Illinois-2011-SB3569-Introduced

97TH GENERAL ASSEMBLY State of Illinois 2011 and 2012 SB3569

Introduced 2/10/2012, by Sen. Matt Murphy

SYNOPSIS AS INTRODUCED:

`40 ILCS 5/7-114`	`from Ch. 108 1/2, par. 7-114`
`40 ILCS 5/7-116`	`from Ch. 108 1/2, par. 7-116`
`40 ILCS 5/7-139`	`from Ch. 108 1/2, par. 7-139`
`40 ILCS 5/9-219`	`from Ch. 108 1/2, par. 9-219`
`40 ILCS 5/9-220`	`from Ch. 108 1/2, par. 9-220`
`40 ILCS 5/14-104.3`	`from Ch. 108 1/2, par. 14-104.3`
`40 ILCS 5/14-106`	`from Ch. 108 1/2, par. 14-106`
`40 ILCS 5/15-112`	`from Ch. 108 1/2, par. 15-112`
`40 ILCS 5/15-113.4`	`from Ch. 108 1/2, par. 15-113.4`
`40 ILCS 5/16-121`	`from Ch. 108 1/2, par. 16-121`
`40 ILCS 5/16-127`	`from Ch. 108 1/2, par. 16-127`
`40 ILCS 5/17-116`	`from Ch. 108 1/2, par. 17-116`
`40 ILCS 5/17-134`	`from Ch. 108 1/2, par. 17-134`

Amends the Illinois Municipal Retirement Fund (IMRF), Cook County, State Employees, State Universities, Downstate Teachers, and Chicago Teachers Articles of the Illinois Pension Code. For participants who first become participants on or after the effective date, prohibits (i) payments for unused sick or vacation time from being used to calculate pensionable earnings and salary and (ii) unused sick or vacation time from being used to establish service credit. Effective immediately.

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FISCAL NOTE ACT MAY APPLY

PENSION IMPACT NOTE ACT MAY APPLY

A BILL FOR

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1 AN ACT concerning public employee benefits.

2 Be it enacted by the People of the State of Illinois,

3 represented in the General Assembly:

4 Section 5. The Illinois Pension Code is amended by changing

5 Sections 7-114, 7-116, 7-139, 9-219, 9-220, 14-104.3, 14-106,

6 15-112, 15-113.4, 16-121, 16-127, 17-116, and 17-134 as

7 follows:

8 (40 ILCS 5/7-114) (from Ch. 108 1/2, par. 7-114)

9 Sec. 7-114. Earnings. "Earnings":

10 (a) An amount to be determined by the board, equal to the

11 sum of:

12 1. The total amount of money paid to an employee for

13 personal services or official duties as an employee (except

14 those employed as independent contractors) paid out of the

15 general fund, or out of any special funds controlled by the

16 municipality, or by any instrumentality thereof, or

17 participating instrumentality, including compensation,

18 fees, allowances, or other emolument paid for official

19 duties (but not including automobile maintenance, travel

20 expense, ~~or~~reimbursements for expenditures incurred in

21 the performance of duties, or, in the case of a person who

22 first becomes a participant on or after the effective date

23 of this amendatory Act of the 97th General Assembly,

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1 payments for unused sick or vacation time) and, for fee

2 offices, the fees or earnings of the offices to the extent

3 such fees are paid out of funds controlled by the

4 municipality, or instrumentality or participating

5 instrumentality; and

6 2. The money value, as determined by rules prescribed

7 by the governing body of the municipality, or

8 instrumentality thereof, of any board, lodging, fuel,

9 laundry, and other allowances provided an employee in lieu

10 of money.

11 (b) For purposes of determining benefits payable under this

12 fund payments to a person who is engaged in an independently

13 established trade, occupation, profession or business and who

14 is paid for his service on a basis other than a monthly or

15 other regular salary, are not earnings.

16 (c) If a disabled participating employee is eligible to

17 receive Workers' Compensation for an accidental injury and the

18 participating municipality or instrumentality which employed

19 the participating employee when injured continues to pay the

20 participating employee regular salary or other compensation or

21 pays the employee an amount in excess of the Workers'

22 Compensation amount, then earnings shall be deemed to be the

23 total payments, including an amount equal to the Workers'

24 Compensation payments. These payments shall be subject to

25 employee contributions and allocated as if paid to the

26 participating employee when the regular payroll amounts would

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1 have been paid if the participating employee had continued

2 working, and creditable service shall be awarded for this

3 period.

4 (d) If an elected official who is a participating employee

5 becomes disabled but does not resign and is not removed from

6 office, then earnings shall include all salary payments made

7 for the remainder of that term of office and the official shall

8 be awarded creditable service for the term of office.

9 (e) If a participating employee is paid pursuant to "An Act

10 to provide for the continuation of compensation for law

11 enforcement officers, correctional officers and firemen who

12 suffer disabling injury in the line of duty", approved

13 September 6, 1973, as amended, the payments shall be deemed

14 earnings, and the participating employee shall be awarded

15 creditable service for this period.

16 (f) Additional compensation received by a person while

17 serving as a supervisor of assessments, assessor, deputy

18 assessor or member of a board of review from the State of

19 Illinois pursuant to Section 4-10 or 4-15 of the Property Tax

20 Code shall not be earnings for purposes of this Article and

21 shall not be included in the contribution formula or

22 calculation of benefits for such person pursuant to this

23 Article.

24 (Source: P.A. 87-740; 88-670, eff. 12-2-94.)

25 (40 ILCS 5/7-116) (from Ch. 108 1/2, par. 7-116)

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1 Sec. 7-116. "Final rate of earnings":

2 (a) For retirement and survivor annuities, the monthly

3 earnings obtained by dividing the total earnings received by

4 the employee during the period of either (1) the 48 consecutive

5 months of service within the last 120 months of service in

6 which his total earnings were the highest or (2) the employee's

7 total period of service, by the number of months of service in

8 such period.

9 (b) For death benefits, the higher of the rate determined

10 under paragraph (a) of this Section or total earnings received

11 in the last 12 months of service divided by twelve. If the

12 deceased employee has less than 12 months of service, the

13 monthly final rate shall be the monthly rate of pay the

14 employee was receiving when he began service.

15 (c) For disability benefits, the total earnings of a

16 participating employee in the last 12 calendar months of

17 service prior to the date he becomes disabled divided by 12.

18 (d) In computing the final rate of earnings: (1) the

19 earnings rate for all periods of prior service shall be

20 considered equal to the average earnings rate for the last 3

21 calendar years of prior service for which creditable service is

22 received under Section 7-139 or, if there is less than 3 years

23 of creditable prior service, the average for the total prior

24 service period for which creditable service is received under

25 Section 7-139; (2) for out of state service and authorized

26 leave, the earnings rate shall be the rate upon which service

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1 credits are granted; (3) periods of military leave shall not be

2 considered; (4) the earnings rate for all periods of disability

3 shall be considered equal to the rate of earnings upon which

4 the employee's disability benefits are computed for such

5 periods; (5) the earnings to be considered for each of the

6 final three months of the final earnings period for persons who

7 first became participants before January 1, 2012 and the

8 earnings to be considered for each of the final 24 months for

9 participants who first become participants on or after January

10 1, 2012 shall not exceed 125% of the highest earnings of any

11 other month in the final earnings period;~~and~~ (6) the annual

12 amount of final rate of earnings shall be the monthly amount

13 multiplied by the number of months of service normally required

14 by the position in a year; and (7) in the case of a person who

15 first becomes a participant on or after the effective date of

16 this amendatory Act of the 97th General Assembly, payments for

17 unused sick or vacation time shall not be considered.

