Public Act 096-0546
 
HB1148 Enrolled LRB096 04392 AMC 14441 b

    AN ACT concerning public employee benefits.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 5. The Illinois Pension Code is amended by changing
Sections 16-127 and 16-128 as follows:
 
    (40 ILCS 5/16-127)  (from Ch. 108 1/2, par. 16-127)
    Sec. 16-127. Computation of creditable service.
    (a) Each member shall receive regular credit for all
service as a teacher from the date membership begins, for which
satisfactory evidence is supplied and all contributions have
been paid.
    (b) The following periods of service shall earn optional
credit and each member shall receive credit for all such
service for which satisfactory evidence is supplied and all
contributions have been paid as of the date specified:
        (1) Prior service as a teacher.
        (2) Service in a capacity essentially similar or
    equivalent to that of a teacher, in the public common
    schools in school districts in this State not included
    within the provisions of this System, or of any other
    State, territory, dependency or possession of the United
    States, or in schools operated by or under the auspices of
    the United States, or under the auspices of any agency or
    department of any other State, and service during any
    period of professional speech correction or special
    education experience for a public agency within this State
    or any other State, territory, dependency or possession of
    the United States, and service prior to February 1, 1951 as
    a recreation worker for the Illinois Department of Public
    Safety, for a period not exceeding the lesser of 2/5 of the
    total creditable service of the member or 10 years. The
    maximum service of 10 years which is allowable under this
    paragraph shall be reduced by the service credit which is
    validated by other retirement systems under paragraph (i)
    of Section 15-113 and paragraph 1 of Section 17-133. Credit
    granted under this paragraph may not be used in
    determination of a retirement annuity or disability
    benefits unless the member has at least 5 years of
    creditable service earned subsequent to this employment
    with one or more of the following systems: Teachers'
    Retirement System of the State of Illinois, State
    Universities Retirement System, and the Public School
    Teachers' Pension and Retirement Fund of Chicago. Whenever
    such service credit exceeds the maximum allowed for all
    purposes of this Article, the first service rendered in
    point of time shall be considered. The changes to this
    subdivision (b)(2) made by Public Act 86-272 shall apply
    not only to persons who on or after its effective date
    (August 23, 1989) are in service as a teacher under the
    System, but also to persons whose status as such a teacher
    terminated prior to such effective date, whether or not
    such person is an annuitant on that date.
        (3) Any periods immediately following teaching
    service, under this System or under Article 17, (or
    immediately following service prior to February 1, 1951 as
    a recreation worker for the Illinois Department of Public
    Safety) spent in active service with the military forces of
    the United States; periods spent in educational programs
    that prepare for return to teaching sponsored by the
    federal government following such active military service;
    if a teacher returns to teaching service within one
    calendar year after discharge or after the completion of
    the educational program, a further period, not exceeding
    one calendar year, between time spent in military service
    or in such educational programs and the return to
    employment as a teacher under this System; and a period of
    up to 2 years of active military service not immediately
    following employment as a teacher.
        The changes to this Section and Section 16-128 relating
    to military service made by P.A. 87-794 shall apply not
    only to persons who on or after its effective date are in
    service as a teacher under the System, but also to persons
    whose status as a teacher terminated prior to that date,
    whether or not the person is an annuitant on that date. In
    the case of an annuitant who applies for credit allowable
    under this Section for a period of military service that
    did not immediately follow employment, and who has made the
    required contributions for such credit, the annuity shall
    be recalculated to include the additional service credit,
    with the increase taking effect on the date the System
    received written notification of the annuitant's intent to
    purchase the credit, if payment of all the required
    contributions is made within 60 days of such notice, or
    else on the first annuity payment date following the date
    of payment of the required contributions. In calculating
    the automatic annual increase for an annuity that has been
    recalculated under this Section, the increase attributable
    to the additional service allowable under P.A. 87-794 shall
    be included in the calculation of automatic annual
    increases accruing after the effective date of the
    recalculation.
        Credit for military service shall be determined as
    follows: if entry occurs during the months of July, August,
    or September and the member was a teacher at the end of the
    immediately preceding school term, credit shall be granted
    from July 1 of the year in which he or she entered service;
    if entry occurs during the school term and the teacher was
    in teaching service at the beginning of the school term,
    credit shall be granted from July 1 of such year. In all
    other cases where credit for military service is allowed,
    credit shall be granted from the date of entry into the
    service.
        The total period of military service for which credit
    is granted shall not exceed 5 years for any member unless
    the service: (A) is validated before July 1, 1964, and (B)
    does not extend beyond July 1, 1963. Credit for military
    service shall be granted under this Section only if not
    more than 5 years of the military service for which credit
    is granted under this Section is used by the member to
    qualify for a military retirement allotment from any branch
    of the armed forces of the United States. The changes to
    this subdivision (b)(3) made by Public Act 86-272 shall
    apply not only to persons who on or after its effective
    date (August 23, 1989) are in service as a teacher under
    the System, but also to persons whose status as such a
    teacher terminated prior to such effective date, whether or
    not such person is an annuitant on that date.
        (4) Any periods served as a member of the General
    Assembly.
        (5)(i) Any periods for which a teacher, as defined in
    Section 16-106, is granted a leave of absence, provided he
    or she returns to teaching service creditable under this
