Public Act 103-0525
Public Act 0525 103RD GENERAL ASSEMBLY
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Public Act 103-0525
| | HB2147 Enrolled | LRB103 25501 RPS 51850 b |
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| 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 adding | Section 8-108.3 and by changing Sections 16-118, 16-127, and | 16-132 as follows:
| (40 ILCS 5/8-108.3 new) | Sec. 8-108.3. Credit for service as a part-time employee | of the Board of Education of the city. An employee of the Board | of Education of the city, regardless of his or her position, | may establish up to 2 years of service credit in the Fund for | part-time employment with the Board of Education of the city | prior to becoming an employee by applying no later than 6 | months after the effective date of this amendatory Act of the | 103rd General Assembly and paying to the Fund for that | employment an amount equal to the (1) employee contributions | based on the actual compensation received and the rate of | contribution in effect on the date of payment; plus (2) an | amount representing employer contributions determined by the | retirement board; plus (3) interest at the effective rate from | the date of service to the date of payment. However, service | credit shall not be granted under this Section for any such | prior employment for which the applicant received credit under |
| any other provision of this Code or during which the applicant | was on a leave of absence.
| (40 ILCS 5/16-118) (from Ch. 108 1/2, par. 16-118)
| Sec. 16-118. Retirement. "Retirement": Entry upon a | retirement annuity
or receipt of a single-sum retirement | benefit granted under this Article
after termination of active | service as a teacher.
| (a) An annuitant receiving a retirement annuity other than | a disability
retirement annuity may accept employment as a | teacher from a school board
or other employer specified in | Section 16-106 without impairing retirement
status, if that | employment: | (1) is not within the school year during which
service | was terminated; and | (2) does not exceed the following: | (i) before July 1, 2001, 100 paid days or 500 paid
| hours in any school year; | (ii) during the period beginning July 1, 2001 | through
June 30, 2011, 120 paid days or 600 paid hours | in each school year; | (iii) during the period beginning July 1, 2011 | through
June 30, 2018, 100 paid days or 500 paid hours | in each school year; | (iv) beginning July 1, 2018 through June 30, 2026 | 2023, 120 paid days or 600 paid hours in each school |
| year, but not more than 100 paid days in the same | classroom; | (v) (blank); and during the period between July 1, | 2021 and June 30, 2022, an additional 20 paid days or | 100 paid hours shall be added to item (iv) of this | paragraph (2) to assist with addressing the substitute | teacher shortage that has been exacerbated by the | ongoing global pandemic; and | (vi) beginning July 1, 2026 2023, 100 paid days or | 500 paid hours in each school year. | Where
such permitted employment is partly on a daily and | partly on an hourly basis,
a day shall be considered as 5 | hours.
| (b) Subsection (a) does not apply to an annuitant who | returns to teaching
under the program established in Section | 16-150.1, for the duration of his or
her participation in that | program.
| (Source: P.A. 101-645, eff. 6-26-20; 102-537, eff. 8-20-21; | 102-709, eff. 4-22-22.)
| (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.
| (11) Periods of service as a student teacher as | described in Section 24-8.5 of the School Code for which | the student teacher received a salary. |
| (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 before | June 30, 2023, (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.
| Credit may not be granted under this Section for service | as an employee of an entity that provides substitute teaching | services under Section 2-3.173 of the School Code and is not a | school district. | (Source: P.A. 102-525, eff. 8-20-21.)
| (40 ILCS 5/16-132) (from Ch. 108 1/2, par. 16-132)
| Sec. 16-132. Retirement annuity eligibility. A member who | has at least 20 years of creditable service is entitled to a
| retirement annuity upon or after attainment of age 55.
A | member who has at least 10 but less than 20 years of creditable | service is
entitled to a retirement annuity upon or after | attainment of age 60.
A member who has at least 5 but less than | 10 years of creditable service is
entitled to a retirement | annuity upon or after attainment of age 62.
A member who (i) | has earned during the period immediately preceding the last
| day of service at least one year of contributing creditable | service as an
employee of a department as defined in Section | 14-103.04, (ii) has earned at
least 5 years of contributing | creditable service as an employee of a department
as defined | in Section 14-103.04, and (iii) retires on or after January 1, | 2001
is entitled to a retirement annuity upon or after | attainment of an age which,
when added to the number of years |
| of his or her total creditable service,
equals at least 85. | Portions of years shall be counted as decimal equivalents.
| A member who is eligible to receive a retirement annuity | of at least 74.6% of
final average salary and will attain age | 55 on or before December 31 during the
year which commences on | July 1 shall be deemed to attain age 55 on the
preceding June | 1.
| A member meeting the above eligibility conditions is | entitled to a retirement
annuity upon written application to | the board setting forth the date the member
wishes the | retirement annuity to commence. However, the effective date of | the
retirement annuity shall be no earlier than the day | following the last day of
creditable service, regardless of | the date of official termination of
employment; however, upon | written application within 6 months after the effective date | of this amendatory Act of the 103rd General Assembly by a | member or annuitant, the creditable service and earnings | received in the last fiscal year of employment may be | disregarded when determining the retirement effective date and | the retirement benefit except that the effective date of a | retirement annuity may be after the date of official | termination of employment as long as such employment is for | (1) less than 10 days in length; and (2) less than $2,500 | $2,000 in creditable earnings; and (3) the last fiscal year of | employment includes only a fiscal year beginning on or after | July 1, 2016 and ending before June 30,2023 compensation. The |
| retirement effective date may not, as a result of the | application of this amendatory Act of the 103rd General | Assembly, be earlier than July 1, 2016.
| To be eligible for a retirement annuity, a member shall | not be employed
as a teacher in the schools included under this | System or under Article 17,
except (i) as provided in Section | 16-118 or 16-150.1, (ii) if
the member is disabled (in which | event, eligibility for salary must cease),
or (iii) if the | System is required by federal law to commence
payment due to | the member's age; the changes to this sentence made by this
| amendatory Act of the 93rd General Assembly apply without
| regard to whether the member terminated employment before or | after its
effective date.
| (Source: P.A. 102-871, eff. 5-13-22.)
| Section 99. Effective date. This Act takes effect upon | becoming law.
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Effective Date: 8/11/2023
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