18 (Source: P.A. 97-609, eff. 1-1-12.)

19 (40 ILCS 5/7-139) (from Ch. 108 1/2, par. 7-139)

20 Sec. 7-139. Credits and creditable service to employees.

21 (a) Each participating employee shall be granted credits

22 and creditable service, for purposes of determining the amount

23 of any annuity or benefit to which he or a beneficiary is

24 entitled, as follows:

25 1. For prior service: Each participating employee who

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1 is an employee of a participating municipality or

2 participating instrumentality on the effective date shall

3 be granted creditable service, but no credits under

4 paragraph 2 of this subsection (a), for periods of prior

5 service for which credit has not been received under any

6 other pension fund or retirement system established under

7 this Code, as follows:

8 If the effective date of participation for the

9 participating municipality or participating

10 instrumentality is on or before January 1, 1998, creditable

11 service shall be granted for the entire period of prior

12 service with that employer without any employee

13 contribution.

14 If the effective date of participation for the

15 participating municipality or participating

16 instrumentality is after January 1, 1998, creditable

17 service shall be granted for the last 20% of the period of

18 prior service with that employer, but no more than 5 years,

19 without any employee contribution. A participating

20 employee may establish creditable service for the

21 remainder of the period of prior service with that employer

22 by making an application in writing, accompanied by payment

23 of an employee contribution in an amount determined by the

24 Fund, based on the employee contribution rates in effect at

25 the time of application for the creditable service and the

26 employee's salary rate on the effective date of

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1 participation for that employer, plus interest at the

2 effective rate from the date of the prior service to the

3 date of payment. Application for this creditable service

4 may be made at any time while the employee is still in

5 service.

6 A municipality that (i) has at least 35 employees; (ii)

7 is located in a county with at least 2,000,000 inhabitants;

8 and (iii) maintains an independent defined benefit pension

9 plan for the benefit of its eligible employees may restrict

10 creditable service in whole or in part for periods of prior

11 service with the employer if the governing body of the

12 municipality adopts an irrevocable resolution to restrict

13 that creditable service and files the resolution with the

14 board before the municipality's effective date of

15 participation.

16 Any person who has withdrawn from the service of a

17 participating municipality or participating

18 instrumentality prior to the effective date, who reenters

19 the service of the same municipality or participating

20 instrumentality after the effective date and becomes a

21 participating employee is entitled to creditable service

22 for prior service as otherwise provided in this subdivision

23 (a)(1) only if he or she renders 2 years of service as a

24 participating employee after the effective date.

25 Application for such service must be made while in a

26 participating status. The salary rate to be used in the

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1 calculation of the required employee contribution, if any,

2 shall be the employee's salary rate at the time of first

3 reentering service with the employer after the employer's

4 effective date of participation.

5 2. For current service, each participating employee

6 shall be credited with:

7 a. Additional credits of amounts equal to each

8 payment of additional contributions received from him

9 under Section 7-173, as of the date the corresponding

10 payment of earnings is payable to him.

11 b. Normal credits of amounts equal to each payment

12 of normal contributions received from him, as of the

13 date the corresponding payment of earnings is payable

14 to him, and normal contributions made for the purpose

15 of establishing out-of-state service credits as

16 permitted under the conditions set forth in paragraph 6

17 of this subsection (a).

18 c. Municipality credits in an amount equal to 1.4

19 times the normal credits, except those established by

20 out-of-state service credits, as of the date of

21 computation of any benefit if these credits would

22 increase the benefit.

23 d. Survivor credits equal to each payment of

24 survivor contributions received from the participating

25 employee as of the date the corresponding payment of

26 earnings is payable, and survivor contributions made

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1 for the purpose of establishing out-of-state service

2 credits.

3 3. For periods of temporary and total and permanent

4 disability benefits, each employee receiving disability

5 benefits shall be granted creditable service for the period

6 during which disability benefits are payable. Normal and

7 survivor credits, based upon the rate of earnings applied

8 for disability benefits, shall also be granted if such

9 credits would result in a higher benefit to any such

10 employee or his beneficiary.

11 4. For authorized leave of absence without pay: A

12 participating employee shall be granted credits and

13 creditable service for periods of authorized leave of

14 absence without pay under the following conditions:

15 a. An application for credits and creditable

16 service is submitted to the board while the employee is

17 in a status of active employment.

18 b. Not more than 12 complete months of creditable

19 service for authorized leave of absence without pay

20 shall be counted for purposes of determining any

21 benefits payable under this Article.

22 c. Credits and creditable service shall be granted

23 for leave of absence only if such leave is approved by

24 the governing body of the municipality, including

25 approval of the estimated cost thereof to the

26 municipality as determined by the fund, and employee

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1 contributions, plus interest at the effective rate

2 applicable for each year from the end of the period of

3 leave to date of payment, have been paid to the fund in

4 accordance with Section 7-173. The contributions shall

5 be computed upon the assumption earnings continued

6 during the period of leave at the rate in effect when

7 the leave began.

8 d. Benefits under the provisions of Sections

9 7-141, 7-146, 7-150 and 7-163 shall become payable to

10 employees on authorized leave of absence, or their

11 designated beneficiary, only if such leave of absence

12 is creditable hereunder, and if the employee has at

13 least one year of creditable service other than the

14 service granted for leave of absence. Any employee

15 contributions due may be deducted from any benefits

16 payable.

17 e. No credits or creditable service shall be

18 allowed for leave of absence without pay during any

19 period of prior service.

20 5. For military service: The governing body of a

21 municipality or participating instrumentality may elect to

22 allow creditable service to participating employees who

23 leave their employment to serve in the armed forces of the

24 United States for all periods of such service, provided

25 that the person returns to active employment within 90 days

26 after completion of full time active duty, but no

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1 creditable service shall be allowed such person for any

2 period that can be used in the computation of a pension or

3 any other pay or benefit, other than pay for active duty,

4 for service in any branch of the armed forces of the United

5 States. If necessary to the computation of any benefit, the

6 board shall establish municipality credits for

7 participating employees under this paragraph on the

8 assumption that the employee received earnings at the rate

9 received at the time he left the employment to enter the

10 armed forces. A participating employee in the armed forces

11 shall not be considered an employee during such period of

12 service and no additional death and no disability benefits

13 are payable for death or disability during such period.

14 Any participating employee who left his employment

15 with a municipality or participating instrumentality to

16 serve in the armed forces of the United States and who

17 again became a participating employee within 90 days after

18 completion of full time active duty by entering the service

19 of a different municipality or participating

20 instrumentality, which has elected to allow creditable

21 service for periods of military service under the preceding

22 paragraph, shall also be allowed creditable service for his

23 period of military service on the same terms that would

24 apply if he had been employed, before entering military

25 service, by the municipality or instrumentality which

26 employed him after he left the military service and the

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1 employer costs arising in relation to such grant of

2 creditable service shall be charged to and paid by that

3 municipality or instrumentality.

