Public Act 103-0525
 
HB2147 EnrolledLRB103 25501 RPS 51850 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 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.

Effective Date: 8/11/2023