuitant who 33 applies for credit allowable under this Section for a 34 period of military service that did not immediately -6- LRB9206628EGfg 1 follow employment, and who has made the required 2 contributions for such credit, the annuity shall be 3 recalculated to include the additional service credit, 4 with the increase taking effect on the date the System 5 received written notification of the annuitant's intent 6 to purchase the credit, if payment of all the required 7 contributions is made within 60 days of such notice, or 8 else on the first annuity payment date following the date 9 of payment of the required contributions. In calculating 10 the automatic annual increase for an annuity that has 11 been recalculated under this Section, the increase 12 attributable to the additional service allowable under 13 P.A. 87-794 shall be included in the calculation of 14 automatic annual increases accruing after the effective 15 date of the recalculation. 16 Credit for military service shall be determined as 17 follows: if entry occurs during the months of July, 18 August, or September and the member was a teacher at the 19 end of the immediately preceding school term, credit 20 shall be granted from July 1 of the year in which he or 21 she entered service; if entry occurs during the school 22 term and the teacher was in teaching service at the 23 beginning of the school term, credit shall be granted 24 from July 1 of such year. In all other cases where credit 25 for military service is allowed, credit shall be granted 26 from the date of entry into the service. 27 The total period of military service for which 28 credit is granted shall not exceed 5 years for any member 29 unless the service: (A) is validated before July 1, 30 1964, and (B) does not extend beyond July 1, 1963. 31 Credit for military service shall be granted under this 32 Section only if not more than 5 years of the military 33 service for which credit is granted under this Section is 34 used by the member to qualify for a military retirement -7- LRB9206628EGfg 1 allotment from any branch of the armed forces of the 2 United States. The changes to this subdivision (b)(3) 3 made by Public Act 86-272 shall apply not only to persons 4 who on or after its effective date (August 23, 1989) are 5 in service as a teacher under the System, but also to 6 persons whose status as such a teacher terminated prior 7 to such effective date, whether or not such person is an 8 annuitant on that date. 9 (4) Any periods served as a member of the General 10 Assembly. 11 (5)(i) Any periods for which a teacher, as defined 12 in Section 16-106, is granted a leave of absence, 13 provided he or she returns to teaching service creditable 14 under this System or the State Universities Retirement 15 System following the leave; (ii) periods during which a 16 teacher is involuntarily laid off from teaching, provided 17 he or she returns to teaching following the lay-off; 18 (iii) periods prior to July 1, 1983 during which a 19 teacher ceased covered employment under this Article or 20 Article 17 due to pregnancy, provided that the teacher 21 returned to teaching service creditable under this System 22 or the State Universities Retirement System following the 23 pregnancy and submits evidence satisfactory to the Board 24 documenting that the employment ceased due to pregnancy; 25 and (iv) periods prior to July 1, 1983 during which a 26 teacher ceased covered employment for the purpose of 27 adopting an infant under 3 years of age or caring for a 28 newly adopted infant under 3 years of age, provided that 29 the teacher returned to teaching service creditable under 30 this System or the State Universities Retirement System 31 following the adoption and submits evidence satisfactory 32 to the Board documenting that the employment ceased for 33 the purpose of adopting an infant under 3 years of age or 34 caring for a newly adopted infant under 3 years of age. -8- LRB9206628EGfg 1 However, total credit under this paragraph (5) may not 2 exceed 3 years. 3 Any qualified member or annuitant may apply for 4 credit under item (iii) or (iv) of this paragraph (5) 5 without regard to whether service was terminated before 6 the effective date of this amendatory Act of 1997. In 7 the case of an annuitant who establishes credit under 8 item (iii) or (iv), the annuity shall be recalculated to 9 include the additional service credit. The increase in 10 annuity shall take effect on the date the System receives 11 written notification of the annuitant's intent to 12 purchase the credit, if the required evidence is 13 submitted and the required contribution paid within 60 14 days of that notification, otherwise on the first annuity 15 payment date following the System's receipt of the 16 required evidence and contribution. The increase in an 17 annuity recalculated under this provision shall be 18 included in the calculation of automatic annual increases 19 in the annuity accruing after the effective date of the 20 recalculation. 