Bill Text: IL HB3857 | 2011-2012 | 97th General Assembly | Introduced

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Bill Title: Amends the Illinois Pension Code. Amends various Articles of the Code to provide that participants under those Articles are only entitled to creditable service for periods of service with a labor organization if the employee and employer contributions for the service are received by the Fund before the effective date of the amendatory Act. Amends the IMRF Article of the Illinois Pension Code to provide that the Illinois Municipal League and the Will County Governmental League are participating instrumentalities only with respect to service on or before the effective date of the amendatory Act. Effective immediately.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Failed) 2013-01-08 - Session Sine Die [HB3857 Detail]

Download: Illinois-2011-HB3857-Introduced.html

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97TH GENERAL ASSEMBLY State of Illinois 2011 and 2012 HB3857 Introduced , by Rep. Richard Morthland SYNOPSIS AS INTRODUCED:
40 ILCS 5/3-110 from Ch. 108 1/2, par. 3-110
40 ILCS 5/4-108 from Ch. 108 1/2, par. 4-108
40 ILCS 5/5-214 from Ch. 108 1/2, par. 5-214
40 ILCS 5/6-209 from Ch. 108 1/2, par. 6-209
40 ILCS 5/7-132 from Ch. 108 1/2, par. 7-132
40 ILCS 5/8-226 from Ch. 108 1/2, par. 8-226
40 ILCS 5/11-215 from Ch. 108 1/2, par. 11-215
40 ILCS 5/15-107 from Ch. 108 1/2, par. 15-107
40 ILCS 5/16-106 from Ch. 108 1/2, par. 16-106
40 ILCS 5/17-134 from Ch. 108 1/2, par. 17-134
Amends the Illinois Pension Code. Amends various Articles of the Code to provide that participants under those Articles are only entitled to creditable service for periods of service with a labor organization if the employee and employer contributions for the service are received by the Fund before the effective date of the amendatory Act. Amends the IMRF Article of the Illinois Pension Code to provide that the Illinois Municipal League and the Will County Governmental League are participating instrumentalities only with respect to service on or before the effective date of the amendatory Act. Effective immediately.
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FISCAL NOTE ACT MAY APPLY PENSION IMPACT NOTE ACT MAY APPLY
A BILL FOR
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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 changing
Sections 3-110, 4-108, 5-214, 6-209, 7-132, 8-226, 11-215,
15-107, 16-106, and 17-134 as follows:
(40 ILCS 5/3-110) (from Ch. 108 1/2, par. 3-110)
Sec. 3-110. Creditable service.
(a) "Creditable service" is the time served by a police
officer as a member of a regularly constituted police force of
a municipality. In computing creditable service furloughs
without pay exceeding 30 days shall not be counted, but all
leaves of absence for illness or accident, regardless of
length, and all periods of disability retirement for which a
police officer has received no disability pension payments
under this Article shall be counted.
(a-5) Up to 3 years of time during which the police officer
receives a disability pension under Section 3-114.1, 3-114.2,
3-114.3, or 3-114.6 shall be counted as creditable service,
provided that (i) the police officer returns to active service
after the disability for a period at least equal to the period
for which credit is to be established and (ii) the police
officer makes contributions to the fund based on the rates

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specified in Section 3-125.1 and the salary upon which the
disability pension is based. These contributions may be paid at
any time prior to the commencement of a retirement pension. The
police officer may, but need not, elect to have the
contributions deducted from the disability pension or to pay
them in installments on a schedule approved by the board. If
not deducted from the disability pension, the contributions
shall include interest at the rate of 6% per year, compounded
annually, from the date for which service credit is being
established to the date of payment. If contributions are paid
under this subsection (a-5) in excess of those needed to
establish the credit, the excess shall be refunded. This
subsection (a-5) applies to persons receiving a disability
pension under Section 3-114.1, 3-114.2, 3-114.3, or 3-114.6 on
the effective date of this amendatory Act of the 91st General
Assembly, as well as persons who begin to receive such a
disability pension after that date.
(b) Creditable service includes all periods of service in
the military, naval or air forces of the United States entered
upon while an active police officer of a municipality, provided
that upon applying for a permanent pension, and in accordance
with the rules of the board, the police officer pays into the
fund the amount the officer would have contributed if he or she
had been a regular contributor during such period, to the
extent that the municipality which the police officer served
has not made such contributions in the officer's behalf. The

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total amount of such creditable service shall not exceed 5
years, except that any police officer who on July 1, 1973 had
more than 5 years of such creditable service shall receive the
total amount thereof.
(b-5) Creditable service includes all periods of service in
the military, naval, or air forces of the United States entered
upon before beginning service as an active police officer of a
municipality, provided that, in accordance with the rules of
the board, the police officer pays into the fund the amount the
police officer would have contributed if he or she had been a
regular contributor during such period, plus an amount
determined by the Board to be equal to the municipality's
normal cost of the benefit, plus interest at the actuarially
assumed rate calculated from the date the employee last became
a police officer under this Article. The total amount of such
creditable service shall not exceed 2 years.
(c) Creditable service also includes service rendered by a
police officer while on leave of absence from a police
department to serve as an executive of an organization whose
membership consists of members of a police department, subject
to the following conditions: (i) the police officer is a
participant of a fund established under this Article with at
least 10 years of service as a police officer; (ii) the police
officer received no credit for such service under any other
retirement system, pension fund, or annuity and benefit fund
included in this Code; (iii) pursuant to the rules of the board

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the police officer pays to the fund the amount he or she would
have contributed had the officer been an active member of the
police department; and (iv) the organization pays a
contribution equal to the municipality's normal cost for that
period of service; and (v) the employee and employer
contributions for the service are received by the fund before
the effective date of this amendatory Act of the 97th General
Assembly.
(d)(1) Creditable service also includes periods of
service originally established in another police pension
fund under this Article or in the Fund established under
Article 7 of this Code for which (i) the contributions have
been transferred under Section 3-110.7 or Section 7-139.9
and (ii) any additional contribution required under
paragraph (2) of this subsection has been paid in full in
accordance with the requirements of this subsection (d).
(2) If the board of the pension fund to which
creditable service and related contributions are
transferred under Section 7-139.9 determines that the
amount transferred is less than the true cost to the
pension fund of allowing that creditable service to be
established, then in order to establish that creditable
service the police officer must pay to the pension fund,
within the payment period specified in paragraph (3) of
this subsection, an additional contribution equal to the
difference, as determined by the board in accordance with

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the rules and procedures adopted under paragraph (6) of
this subsection. If the board of the pension fund to which
creditable service and related contributions are
transferred under Section 3-110.7 determines that the
amount transferred is less than the true cost to the
pension fund of allowing that creditable service to be
established, then the police officer may elect (A) to
establish that creditable service by paying to the pension
fund, within the payment period specified in paragraph (3)
of this subsection (d), an additional contribution equal to
the difference, as determined by the board in accordance
with the rules and procedures adopted under paragraph (6)
of this subsection (d) or (B) to have his or her creditable
service reduced by an amount equal to the difference
between the amount transferred under Section 3-110.7 and
the true cost to the pension fund of allowing that
creditable service to be established, as determined by the
board in accordance with the rules and procedures adopted
under paragraph (6) of this subsection (d).
(3) Except as provided in paragraph (4), the additional
contribution that is required or elected under paragraph
(2) of this subsection (d) must be paid to the board (i)
within 5 years from the date of the transfer of
contributions under Section 3-110.7 or 7-139.9 and (ii)
before the police officer terminates service with the fund.
The additional contribution may be paid in a lump sum or in