4 Notwithstanding the foregoing, any participating

5 employee shall be entitled to creditable service as

6 required by any federal law relating to re-employment

7 rights of persons who served in the United States Armed

8 Services. Such creditable service shall be granted upon

9 payment by the member of an amount equal to the employee

10 contributions which would have been required had the

11 employee continued in service at the same rate of earnings

12 during the military leave period, plus interest at the

13 effective rate.

14 5.1. In addition to any creditable service established

15 under paragraph 5 of this subsection (a), creditable

16 service may be granted for up to 48 months of service in

17 the armed forces of the United States.

18 In order to receive creditable service for military

19 service under this paragraph 5.1, a participating employee

20 must (1) apply to the Fund in writing and provide evidence

21 of the military service that is satisfactory to the Board;

22 (2) obtain the written approval of the current employer;

23 and (3) make contributions to the Fund equal to (i) the

24 employee contributions that would have been required had

25 the service been rendered as a member, plus (ii) an amount

26 determined by the board to be equal to the employer's

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1 normal cost of the benefits accrued for that military

2 service, plus (iii) interest on items (i) and (ii) from the

3 date of first membership in the Fund to the date of

4 payment. The required interest shall be calculated at the

5 regular interest rate.

6 The changes made to this paragraph 5.1 by Public Acts

7 95-483 and 95-486 apply only to participating employees in

8 service on or after August 28, 2007 (the effective date of

9 those Public Acts).

10 6. For out-of-state service: Creditable service shall

11 be granted for service rendered to an out-of-state local

12 governmental body under the following conditions: The

13 employee had participated and has irrevocably forfeited

14 all rights to benefits in the out-of-state public employees

15 pension system; the governing body of his participating

16 municipality or instrumentality authorizes the employee to

17 establish such service; the employee has 2 years current

18 service with this municipality or participating

19 instrumentality; the employee makes a payment of

20 contributions, which shall be computed at 8% (normal) plus

21 2% (survivor) times length of service purchased times the

22 average rate of earnings for the first 2 years of service

23 with the municipality or participating instrumentality

24 whose governing body authorizes the service established

25 plus interest at the effective rate on the date such

26 credits are established, payable from the date the employee

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1 completes the required 2 years of current service to date

2 of payment. In no case shall more than 120 months of

3 creditable service be granted under this provision.

4 7. For retroactive service: Any employee who could have

5 but did not elect to become a participating employee, or

6 who should have been a participant in the Municipal Public

7 Utilities Annuity and Benefit Fund before that fund was

8 superseded, may receive creditable service for the period

9 of service not to exceed 50 months; however, a current or

10 former elected or appointed official of a participating

11 municipality may establish credit under this paragraph 7

12 for more than 50 months of service as an official of that

13 municipality, if the excess over 50 months is approved by

14 resolution of the governing body of the affected

15 municipality filed with the Fund before January 1, 2002.

16 Any employee who is a participating employee on or

17 after September 24, 1981 and who was excluded from

18 participation by the age restrictions removed by Public Act

19 82-596 may receive creditable service for the period, on or

20 after January 1, 1979, excluded by the age restriction and,

21 in addition, if the governing body of the participating

22 municipality or participating instrumentality elects to

23 allow creditable service for all employees excluded by the

24 age restriction prior to January 1, 1979, for service

25 during the period prior to that date excluded by the age

26 restriction. Any employee who was excluded from

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1 participation by the age restriction removed by Public Act

2 82-596 and who is not a participating employee on or after

3 September 24, 1981 may receive creditable service for

4 service after January 1, 1979. Creditable service under

5 this paragraph shall be granted upon payment of the

6 employee contributions which would have been required had

7 he participated, with interest at the effective rate for

8 each year from the end of the period of service established

9 to date of payment.

10 8. For accumulated unused sick leave: A participating

11 employee who first becomes a participating employee before

12 the effective date of this amendatory Act of the 97th

13 General Assembly andwho is applying for a retirement

14 annuity shall be entitled to creditable service for that

15 portion of the employee's accumulated unused sick leave for

16 which payment is not received, as follows:

17 a. Sick leave days shall be limited to those

18 accumulated under a sick leave plan established by a

19 participating municipality or participating

20 instrumentality which is available to all employees or

21 a class of employees.

22 b. Except as provided in item b-1, only sick leave

23 days accumulated with a participating municipality or

24 participating instrumentality with which the employee

25 was in service within 60 days of the effective date of

26 his retirement annuity shall be credited; If the

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1 employee was in service with more than one employer

2 during this period only the sick leave days with the

3 employer with which the employee has the greatest

4 number of unpaid sick leave days shall be considered.

5 b-1. If the employee was in the service of more

6 than one employer as defined in item (2) of paragraph

7 (a) of subsection (A) of Section 7-132, then the sick

8 leave days from all such employers shall be credited,

9 as long as the creditable service attributed to those

10 sick leave days does not exceed the limitation in item

11 f of this paragraph 8. In calculating the creditable

12 service under this item b-1, the sick leave days from

13 the last employer shall be considered first, then the

14 remaining sick leave days shall be considered until

15 there are no more days or the maximum creditable sick

16 leave threshold under item f of this paragraph 8 has

17 been reached.

18 c. The creditable service granted shall be

19 considered solely for the purpose of computing the

20 amount of the retirement annuity and shall not be used

21 to establish any minimum service period required by any

22 provision of the Illinois Pension Code, the effective

23 date of the retirement annuity, or the final rate of

24 earnings.

25 d. The creditable service shall be at the rate of

26 1/20 of a month for each full sick day, provided that

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1 no more than 12 months may be credited under this

2 subdivision 8.

3 e. Employee contributions shall not be required

4 for creditable service under this subdivision 8.

5 f. Each participating municipality and

6 participating instrumentality with which an employee

7 has service within 60 days of the effective date of his

8 retirement annuity shall certify to the board the

9 number of accumulated unpaid sick leave days credited

10 to the employee at the time of termination of service.

11 9. For service transferred from another system:

12 Credits and creditable service shall be granted for service

13 under Article 3, 4, 5, 8, 14, or 16 of this Act, to any

14 active member of this Fund, and to any inactive member who

15 has been a county sheriff, upon transfer of such credits

16 pursuant to Section 3-110.3, 4-108.3, 5-235, 8-226.7,

17 14-105.6, or 16-131.4, and payment by the member of the

18 amount by which (1) the employer and employee contributions

19 that would have been required if he had participated in

20 this Fund as a sheriff's law enforcement employee during

21 the period for which credit is being transferred, plus

22 interest thereon at the effective rate for each year,

23 compounded annually, from the date of termination of the

24 service for which credit is being transferred to the date

25 of payment, exceeds (2) the amount actually transferred to

26 the Fund. Such transferred service shall be deemed to be

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1 service as a sheriff's law enforcement employee for the

2 purposes of Section 7-142.1.