21 Optional credit may be purchased under this 22 subsection (b)(5) for periods during which a teacher has 23 been granted a leave of absence pursuant to Section 24-13 24 of the School Code. A teacher whose service under this 25 Article terminated prior to the effective date of P.A. 26 86-1488 shall be eligible to purchase such optional 27 credit. If a teacher who purchases this optional credit 28 is already receiving a retirement annuity under this 29 Article, the annuity shall be recalculated as if the 30 annuitant had applied for the leave of absence credit at 31 the time of retirement. The difference between the 32 entitled annuity and the actual annuity shall be credited 33 to the purchase of the optional credit. The remainder of 34 the purchase cost of the optional credit shall be paid on -9- LRB9206628EGfg 1 or before April 1, 1992. 2 The change in this paragraph made by Public Act 3 86-273 shall be applicable to teachers who retire after 4 June 1, 1989, as well as to teachers who are in service 5 on that date. 6 (6) Any days of unused and uncompensated 7 accumulated sick leave earned by a teacher. The service 8 credit granted under this paragraph shall be the ratio of 9 the number of unused and uncompensated accumulated sick 10 leave days to 170 days, subject to a maximum of one year 11 of service credit. Prior to the member's retirement, 12 each former employer shall certify to the System the 13 number of unused and uncompensated accumulated sick leave 14 days credited to the member at the time of termination of 15 service. The period of unused sick leave shall not be 16 considered in determining the effective date of 17 retirement. A member is not required to make 18 contributions in order to obtain service credit for 19 unused sick leave. 20 Credit for sick leave shall, at retirement, be 21 granted by the System for any retiring regional or 22 assistant regional superintendent of schools at the rate 23 of 6 days per year of creditable service or portion 24 thereof established while serving as such superintendent 25 or assistant superintendent. 26 (7) Periods prior to February 1, 1987 served as an 27 employee of the Illinois Mathematics and Science Academy 28 for which credit has not been terminated under Section 29 15-113.9 of this Code. 30 (8) Service as a substitute teacher for work 31 performed prior to July 1, 1990. 32 (9) Service as a part-time teacher for work 33 performed prior to July 1, 1990. 34 (10) Up to 2 years of employment with Southern -10- LRB9206628EGfg 1 Illinois University - Carbondale from September 1, 1959 2 to August 31, 1961, or with Governors State University 3 from September 1, 1972 to August 31, 1974, for which the 4 teacher has no credit under Article 15. To receive 5 credit under this item (10), a teacher must apply in 6 writing to the Board and pay the required contributions 7 before May 1, 1993 and have at least 12 years of service 8 credit under this Article. 9 (c) The service credits specified in this Section shall 10 be granted only if: (1) such service credits are not used 11 for credit in any other statutory tax-supported public 12 employee retirement system other than the federal Social 13 Security program; and (2) the member makes the required 14 contributions as specified in Section 16-128. The service 15 credit shall be effective as of the date the required 16 contributions are completed. 17 Any service credits granted under this Section shall 18 terminate upon cessation of membership for any cause. 19 Credit may not be granted under this Section covering any 20 period for which an age retirement or disability retirement 21 allowance has been paid. 22 (Source: P.A. 89-430, eff. 12-15-95; 90-32, eff. 6-27-97.) 