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accordance with a schedule of installment payments
authorized by the board.
(4) If the police officer dies in service before
payment in full has been made and before the expiration of
the 5-year payment period, the surviving spouse of the
officer may elect to pay the unpaid amount on the officer's
behalf within 6 months after the date of death, in which
case the creditable service shall be granted as though the
deceased police officer had paid the remaining balance on
the day before the date of death.
(5) If the additional contribution that is required or
elected under paragraph (2) of this subsection (d) is not
paid in full within the required time, the creditable
service shall not be granted and the police officer (or the
officer's surviving spouse or estate) shall be entitled to
receive a refund of (i) any partial payment of the
additional contribution that has been made by the police
officer and (ii) those portions of the amounts transferred
under subdivision (a)(1) of Section 3-110.7 or
subdivisions (a)(1) and (a)(3) of Section 7-139.9 that
represent employee contributions paid by the police
officer (but not the accumulated interest on those
contributions) and interest paid by the police officer to
the prior pension fund in order to reinstate service
terminated by acceptance of a refund.
At the time of paying a refund under this item (5), the

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pension fund shall also repay to the pension fund from
which the contributions were transferred under Section
3-110.7 or 7-139.9 the amount originally transferred under
subdivision (a)(2) of that Section, plus interest at the
rate of 6% per year, compounded annually, from the date of
the original transfer to the date of repayment. Amounts
repaid to the Article 7 fund under this provision shall be
credited to the appropriate municipality.
Transferred credit that is not granted due to failure
to pay the additional contribution within the required time
is lost; it may not be transferred to another pension fund
and may not be reinstated in the pension fund from which it
was transferred.
(6) The Public Employee Pension Fund Division of the
Department of Insurance shall establish by rule the manner
of making the calculation required under paragraph (2) of
this subsection, taking into account the appropriate
actuarial assumptions; the police officer's service, age,
and salary history; the level of funding of the pension
fund to which the credits are being transferred; and any
other factors that the Division determines to be relevant.
The rules may require that all calculations made under
paragraph (2) be reported to the Division by the board
performing the calculation, together with documentation of
the creditable service to be transferred, the amounts of
contributions and interest to be transferred, the manner in

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which the calculation was performed, the numbers relied
upon in making the calculation, the results of the
calculation, and any other information the Division may
deem useful.
(e)(1) Creditable service also includes periods of
service originally established in the Fund established
under Article 7 of this Code for which the contributions
have been transferred under Section 7-139.11.
(2) If the board of the pension fund to which
creditable service and related contributions are
transferred under Section 7-139.11 determines that the
amount transferred is less than the true cost to the
pension fund of allowing that creditable service to be
established, then the amount of creditable service the
police officer may establish under this subsection (e)
shall be reduced by an amount equal to the difference, as
determined by the board in accordance with the rules and
procedures adopted under paragraph (3) of this subsection.
(3) The Public Pension Division of the Department of
Financial and Professional Regulation shall establish by
rule the manner of making the calculation required under
paragraph (2) of this subsection, taking into account the
appropriate actuarial assumptions; the police officer's
service, age, and salary history; the level of funding of
the pension fund to which the credits are being
transferred; and any other factors that the Division

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determines to be relevant. The rules may require that all
calculations made under paragraph (2) be reported to the
Division by the board performing the calculation, together
with documentation of the creditable service to be
transferred, the amounts of contributions and interest to
be transferred, the manner in which the calculation was
performed, the numbers relied upon in making the
calculation, the results of the calculation, and any other
information the Division may deem useful.
(4) Until January 1, 2010, a police officer who
transferred service from the Fund established under
Article 7 of this Code under the provisions of Public Act
94-356 may establish additional credit, but only for the
amount of the service credit reduction in that transfer, as
calculated under paragraph (3) of this subsection (e). This
credit may be established upon payment by the police
officer of an amount to be determined by the board, equal
to (1) the amount that would have been contributed as
employee and employer contributions had all of the service
been as an employee under this Article, plus interest
thereon at the rate of 6% per year, compounded annually
from the date of service to the date of transfer, less (2)
the total amount transferred from the Article 7 Fund, plus
(3) interest on the difference at the rate of 6% per year,
compounded annually, from the date of the transfer to the
date of payment. The additional service credit is allowed

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under this amendatory Act of the 95th General Assembly
notwithstanding the provisions of Article 7 terminating
all transferred credits on the date of transfer.
(Source: P.A. 95-812, eff. 8-13-08; 96-297, eff. 8-11-09;
96-1260, eff. 7-23-10.)
(40 ILCS 5/4-108) (from Ch. 108 1/2, par. 4-108)
Sec. 4-108. Creditable service.
(a) Creditable service is the time served as a firefighter
of a municipality. In computing creditable service, furloughs
and leaves of absence without pay exceeding 30 days in any one
year shall not be counted, but leaves of absence for illness or
accident regardless of length, and periods of disability for
which a firefighter received no disability pension payments
under this Article, shall be counted.
(b) Furloughs and leaves of absence of 30 days or less in
any one year may be counted as creditable service, if the
firefighter makes the contribution to the fund that would have
been required had he or she not been on furlough or leave of
absence. To qualify for this creditable service, the
firefighter must pay the required contributions to the fund not
more than 90 days subsequent to the termination of the furlough
or leave of absence, to the extent that the municipality has
not made such contribution on his or her behalf.
(c) Creditable service includes:
(1) Service in the military, naval or air forces of the

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United States entered upon when the person was an active
firefighter, provided that, upon applying for a permanent
pension, and in accordance with the rules of the board the
firefighter pays into the fund the amount that would have
been contributed had he or she been a regular contributor
during such period of service, if and to the extent that
the municipality which the firefighter served made no such
contributions in his or her behalf. The total amount of
such creditable service shall not exceed 5 years, except
that any firefighter who on July 1, 1973 had more than 5
years of such creditable service shall receive the total
amount thereof as of that date.
(1.5) Up to 24 months of service in the military,
naval, or air forces of the United States that was served
prior to employment by a municipality or fire protection
district as a firefighter. To receive the credit for the
military service prior to the employment as a firefighter,
the firefighter must apply in writing to the fund and must
make contributions to the fund equal to (i) the employee
contributions that would have been required had the service
been rendered as a member, plus (ii) an amount determined
by the fund to be equal to the employer's normal cost of
the benefits accrued for that military service, plus (iii)
interest at the actuarially assumed rate provided by the
Department of Financial and Professional Regulation,
compounded annually from the first date of membership in

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the fund to the date of payment on items (i) and (ii). The
changes to this paragraph (1.5) by this amendatory Act of
the 95th General Assembly apply only to participating
employees in service on or after its effective date.
(2) Service prior to July 1, 1976 by a firefighter
initially excluded from participation by reason of age who
elected to participate and paid the required contributions
for such service.
(3) Up to 8 years of service by a firefighter as an
officer in a statewide firefighters' association when he is
on a leave of absence from a municipality's payroll,
provided that (i) the firefighter has at least 10 years of
creditable service as an active firefighter, (ii) the
firefighter contributes to the fund the amount that he
would have contributed had he remained an active member of
the fund, and (iii) the employee or statewide firefighter
association contributes to the fund an amount equal to the
employer's required contribution as determined by the
board, and (v) the employee and employer contributions for
the service are received by the fund before the effective
date of this amendatory Act of the 97th General Assembly.
(4) Time spent as an on-call fireman for a
municipality, calculated at the rate of one year of
creditable service for each 5 years of time spent as an
on-call fireman, provided that (i) the firefighter has at
least 18 years of creditable service as an active

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firefighter, (ii) the firefighter spent at least 14 years
as an on-call firefighter for the municipality, (iii) the
firefighter applies for such creditable service within 30
days after the effective date of this amendatory Act of
1989, (iv) the firefighter contributes to the Fund an
amount representing employee contributions for the number
of years of creditable service granted under this
subdivision (4), based on the salary and contribution rate
in effect for the firefighter at the date of entry into the
Fund, to be determined by the board, and (v) not more than
3 years of creditable service may be granted under this
subdivision (4).
Except as provided in Section 4-108.5, creditable
service shall not include time spent as a volunteer
firefighter, whether or not any compensation was received
therefor. The change made in this Section by Public Act
83-0463 is intended to be a restatement and clarification
of existing law, and does not imply that creditable service
was previously allowed under this Article for time spent as
a volunteer firefighter.
(5) Time served between July 1, 1976 and July 1, 1988
in the position of protective inspection officer or
administrative assistant for fire services, for a
municipality with a population under 10,000 that is located
in a county with a population over 3,000,000 and that
maintains a firefighters' pension fund under this Article,