3 10. For service transferred from an Article 3 system

4 under Section 3-110.8: Credits and creditable service

5 shall be granted for service under Article 3 of this Act as

6 provided in Section 3-110.8, to any active member of this

7 Fund upon transfer of such credits pursuant to Section

8 3-110.8. If the amount by which (1) the employer and

9 employee contributions that would have been required if he

10 had participated in this Fund during the period for which

11 credit is being transferred, plus interest thereon at the

12 effective rate for each year, compounded annually, from the

13 date of termination of the service for which credit is

14 being transferred to the date of payment, exceeds (2) the

15 amount actually transferred to the Fund, then the amount of

16 creditable service established under this paragraph 10

17 shall be reduced by a corresponding amount in accordance

18 with the rules and procedures established under this

19 paragraph 10.

20 The board shall establish by rule the manner of making

21 the calculation required under this paragraph 10, taking

22 into account the appropriate actuarial assumptions; the

23 member's service, age, and salary history; the level of

24 funding of the employer; and any other factors that the

25 board determines to be relevant.

26 Until January 1, 2010, members who transferred service

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1 from an Article 3 system under the provisions of Public Act

2 94-356 may establish additional credit in this Fund, but

3 only up to the amount of the service credit reduction in

4 that transfer, as calculated under the actuarial

5 assumptions. This credit may be established upon payment by

6 the member of an amount to be determined by the board,

7 equal to (1) the amount that would have been contributed as

8 employee and employer contributions had all the service

9 been as an employee under this Article, plus interest

10 thereon compounded annually from the date of service to the

11 date of transfer, less (2) the total amount transferred

12 from the Article 3 system, plus (3) interest on the

13 difference at the effective rate for each year, compounded

14 annually, from the date of the transfer to the date of

15 payment. The additional service credit is allowed under

16 this amendatory Act of the 95th General Assembly

17 notwithstanding the provisions of Article 3 terminating

18 all transferred credits on the date of transfer.

19 (b) Creditable service - amount:

20 1. One month of creditable service shall be allowed for

21 each month for which a participating employee made

22 contributions as required under Section 7-173, or for which

23 creditable service is otherwise granted hereunder. Not

24 more than 1 month of service shall be credited and counted

25 for 1 calendar month, and not more than 1 year of service

26 shall be credited and counted for any calendar year. A

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1 calendar month means a nominal month beginning on the first

2 day thereof, and a calendar year means a year beginning

3 January 1 and ending December 31.

4 2. A seasonal employee shall be given 12 months of

5 creditable service if he renders the number of months of

6 service normally required by the position in a 12-month

7 period and he remains in service for the entire 12-month

8 period. Otherwise a fractional year of service in the

9 number of months of service rendered shall be credited.

10 3. An intermittent employee shall be given creditable

11 service for only those months in which a contribution is

12 made under Section 7-173.

13 (c) No application for correction of credits or creditable

14 service shall be considered unless the board receives an

15 application for correction while (1) the applicant is a

16 participating employee and in active employment with a

17 participating municipality or instrumentality, or (2) while

18 the applicant is actively participating in a pension fund or

19 retirement system which is a participating system under the

20 Retirement Systems Reciprocal Act. A participating employee or

21 other applicant shall not be entitled to credits or creditable

22 service unless the required employee contributions are made in

23 a lump sum or in installments made in accordance with board

24 rule.

25 (d) Upon the granting of a retirement, surviving spouse or

26 child annuity, a death benefit or a separation benefit, on

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1 account of any employee, all individual accumulated credits

2 shall thereupon terminate. Upon the withdrawal of additional

3 contributions, the credits applicable thereto shall thereupon

4 terminate. Terminated credits shall not be applied to increase

5 the benefits any remaining employee would otherwise receive

6 under this Article.

7 (Source: P.A. 96-299, eff. 8-11-09; 97-415, eff. 8-16-11.)

8 (40 ILCS 5/9-219) (from Ch. 108 1/2, par. 9-219)

9 Sec. 9-219. Computation of service.

10 (1) In computing the term of service of an employee prior

11 to the effective date, the entire period beginning on the date

12 he was first appointed and ending on the day before the

13 effective date, except any intervening period during which he

14 was separated by withdrawal from service, shall be counted for

15 all purposes of this Article.

16 (2) In computing the term of service of any employee on or

17 after the effective date, the following periods of time shall

18 be counted as periods of service for age and service, widow's

19 and child's annuity purposes:

20 (a) The time during which he performed the duties of

21 his position.

22 (b) Vacations, leaves of absence with whole or part

23 pay, and leaves of absence without pay not longer than 90

24 days.

25 (c) For an employee who is a member of a county police

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1 department or a correctional officer with the county

2 department of corrections, approved leaves of absence

3 without pay during which the employee serves as a full-time

4 officer or employee of an employee association, the

5 membership of which consists of other participants in the

6 Fund, provided that the employee contributes to the Fund

7 (1) the amount that he would have contributed had he

8 remained an active employee in the position he occupied at

9 the time the leave of absence was granted, (2) an amount

10 calculated by the Board representing employer

11 contributions, and (3) regular interest thereon from the

12 date of service to the date of payment. However, if the

13 employee's application to establish credit under this

14 subsection is received by the Fund on or after July 1, 2002

15 and before July 1, 2003, the amount representing employer

16 contributions specified in item (2) shall be waived.

17 For a former member of a county police department who

18 has received a refund under Section 9-164, periods during

19 which the employee serves as head of an employee

20 association, the membership of which consists of other

21 police officers, provided that the employee contributes to

22 the Fund (1) the amount that he would have contributed had

23 he remained an active member of the county police

24 department in the position he occupied at the time he left

25 service, (2) an amount calculated by the Board representing

26 employer contributions, and (3) regular interest thereon

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1 from the date of service to the date of payment. However,

2 if the former member of the county police department

3 retires on or after January 1, 1993 but no later than March

4 1, 1993, the amount representing employer contributions

5 specified in item (2) shall be waived.

6 (d) Any period of disability for which he received

7 disability benefit or whole or part pay.

8 (e) For a person who first becomes an employee before

9 the effective date of this amendatory Act of the 97th

10 General Assembly, accumulated ~~Accumulated~~ vacation or

11 other time for which an employee who retires on or after

12 November 1, 1990 receives a lump sum payment at the time of

13 retirement, provided that contributions were made to the

14 fund at the time such lump sum payment was received. The

15 service granted for the lump sum payment shall not change

16 the employee's date of withdrawal for computing the

17 effective date of the annuity.

18 (f) An employee who first becomes an employee before

19 the effective date of this amendatory Act of the 97th

20 General Assembly may receive service credit for annuity

21 purposes for accumulated sick leave as of the date of the

22 employee's withdrawal from service, not to exceed a total

23 of 180 days, provided that the amount of such accumulated

24 sick leave is certified by the County Comptroller to the

25 Board and the employee pays an amount equal to 8.5% (9% for

26 members of the County Police Department who are eligible to

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1 receive an annuity under Section 9-128.1) of the amount

2 that would have been paid had such accumulated sick leave

3 been paid at the employee's final rate of salary. Such

4 payment shall be made within 30 days after the date of

5 withdrawal and prior to receipt of the first annuity check.

