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92_HB5169sam001
LRB9212222EGfgam03
1 AMENDMENT TO HOUSE BILL 5169
2 AMENDMENT NO. . Amend House Bill 5169 by replacing
3 everything after the enacting clause with the following:
4 "Section 5. The Illinois Pension Code is amended by
5 changing Sections 16-127 and 16-128 as follows:
6 (40 ILCS 5/16-127) (from Ch. 108 1/2, par. 16-127)
7 Sec. 16-127. Computation of creditable service.
8 (a) Each member shall receive regular credit for all
9 service as a teacher from the date membership begins, for
10 which satisfactory evidence is supplied and all contributions
11 have been paid.
12 (b) The following periods of service shall earn optional
13 credit and each member shall receive credit for all such
14 service for which satisfactory evidence is supplied and all
15 contributions have been paid as of the date specified:
16 (1) Prior service as a teacher.
17 (2) Service in a capacity essentially similar or
18 equivalent to that of a teacher, in the public common
19 schools in school districts in this State not included
20 within the provisions of this System, or of any other
21 State, territory, dependency or possession of the United
22 States, or in schools operated by or under the auspices
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1 of the United States, or under the auspices of any agency
2 or department of any other State, and service during any
3 period of professional speech correction or special
4 education experience for a public agency within this
5 State or any other State, territory, dependency or
6 possession of the United States, and service prior to
7 February 1, 1951 as a recreation worker for the Illinois
8 Department of Public Safety, for a period not exceeding
9 the lesser of 2/5 of the total creditable service of the
10 member or 10 years. The maximum service of 10 years
11 which is allowable under this paragraph shall be reduced
12 by the service credit which is validated by other
13 retirement systems under paragraph (i) of Section 15-113
14 and paragraph 1 of Section 17-133. Credit granted under
15 this paragraph may not be used in determination of a
16 retirement annuity or disability benefits unless the
17 member has at least 5 years of creditable service earned
18 subsequent to this employment with one or more of the
19 following systems: Teachers' Retirement System of the
20 State of Illinois, State Universities Retirement System,
21 and the Public School Teachers' Pension and Retirement
22 Fund of Chicago. Whenever such service credit exceeds
23 the maximum allowed for all purposes of this Article, the
24 first service rendered in point of time shall be
25 considered. The changes to this subdivision (b)(2) made
26 by Public Act 86-272 shall apply not only to persons who
27 on or after its effective date (August 23, 1989) are in
28 service as a teacher under the System, but also to
29 persons whose status as such a teacher terminated prior
30 to such effective date, whether or not such person is an
31 annuitant on that date.
32 (3) Any periods immediately following teaching
33 service, under this System or under Article 17, (or
34 immediately following service prior to February 1, 1951
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1 as a recreation worker for the Illinois Department of
2 Public Safety) spent in active service with the military
3 forces of the United States; periods spent in educational
4 programs that prepare for return to teaching sponsored by
5 the federal government following such active military
6 service; if a teacher returns to teaching service within
7 one calendar year after discharge or after the completion
8 of the educational program, a further period, not
9 exceeding one calendar year, between time spent in
10 military service or in such educational programs and the
11 return to employment as a teacher under this System; and
12 a period of up to 2 years of active military service not
13 immediately following employment as a teacher.
14 The changes to this Section and Section 16-128
15 relating to military service made by P.A. 87-794 shall
16 apply not only to persons who on or after its effective
17 date are in service as a teacher under the System, but
18 also to persons whose status as a teacher terminated
19 prior to that date, whether or not the person is an
20 annuitant on that date. In the case of an annuitant who
21 applies for credit allowable under this Section for a
22 period of military service that did not immediately
23 follow employment, and who has made the required
24 contributions for such credit, the annuity shall be
25 recalculated to include the additional service credit,
26 with the increase taking effect on the date the System
27 received written notification of the annuitant's intent
28 to purchase the credit, if payment of all the required
29 contributions is made within 60 days of such notice, or
30 else on the first annuity payment date following the date
31 of payment of the required contributions. In calculating
32 the automatic annual increase for an annuity that has
33 been recalculated under this Section, the increase
34 attributable to the additional service allowable under
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1 P.A. 87-794 shall be included in the calculation of
2 automatic annual increases accruing after the effective
3 date of the recalculation.
4 Credit for military service shall be determined as
5 follows: if entry occurs during the months of July,
6 August, or September and the member was a teacher at the
7 end of the immediately preceding school term, credit
8 shall be granted from July 1 of the year in which he or
9 she entered service; if entry occurs during the school
10 term and the teacher was in teaching service at the
11 beginning of the school term, credit shall be granted
12 from July 1 of such year. In all other cases where credit
13 for military service is allowed, credit shall be granted
14 from the date of entry into the service.
15 The total period of military service for which
16 credit is granted shall not exceed 5 years for any member
17 unless the service: (A) is validated before July 1,
18 1964, and (B) does not extend beyond July 1, 1963.