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if the position included firefighting duties,
notwithstanding that the person may not have held an
appointment as a firefighter, provided that application is
made to the pension fund within 30 days after the effective
date of this amendatory Act of 1991, and the corresponding
contributions are paid for the number of years of service
granted, based upon the salary and contribution rate in
effect for the firefighter at the date of entry into the
pension fund, as determined by the Board.
(6) Service before becoming a participant by a
firefighter initially excluded from participation by
reason of age who becomes a participant under the amendment
to Section 4-107 made by this amendatory Act of 1993 and
pays the required contributions for such service.
(7) Up to 3 years of time during which the firefighter
receives a disability pension under Section 4-110,
4-110.1, or 4-111, provided that (i) the firefighter
returns to active service after the disability for a period
at least equal to the period for which credit is to be
established and (ii) the firefighter makes contributions
to the fund based on the rates specified in Section 4-118.1
and the salary upon which the disability pension is based.
These contributions may be paid at any time prior to the
commencement of a retirement pension. The firefighter may,
but need not, elect to have the contributions deducted from
the disability pension or to pay them in installments on a

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schedule approved by the board. If not deducted from the
disability pension, the contributions shall include
interest at the rate of 6% per year, compounded annually,
from the date for which service credit is being established
to the date of payment. If contributions are paid under
this subdivision (c)(7) in excess of those needed to
establish the credit, the excess shall be refunded. This
subdivision (c)(7) applies to persons receiving a
disability pension under Section 4-110, 4-110.1, or 4-111
on the effective date of this amendatory Act of the 91st
General Assembly, as well as persons who begin to receive
such a disability pension after that date.
(Source: P.A. 94-856, eff. 6-15-06; 95-1056, eff. 4-10-09.)
(40 ILCS 5/5-214) (from Ch. 108 1/2, par. 5-214)
Sec. 5-214. Credit for other service. Any participant in
this fund (other than a member of the fire department of the
city) who has rendered service as a member of the police
department of the city for a period of 3 years or more is
entitled to credit for the various purposes of this Article for
service rendered prior to becoming a member or subsequent
thereto for the following periods:
(a) While on leave of absence from the police
department assigned or detailed to investigative,
protective, security or police work for the park district
of the city, the department of the Port of Chicago or the

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sanitary district in which the city is located.
(b) As a temporary police officer in the city or while
serving in the office of the mayor or in the office of the
corporation counsel, as a member of the city council of the
city, as an employee of the Policemen's Annuity and Benefit
Fund created by this Article, as the head of an
organization whose membership consists of members of the
police department, the Public Vehicle License Commission
and the board of election commissioners of the city.
(c) While performing safety or investigative work for
the county in which such city is principally located or for
the State of Illinois or for the federal government, on
leave of absence from the department of police, or while
performing investigative work for the department as a
civilian employee of the department.
(d) While on leave of absence from the police
department of the city and serving as the chief of police
of a police department outside the city.
No credit shall be granted in this fund, however, for this
service if the policeman has credit therefor in any other
annuity and benefit fund, or unless he contributes to this fund
the amount he would have contributed with interest had he
remained an active member of the police department in the
position he occupied as a result of a civil service competitive
examination, certification and appointment by the Civil
Service Board; or in the case of a city operating under the

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provisions of a personnel ordinance the position he occupied as
a result of a personnel ordinance competitive examination
certification and appointment under the authority of a
Municipal Personnel ordinance.
Concurrently with such contributions, the city shall
contribute the amounts provided by this Article. No credit
shall be allowed for any period of time for which contributions
by the policeman have not been paid. The period of service
rendered by such policeman prior to the date he became a member
of the police department of the city or while detailed,
assigned or on leave of absence and employed in any of the
departments set forth hereinabove in this Section for which
such policeman has contributed to this fund shall be credited
to him as service for all the purposes of this Article, except
that he shall not have any of the rights conferred by the
provisions of Sections 5-127 and 5-162 of this Article.
The changes in this Section made by Public Act 86-273 shall
apply to members of the fund who have not begun receiving a
pension under this Article on August 23, 1989, without regard
to whether employment is terminated before that date.
Notwithstanding any other provision of this Section,
participants are only entitled to credit for service under
paragraph (b) of this Section as the head of an organization
whose membership consists of members of the police department
if the employee and employer contributions for the service are
received by the Fund before the effective date of this

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amendatory Act of the 97th General Assembly.
(Source: P.A. 86-273; 87-1265.)
(40 ILCS 5/6-209) (from Ch. 108 1/2, par. 6-209)
Sec. 6-209. In computing the service rendered by a fireman
prior to the effective date, the following periods shall be
counted, in addition to all periods during which he performed
the duties of his position, as periods of service for annuity
purposes only: All periods of (a) vacation, (b) leave of
absence with whole or part pay, (c) leave of absence without
pay which were necessary on account of disability, and (d)
leave of absence during which he was engaged in the military or
naval service of the United States of America. Service credit
shall not be allowed for any period during which a fireman was
in receipt of pension on account of disability from any pension
fund superseded by this fund.
In computing the service rendered by a fireman on and after
the effective date, the following periods shall be counted in
addition to all periods during which he performed the duties of
his position, as periods of service for annuity purposes only:
All periods of (a) vacation, (b) leave of absence with whole or
part pay, (c) leave of absence during which he was engaged in
the military or naval service of the United States of America,
(d) disability for which he receives any disability benefit,
(e) disability for which he receives whole or part pay, (f)
leave of absence, or other authorized relief from active duty,

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during which he served as president of The Firemen's
Association of Chicago, (g) periods of suspension from duty not
to exceed a total of one year during the total period of
service of the fireman, and (h) a period of time not to exceed
23 days in 1980 in accordance with an agreement with the City
on a settlement of strike; provided that the fireman elects to
make contributions to the Fund for the various annuity and
benefit purposes according to the provisions of this Article as
though he were an active fireman, based upon the salary
attached to the civil service rank held by him during such
absence from duty, and if the fireman so elects, the city shall
make the prescribed concurrent contributions for such annuity
and benefit purposes as provided in this Article, all to the
end that such fireman shall be entitled to receive the same
annuities and benefits for which he would otherwise be eligible
if he had continued as an active fireman during the periods of
absence from duty. Notwithstanding any other provision of this
Section, a fireman may only use a leave of absence, or other
authorized relief from active duty, during which the fireman
served as president of the Firemen's Association of Chicago in
computing his or her service if the employee and employer
contributions for the service are received by the Fund before
the effective date of this amendatory Act of the 97th General
Assembly.
In computing service on and after the effective date for
ordinary disability benefit, all periods described in the

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preceding paragraph, except any period for which a fireman
receives ordinary disability benefit, shall be counted as
periods of service.
In computing service for any of the purposes of this
Article, credit shall be given for any periods prior to January
9, 1997, during which an active fireman (or fire paramedic) who
is a member of the General Assembly is on leave of absence or
is otherwise authorized to be absent from duty to enable him to
perform his legislative duties, notwithstanding any reduction
in salary for such periods and notwithstanding that the
contributions paid by the fireman were based on such reduced
salary rather than the full amount of salary attached to his
civil service rank.
In computing service for any of the purposes of this
Article, no credit shall be given for any period during which a
fireman was not rendering active service because of his
discharge from the service, unless proceedings to test the
legality of the discharge are filed in a court of competent
jurisdiction within one year from the date of discharge and a
final judgment is entered therein declaring the discharge
illegal.
No overtime or extra service shall be included in computing
service of a fireman and not more than one year or a proper
fractional part thereof of service shall be allowed for service
rendered during any calendar year.
(Source: P.A. 86-273; 86-1488; 87-1265.)