23 (40 ILCS 5/16-133.2) (from Ch. 108 1/2, par. 16-133.2) 24 Sec. 16-133.2. Early retirement without discount. A 25 member retiring after June 1, 1980 and on or before June 30, 26 2005, and applying for a retirement annuity within 6 months 27 of the last day of teaching for which retirement 28 contributions were required, may elect at the time of 29 application for a retirement annuity, to make a one time 30 member contribution to the System and thereby avoid the 31 reduction in the retirement annuity for retirement before age 32 60 specified in paragraph (B) of Section 16-133. The 33 exercise of the election shall also obligate the last -11- LRB9206628EGfg 1 employer to make a one time non-refundable contribution to 2 the System. Substitute teachers wishing to exercise this 3 election must teach 85 or more days in one school term with 4 one employer, who shall be deemed the last employer for 5 purposes of this Section. The last day of teaching with that 6 employer must be within 6 months of the date of application 7 for retirement. All substitute teaching credit applied 8 toward the required 85 days must be earned after June 30, 9 1990. 10 The one time member and employer contributions shall be a 11 percentage of the retiring member's highest annual salary 12 rate used in the determination of the average salary for 13 retirement annuity purposes. However, when determining the 14 one-time member and employer contributions, that part of a 15 member's salary with the same employer which exceeds the 16 annual salary rate for the preceding year by more than 20% 17 shall be excluded. The member contribution shall be at the 18 rate of 7% for the lesser of the following 2 periods: (1) 19 for each year that the member is less than age 60; or (2) for 20 each year that the member's creditable service is less than 21 35 years. If a member is at least age 55 and has at least 34 22 years of creditable service, no member or employer 23 contribution for the early retirement option shall be 24 required. The employer contribution shall be at the rate of 25 20% for each year the member is under age 60. 26 Upon receipt of the application and election, the System 27 shall determine the one time employee and employer 28 contributions required. The member contribution shall be 29 credited to the individual account of the member and the 30 employer contribution shall be credited to the Benefit Trust 31 Reserve Employer's Contribution Reserve. The provisions of 32 this Section shall not be applicable until the member's 33 contribution, if any, has been received by the System; 34 however, the date such contributions are received shall not -12- LRB9206628EGfg 1 be considered in determining the effective date of 2 retirement. 3 The number of members working for a single employer who 4 may retire under this Section in any year may be limited at 5 the option of the employer to a specified percentage of those 6 eligible, not less than 30%, with the right to participate to 7 be allocated among those applying on the basis of seniority 8 in the service of the employer. 9 (Source: P.A. 90-582, eff. 5-27-98; 91-17, eff. 6-4-99.) 10 (40 ILCS 5/16-136.4) (from Ch. 108 1/2, par. 16-136.4) 11 Sec. 16-136.4. Single-sum retirement benefit. 12 (a) A member who has less than 5 years of creditable 13 service shall be entitled, upon written application to the 14 board, to receive a retirement benefit payable in a single 15 sum upon or after the member's attainment of age 65. 16 However, the benefit shall not be paid while the member is 17 employed as a teacher in the schools included under this 18 Article or Article 17, unless the System is required by 19 federal law to make payment due to the member's age. 20 (b) The retirement benefit shall consist of a single sum 21 that is the actuarial equivalent of a life annuity consisting 22 of 1.67% of the member's final average salary for each year 23 of creditable service earned before July 1, 1998 and 2.2% of 24 the member's final average salary for each year of creditable 25 service earned after June 30, 1998. In determining the 26 amount of the benefit, a fractional year shall be granted 27 proportional credit. 28 For the purposes of this Section, final average salary 29 shall be the average salary of the member's highest 4 30 consecutive years of service as determined under rules of the 31 board. For a member with less than 4 consecutive years of 32 service, final average salary shall be the average salary 33 during the member's entire period of service. In the -13- LRB9206628EGfg 1 determination of final average salary for members other than 2 elected officials and their appointees when such appointees 3 are allowed by statute, that part of a member's salary which 4 exceeds the member's annual full-time salary rate with the 5 same employer for the preceding year by more than 20% shall 6 be excluded. The exclusion shall not apply in any year in 7 which the member's creditable earnings are less than 50% of 8 the preceding year's mean salary for downstate teachers as 9 determined by the survey of school district salaries provided 10 in Section 2-3.103 of the School Code. 11 (c) The retirement benefit determined under this Section 12 shall be available to all members who render teaching service 13 after July 1, 1947 for which member contributions are 14 required. 