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Public Act 92-0867
HB5169 Enrolled LRB9212222EGfg
AN ACT in relation to 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
one year 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
June 1, 2002 and on or before 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. 89-430, eff. 12-15-95; 90-32, eff. 6-27-97.)
(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) 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.
(e) 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. 89-430, eff. 12-15-95.)
Section 99. Effective date. This Act takes effect upon
becoming law.
Passed in the General Assembly December 05, 2002.
Approved January 03, 2003.
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