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(40 ILCS 5/7-132) (from Ch. 108 1/2, par. 7-132)
Sec. 7-132. Municipalities, instrumentalities and
participating instrumentalities included and effective dates.
(A) Municipalities and their instrumentalities.
(a) The following described municipalities, but not
including any with more than 1,000,000 inhabitants, and the
instrumentalities thereof, shall be included within and be
subject to this Article beginning upon the effective dates
specified by the Board:
(1) Except as to the municipalities and
instrumentalities thereof specifically excluded under this
Article, every county shall be subject to this Article, and
all cities, villages and incorporated towns having a
population in excess of 5,000 inhabitants as determined by
the last preceding decennial or subsequent federal census,
shall be subject to this Article following publication of
the census by the Bureau of the Census. Within 90 days
after publication of the census, the Board shall notify any
municipality that has become subject to this Article as a
result of that census, and shall provide information to the
corporate authorities of the municipality explaining the
duties and consequences of participation. The notification
shall also include a proposed date upon which participation
by the municipality will commence.

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However, for any city, village or incorporated town
that attains a population over 5,000 inhabitants after
having provided social security coverage for its employees
under the Social Security Enabling Act, participation
under this Article shall not be mandatory but may be
elected in accordance with subparagraph (3) or (4) of this
paragraph (a), whichever is applicable.
(2) School districts, other than those specifically
excluded under this Article, shall be subject to this
Article, without election, with respect to all employees
thereof.
(3) Towns and all other bodies politic and corporate
which are formed by vote of, or are subject to control by,
the electors in towns and are located in towns which are
not participating municipalities on the effective date of
this Act, may become subject to this Article by election
pursuant to Section 7-132.1.
(4) Any other municipality (together with its
instrumentalities), other than those specifically excluded
from participation and those described in paragraph (3)
above, may elect to be included either by referendum under
Section 7-134 or by the adoption of a resolution or
ordinance by its governing body. A copy of such resolution
or ordinance duly authenticated and certified by the clerk
of the municipality or other appropriate official of its
governing body shall constitute the required notice to the

HB3857 - 23 - LRB097 14037 JDS 58671 b
board of such action.
(b) A municipality that is about to begin participation
shall submit to the Board an application to participate, in a
form acceptable to the Board, not later than 90 days prior to
the proposed effective date of participation. The Board shall
act upon the application within 90 days, and if it finds that
the application is in conformity with its requirements and the
requirements of this Article, participation by the applicant
shall commence on a date acceptable to the municipality and
specified by the Board, but in no event more than one year from
the date of application.
(c) A participating municipality which succeeds to the
functions of a participating municipality which is dissolved or
terminates its existence shall assume and be transferred the
net accumulation balance in the municipality reserve and the
municipality account receivable balance of the terminated
municipality.
(d) In the case of a Veterans Assistance Commission whose
employees were being treated by the Fund on January 1, 1990 as
employees of the county served by the Commission, the Fund may
continue to treat the employees of the Veterans Assistance
Commission as county employees for the purposes of this
Article, unless the Commission becomes a participating
instrumentality in accordance with subsection (B) of this
Section.

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(B) Participating instrumentalities.
(a) The participating instrumentalities designated in
paragraph (b) of this subsection shall be included within and
be subject to this Article if:
(1) an application to participate, in a form acceptable
to the Board and adopted by a two-thirds vote of the
governing body, is presented to the Board not later than 90
days prior to the proposed effective date; and
(2) the Board finds that the application is in
conformity with its requirements, that the applicant has
reasonable expectation to continue as a political entity
for a period of at least 10 years and has the prospective
financial capacity to meet its current and future
obligations to the Fund, and that the actuarial soundness
of the Fund may be reasonably expected to be unimpaired by
approval of participation by the applicant.
The Board shall notify the applicant of its findings within
90 days after receiving the application, and if the Board
approves the application, participation by the applicant shall
commence on the effective date specified by the Board.
(b) The following participating instrumentalities, so long
as they meet the requirements of Section 7-108 and the area
served by them or within their jurisdiction is not located
entirely within a municipality having more than one million
inhabitants, may be included hereunder:
i. Township School District Trustees.

HB3857 - 25 - LRB097 14037 JDS 58671 b
ii. Multiple County and Consolidated Health
Departments created under Division 5-25 of the Counties
Code or its predecessor law.
iii. Public Building Commissions created under the
Public Building Commission Act, and located in counties of
less than 1,000,000 inhabitants.
iv. A multitype, consolidated or cooperative library
system created under the Illinois Library System Act. Any
library system created under the Illinois Library System
Act that has one or more predecessors that participated in
the Fund may participate in the Fund upon application. The
Board shall establish procedures for implementing the
transfer of rights and obligations from the predecessor
system to the successor system.
v. Regional Planning Commissions created under
Division 5-14 of the Counties Code or its predecessor law.
vi. Local Public Housing Authorities created under the
Housing Authorities Act, located in counties of less than
1,000,000 inhabitants.
vii. Illinois Municipal League, but only with respect
to service on or before the effective date of this
amendatory Act of the 97th General Assembly.
viii. Northeastern Illinois Metropolitan Area Planning
Commission.
ix. Southwestern Illinois Metropolitan Area Planning
Commission.

HB3857 - 26 - LRB097 14037 JDS 58671 b
x. Illinois Association of Park Districts.
xi. Illinois Supervisors, County Commissioners and
Superintendents of Highways Association.
xii. Tri-City Regional Port District.
xiii. An association, or not-for-profit corporation,
membership in which is authorized under Section 85-15 of
the Township Code.
xiv. Drainage Districts operating under the Illinois
Drainage Code.
xv. Local mass transit districts created under the
Local Mass Transit District Act.
xvi. Soil and water conservation districts created
under the Soil and Water Conservation Districts Law.
xvii. Commissions created to provide water supply or
sewer services or both under Division 135 or Division 136
of Article 11 of the Illinois Municipal Code.
xviii. Public water districts created under the Public
Water District Act.
xix. Veterans Assistance Commissions established under
Section 9 of the Military Veterans Assistance Act that
serve counties with a population of less than 1,000,000.
xx. The governing body of an entity, other than a
vocational education cooperative, created under an
intergovernmental cooperative agreement established
between participating municipalities under the
Intergovernmental Cooperation Act, which by the terms of

HB3857 - 27 - LRB097 14037 JDS 58671 b
the agreement is the employer of the persons performing
services under the agreement under the usual common law
rules determining the employer-employee relationship. The
governing body of such an intergovernmental cooperative
entity established prior to July 1, 1988 may make
participation retroactive to the effective date of the
agreement and, if so, the effective date of participation
shall be the date the required application is filed with
the fund. If any such entity is unable to pay the required
employer contributions to the fund, then the participating
municipalities shall make payment of the required
contributions and the payments shall be allocated as
provided in the agreement or, if not so provided, equally
among them.
xxi. The Illinois Municipal Electric Agency.
xxii. The Waukegan Port District.
xxiii. The Fox Waterway Agency created under the Fox
Waterway Agency Act.
xxiv. The Illinois Municipal Gas Agency.
xxv. The Kaskaskia Regional Port District.
xxvi. The Southwestern Illinois Development Authority.
xxvii. The Cairo Public Utility Company.
xxviii. Except with respect to employees who elect to
participate in the State Employees' Retirement System of
Illinois under Section 14-104.13 of this Code, the Chicago
Metropolitan Agency for Planning created under the