6 The service credit granted for such accumulated sick leave

7 shall not change the employee's date of withdrawal for the

8 purpose of computing the effective date of the annuity.

9 (3) In computing the term of service of an employee on or

10 after the effective date for ordinary disability benefit

11 purposes, the following periods of time shall be counted as

12 periods of service:

13 (a) Unless otherwise specified in Section 9-157, the

14 time during which he performed the duties of his position.

15 (b) Paid vacations and leaves of absence with whole or

16 part pay.

17 (c) Any period for which he received duty disability

18 benefit.

19 (d) Any period of disability for which he received

20 whole or part pay.

21 (4) For an employee who on January 1, 1958, was transferred

22 by Act of the 70th General Assembly from his position in a

23 department of welfare of any city located in the county in

24 which this Article is in force and effect to a similar position

25 in a department of such county, service shall also be credited

26 for ordinary disability benefit and child's annuity for such

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1 period of department of welfare service during which period he

2 was a contributor to a statutory annuity and benefit fund in

3 such city and for which purposes service credit would otherwise

4 not be credited by virtue of such involuntary transfer.

5 (5) An employee described in subsection (e) of Section

6 9-108 shall receive credit for child's annuity and ordinary

7 disability benefit for the period of time for which he was

8 credited with service in the fund from which he was

9 involuntarily separated through class or group transfer;

10 provided, that no such credit shall be allowed to the extent

11 that it results in a duplication of credits or benefits, and

12 neither shall such credit be allowed to the extent that it was

13 or may be forfeited by the application for and acceptance of a

14 refund from the fund from which the employee was transferred.

15 (6) Overtime or extra service shall not be included in

16 computing service. Not more than 1 year of service shall be

17 allowed for service rendered during any calendar year.

18 (7) Unused sick or vacation time shall not be used to

19 compute the service of an employee who first becomes an

20 employee on or after the effective date of this amendatory Act

21 of the 97th General Assembly.

22 (Source: P.A. 92-599, eff. 6-28-02.)

23 (40 ILCS 5/9-220) (from Ch. 108 1/2, par. 9-220)

24 Sec. 9-220. Basis of service credit.

25 (a) In computing the period of service of any employee for

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1 annuity purposes under Section 9-134, the following provisions

2 shall govern:

3 (1) All periods prior to the effective date shall be

4 computed in accordance with the provisions governing the

5 computation of such service.

6 (2) Service on or after the effective date shall

7 include:

8 (i) The actual period of time the employee

9 contributes or has contributed to the fund for service

10 rendered to age 65 plus the actual period of time after

11 age 65 for which the employee performs the duties of

12 his position or performs such duties and is given a

13 county contribution for age and service annuity or

14 minimum annuity purposes.

15 (ii) Leaves of absence from duty, or vacation, for

16 which an employee receives all or part of his salary.

17 (iii) For a person who first becomes an employee

18 before the effective date of this amendatory Act of the

19 97th General Assembly, accumulated ~~Accumulated~~

20 vacation or other time for which an employee who

21 retires on or after November 1, 1990 receives a lump

22 sum payment at the time of retirement, provided that

23 contributions were made to the fund at the time such

24 lump sum payment was received. The service granted for

25 the lump sum payment shall not change the employee's

26 date of withdrawal for computing the effective date of

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1 the annuity.

2 (iv) For a person who first becomes an employee

3 before the effective date of this amendatory Act of the

4 97th General Assembly, accumulated ~~Accumulated~~ sick

5 leave as of the date of the employee's withdrawal from

6 service, not to exceed a total of 180 days, provided

7 that the amount of such accumulated sick leave is

8 certified by the County Comptroller to the Board and

9 the employee pays an amount equal to 8.5% (9% for

10 members of the County Police Department who are

11 eligible to receive an annuity under Section 9-128.1)

12 of the amount that would have been paid had such

13 accumulated sick leave been paid at the employee's

14 final rate of salary. Such payment shall be made within

15 30 days after the date of withdrawal and prior to

16 receipt of the first annuity check. The service credit

17 granted for such accumulated sick leave shall not

18 change the employee's date of withdrawal for the

19 purpose of computing the effective date of the annuity.

20 (v) Periods during which the employee has had

21 contributions for annuity purposes made for him in

22 accordance with law while on military leave of absence

23 during World War II.

24 (vi) Periods during which the employee receives a

25 disability benefit under this Article.

26 (vii) For any person who first becomes a member on

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1 or after January 1, 2011, the actual period of time the

2 employee contributes or has contributed to the fund for

3 service rendered up to the limitation on salary in

4 subsection (b-5) of Section 1-160 plus the actual

5 period of time thereafter for which the employee

6 performs the duties of his position and ceased

7 contributing due to the salary limitation in

8 subsection (b-5) of Section 1-160.

9 (3) The right to have certain periods of time

10 considered as service as stated in paragraph (2) of Section

11 9-164 shall not apply for annuity purposes unless the

12 refunds shall have been repaid in accordance with this

13 Article.

14 (4) All service shall be computed in whole calendar

15 months, and at least 15 days of service in any one calendar

16 month shall constitute one calendar month of service, and 1

17 year of service shall be equal to the number of months,

18 days or hours for which an appropriation was made in the

19 annual appropriation ordinance for the position held by the

20 employee.

21 (5) Unused sick or vacation time shall not be used to

22 compute the service of an employee who first becomes an

23 employee on or after the effective date of this amendatory

24 Act of the 97th General Assembly.

25 (b) For all other annuity purposes of this Article the

26 following schedule shall govern the computation of a year of

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1 service of an employee whose salary or wages is on the basis

2 stated, and any fractional part of a year of service shall be

3 determined according to said schedule:

4 Annual or Monthly Basis: Service during 4 months in any 1

5 calendar year;

6 Weekly Basis: Service during any 17 weeks of any 1 calendar

7 year, and service during any week shall constitute a week of

8 service;

9 Daily Basis: Service during 100 days in any 1 calendar

10 year, and service during any day shall constitute a day of

11 service;

12 Hourly Basis: Service during 800 hours in any 1 calendar

13 year, and service during any hour shall constitute an hour of

14 service.

15 (Source: P.A. 96-1490, eff. 1-1-11.)

16 (40 ILCS 5/14-104.3) (from Ch. 108 1/2, par. 14-104.3)

17 Sec. 14-104.3. Notwithstanding provisions contained in

18 Section 14-103.10, any person who first becomes a member before

19 the effective date of this amendatory Act of the 97th General

20 Assembly andwho at the time of retirement and after December

21 6, 1983 receives compensation in a lump sum for accumulated

22 vacation, sickness, or personal business may receive service

23 credit for such periods by making contributions within 90 days

24 of withdrawal, based on the rate of compensation in effect

25 immediately prior to retirement and the contribution rate then

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1 in effect. Any person who first becomes a member on or after

2 the effective date of this amendatory Act of the 97th General

3 Assembly and who receives compensation in a lump sum for

4 accumulated vacation, sickness, or personal business may not

5 receive service credit for such periods.Exercising the option

6 provided in this Section shall not change a member's date of

7 withdrawal or final average compensation for purposes of

8 computing the amount or effective date of a retirement annuity.