15 (d) Upon acceptance of the retirement benefit, all of 16 the member's accrued rights and credits in the System are 17 forfeited. Receipt of a single-sum retirement benefit under 18 this Section does not make a person an "annuitant" for the 19 purposes of this Article, nor a "benefit recipient" for the 20 purposes of Sections 16-153.1 through 16-153.4. 21 (Source: P.A. 91-887, eff. 7-6-00.) 22 (40 ILCS 5/16-149.2) (from Ch. 108 1/2, par. 16-149.2) 23 Sec. 16-149.2. Disability retirement annuity. 24 (a) A member whose disability benefit has been 25 terminated under the provisions of Section 16-149 may be 26 retired on a disability retirement annuity payable effective 27 the day following such termination provided the member 28 remains disabled under the standard of disability provided in 29 Section 16-149. 30 The disability retirement annuity shall be payable upon 31 receipt of written certificates from at least 2 licensed 32 physicians designated by the System verifying the 33 continuation of the disability condition. A disability -14- LRB9206628EGfg 1 retirement annuity shall not be paid during any period for 2 which the member receives benefits under Section 16-133, 3 Section 16-149, or Section 16-149.1 or has a right to receive 4 a salary as a teacher, or is employed in any capacity as a 5 teacher by the employers included under this System or in an 6 equivalent capacity in any other public or private school, 7 college or university. 8 (b) The disability retirement annuity shall be equal to 9 the larger of: (1) 35% of the most recent annual contract 10 salary rate or for part-time and substitute members after 11 June 30, 1990, the most recent annualized salary rate; or (2) 12 if disability commences prior to the member's attainment of 13 age 55, the amount computed in accordance with Section 14 16-133, provided the amount computed under paragraph (B) of 15 Section 16-133 shall be reduced by 1/2 of 1% for each month 16 that the member is less than age 55; or (3) if disability 17 commences after the member's attainment of age 55, and the 18 member is not receiving a retirement annuity under Section 19 16-133, the amount computed in accordance with Section 20 16-133. 21 Prior to July 1, 1990, if the most recent period of 22 service of any member eligible to receive a disability 23 retirement annuity was rendered on a less than full-time but 24 not less than half-time basis, the amount of the disability 25 retirement annuity payable shall be computed on the basis of 26 the salary received by such member for the member's last year 27 of service on a full-time basis if such salary was greater 28 than the member's most recent salary. 29 (c) If an annuitant receiving a disability retirement 30 annuity under this Section is engaged in or able to engage in 31 gainful employment paying more than the difference between 32 the disability retirement annuity and the salary rate upon 33 which the disability benefit is based, with no salary to be 34 considered less than the minimum prescribed in Section 24-8 -15- LRB9206628EGfg 1 of the School Code, the disability retirement annuity shall 2 be reduced to an amount which together with the amount earned 3 by the annuitant, equals the salary rate upon which the 4 disability benefit is based. However, for the purposes of 5 this subsection (c) only, the salary rate upon which the 6 benefit is based shall be deemed to increase by 15% on the 7 tenth anniversary of the commencement of the annuity. 8 Once each year during the first 5 years following 9 retirement on a disability retirement annuity, and once in 10 every 3-year period thereafter, the System may require an 11 annuitant to undergo a medical examination, by a physician or 12 physicians designated by the System. If the annuitant 13 refuses to submit to such medical examination, the annuity 14 shall be discontinued until such time as the annuitant 15 consents to the examination, and if refusal continues for one 16 year, all the rights to the annuity shall be revoked. 17 (d) If an annuitant in receipt of a disability 18 retirement annuity returns to active service as a teacher or 19 is no longer disabled, such annuity shall cease and the 20 annuitant shall again become a member of the Retirement 21 System and, if in active service as a teacher, shall make 22 regular contributions. The remaining accumulated23 contributions shall be transferred to the Members'24 Contribution Reserve from the Employer's Contribution25 Reserve.All service for which the annuitant had credit on 26 the date of disability shall be properly reestablished. 