HB3857 - 28 - LRB097 14037 JDS 58671 b
Regional Planning Act, provided that, with respect to the
benefits payable pursuant to Sections 7-146, 7-150, and
7-164 and the requirement that eligibility for such
benefits is conditional upon satisfying a minimum period of
service or a minimum contribution, any employee of the
Chicago Metropolitan Agency for Planning that was
immediately prior to such employment an employee of the
Chicago Area Transportation Study or the Northeastern
Illinois Planning Commission, such employee's service at
the Chicago Area Transportation Study or the Northeastern
Illinois Planning Commission and contributions to the
State Employees' Retirement System of Illinois established
under Article 14 and the Illinois Municipal Retirement Fund
shall count towards the satisfaction of such requirements.
xxix. United Counties Council (formerly the Urban
Counties Council), but only if the Council has a ruling
from the United States Internal Revenue Service that it is
a governmental entity.
xxx. The Will County Governmental League, but only if
the League has a ruling from the United States Internal
Revenue Service that it is a governmental entity and only
with respect to service on or before the effective date of
this amendatory Act of the 97th General Assembly.
(c) The governing boards of special education joint
agreements created under Section 10-22.31 of the School Code
without designation of an administrative district shall be

HB3857 - 29 - LRB097 14037 JDS 58671 b
included within and be subject to this Article as participating
instrumentalities when the joint agreement becomes effective.
However, the governing board of any such special education
joint agreement in effect before September 5, 1975 shall not be
subject to this Article unless the joint agreement is modified
by the school districts to provide that the governing board is
subject to this Article, except as otherwise provided by this
Section.
The governing board of the Special Education District of
Lake County shall become subject to this Article as a
participating instrumentality on July 1, 1997. Notwithstanding
subdivision (a)1 of Section 7-139, on the effective date of
participation, employees of the governing board of the Special
Education District of Lake County shall receive creditable
service for their prior service with that employer, up to a
maximum of 5 years, without any employee contribution.
Employees may establish creditable service for the remainder of
their prior service with that employer, if any, by applying in
writing and paying an employee contribution in an amount
determined by the Fund, based on the employee contribution
rates in effect at the time of application for the creditable
service and the employee's salary rate on the effective date of
participation for that employer, plus interest at the effective
rate from the date of the prior service to the date of payment.
Application for this creditable service must be made before
July 1, 1998; the payment may be made at any time while the

HB3857 - 30 - LRB097 14037 JDS 58671 b
employee is still in service. The employer may elect to make
the required contribution on behalf of the employee.
The governing board of a special education joint agreement
created under Section 10-22.31 of the School Code for which an
administrative district has been designated, if there are
employees of the cooperative educational entity who are not
employees of the administrative district, may elect to
participate in the Fund and be included within this Article as
a participating instrumentality, subject to such application
procedures and rules as the Board may prescribe.
The Boards of Control of cooperative or joint educational
programs or projects created and administered under Section
3-15.14 of the School Code, whether or not the Boards act as
their own administrative district, shall be included within and
be subject to this Article as participating instrumentalities
when the agreement establishing the cooperative or joint
educational program or project becomes effective.
The governing board of a special education joint agreement
entered into after June 30, 1984 and prior to September 17,
1985 which provides for representation on the governing board
by less than all the participating districts shall be included
within and subject to this Article as a participating
instrumentality. Such participation shall be effective as of
the date the joint agreement becomes effective.
The governing boards of educational service centers
established under Section 2-3.62 of the School Code shall be

HB3857 - 31 - LRB097 14037 JDS 58671 b
included within and subject to this Article as participating
instrumentalities. The governing boards of vocational
education cooperative agreements created under the
Intergovernmental Cooperation Act and approved by the State
Board of Education shall be included within and be subject to
this Article as participating instrumentalities. If any such
governing boards or boards of control are unable to pay the
required employer contributions to the fund, then the school
districts served by such boards shall make payment of required
contributions as provided in Section 7-172. The payments shall
be allocated among the several school districts in proportion
to the number of students in average daily attendance for the
last full school year for each district in relation to the
total number of students in average attendance for such period
for all districts served. If such educational service centers,
vocational education cooperatives or cooperative or joint
educational programs or projects created and administered
under Section 3-15.14 of the School Code are dissolved, the
assets and obligations shall be distributed among the districts
in the same proportions unless otherwise provided.
The governing board of Paris Cooperative High School shall
be included within and be subject to this Article as a
participating instrumentality on the effective date of this
amendatory Act of the 96th General Assembly. If the governing
board of Paris Cooperative High School is unable to pay the
required employer contributions to the fund, then the school

HB3857 - 32 - LRB097 14037 JDS 58671 b
districts served shall make payment of required contributions
as provided in Section 7-172. The payments shall be allocated
among the several school districts in proportion to the number
of students in average daily attendance for the last full
school year for each district in relation to the total number
of students in average attendance for such period for all
districts served. If Paris Cooperative High School is
dissolved, then the assets and obligations shall be distributed
among the districts in the same proportions unless otherwise
provided.
Financial Oversight Panels established under Article 1H of
the School Code shall be included within and be subject to this
Article as a participating instrumentality on the effective
date of this amendatory Act of the 97th General Assembly. If
the Financial Oversight Panel is unable to pay the required
employer contributions to the fund, then the school districts
served shall make payment of required contributions as provided
in Section 7-172. If the Financial Oversight Panel is
dissolved, then the assets and obligations shall be distributed
to the district served.
(d) The governing boards of special recreation joint
agreements created under Section 8-10b of the Park District
Code, operating without designation of an administrative
district or an administrative municipality appointed to
administer the program operating under the authority of such
joint agreement shall be included within and be subject to this

HB3857 - 33 - LRB097 14037 JDS 58671 b
Article as participating instrumentalities when the joint
agreement becomes effective. However, the governing board of
any such special recreation joint agreement in effect before
January 1, 1980 shall not be subject to this Article unless the
joint agreement is modified, by the districts and
municipalities which are parties to the agreement, to provide
that the governing board is subject to this Article.
If the Board returns any employer and employee
contributions to any employer which erroneously submitted such
contributions on behalf of a special recreation joint
agreement, the Board shall include interest computed from the
end of each year to the date of payment, not compounded, at the
rate of 7% per annum.
(e) Each multi-township assessment district, the board of
trustees of which has adopted this Article by ordinance prior
to April 1, 1982, shall be a participating instrumentality
included within and subject to this Article effective December
1, 1981. The contributions required under Section 7-172 shall
be included in the budget prepared under and allocated in
accordance with Section 2-30 of the Property Tax Code.
(f) The Illinois Medical District Commission created under
the Illinois Medical District Act may be included within and
subject to this Article as a participating instrumentality,
notwithstanding that the location of the District is entirely
within the City of Chicago. To become a participating
instrumentality, the Commission must apply to the Board in the

HB3857 - 34 - LRB097 14037 JDS 58671 b
manner set forth in paragraph (a) of this subsection (B). If
the Board approves the application, under the criteria and
procedures set forth in paragraph (a) and any other applicable
rules, criteria, and procedures of the Board, participation by
the Commission shall commence on the effective date specified
by the Board.
(C) Prospective participants.
Beginning January 1, 1992, each prospective participating
municipality or participating instrumentality shall pay to the
Fund the cost, as determined by the Board, of a study prepared
by the Fund or its actuary, detailing the prospective costs of
participation in the Fund to be expected by the municipality or
instrumentality.
(Source: P.A. 96-211, eff. 8-10-09; 96-551, eff. 8-17-09;
96-1000, eff. 7-2-10; 96-1046, eff. 7-14-10; 97-429, eff.
8-16-11.)
(40 ILCS 5/8-226) (from Ch. 108 1/2, par. 8-226)
Sec. 8-226. Computation of service. In computing the term
of service of an employee prior to the effective date, the
entire period beginning on the date he was first appointed and
ending on the day before the effective date, except any
intervening period during which he was separated by withdrawal
from service, shall be counted for all purposes of this
Article, except that for any employee who was not in service on

