Bill Text: IL SB3534 | 2009-2010 | 96th General Assembly | Introduced

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Bill Title: Amends the Chicago Teacher Article of the Illinois Pension Code. Changes references from "city" to "City of Chicago", "Board" to "Pension Board", and "Board of Education" to "Chicago Board of Education". In provisions concerning computation of service, changes one reference from "contributor" to "contributor or member". Effective immediately.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2010-06-27 - Pursuant to Senate Rule 3-9(b) / Referred to Assignments [SB3534 Detail]

Download: Illinois-2009-SB3534-Introduced.html

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96TH GENERAL ASSEMBLY State of Illinois 2009 and 2010 SB3534 Introduced 2/10/2010, by Sen. Kwame Raoul SYNOPSIS AS INTRODUCED:
40 ILCS 5/17-106 from Ch. 108 1/2, par. 17-106
40 ILCS 5/17-114 from Ch. 108 1/2, par. 17-114
40 ILCS 5/17-131 from Ch. 108 1/2, par. 17-131
40 ILCS 5/17-132 from Ch. 108 1/2, par. 17-132
40 ILCS 5/17-134 from Ch. 108 1/2, par. 17-134
Amends the Chicago Teacher Article of the Illinois Pension Code. Changes references from "city" to "City of Chicago", "Board" to "Pension Board", and "Board of Education" to "Chicago Board of Education". In provisions concerning computation of service, changes one reference from "contributor" to "contributor or member". Effective immediately.
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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 17-106, 17-114, 17-131, 17-132, and 17-134 as follows:
(40 ILCS 5/17-106) (from Ch. 108 1/2, par. 17-106)
Sec. 17-106. Contributor, member or teacher.
"Contributor", "member" or "teacher": All members of the
teaching force of the City of Chicago city, including
principals, assistant principals, the general superintendent
of schools, deputy superintendents of schools, associate
superintendents of schools, assistant and district
superintendents of schools, members of the Board of Examiners,
all other persons whose employment requires a teaching
certificate issued under the laws governing the certification
of teachers, any educational, administrative, professional, or
other staff employed in a charter school operating in
compliance with the Charter Schools Law who is certified under
the law governing the certification of teachers, and employees
of the Board, but excluding persons contributing concurrently
to any other public employee pension system in Illinois for the
same employment or receiving retirement pensions under another
Article of this Code for that same employment, persons employed

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on an hourly basis, and persons receiving pensions from the
Fund who are employed temporarily by an Employer and not on an
annual basis.
In the case of a person who has been making contributions
and otherwise participating in this Fund prior to the effective
date of this amendatory Act of the 91st General Assembly, and
whose right to participate in the Fund is established or
confirmed by this amendatory Act, such prior participation in
the Fund, including all contributions previously made and
service credits previously earned by the person, are hereby
validated.
The changes made to this Section and Section 17-149 by this
amendatory Act of the 92nd General Assembly apply without
regard to whether the person was in service on or after the
effective date of this amendatory Act, notwithstanding
Sections 1-103.1 and 17-157.
(Source: P.A. 91-887, eff. 7-6-00; 92-416, eff. 8-17-01;
92-599, eff. 6-28-02.)
(40 ILCS 5/17-114) (from Ch. 108 1/2, par. 17-114)
Sec. 17-114. Computation of service. When computing
validated service, 10 months or more shall constitute one year
of service unless a lesser number of months is established as a
school year by an Employer. Salary representing 5 days' or more
employment paid in a semi-monthly or bi-weekly payroll period,
whichever the case may be, shall be considered for the purpose

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of computing service credit and shall entitle a contributor or
member to 1/2 month of service. When computing total service
rendered, 3 to 10 days' employment in the final total of such
service shall entitle a contributor to 1/2 month of service.
(Source: P.A. 90-566, eff. 1-2-98.)
(40 ILCS 5/17-131) (from Ch. 108 1/2, par. 17-131)
Sec. 17-131. Administration of payroll deductions. During
any period in which salaries are paid, such deductions by an
Employer or the Pension Board shall be made on the basis of the
full salary rates, exclusive of salaries for overtime, special
services or any employment on an optional basis, such as in
summer school. If salaries represent adjustments on account of
error, deductions by the Employer or the Pension Board shall be
at rates in force during the applicable payroll period. If
teachers receive salaries for the school year, as established
by an Employer, or if they receive salaries for more than 10
calendar months, the amount required for each year of service
shall be deducted by such Employer in installments. The total
amounts for each semimonthly payroll period, or bi-weekly
payroll period, as the case may be, shall be deducted only when
salary payments represent 5 days' pay or more. If an Employer
or the Pension Board pays salaries to members of the teaching
force for vacation periods, the salary shall be considered part
of the teacher's annual salary, shall be subject to the
standard deductions for pension contributions, and shall be

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considered to represent pay for 5 or more days' employment in a
bi-weekly or semi-monthly payroll period for purposes set forth
in this Section. If deductions from salaries result in amounts
of less than one cent, the fractional sums shall be increased
to the next higher cent. Any excess of these fractional
increases over the prescribed annual contributions shall be
credited to the teachers' accounts.
In the event that, pursuant to Section 17-130.1, employee
contributions are picked up or made by the Board of Education
on behalf of its employees from the proceeds of the tax levied
under Section 34-60 of the School Code, then the amount of the
employee contributions which are picked up or made in that
manner shall not be deducted from the salaries of such
employees.
(Source: P.A. 90-566, eff. 1-2-98.)
(40 ILCS 5/17-132) (from Ch. 108 1/2, par. 17-132)
Sec. 17-132. Payments and certification of salary
deductions. An Employer shall cause the Fund to receive all
teachers' pension contributions within 15 business days of the
predesignated paydays. Amount not received by the fifth day
shall be deemed delinquent and subject to late interest penalty
(calculated at the average short-term rate of interest earned
by the Fund for the calendar month preceding the calendar month
in which the delinquency occurs) starting from the
predesignated payday and ending on the date payment is

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received. The appropriate officers of the Employer shall
certify at least monthly to the Fund all amounts deducted from
the salaries of contributors. The certification shall
constitute a confirmation of the accuracy of such deductions
according to the provisions of this Article. For the purpose of
this Section the predesignated payday shall be determined in
accordance with each Employer's payroll schedule for
contributions to the Fund.
The Pension Board has the authority to conduct payroll
audits of a charter school to determine the existence of any
delinquencies in contributions to the Fund, and such charter
school shall be required to provide such books and records and
contribution information as the Pension Board or its authorized
representative may require. The Pension Board is also
authorized to collect delinquent contributions from charter
schools and develop procedures for the collection of such
delinquencies. Collection procedures may include legal
proceedings in the courts of the State of Illinois. Expenses,
including reasonable attorneys' fees, incurred in the
collection of delinquent contributions may be assessed by the
Pension Board against the charter school.
(Source: P.A. 90-566, eff. 1-2-98.)
(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

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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
Chicago Board of Education, if required to resign from an
administrative or teaching position in order to qualify as a
member of the Chicago 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
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

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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
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

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later, the organization shall pay to the Fund the
employer's normal cost as set by the Board on the
increment.
(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
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

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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.
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

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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
compensation recognized for purposes of computing that
contribution.
(9) For time spent after June 30, 1982, as a
nonsalaried member of the Chicago Board of Education, if
required to resign from an administrative or teaching
position in order to qualify as a member of the Chicago
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.

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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.