27 An annuitant in receipt of a disability retirement 28 annuity who returns to active service as a teacher and who 29 again becomes disabled shall not be entitled to a 30 recomputation of the disability retirement annuity based on 31 amendments enacted while the annuitant was in receipt of the 32 annuity unless at least one year of creditable service is 33 rendered after the latest re-entry into service. 34 (e) An annuitant in receipt of a disability retirement -16- LRB9206628EGfg 1 annuity may, upon reaching retirement age as specified in 2 Section 16-132, apply for a retirement annuity which is to be 3 calculated as specified in Section 16-133. The disability 4 retirement annuity shall be discontinued upon commencement of 5 the retirement annuity. 6 (f) The board shall prescribe rules governing the 7 filing, investigation, control, and supervision of disability 8 retirement claims. The rules shall include specific 9 standards to be used when requesting additional medical 10 examinations, hospital records or other data necessary for 11 determining the employment capacity and condition of the 12 annuitant. Costs incurred by a claimant in connection with 13 completing a claim for disability benefits shall be paid by 14 the claimant. 15 The changes to this Section made by this amendatory Act 16 of 1991 shall apply not only to persons who on or after its 17 effective date are in service as a teacher under the System, 18 but also to persons whose status as a teacher terminated 19 prior to that date, whether or not the person is an annuitant 20 on that date. 21 (Source: P.A. 86-273; 86-1488; 87-794.) 22 (40 ILCS 5/16-150) (from Ch. 108 1/2, par. 16-150) 23 Sec. 16-150. Re-entry. If an annuitant under this 24 System is again employed as a teacher for an aggregate period 25 exceeding that permitted by Section 16-118, his or her 26 retirement annuity shall be terminated and the annuitant 27 shall thereupon be regarded as an active member. The28 annuitant's remaining accumulated contributions shall be29 transferred to the Members' Contribution Reserve from the30 Employer's Contribution Reserve.31 Such annuitant is not entitled to a recomputation of his 32 or her retirement annuity unless at least one full year of 33 creditable service is rendered after the latest re-entry into -17- LRB9206628EGfg 1 service and the annuitant must have rendered at least 3 years 2 of creditable service after last re-entry into service to 3 qualify for a recomputation of the retirement annuity based 4 on amendments enacted while in receipt of a retirement 5 annuity, except when retirement was due to disability. 6 However, regardless of age, an annuitant in receipt of a 7 retirement annuity may be given temporary employment by a 8 school board not exceeding that permitted under Section 9 16-118 and continue to receive the retirement annuity. 10 Unless retirement was necessitated by disability, a 11 retirement shall be considered cancelled and the retirement 12 allowance must be repaid in full if the annuitant is employed 13 as a teacher within the school year during which service was 14 terminated. 15 An annuitant's retirement which does not include a period 16 of at least one full and complete school year shall be 17 considered cancelled and the retirement annuity must be 18 repaid in full unless such retirement was necessitated by 19 disability. 20 (Source: P.A. 86-273; 87-794.) 21 (40 ILCS 5/16-151) (from Ch. 108 1/2, par. 16-151) 22 Sec. 16-151. Refund. Upon termination of employment as a 23 teacher for any cause other than death or retirement, a 24 member shall be paid the following amount upon demand made at 25 least 4 months after ceasing to teach: 26 (1) from the Benefit Trust Reserve Members'27 Contribution Reserve, the actual total contributions paid 28 by or on behalf of the member for membership service 29 which have not been previously refunded and which are 30 then credited to the member's individual account in the 31 Benefit Trust Reserve Members' Contribution Reserve, 32 without interest thereon, and 33 (2) from the Benefit Trust Reserve Employer's-18- LRB9206628EGfg 1 Contribution Reserve, the actual contributions not 2 previously refunded, paid by or on behalf of the member 3 for prior service and towards the cost of the automatic 4 annual increase in retirement annuity as provided under 5 Section 16-152, without interest thereon. 6 Any such amounts may be paid to the member either in one 7 sum or, at the election of the board, in 4 quarterly 8 payments. 