19 Credit for military service shall be granted under this
20 Section only if not more than 5 years of the military
21 service for which credit is granted under this Section is
22 used by the member to qualify for a military retirement
23 allotment from any branch of the armed forces of the
24 United States. The changes to this subdivision (b)(3)
25 made by Public Act 86-272 shall apply not only to persons
26 who on or after its effective date (August 23, 1989) are
27 in service as a teacher under the System, but also to
28 persons whose status as such a teacher terminated prior
29 to such effective date, whether or not such person is an
30 annuitant on that date.
31 (4) Any periods served as a member of the General
32 Assembly.
33 (5)(i) Any periods for which a teacher, as defined
34 in Section 16-106, is granted a leave of absence,
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1 provided he or she returns to teaching service creditable
2 under this System or the State Universities Retirement
3 System following the leave; (ii) periods during which a
4 teacher is involuntarily laid off from teaching, provided
5 he or she returns to teaching following the lay-off;
6 (iii) periods prior to July 1, 1983 during which a
7 teacher ceased covered employment due to pregnancy,
8 provided that the teacher returned to teaching service
9 creditable under this System or the State Universities
10 Retirement System following the pregnancy and submits
11 evidence satisfactory to the Board documenting that the
12 employment ceased due to pregnancy; and (iv) periods
13 prior to July 1, 1983 during which a teacher ceased
14 covered employment for the purpose of adopting an infant
15 under 3 years of age or caring for a newly adopted infant
16 under 3 years of age, provided that the teacher returned
17 to teaching service creditable under this System or the
18 State Universities Retirement System following the
19 adoption and submits evidence satisfactory to the Board
20 documenting that the employment ceased for the purpose of
21 adopting an infant under 3 years of age or caring for a
22 newly adopted infant under 3 years of age. However,
23 total credit under this paragraph (5) may not exceed 3
24 years.
25 Any qualified member or annuitant may apply for
26 credit under item (iii) or (iv) of this paragraph (5)
27 without regard to whether service was terminated before
28 the effective date of this amendatory Act of 1997. In
29 the case of an annuitant who establishes credit under
30 item (iii) or (iv), the annuity shall be recalculated to
31 include the additional service credit. The increase in
32 annuity shall take effect on the date the System receives
33 written notification of the annuitant's intent to
34 purchase the credit, if the required evidence is
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1 submitted and the required contribution paid within 60
2 days of that notification, otherwise on the first annuity
3 payment date following the System's receipt of the
4 required evidence and contribution. The increase in an
5 annuity recalculated under this provision shall be
6 included in the calculation of automatic annual increases
7 in the annuity accruing after the effective date of the
8 recalculation.
9 Optional credit may be purchased under this
10 subsection (b)(5) for periods during which a teacher has
11 been granted a leave of absence pursuant to Section 24-13
12 of the School Code. A teacher whose service under this
13 Article terminated prior to the effective date of P.A.
14 86-1488 shall be eligible to purchase such optional
15 credit. If a teacher who purchases this optional credit
16 is already receiving a retirement annuity under this
17 Article, the annuity shall be recalculated as if the
18 annuitant had applied for the leave of absence credit at
19 the time of retirement. The difference between the
20 entitled annuity and the actual annuity shall be credited
21 to the purchase of the optional credit. The remainder of
22 the purchase cost of the optional credit shall be paid on
23 or before April 1, 1992.
24 The change in this paragraph made by Public Act
25 86-273 shall be applicable to teachers who retire after
26 June 1, 1989, as well as to teachers who are in service
27 on that date.
28 (6) Any days of unused and uncompensated
29 accumulated sick leave earned by a teacher. The service
30 credit granted under this paragraph shall be the ratio of
31 the number of unused and uncompensated accumulated sick
32 leave days to 170 days, subject to a maximum of 2 years
33 one year of service credit. Prior to the member's
34 retirement, each former employer shall certify to the
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1 System the number of unused and uncompensated accumulated
2 sick leave days credited to the member at the time of
3 termination of service. The period of unused sick leave
4 shall not be considered in determining the effective date
5 of retirement. A member is not required to make
6 contributions in order to obtain service credit for
7 unused sick leave.
8 Credit for sick leave shall, at retirement, be
9 granted by the System for any retiring regional or
10 assistant regional superintendent of schools at the rate
11 of 6 days per year of creditable service or portion
12 thereof established while serving as such superintendent
13 or assistant superintendent.
14 (7) Periods prior to February 1, 1987 served as an
15 employee of the Illinois Mathematics and Science Academy
16 for which credit has not been terminated under Section
17 15-113.9 of this Code.
18 (8) Service as a substitute teacher for work
19 performed prior to July 1, 1990.
20 (9) Service as a part-time teacher for work
21 performed prior to July 1, 1990.
22 (10) Up to 2 years of employment with Southern
23 Illinois University - Carbondale from September 1, 1959
24 to August 31, 1961, or with Governors State University
25 from September 1, 1972 to August 31, 1974, for which the
26 teacher has no credit under Article 15. To receive
27 credit under this item (10), a teacher must apply in
28 writing to the Board and pay the required contributions
29 before May 1, 1993 and have at least 12 years of service
30 credit under this Article.