    System or the State Universities Retirement System
    following the leave; (ii) periods during which a teacher is
    involuntarily laid off from teaching, provided he or she
    returns to teaching following the lay-off; (iii) periods
    prior to July 1, 1983 during which a teacher ceased covered
    employment due to pregnancy, provided that the teacher
    returned to teaching service creditable under this System
    or the State Universities Retirement System following the
    pregnancy and submits evidence satisfactory to the Board
    documenting that the employment ceased due to pregnancy;
    and (iv) periods prior to July 1, 1983 during which a
    teacher ceased covered employment for the purpose of
    adopting an infant under 3 years of age or caring for a
    newly adopted infant under 3 years of age, provided that
    the teacher returned to teaching service creditable under
    this System or the State Universities Retirement System
    following the adoption and submits evidence satisfactory
    to the Board documenting that the employment ceased for the
    purpose of adopting an infant under 3 years of age or
    caring for a newly adopted infant under 3 years of age.
    However, total credit under this paragraph (5) may not
    exceed 3 years.
        Any qualified member or annuitant may apply for credit
    under item (iii) or (iv) of this paragraph (5) without
    regard to whether service was terminated before the
    effective date of this amendatory Act of 1997. In the case
    of an annuitant who establishes credit under item (iii) or
    (iv), the annuity shall be recalculated to include the
    additional service credit. The increase in annuity shall
    take effect on the date the System receives written
    notification of the annuitant's intent to purchase the
    credit, if the required evidence is submitted and the
    required contribution paid within 60 days of that
    notification, otherwise on the first annuity payment date
    following the System's receipt of the required evidence and
    contribution. The increase in an annuity recalculated
    under this provision shall be included in the calculation
    of automatic annual increases in the annuity accruing after
    the effective date of the recalculation.
        Optional credit may be purchased under this subsection
    (b)(5) for periods during which a teacher has been granted
    a leave of absence pursuant to Section 24-13 of the School
    Code. A teacher whose service under this Article terminated
    prior to the effective date of P.A. 86-1488 shall be
    eligible to purchase such optional credit. If a teacher who
    purchases this optional credit is already receiving a
    retirement annuity under this Article, the annuity shall be
    recalculated as if the annuitant had applied for the leave
    of absence credit at the time of retirement. The difference
    between the entitled annuity and the actual annuity shall
    be credited to the purchase of the optional credit. The
    remainder of the purchase cost of the optional credit shall
    be paid on or before April 1, 1992.
        The change in this paragraph made by Public Act 86-273
    shall be applicable to teachers who retire after June 1,
    1989, as well as to teachers who are in service on that
    date.
        (6) Any days of unused and uncompensated accumulated
    sick leave earned by a teacher. The service credit granted
    under this paragraph shall be the ratio of the number of
    unused and uncompensated accumulated sick leave days to 170
    days, subject to a maximum of 2 years of service credit.
    Prior to the member's retirement, each former employer
    shall certify to the System the number of unused and
    uncompensated accumulated sick leave days credited to the
    member at the time of termination of service. The period of
    unused sick leave shall not be considered in determining
    the effective date of retirement. A member is not required
    to make contributions in order to obtain service credit for
    unused sick leave.
        Credit for sick leave shall, at retirement, be granted
    by the System for any retiring regional or assistant
    regional superintendent of schools at the rate of 6 days
    per year of creditable service or portion thereof
    established while serving as such superintendent or
    assistant superintendent.
        (7) Periods prior to February 1, 1987 served as an
    employee of the Illinois Mathematics and Science Academy
    for which credit has not been terminated under Section
    15-113.9 of this Code.
        (8) Service as a substitute teacher for work performed
    prior to July 1, 1990.
        (9) Service as a part-time teacher for work performed
    prior to July 1, 1990.
        (10) Up to 2 years of employment with Southern Illinois
    University - Carbondale from September 1, 1959 to August
    31, 1961, or with Governors State University from September
    1, 1972 to August 31, 1974, for which the teacher has no
    credit under Article 15. To receive credit under this item
    (10), a teacher must apply in writing to the Board and pay
    the required contributions before May 1, 1993 and have at
    least 12 years of service credit under this Article.
    (b-1) A member may establish optional credit for up to 2
years of service as a teacher or administrator employed by a
private school recognized by the Illinois State Board of
Education, provided that the teacher (i) was certified under
the law governing the certification of teachers at the time the
service was rendered, (ii) applies in writing on or after
August 1, 2009 June 1, 2002 and on or before August 1, 2012
June 1, 2005, (iii) supplies satisfactory evidence of the
employment, (iv) completes at least 10 years of contributing
service as a teacher as defined in Section 16-106, and (v) pays
the contribution required in subsection (d-5) of Section
16-128. The member may apply for credit under this subsection
and pay the required contribution before completing the 10
years of contributing service required under item (iv), but the
credit may not be used until the item (iv) contributing service
requirement has been met.
    (c) The service credits specified in this Section shall be
granted only if: (1) such service credits are not used for
credit in any other statutory tax-supported public employee
retirement system other than the federal Social Security
program; and (2) the member makes the required contributions as
specified in Section 16-128. Except as provided in subsection
(b-1) of this Section, the service credit shall be effective as
of the date the required contributions are completed.
    Any service credits granted under this Section shall
terminate upon cessation of membership for any cause.
    Credit may not be granted under this Section covering any
period for which an age retirement or disability retirement
allowance has been paid.
(Source: P.A. 92-867, eff. 1-3-03.)
 