9 Contributions credited to a member for periods of 10 disability as provided in Sections 16-149 and 16-149.1 are 11 not refundable. 12 Upon acceptance of a refund, all accrued rights and 13 credits in the System are forfeited and may be reinstated 14 only if the refund is repaid together with interest from the 15 date of the refund to the date of repayment at the following 16 rates compounded annually: for periods prior to July 1, 17 1965, regular interest; for periods from July 1, 1965 to June 18 30, 1977, 4% per year; for periods on and after July 1, 1977, 19 regular interest. Repayment shall be permitted upon return to 20 membership; however, service credit previously forfeited by a 21 refund and subsequently reinstated may not be used as a basis 22 for the payment of benefits, other than a refund of 23 contributions, prior to the completion of one year of 24 creditable service following the refund, except when 25 repayment is permitted under the provisions of the 26 "Retirement Systems Reciprocal Act" contained in Article 20. 27 (Source: P.A. 90-448, eff. 8-16-97.) 28 (40 ILCS 5/16-172) (from Ch. 108 1/2, par. 16-172) 29 Sec. 16-172. To pay obligations and collect funds due. 30 To pay promptly expenses and other obligations that accrue 31 under this Article and to see that all revenue, including 32 contributions, due the system is collected without 33 unreasonable delay. Except in cases of hardship, the System -19- LRB9206628EGfg 1 may require benefit recipients to receive recurring payments 2 electronically. 3 (Source: P.A. 83-1440.) 4 (40 ILCS 5/16-182) (from Ch. 108 1/2, par. 16-182) 5 Sec. 16-182. Members' Contribution Reserve. 6 (a) On July 1, 2001, the Members' Contribution Reserve 7 is abolished and the remaining balance shall be transferred 8 from that Reserve to the Benefit Trust Reserve. A Members'9 Contribution Reserve shall be established for the purpose of10 accumulating with regular interest the contributions of11 members made prior to retirement.12 This Reserve shall be credited with:13 (1) The total accumulated contributions for14 membership service, as of the date this reserve is15 established, exclusive of contributions for annual16 increases in retirement annuity and survivor benefits.17 (2) The member contributions received under Section18 16-133.2.19 (3) The normal contributions under Section 16-12820 and Section 16-131.2 together with regular interest.21 (4) The total of all normal contributions for each22 fiscal year as of the end of the fiscal year.23 (5) The excess of the accumulated contributions of24 an annuitant at retirement over the retirement annuity25 payments received, to be computed upon re-entry into26 service after termination of a retirement annuity as27 provided in Section 16-150, or after termination of a28 disability retirement annuity as provided in Section29 16-149.2.30 (6) Regular interest on the accumulated31 contributions in the members' contribution reserve as of32 the end of the previous fiscal year, credited to the date33 of retirement or death for those retiring or dying during-20- LRB9206628EGfg 1 the fiscal year, and to the end of the fiscal year for2 all other members.3 (b) This Reserve shall be charged with:4 (1) The accumulated contributions of members5 retired under the provisions of Sections 16-133, 16-136.46 and 16-149.2.7 (2) The accumulated contributions of members8 granted a refund under the provisions of Section 16-151.9 (3) The accumulated contributions of deceased10 members upon payment of a refund as provided in Section11 16-138.12 (4) The accumulated contributions together with13 regular interest as provided in Section 16-131.1.14 (c) Upon the granting of a retirement annuity or the15 payment of a single-sum retirement benefit or a death or16 refund benefit, all individual accumulated credits of the17 member concerned shall be terminated.18 (d) Amounts credited to the account of a member under19 this Reserve shall not be used until such member dies,20 retires, accepts a refund, or requests a transfer of21 contributions.22 (Source: P.A. 87-11.) 23 (40 ILCS 5/16-184) (from Ch. 108 1/2, par. 16-184) 24 Sec. 16-184. Supplementary Annuity Reserve. 