HB3857 - 35 - LRB097 14037 JDS 58671 b
the day before the effective date, service rendered prior to
such date shall not be considered for the purposes of Section
8-138.
For a person employed by an employer for whom this Article
was in effect prior to January 1, 1950, from whose salary
deductions are first made under this Article after December 31,
1949, any period of service rendered prior to the effective
date, unless he was in service on the day before the effective
date, shall not be counted as service.
The time a person was an employee of any territory annexed
to the city prior to the effective date shall be counted as a
period of service.
In computing the term of service of any employee subsequent
to the day before the effective date, the following periods
shall be counted as periods of service for age and service,
widow's and child's annuity purposes:
(a) The time during which he performed the duties of
his position;
(b) Vacations, leaves of absence with whole or part
pay, and leaves of absence without pay not longer than 90
days;
(c) Leaves of absence without pay during which a
participant is employed full-time by a local labor
organization that represents municipal employees, provided
that (1) the participant continues to make employee
contributions to the Fund as though he were an active

HB3857 - 36 - LRB097 14037 JDS 58671 b
employee, based on the regular salary rate received by the
participant for his municipal employment immediately prior
to such leave of absence (and in the case of such
employment prior to December 9, 1987, pays to the Fund an
amount equal to the employee contributions for such
employment plus regular interest thereon as calculated by
the board), and based on his current salary with such labor
organization after the effective date of this amendatory
Act of 1991, (2) after January 1, 1989 the participant, or
the labor organization on the participant's behalf, makes
contributions to the Fund as though it were the employer,
in the same amount and same manner as specified under this
Article, based on the regular salary rate received by the
participant for his municipal employment immediately prior
to such leave of absence, and based on his current salary
with such labor organization after the effective date of
this amendatory Act of 1991, and (3) the participant does
not receive credit in any pension plan established by the
local labor organization based on his employment by the
organization, and (4) the employee and employer
contributions for the service are received by the Fund
before the effective date of this amendatory Act of the
97th General Assembly;
(d) Any period of disability for which he received (i)
a disability benefit under this Article, or (ii) a
temporary total disability benefit under the Workers'

HB3857 - 37 - LRB097 14037 JDS 58671 b
Compensation Act if the disability results from a condition
commonly termed heart attack or stroke or any other
condition falling within the broad field of coronary
involvement or heart disease, or (iii) whole or part pay;
(e) Any period for which contributions and service
credit have been transferred to this Fund under subsection
(d) of Section 9-121.1 or subsection (d) of Section
12-127.1 of this Code.
For a person employed by an employer in which the 1921 Act
was in effect prior to January 1, 1950, from whose salary
deductions are first made under the 1921 Act or this Article
after December 31, 1949, any period of service rendered
subsequent to the effective date and prior to the date he
became an employee and contributor, shall not be counted as a
period of service under this Article, except such period for
which he made payment as provided in Section 8-230 of this
Article, in which case such period shall be counted as a period
of service for all annuity purposes hereunder.
In computing the term of service of an employee subsequent
to the day before the effective date for ordinary disability
benefit purposes, all periods described in the preceding
paragraph, except any such period for which he receives
ordinary disability benefit, shall be counted as periods of
service; provided, that for any person employed by an employer
in which this Article was in effect prior to January 1, 1950,
from whose salary deductions are first made under this Article

HB3857 - 38 - LRB097 14037 JDS 58671 b
after December 31, 1949, any period of service rendered
subsequent to the effective date and prior to the date he
became an employee and contributor, shall not be counted as a
period of service for ordinary disability benefit purposes,
unless the person made payment for the period as provided in
Section 8-230 of this Article, in which case the period shall
be counted as a period of service for ordinary disability
purposes for periods of disability on or after the effective
date of this amendatory Act of 1997.
Overtime or extra service shall not be included in
computing any term of service. Not more than 1 year of service
shall be allowed for service rendered during any calendar year.
(Source: P.A. 90-511, eff. 8-22-97.)
(40 ILCS 5/11-215) (from Ch. 108 1/2, par. 11-215)
Sec. 11-215. Computation of service.
(a) In computing the term of service of an employee prior
to the effective date, the entire period beginning on the date
he was first appointed and ending on the day before the
effective date, except any intervening period during which he
was separated by withdrawal from service, shall be counted for
all purposes of this Article. Only the first year of each
period of lay-off or leave of absence without pay, continuing
or extending for a period in excess of one year, shall be
counted as such service.
(b) For a person employed by an employer for whom this

HB3857 - 39 - LRB097 14037 JDS 58671 b
Article was in effect prior to August 1, 1949, from whose
salary deductions are first made under this Article after July
31, 1949, any period of service rendered prior to the effective
date, unless he was in service on the day before the effective
date, shall not be counted as service.
(c) In computing the term of service of an employee
subsequent to the day before the effective date, the following
periods of time shall be counted as periods of service for
annuity purposes:
(1) the time during which he performed the duties of
his position;
(2) leaves of absence with whole or part pay, and
leaves of absence without pay not longer than 90 days;
(3) leaves of absence without pay during which a
participant is employed full-time by a local labor
organization that represents municipal employees, provided
that (A) the participant continues to make employee
contributions to the Fund as though he were an active
employee, based on the regular salary rate received by the
participant for his municipal employment immediately prior
to such leave of absence (and in the case of such
employment prior to December 9, 1987, pays to the Fund an
amount equal to the employee contributions for such
employment plus regular interest thereon as calculated by
the board), and based on his current salary with such labor
organization after the effective date of this amendatory

HB3857 - 40 - LRB097 14037 JDS 58671 b
Act of 1991, (B) after January 1, 1989 the participant, or
the labor organization on the participant's behalf, makes
contributions to the Fund as though it were the employer,
in the same amount and same manner as specified under this
Article, based on the regular salary rate received by the
participant for his municipal employment immediately prior
to such leave of absence, and based on his current salary
with such labor organization after the effective date of
this amendatory Act of 1991, and (C) the participant does
not receive credit in any pension plan established by the
local labor organization based on his employment by the
organization, and (D) the employee and employer
contributions for the service are received by the Fund
before the effective date of this amendatory Act of the
97th General Assembly;
(4) any period of disability for which he received (i)
a disability benefit under this Article, or (ii) a
temporary total disability benefit under the Workers'
Compensation Act if the disability results from a condition
commonly termed heart attack or stroke or any other
condition falling within the broad field of coronary
involvement or heart disease, or (iii) whole or part pay.
(d) For a person employed by an employer, or the retirement
board, in which "The 1935 Act" was in effect prior to August 1,
1949, from whose salary deductions are first made under "The
1935 Act" or this Article after July 31, 1949, any period of

HB3857 - 41 - LRB097 14037 JDS 58671 b
service rendered subsequent to the effective date and prior to
August 1, 1949, shall not be counted as a period of service
under this Article, except such period for which he made
payment, as provided in Section 11-221 of this Article, in
which case such period shall be counted as a period of service
for all annuity purposes hereunder.
(e) In computing the term of service of an employee
subsequent to the day before the effective date for ordinary
disability benefit purposes, the following periods of time
shall be counted as periods of service:
(1) any period during which he performed the duties of
his position;
(2) leaves of absence with whole or part pay;
(3) any period of disability for which he received (i)
a duty disability benefit under this Article, or (ii) a
temporary total disability benefit under the Workers'
Compensation Act if the disability results from a condition
commonly termed heart attack or stroke or any other
condition falling within the broad field of coronary
involvement or heart disease, or (iii) whole or part pay.
However, any period of service rendered by an employee
contributor prior to the date he became a contributor to the
fund shall not be counted as a period of service for ordinary
disability purposes, unless the person made payment for the
period as provided in Section 11-221 of this Article, in which
case the period shall be counted as a period of service for