9 Any annuitant who establishes service credit as herein provided

10 shall have his retirement annuity adjusted retroactively to the

11 date of retirement.

12 (Source: P.A. 83-1362.)

13 (40 ILCS 5/14-106) (from Ch. 108 1/2, par. 14-106)

14 Sec. 14-106. Membership service credit.

15 (a) After January 1, 1944, all service of a member since he

16 last became a member with respect to which contributions are

17 made shall count as membership service; provided, that for

18 service on and after July 1, 1950, 12 months of service shall

19 constitute a year of membership service, the completion of 15

20 days or more of service during any month shall constitute 1

21 month of membership service, 8 to 15 days shall constitute 1/2

22 month of membership service and less than 8 days shall

23 constitute 1/4 month of membership service. The payroll record

24 of each department shall constitute conclusive evidence of the

25 record of service rendered by a member.

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1 (b) For a member who is employed and paid on an

2 academic-year basis rather than on a 12-month annual basis,

3 employment for a full academic year shall constitute a full

4 year of membership service, except that the member shall not

5 receive more than one year of membership service credit (plus

6 any additional service credit granted for unused sick leave)

7 for service during any 12-month period. This subsection (b)

8 applies to all such service for which the member has not begun

9 to receive a retirement annuity before January 1, 2001.

10 (c) A person who first becomes a member before the

11 effective date of this amendatory Act of the 97th General

12 Assemblyshall be entitled to additional service credit, under

13 rules prescribed by the Board, for accumulated unused sick

14 leave credited to his account in the last Department on the

15 date of withdrawal from service or for any period for which he

16 would have been eligible to receive benefits under a sick pay

17 plan authorized by law, if he had suffered a sickness or

18 accident on the date of withdrawal from service. It shall be

19 the responsibility of the last Department to certify to the

20 Board the length of time salary or benefits would have been

21 paid to the member based upon the accumulated unused sick leave

22 or the applicable sick pay plan if he had become entitled

23 thereto because of sickness on the date that his status as an

24 employee terminated. This period of service credit granted

25 under this paragraph shall not be considered in determining the

26 date the retirement annuity is to begin, or final average

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1 compensation.

2 (d) A person who first becomes a member on or after the

3 effective date of this amendatory Act of the 97th General

4 Assembly shall not be entitled to additional service credit for

5 accumulated unused sick leave.

6 (Source: P.A. 92-14, eff. 6-28-01.)

7 (40 ILCS 5/15-112) (from Ch. 108 1/2, par. 15-112)

8 Sec. 15-112. Final rate of earnings.

9 "Final rate of earnings":

10 (a) This subsection (a) applies only to a person who first

11 becomes a participant of any system before January 1, 2011.

12 For an employee who is paid on an hourly basis or who

13 receives an annual salary in installments during 12 months of

14 each academic year, the average annual earnings during the 48

15 consecutive calendar month period ending with the last day of

16 final termination of employment or the 4 consecutive academic

17 years of service in which the employee's earnings were the

18 highest, whichever is greater. For any other employee, the

19 average annual earnings during the 4 consecutive academic years

20 of service in which his or her earnings were the highest. For

21 an employee with less than 48 months or 4 consecutive academic

22 years of service, the average earnings during his or her entire

23 period of service. The earnings of an employee with more than

24 36 months of service prior to the date of becoming a

25 participant are, for such period, considered equal to the

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1 average earnings during the last 36 months of such service.

2 (b) This subsection (b) applies to a person to whom

3 subsection (a) does not apply.

4 For an employee who is paid on an hourly basis or who

5 receives an annual salary in installments during 12 months of

6 each academic year, the average annual earnings obtained by

7 dividing by 8 the total earnings of the employee during the 96

8 consecutive months in which the total earnings were the highest

9 within the last 120 months prior to termination.

10 For any other employee, the average annual earnings during

11 the 8 consecutive academic years within the 10 years prior to

12 termination in which the employee's earnings were the highest.

13 For an employee with less than 96 consecutive months or 8

14 consecutive academic years of service, whichever is necessary,

15 the average earnings during his or her entire period of

16 service.

17 (c) For an employee on leave of absence with pay, or on

18 leave of absence without pay who makes contributions during

19 such leave, earnings are assumed to be equal to the basic

20 compensation on the date the leave began.

21 (d) For an employee on disability leave, earnings are

22 assumed to be equal to the basic compensation on the date

23 disability occurs or the average earnings during the 24 months

24 immediately preceding the month in which disability occurs,

25 whichever is greater.

26 (e) For a participant who retires on or after the effective

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1 date of this amendatory Act of 1997 with at least 20 years of

2 service as a firefighter or police officer under this Article,

3 the final rate of earnings shall be the annual rate of earnings

4 received by the participant on his or her last day as a

5 firefighter or police officer under this Article, if that is

6 greater than the final rate of earnings as calculated under the

7 other provisions of this Section.

8 (f) If a participant to whom subsection (a) of this Section

9 applies is an employee for at least 6 months during the

10 academic year in which his or her employment is terminated, the

11 annual final rate of earnings shall be 25% of the sum of (1)

12 the annual basic compensation for that year, and (2) the amount

13 earned during the 36 months immediately preceding that year, if

14 this is greater than the final rate of earnings as calculated

15 under the other provisions of this Section.

16 (g) In the determination of the final rate of earnings for

17 an employee, that part of an employee's earnings for any

18 academic year beginning after June 30, 1997, which exceeds the

19 employee's earnings with that employer for the preceding year

20 by more than 20 percent shall be excluded; in the event that an

21 employee has more than one employer this limitation shall be

22 calculated separately for the earnings with each employer. In

23 making such calculation, only the basic compensation of

24 employees shall be considered, without regard to vacation or

25 overtime or to contracts for summer employment.

26 (h) The following are not considered as earnings in

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1 determining final rate of earnings: (1) severance or separation

2 pay, (2) retirement pay, (3) payment for unused sick leave, and

3 (4) payments from an employer for the period used in

4 determining final rate of earnings for any purpose other than

5 (i) services rendered, (ii) leave of absence or vacation

6 granted during that period, and (iii) vacation of up to 56 work

7 days allowed upon termination of employment; except that, if

8 the benefit has been collectively bargained between the

9 employer and the recognized collective bargaining agent

10 pursuant to the Illinois Educational Labor Relations Act,

11 payment received during a period of up to 2 academic years for

12 unused sick leave may be considered as earnings in accordance

13 with the applicable collective bargaining agreement, subject

14 to the 20% increase limitation of this Section, and if the

15 person first becomes a participant on or after the effective

16 date of this amendatory Act of the 97th General Assembly,

17 payments for unused sick or vacation time shall not be

18 considered as earnings. Any unused sick leave considered as

19 earnings under this Section shall not be taken into account in

20 calculating service credit under Section 15-113.4.

21 (i) Intermittent periods of service shall be considered as

22 consecutive in determining final rate of earnings.

23 (Source: P.A. 96-1490, eff. 1-1-11.)