    (40 ILCS 5/16-128)  (from Ch. 108 1/2, par. 16-128)
    Sec. 16-128. Creditable service - required contributions.
    (a) In order to receive the creditable service specified
under subsection (b) of Section 16-127, a member is required to
make the following contributions: (i) an amount equal to the
contributions which would have been required had such service
been rendered as a member under this System; (ii) for military
service not immediately following employment and for service
established under subdivision (b)(10) of Section 16-127, an
amount determined by the Board to be equal to the employer's
normal cost of the benefits accrued for such service; and (iii)
interest from the date the contributions would have been due
(or, in the case of a person establishing credit for military
service under subdivision (b)(3) of Section 16-127, the date of
first membership in the System, if that date is later) to the
date of payment, at the following rate of interest, compounded
annually: for periods prior to July 1, 1965, regular interest;
from July 1, 1965 to June 30, 1977, 4% per year; on and after
July 1, 1977, regular interest.
    (b) In order to receive creditable service under paragraph
(2) of subsection (b) of Section 16-127 for those who were not
members on June 30, 1963, the minimum required contribution
shall be $420 per year of service together with interest at 4%
per year compounded annually from July 1, preceding the date of
membership until June 30, 1977 and at regular interest
compounded annually thereafter to the date of payment.
    (c) In determining the contribution required in order to
receive creditable service under paragraph (3) of subsection
(b) of Section 16-127, the salary rate for the remainder of the
school term in which a member enters military service shall be
assumed to be equal to the member's salary rate at the time of
entering military service. However, for military service not
immediately following employment, the salary rate on the last
date as a participating teacher prior to such military service,
or on the first date as a participating teacher after such
military service, whichever is greater, shall be assumed to be
equal to the member's salary rate at the time of entering
military service. For each school term thereafter, the member's
salary rate shall be assumed to be 5% higher than the salary
rate in the previous school term.
    (d) In determining the contribution required in order to
receive creditable service under paragraph (5) of subsection
(b) of Section 16-127, a member's salary rate during the period
for which credit is being established shall be assumed to be
equal to the member's last salary rate immediately preceding
that period.
    (d-5) For each year of service credit to be established
under subsection (b-1) of Section 16-127, a member is required
to contribute to the System (i) the employee and employer
contribution that would have been required had such service
been rendered as a member based on the annual salary rate
during the first year of full-time employment as a teacher
under this Article following the private or parochial school
service, plus (ii) interest thereon at the actuarially assumed
rate from the date of first full-time employment as a teacher
under this Article following the private or parochial school
service to the date of payment, compounded annually, at a rate
determined by the Board (i) 16.5% of the annual salary rate
during the first year of full-time employment as a teacher
under this Article following the private school service, plus
(ii) interest thereon from the date of first full-time
employment as a teacher under this Article following the
private school service to the date of payment, compounded
annually, at the rate of 8.5% per year for periods before the
effective date of this amendatory Act of the 92nd General
Assembly, and for subsequent periods at a rate equal to the
System's actuarially assumed rate of return on investments.
    (d-10) For service credit established under paragraph (6)
of subsection (b) of Section 16-127 for days granted by an
employer in excess of the member's normal annual sick leave
allotment, the employer is required to pay the normal cost of
benefits based upon such service credit. This subsection (d-10)
does not apply to sick leave granted to teachers under
contracts or collective bargaining agreements entered into,
amended, or renewed before June 1, 2005 (the effective date of
Public Act 94-4). The employer contributions required under
this subsection (d-10) shall be paid in the form of a lump sum
within 30 days after receipt of the bill after the teacher
begins receiving benefits under this Article.
    (e) Except for contributions under subsection (d-10), the
contributions required under this Section may be made from the
date the statement for such creditable service is issued until
retirement date. All such required contributions must be made
before any retirement annuity is granted.
(Source: P.A. 94-4, eff. 6-1-05; 94-1057, eff. 7-31-06.)
 
    Section 99. Effective date. This Act takes effect upon
becoming law.