HB3857 - 42 - LRB097 14037 JDS 58671 b
ordinary disability purposes for periods of disability on or
after the effective date of this amendatory Act of 1997.
Overtime or extra service shall not be included in
computing any term of service. Not more than 1 year of service
shall be allowed for service rendered during any calendar year.
(Source: P.A. 90-511, eff. 8-22-97.)
(40 ILCS 5/15-107) (from Ch. 108 1/2, par. 15-107)
Sec. 15-107. Employee.
(a) "Employee" means any member of the educational,
administrative, secretarial, clerical, mechanical, labor or
other staff of an employer whose employment is permanent and
continuous or who is employed in a position in which services
are expected to be rendered on a continuous basis for at least
4 months or one academic term, whichever is less, who (A)
receives payment for personal services on a warrant issued
pursuant to a payroll voucher certified by an employer and
drawn by the State Comptroller upon the State Treasurer or by
an employer upon trust, federal or other funds, or (B) is on a
leave of absence without pay. Employment which is irregular,
intermittent or temporary shall not be considered continuous
for purposes of this paragraph.
However, a person is not an "employee" if he or she:
(1) is a student enrolled in and regularly attending
classes in a college or university which is an employer,
and is employed on a temporary basis at less than full

HB3857 - 43 - LRB097 14037 JDS 58671 b
time;
(2) is currently receiving a retirement annuity or a
disability retirement annuity under Section 15-153.2 from
this System;
(3) is on a military leave of absence;
(4) is eligible to participate in the Federal Civil
Service Retirement System and is currently making
contributions to that system based upon earnings paid by an
employer;
(5) is on leave of absence without pay for more than 60
days immediately following termination of disability
benefits under this Article;
(6) is hired after June 30, 1979 as a public service
employment program participant under the Federal
Comprehensive Employment and Training Act and receives
earnings in whole or in part from funds provided under that
Act; or
(7) is employed on or after July 1, 1991 to perform
services that are excluded by subdivision (a)(7)(f) or
(a)(19) of Section 210 of the federal Social Security Act
from the definition of employment given in that Section (42
U.S.C. 410).
(b) Any employer may, by filing a written notice with the
board, exclude from the definition of "employee" all persons
employed pursuant to a federally funded contract entered into
after July 1, 1982 with a federal military department in a

HB3857 - 44 - LRB097 14037 JDS 58671 b
program providing training in military courses to federal
military personnel on a military site owned by the United
States Government, if this exclusion is not prohibited by the
federally funded contract or federal laws or rules governing
the administration of the contract.
(c) Any person appointed by the Governor under the Civil
Administrative Code of the State is an employee, if he or she
is a participant in this system on the effective date of the
appointment.
(d) A participant on lay-off status under civil service
rules is considered an employee for not more than 120 days from
the date of the lay-off.
(e) A participant is considered an employee during (1) the
first 60 days of disability leave, (2) the period, not to
exceed one year, in which his or her eligibility for disability
benefits is being considered by the board or reviewed by the
courts, and (3) the period he or she receives disability
benefits under the provisions of Section 15-152, workers'
compensation or occupational disease benefits, or disability
income under an insurance contract financed wholly or partially
by the employer.
(f) Absences without pay, other than formal leaves of
absence, of less than 30 calendar days, are not considered as
an interruption of a person's status as an employee. If such
absences during any period of 12 months exceed 30 work days,
the employee status of the person is considered as interrupted

HB3857 - 45 - LRB097 14037 JDS 58671 b
as of the 31st work day.
(g) A staff member whose employment contract requires
services during an academic term is to be considered an
employee during the summer and other vacation periods, unless
he or she declines an employment contract for the succeeding
academic term or his or her employment status is otherwise
terminated, and he or she receives no earnings during these
periods.
(h) An individual who was a participating employee employed
in the fire department of the University of Illinois's
Champaign-Urbana campus immediately prior to the elimination
of that fire department and who immediately after the
elimination of that fire department became employed by the fire
department of the City of Urbana or the City of Champaign shall
continue to be considered as an employee for purposes of this
Article for so long as the individual remains employed as a
firefighter by the City of Urbana or the City of Champaign. The
individual shall cease to be considered an employee under this
subsection (h) upon the first termination of the individual's
employment as a firefighter by the City of Urbana or the City
of Champaign.
(i) An individual who is employed on a full-time basis as
an officer or employee of a statewide teacher organization that
serves System participants or an officer of a national teacher
organization that serves System participants may participate
in the System and shall be deemed an employee, provided that

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(1) the individual has previously earned creditable service
under this Article, (2) the individual files with the System an
irrevocable election to become a participant, and (3) the
individual does not receive credit for that employment under
any other Article of this Code and (4) the employee and
employer contributions for the service are received by the Fund
before the effective date of this amendatory Act of the 97th
General Assembly. An employee under this subsection (i) is
responsible for paying to the System both (A) employee
contributions based on the actual compensation received for
service with the teacher organization and (B) employer
contributions equal to the normal costs (as defined in Section
15-155) resulting from that service; all or any part of these
contributions may be paid on the employee's behalf or picked up
for tax purposes (if authorized under federal law) by the
teacher organization.
A person who is an employee as defined in this subsection
(i) may establish service credit for similar employment prior
to becoming an employee under this subsection by paying to the
System for that employment the contributions specified in this
subsection, plus interest at the effective rate from the date
of service to the date of payment. However, credit shall not be
granted under this subsection 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 under Section 15-113.2.

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(j) A person employed by the State Board of Higher
Education in a position with the Illinois Century Network as of
June 30, 2004 shall be considered to be an employee for so long
as he or she remains continuously employed after that date by
the Department of Central Management Services in a position
with the Illinois Century Network, the Bureau of Communication
and Computer Services, or, if applicable, any successor bureau
and meets the requirements of subsection (a).
(Source: P.A. 95-369, eff. 8-23-07.)
(40 ILCS 5/16-106) (from Ch. 108 1/2, par. 16-106)
Sec. 16-106. Teacher. "Teacher": The following
individuals, provided that, for employment prior to July 1,
1990, they are employed on a full-time basis, or if not
full-time, on a permanent and continuous basis in a position in
which services are expected to be rendered for at least one
school term:
(1) Any educational, administrative, professional or
other staff employed in the public common schools included
within this system in a position requiring certification
under the law governing the certification of teachers;
(2) Any educational, administrative, professional or
other staff employed in any facility of the Department of
Children and Family Services or the Department of Human
Services, in a position requiring certification under the
law governing the certification of teachers, and any person

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who (i) works in such a position for the Department of
Corrections, (ii) was a member of this System on May 31,
1987, and (iii) did not elect to become a member of the
State Employees' Retirement System pursuant to Section
14-108.2 of this Code; except that "teacher" does not
include any person who (A) becomes a security employee of
the Department of Human Services, as defined in Section
14-110, after June 28, 2001 (the effective date of Public
Act 92-14), or (B) becomes a member of the State Employees'
Retirement System pursuant to Section 14-108.2c of this
Code;
(3) Any regional superintendent of schools, assistant
regional superintendent of schools, State Superintendent
of Education; any person employed by the State Board of
Education as an executive; any executive of the boards
engaged in the service of public common school education in
school districts covered under this system of which the
State Superintendent of Education is an ex-officio member;
(4) Any employee of a school board association
operating in compliance with Article 23 of the School Code
who is certificated under the law governing the
certification of teachers;
(5) Any person employed by the retirement system who:
(i) was an employee of and a participant in the
system on August 17, 2001 (the effective date of Public
Act 92-416), or

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(ii) becomes an employee of the system on or after
August 17, 2001;
(6) Any educational, administrative, professional or
other staff employed by and under the supervision and
control of a regional superintendent of schools, provided
such employment position requires the person to be
certificated under the law governing the certification of
teachers and is in an educational program serving 2 or more
districts in accordance with a joint agreement authorized
by the School Code or by federal legislation;
(7) Any educational, administrative, professional or
other staff employed in an educational program serving 2 or
more school districts in accordance with a joint agreement
authorized by the School Code or by federal legislation and
in a position requiring certification under the laws
governing the certification of teachers;
(8) Any officer or employee of a statewide teacher
organization or officer of a national teacher organization
who is certified under the law governing certification of
teachers, provided: (i) the individual had previously
established creditable service under this Article, (ii)
the individual files with the system an irrevocable
election to become a member, and (iii) the individual does
not receive credit for such service under any other Article
of this Code, and (iv) the employee and employer
contributions for the service are received by the Fund