31 (b-1) A member may establish optional credit for up to 2
32 years of service as a teacher or administrator employed by a
33 private school recognized by the Illinois State Board of
34 Education, provided that the teacher (i) was certified under
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1 the law governing the certification of teachers at the time
2 the service was rendered, (ii) applies in writing on or after
3 June 1, 2002 and on or before June 1, 2005, (iii) supplies
4 satisfactory evidence of the employment, (iv) completes at
5 least 10 years of contributing service as a teacher as
6 defined in Section 16-106, and (v) pays the contribution
7 required in subsection (d-5) of Section 16-128. The member
8 may apply for credit under this subsection and pay the
9 required contribution before completing the 10 years of
10 contributing service required under item (iv), but the credit
11 may not be used until the item (iv) contributing service
12 requirement has been met.
13 (c) The service credits specified in this Section shall
14 be granted only if: (1) such service credits are not used for
15 credit in any other statutory tax-supported public employee
16 retirement system other than the federal Social Security
17 program; and (2) the member makes the required contributions
18 as specified in Section 16-128. Except as provided in
19 subsection (b-1) of this Section, the service credit shall be
20 effective as of the date the required contributions are
21 completed.
22 Any service credits granted under this Section shall
23 terminate upon cessation of membership for any cause.
24 Credit may not be granted under this Section covering any
25 period for which an age retirement or disability retirement
26 allowance has been paid.
27 (Source: P.A. 89-430, eff. 12-15-95; 90-32, eff. 6-27-97.)
28 (40 ILCS 5/16-128) (from Ch. 108 1/2, par. 16-128)
29 Sec. 16-128. Creditable service - required
30 contributions.
31 (a) In order to receive the creditable service specified
32 under subsection (b) of Section 16-127, a member is required
33 to make the following contributions: (i) an amount equal to
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1 the contributions which would have been required had such
2 service been rendered as a member under this System; (ii) for
3 military service not immediately following employment and for
4 service established under subdivision (b)(10) of Section
5 16-127, an amount determined by the Board to be equal to the
6 employer's normal cost of the benefits accrued for such
7 service; and (iii) interest from the date the contributions
8 would have been due (or, in the case of a person establishing
9 credit for military service under subdivision (b)(3) of
10 Section 16-127, the date of first membership in the System,
11 if that date is later) to the date of payment, at the
12 following rate of interest, compounded annually: for periods
13 prior to July 1, 1965, regular interest; from July 1, 1965 to
14 June 30, 1977, 4% per year; on and after July 1, 1977,
15 regular interest.
16 (b) In order to receive creditable service under
17 paragraph (2) of subsection (b) of Section 16-127 for those
18 who were not members on June 30, 1963, the minimum required
19 contribution shall be $420 per year of service together with
20 interest at 4% per year compounded annually from July 1,
21 preceding the date of membership until June 30, 1977 and at
22 regular interest compounded annually thereafter to the date
23 of payment.
24 (c) In determining the contribution required in order to
25 receive creditable service under paragraph (3) of subsection
26 (b) of Section 16-127, the salary rate for the remainder of
27 the school term in which a member enters military service
28 shall be assumed to be equal to the member's salary rate at
29 the time of entering military service. However, for military
30 service not immediately following employment, the salary rate
31 on the last date as a participating teacher prior to such
32 military service, or on the first date as a participating
33 teacher after such military service, whichever is greater,
34 shall be assumed to be equal to the member's salary rate at
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1 the time of entering military service. For each school term
2 thereafter, the member's salary rate shall be assumed to be
3 5% higher than the salary rate in the previous school term.
4 (d) In determining the contribution required in order to
5 receive creditable service under paragraph (5) of subsection
6 (b) of Section 16-127, a member's salary rate during the
7 period for which credit is being established shall be assumed
8 to be equal to the member's last salary rate immediately
9 preceding that period.
10 (d-5) For each year of service credit to be established
11 under subsection (b-1) of Section 16-127, a member is
12 required to contribute to the System (i) 16.5% of the annual
13 salary rate during the first year of full-time employment as
14 a teacher under this Article following the private school
15 service, plus (ii) interest thereon from the date of first
16 full-time employment as a teacher under this Article
17 following the private school service to the date of payment,
18 compounded annually, at the rate of 8.5% per year for periods
19 before the effective date of this amendatory Act of the 92nd
20 General Assembly, and for subsequent periods at a rate equal
21 to the System's actuarially assumed rate of return on
22 investments.
23 (e) The contributions required under this Section may be
24 made from the date the statement for such creditable service
25 is issued until retirement date. All such required
26 contributions must be made before any retirement annuity is
27 granted.
28 (Source: P.A. 89-430, eff. 12-15-95.)
29 Section 99. Effective date. This Act takes effect upon
30 becoming law.".