24 (40 ILCS 5/15-113.4) (from Ch. 108 1/2, par. 15-113.4)

25 Sec. 15-113.4. Service for unused sick leave. "Service for

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1 unused sick leave": Aperson who first becomes a participant

2 before the effective date of this amendatory Act of the 97th

3 General Assembly and who is an employee under this System or

4 one of the other systems subject to Article 20 of this Code

5 within 60 days immediately preceding the date on which his or

6 her retirement annuity begins, is entitled to credit for

7 service for that portion of unused sick leave earned in the

8 course of employment with an employer and credited on the date

9 of termination of employment by an employer for which payment

10 is not received, in accordance with the following schedule: 30

11 through 90 full calendar days and 20 through 59 full work days

12 of unused sick leave, 1/4 of a year of service; 91 through 180

13 full calendar days and 60 through 119 full work days, 1/2 of a

14 year of service; 181 through 270 full calendar days and 120

15 through 179 full work days, 3/4 of a year of service; 271

16 through 360 full calendar days and 180 through 240 full work

17 days, one year of service. Only uncompensated, unused sick

18 leave earned in accordance with an employer's sick leave

19 accrual policy generally applicable to employees or a class of

20 employees shall be taken into account in calculating service

21 credit under this Section. Any uncompensated, unused sick leave

22 granted by an employer to facilitate the hiring, retirement,

23 termination, or other special circumstances of an employee

24 shall not be taken into account in calculating service credit

25 under this Section. If a participant transfers from one

26 employer to another, the unused sick leave credited by the

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1 previous employer shall be considered in determining service to

2 be credited under this Section, even if the participant

3 terminated service prior to the effective date of P.A. 86-272

4 (August 23, 1989); if necessary, the retirement annuity shall

5 be recalculated to reflect such sick leave credit. Each

6 employer shall certify to the board the number of days of

7 unused sick leave accrued to the participant's credit on the

8 date that the participant's status as an employee terminated.

9 This period of unused sick leave shall not be considered in

10 determining the date the retirement annuity begins. A person

11 who first becomes a participant on or after the effective date

12 of this amendatory Act of the 97th General Assembly shall not

13 receive service credit for unused sick leave.

14 (Source: P.A. 90-65, eff. 7-7-97; 90-511, eff. 8-22-97.)

15 (40 ILCS 5/16-121) (from Ch. 108 1/2, par. 16-121)

16 Sec. 16-121. Salary. "Salary": The actual compensation

17 received by a teacher during any school year and recognized by

18 the system in accordance with rules of the board. For purposes

19 of this Section, "school year" includes the regular school term

20 plus any additional period for which a teacher is compensated

21 and such compensation is recognized by the rules of the board.

22 In the case of a person who first becomes a member on or after

23 the effective date of this amendatory Act of the 97th General

24 Assembly, "salary" shall not include any payment for unused

25 sick or vacation time.

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1 (Source: P.A. 84-1028.)

2 (40 ILCS 5/16-127) (from Ch. 108 1/2, par. 16-127)

3 Sec. 16-127. Computation of creditable service.

4 (a) Each member shall receive regular credit for all

5 service as a teacher from the date membership begins, for which

6 satisfactory evidence is supplied and all contributions have

7 been paid.

8 (b) The following periods of service shall earn optional

9 credit and each member shall receive credit for all such

10 service for which satisfactory evidence is supplied and all

11 contributions have been paid as of the date specified:

12 (1) Prior service as a teacher.

13 (2) Service in a capacity essentially similar or

14 equivalent to that of a teacher, in the public common

15 schools in school districts in this State not included

16 within the provisions of this System, or of any other

17 State, territory, dependency or possession of the United

18 States, or in schools operated by or under the auspices of

19 the United States, or under the auspices of any agency or

20 department of any other State, and service during any

21 period of professional speech correction or special

22 education experience for a public agency within this State

23 or any other State, territory, dependency or possession of

24 the United States, and service prior to February 1, 1951 as

25 a recreation worker for the Illinois Department of Public

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1 Safety, for a period not exceeding the lesser of 2/5 of the

2 total creditable service of the member or 10 years. The

3 maximum service of 10 years which is allowable under this

4 paragraph shall be reduced by the service credit which is

5 validated by other retirement systems under paragraph (i)

6 of Section 15-113 and paragraph 1 of Section 17-133. Credit

7 granted under this paragraph may not be used in

8 determination of a retirement annuity or disability

9 benefits unless the member has at least 5 years of

10 creditable service earned subsequent to this employment

11 with one or more of the following systems: Teachers'

12 Retirement System of the State of Illinois, State

13 Universities Retirement System, and the Public School

14 Teachers' Pension and Retirement Fund of Chicago. Whenever

15 such service credit exceeds the maximum allowed for all

16 purposes of this Article, the first service rendered in

17 point of time shall be considered. The changes to this

18 subdivision (b)(2) made by Public Act 86-272 shall apply

19 not only to persons who on or after its effective date

20 (August 23, 1989) are in service as a teacher under the

21 System, but also to persons whose status as such a teacher

22 terminated prior to such effective date, whether or not

23 such person is an annuitant on that date.

24 (3) Any periods immediately following teaching

25 service, under this System or under Article 17, (or

26 immediately following service prior to February 1, 1951 as

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1 a recreation worker for the Illinois Department of Public

2 Safety) spent in active service with the military forces of

3 the United States; periods spent in educational programs

4 that prepare for return to teaching sponsored by the

5 federal government following such active military service;

6 if a teacher returns to teaching service within one

7 calendar year after discharge or after the completion of

8 the educational program, a further period, not exceeding

9 one calendar year, between time spent in military service

10 or in such educational programs and the return to

11 employment as a teacher under this System; and a period of

12 up to 2 years of active military service not immediately

13 following employment as a teacher.

14 The changes to this Section and Section 16-128 relating

15 to military service made by P.A. 87-794 shall apply not

16 only to persons who on or after its effective date are in

17 service as a teacher under the System, but also to persons

18 whose status as a teacher terminated prior to that date,

19 whether or not the person is an annuitant on that date. In

20 the case of an annuitant who applies for credit allowable

21 under this Section for a period of military service that

22 did not immediately follow employment, and who has made the

23 required contributions for such credit, the annuity shall

24 be recalculated to include the additional service credit,

25 with the increase taking effect on the date the System

26 received written notification of the annuitant's intent to

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1 purchase the credit, if payment of all the required

2 contributions is made within 60 days of such notice, or

3 else on the first annuity payment date following the date

4 of payment of the required contributions. In calculating

5 the automatic annual increase for an annuity that has been

6 recalculated under this Section, the increase attributable

7 to the additional service allowable under P.A. 87-794 shall

8 be included in the calculation of automatic annual

9 increases accruing after the effective date of the

10 recalculation.

11 Credit for military service shall be determined as

12 follows: if entry occurs during the months of July, August,

13 or September and the member was a teacher at the end of the

14 immediately preceding school term, credit shall be granted

15 from July 1 of the year in which he or she entered service;

16 if entry occurs during the school term and the teacher was

17 in teaching service at the beginning of the school term,

18 credit shall be granted from July 1 of such year. In all

19 other cases where credit for military service is allowed,

20 credit shall be granted from the date of entry into the

21 service.