25 (a) Except as provided in subsection (b), a Reserve to26 be known as the Supplementary Annuity Reserve is established27 for the purpose of crediting funds received and charging28 disbursements made for supplementary annuities under Section29 16-135 and Section 16-149.4.30 This Reserve shall be credited with:31 (1) The total of all contributions made by32 annuitants to qualify for supplementary annuities.33 (2) Amounts contributed to the System by the State-21- LRB9206628EGfg 1 of Illinois that are sufficient to assure payment of the2 supplementary annuities.3 (3) Regular interest computed annually on the4 average balance in this reserve.5 This Reserve shall be charged with all supplemental6 annuity payments under Section 16-135 and Section 16-149.4.7 (b)On theJuly 1, 2001 next occurring after the8 effective date of this amendatory Act of the 91st General9 Assembly, the Supplemental Annuity Reserve is abolished and 10 any remaining balance shall be transferred from that Reserve 11 to the Benefit Trust Reserve Employer's Contribution Reserve. 12 (Source: P.A. 91-887, eff. 7-6-00.) 13 (40 ILCS 5/16-185) (from Ch. 108 1/2, par. 16-185) 14 Sec. 16-185. Benefit Trust Employer's Contribution15 Reserve. 16 (a) On July 1, 2001, the Employer's Contribution Reserve 17 shall be renamed the Benefit Trust Reserve. The Benefit 18 Trust Reserve shall serve as a clearing account for income 19 and expenses of the System as well as transfers to and from 20 the other reserve accounts established under this Article and 21 adjustments thereto. 22 (b) This Reserve shall be credited with all 23 contributions, investment income, and other income received 24 by the System, except as otherwise required by this Article. :25 (1) All amounts contributed by the State, except26 those credited to other reserve accounts as provided in27 this Article.28 (2) The total member and employer contributions29 except those required by other reserve accounts.30 (3) The total income from invested assets of the31 System, and other miscellaneous income.32 (4) The interest portion of the accumulated33 contributions of members granted refunds.-22- LRB9206628EGfg 1 (5) Contributions made by annuitants to qualify for2 automatic annual increases in annuity, except those3 required by other reserve accounts.4 (c) This Reserve shall be charged with all benefits and 5 refunds paid and all other expenses of the System, except as 6 otherwise required under this Article. :7 (1) All amounts necessary to be transferred to the8 Members' Contribution Reserve.9 (2) All retirement annuity, single-sum retirement10 benefit and disability retirement annuity payments,11 including automatic annual increases in annuities, except12 as provided by other reserve accounts.13 (3) All amounts necessary to be refunded to14 withdrawing members except as provided by the Members'15 Contribution Reserve.16 (4) All benefits paid to temporarily or17 accidentally disabled members of this System, and all18 amounts credited to the accounts of such disabled members19 in lieu of contributions.20 (5) All amounts payable as death benefits except as21 provided by the Members' Contribution Reserve.22 (6) All amounts necessary for the payment of costs23 for the health insurance program as provided under this24 Article.25 (7) All survivor benefit contributions refunded to26 an annuitant as provided under Section 16-143.2.27 (8) All amounts paid in accordance with Section28 16-131.1 except as provided by the Members' Contribution29 Reserve.30 (9) Interest to be credited to other reserve31 accounts as specified in this Article.32 (10) Recognition of unrealized gains or losses in33 market value, upon adoption of generally accepted34 accounting principles that allow for such recognition.-23- LRB9206628EGfg 1 (Source: P.A. 89-235, eff. 8-4-95; 90-448, eff. 8-16-97.) 2 (40 ILCS 5/16-186.3) (from Ch. 108 1/2, par. 16-186.3) 3 Sec. 16-186.3. Reserve for minimum retirement annuity. 4 (a) A Minimum Retirement Annuity Reserve is established 5 for the purpose of crediting funds received and charging 6 disbursements for minimum retirement annuity payments under 7 Section 16-136.2 and Section 16-136.3. 8 This Reserve shall be credited with: 9 (1) The total of all contributions made by 10 annuitants to qualify for the minimum retirement annuity. 11 (2) Amounts contributed to the System by the State 12 of Illinois that are sufficient to assure payment of the 13 minimum retirement annuity payments under Section 14 16-136.2 and Section 16-136.3. 15 (3) Regular interest computed annually on the 16 average balance in this Reserve. 17 This Reserve shall be charged with all minimum retirement 18 annuity payments under Section 16-136.2 and Section 16-136.3. 19 (b) After all minimum retirement annuity payments have 20 been completed, any remaining funds shall be transferred from 21 this Reserve to the Benefit Trust Reserve Employer's22 Contribution Reserve. 23 (Source: P.A. 88-593, eff. 8-22-94.) 24 Section 99. Effective date. This Act takes effect upon 25 becoming law.
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