Bill Text: IL HB1297 | 2023-2024 | 103rd General Assembly | Chaptered


Bill Title: Amends the Downstate Teacher Article of the Illinois Pension Code. Provides that 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, 2028 (instead of June 30, 2023), (iii) supplies satisfactory evidence of the employment, (iv) completes at least 10 years of contributing service as a teacher, and (v) pays the required contribution. Effective immediately.

Spectrum: Moderate Partisan Bill (Republican 10-3)

Status: (Passed) 2023-06-09 - Public Act . . . . . . . . . 103-0017 [HB1297 Detail]

Download: Illinois-2023-HB1297-Chaptered.html



Public Act 103-0017
HB1297 EnrolledLRB103 25566 RPS 51915 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 Section 16-127 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 before
June 30, 2028 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.)
Section 99. Effective date. This Act takes effect upon
becoming law.
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