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before the effective date of this amendatory Act of the
97th General Assembly;
(9) Any educational, administrative, professional, or
other staff employed in a charter school operating in
compliance with the Charter Schools Law who is certificated
under the law governing the certification of teachers.
(10) Any person employed, on the effective date of this
amendatory Act of the 94th General Assembly, by the
Macon-Piatt Regional Office of Education in a
birth-through-age-three pilot program receiving funds
under Section 2-389 of the School Code who is required by
the Macon-Piatt Regional Office of Education to hold a
teaching certificate, provided that the Macon-Piatt
Regional Office of Education makes an election, within 6
months after the effective date of this amendatory Act of
the 94th General Assembly, to have the person participate
in the system. Any service established prior to the
effective date of this amendatory Act of the 94th General
Assembly for service as an employee of the Macon-Piatt
Regional Office of Education in a birth-through-age-three
pilot program receiving funds under Section 2-389 of the
School Code shall be considered service as a teacher if
employee and employer contributions have been received by
the system and the system has not refunded those
contributions.
An annuitant receiving a retirement annuity under this

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Article or under Article 17 of this Code who is employed by a
board of education or other employer as permitted under Section
16-118 or 16-150.1 is not a "teacher" for purposes of this
Article. A person who has received a single-sum retirement
benefit under Section 16-136.4 of this Article is not a
"teacher" for purposes of this Article.
A person who is a teacher as described in item (8) of this
Section may establish service credit for similar employment
prior to becoming certified as a teacher if he or she (i) is
certified as a teacher on or before the effective date of this
amendatory Act of the 94th General Assembly, (ii) applies in
writing to the system within 6 months after the effective date
of this amendatory Act of the 94th General Assembly, and (iii)
pays to the system contributions equal to the normal costs
calculated from the date of first full-time employment as
described in item (8) 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 94th General
Assembly and for subsequent periods at a rate equal to the
System's actuarially assumed rate of return on investments, and
(iv) the employee and employer contributions for the service
are received by the Fund before the effective date of this
amendatory Act of the 97th General Assembly. However, credit
shall not be granted under this paragraph for any such prior
employment for which the applicant received credit under any
other provision of this Code.

HB3857 - 52 - LRB097 14037 JDS 58671 b
(Source: P.A. 93-320, eff. 7-23-03; 94-1111, eff. 2-27-07.)
(40 ILCS 5/17-134) (from Ch. 108 1/2, par. 17-134)
Sec. 17-134. Contributions for leaves of absence; military
service; computing service. In computing service for pension
purposes the following periods of service shall stand in lieu
of a like number of years of teaching service upon payment
therefor in the manner hereinafter provided: (a) time spent on
a leave of absence granted by the employer; (b) service with
teacher or labor organizations based upon special leaves of
absence therefor granted by an Employer; (c) a maximum of 5
years spent in the military service of the United States, of
which up to 2 years may have been served outside the pension
period; (d) unused sick days at termination of service to a
maximum of 244 days; (e) time lost due to layoff and
curtailment of the school term from June 6 through June 21,
1976; and (f) time spent after June 30, 1982 as a member of the
Board of Education, if required to resign from an
administrative or teaching position in order to qualify as a
member of the Board of Education.
(1) For time spent on or after September 6, 1948 on
sabbatical leaves of absence or sick leaves, for which
salaries are paid, an Employer shall make payroll
deductions at the applicable rates in effect during such
periods.
(2) For time spent on a leave of absence granted by the

HB3857 - 53 - LRB097 14037 JDS 58671 b
employer for which no salaries are paid, teachers desiring
credit therefor shall pay the required contributions at the
rates in effect during such periods as though they were in
teaching service. If an Employer pays salary for vacations
which occur during a teacher's sick leave or maternity or
paternity leave without salary, vacation pay for which the
teacher would have qualified while in active service shall
be considered part of the teacher's total salary for
pension purposes. No more than 36 months of leave credit
may be allowed any person during the entire term of
service. Sabbatical leave credit shall be limited to the
time the person on leave without salary under an Employer's
rules is allowed to engage in an activity for which he
receives salary or compensation.
(3) For time spent prior to September 6, 1948, on
sabbatical leaves of absence or sick leaves for which
salaries were paid, teachers desiring service credit
therefor shall pay the required contributions at the
maximum applicable rates in effect during such periods.
(4) For service with teacher or labor organizations
authorized by special leaves of absence, for which no
payroll deductions are made by an Employer, teachers
desiring service credit therefor shall contribute to the
Fund upon the basis of the actual salary received from such
organizations at the percentage rates in effect during such
periods for certified positions with such Employer. To the

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extent the actual salary exceeds the regular salary, which
shall be defined as the salary rate, as calculated by the
Board, in effect for the teacher's regular position in
teaching service on September 1, 1983 or on the effective
date of the leave with the organization, whichever is
later, the organization shall pay to the Fund the
employer's normal cost as set by the Board on the
increment. Notwithstanding any other provision of this
subdivision (4), teachers are entitled only to credit for
service under this subdivision (4) if the employee and
employer contributions for the service are received by the
System before the effective date of this amendatory Act of
the 97th General Assembly.
(5) For time spent in the military service, teachers
entitled to and desiring credit therefor shall contribute
the amount required for each year of service or fraction
thereof at the rates in force (a) at the date of
appointment, or (b) on return to teaching service as a
regularly certified teacher, as the case may be; provided
such rates shall not be less than $450 per year of service.
These conditions shall apply unless an Employer elects to
and does pay into the Fund the amount which would have been
due from such person had he been employed as a teacher
during such time. In the case of credit for military
service not during the pension period, the teacher must
also pay to the Fund an amount determined by the Board to

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be equal to the employer's normal cost of the benefits
accrued from such service, plus interest thereon at 5% per
year, compounded annually, from the date of appointment to
the date of payment.
The changes to this Section made by Public Act 87-795
shall apply not only to persons who on or after its
effective date are in service under the Fund, 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 Fund 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
this amendatory Act of 1991 shall be included in the
calculation of automatic annual increases accruing after
the effective date of the recalculation.

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The total credit for military service shall not exceed
5 years, except that any teacher who on July 1, 1963, had
validated credit for more than 5 years of military service
shall be entitled to the total amount of such credit.
(6) A maximum of 244 unused sick days credited to his
account by an Employer on the date of termination of
employment. Members, upon verification of unused sick
days, may add this service time to total creditable
service.
(7) In all cases where time spent on leave is
creditable and no payroll deductions therefor are made by
an Employer, persons desiring service credit shall make the
required contributions directly to the Fund.
(8) For time lost without pay due to layoff and
curtailment of the school term from June 6 through June 21,
1976, as provided in item (e) of the first paragraph of
this Section, persons who were contributors on the days
immediately preceding such layoff shall receive credit
upon paying to the Fund a contribution based on the rates
of compensation and employee contributions in effect at the
time of such layoff, together with an additional amount
equal to 12.2% of the compensation computed for such period
of layoff, plus interest on the entire amount at 5% per
annum from January 1, 1978 to the date of payment. If such
contribution is paid, salary for pension purposes for any
year in which such a layoff occurred shall include the

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compensation recognized for purposes of computing that
contribution.
(9) For time spent after June 30, 1982, as a
nonsalaried member of the Board of Education, if required
to resign from an administrative or teaching position in
order to qualify as a member of the Board of Education, an
administrator or teacher desiring credit therefor shall
pay the required contributions at the rates and salaries in
effect during such periods as though the member were in
service.
Effective September 1, 1974, the interest charged for
validation of service described in paragraphs (2) through (5)
of this Section shall be compounded annually at a rate of 5%
commencing one year after the termination of the leave or
return to service.
(Source: P.A. 92-599, eff. 6-28-02.)
Section 99. Effective date. This Act takes effect upon
becoming law.