22 The total period of military service for which credit

23 is granted shall not exceed 5 years for any member unless

24 the service: (A) is validated before July 1, 1964, and (B)

25 does not extend beyond July 1, 1963. Credit for military

26 service shall be granted under this Section only if not

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1 more than 5 years of the military service for which credit

2 is granted under this Section is used by the member to

3 qualify for a military retirement allotment from any branch

4 of the armed forces of the United States. The changes to

5 this subdivision (b)(3) made by Public Act 86-272 shall

6 apply not only to persons who on or after its effective

7 date (August 23, 1989) are in service as a teacher under

8 the System, but also to persons whose status as such a

9 teacher terminated prior to such effective date, whether or

10 not such person is an annuitant on that date.

11 (4) Any periods served as a member of the General

12 Assembly.

13 (5)(i) Any periods for which a teacher, as defined in

14 Section 16-106, is granted a leave of absence, provided he

15 or she returns to teaching service creditable under this

16 System or the State Universities Retirement System

17 following the leave; (ii) periods during which a teacher is

18 involuntarily laid off from teaching, provided he or she

19 returns to teaching following the lay-off; (iii) periods

20 prior to July 1, 1983 during which a teacher ceased covered

21 employment due to pregnancy, provided that the teacher

22 returned to teaching service creditable under this System

23 or the State Universities Retirement System following the

24 pregnancy and submits evidence satisfactory to the Board

25 documenting that the employment ceased due to pregnancy;

26 and (iv) periods prior to July 1, 1983 during which a

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1 teacher ceased covered employment for the purpose of

2 adopting an infant under 3 years of age or caring for a

3 newly adopted infant under 3 years of age, provided that

4 the teacher returned to teaching service creditable under

5 this System or the State Universities Retirement System

6 following the adoption and submits evidence satisfactory

7 to the Board documenting that the employment ceased for the

8 purpose of adopting an infant under 3 years of age or

9 caring for a newly adopted infant under 3 years of age.

10 However, total credit under this paragraph (5) may not

11 exceed 3 years.

12 Any qualified member or annuitant may apply for credit

13 under item (iii) or (iv) of this paragraph (5) without

14 regard to whether service was terminated before the

15 effective date of this amendatory Act of 1997. In the case

16 of an annuitant who establishes credit under item (iii) or

17 (iv), the annuity shall be recalculated to include the

18 additional service credit. The increase in annuity shall

19 take effect on the date the System receives written

20 notification of the annuitant's intent to purchase the

21 credit, if the required evidence is submitted and the

22 required contribution paid within 60 days of that

23 notification, otherwise on the first annuity payment date

24 following the System's receipt of the required evidence and

25 contribution. The increase in an annuity recalculated

26 under this provision shall be included in the calculation

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1 of automatic annual increases in the annuity accruing after

2 the effective date of the recalculation.

3 Optional credit may be purchased under this subsection

4 (b)(5) for periods during which a teacher has been granted

5 a leave of absence pursuant to Section 24-13 of the School

6 Code. A teacher whose service under this Article terminated

7 prior to the effective date of P.A. 86-1488 shall be

8 eligible to purchase such optional credit. If a teacher who

9 purchases this optional credit is already receiving a

10 retirement annuity under this Article, the annuity shall be

11 recalculated as if the annuitant had applied for the leave

12 of absence credit at the time of retirement. The difference

13 between the entitled annuity and the actual annuity shall

14 be credited to the purchase of the optional credit. The

15 remainder of the purchase cost of the optional credit shall

16 be paid on or before April 1, 1992.

17 The change in this paragraph made by Public Act 86-273

18 shall be applicable to teachers who retire after June 1,

19 1989, as well as to teachers who are in service on that

20 date.

21 (6) For a person who first becomes a member before the

22 effective date of this amendatory Act of the 97th General

23 Assembly, any ~~Any~~ days of unused and uncompensated

24 accumulated sick leave earned by a teacher. The service

25 credit granted under this paragraph shall be the ratio of

26 the number of unused and uncompensated accumulated sick

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1 leave days to 170 days, subject to a maximum of 2 years of

2 service credit. Prior to the member's retirement, each

3 former employer shall certify to the System the number of

4 unused and uncompensated accumulated sick leave days

5 credited to the member at the time of termination of

6 service. The period of unused sick leave shall not be

7 considered in determining the effective date of

8 retirement. A member is not required to make contributions

9 in order to obtain service credit for unused sick leave.

10 Credit for sick leave shall, at retirement, be granted

11 by the System for any retiring regional or assistant

12 regional superintendent of schoolswho first becomes a

13 member before the effective date of this amendatory Act of

14 the 97th General Assembly at the rate of 6 days per year of

15 creditable service or portion thereof established while

16 serving as such superintendent or assistant

17 superintendent.

18 (7) Periods prior to February 1, 1987 served as an

19 employee of the Illinois Mathematics and Science Academy

20 for which credit has not been terminated under Section

21 15-113.9 of this Code.

22 (8) Service as a substitute teacher for work performed

23 prior to July 1, 1990.

24 (9) Service as a part-time teacher for work performed

25 prior to July 1, 1990.

26 (10) Up to 2 years of employment with Southern Illinois

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1 University - Carbondale from September 1, 1959 to August

2 31, 1961, or with Governors State University from September

3 1, 1972 to August 31, 1974, for which the teacher has no

4 credit under Article 15. To receive credit under this item

5 (10), a teacher must apply in writing to the Board and pay

6 the required contributions before May 1, 1993 and have at

7 least 12 years of service credit under this Article.

8 (b-1) A member may establish optional credit for up to 2

9 years of service as a teacher or administrator employed by a

10 private school recognized by the Illinois State Board of

11 Education, provided that the teacher (i) was certified under

12 the law governing the certification of teachers at the time the

13 service was rendered, (ii) applies in writing on or after

14 August 1, 2009 and on or before August 1, 2012, (iii) supplies

15 satisfactory evidence of the employment, (iv) completes at

16 least 10 years of contributing service as a teacher as defined

17 in Section 16-106, and (v) pays the contribution required in

18 subsection (d-5) of Section 16-128. The member may apply for

19 credit under this subsection and pay the required contribution

20 before completing the 10 years of contributing service required

21 under item (iv), but the credit may not be used until the item

22 (iv) contributing service requirement has been met.

23 (c) The service credits specified in this Section shall be

24 granted only if: (1) such service credits are not used for

25 credit in any other statutory tax-supported public employee

26 retirement system other than the federal Social Security

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1 program; and (2) the member makes the required contributions as

2 specified in Section 16-128. Except as provided in subsection

3 (b-1) of this Section, the service credit shall be effective as

4 of the date the required contributions are completed.

5 Any service credits granted under this Section shall

6 terminate upon cessation of membership for any cause.

7 Credit may not be granted under this Section covering any

8 period for which an age retirement or disability retirement

9 allowance has been paid.

10 (Source: P.A. 96-546, eff. 8-17-09.)

11 (40 ILCS 5/17-116) (from Ch. 108 1/2, par. 17-116)

12 Sec. 17-116. Service retirement pension.

13 (a) Each teacher having 20 years of service upon attainment

14 of age 55, or who thereafter attains age 55 shall be entitled

15 to a service retirement pension upon or after attainment of age

16 55; and each teacher in service on or after July 1, 1971, with

17 5 or more but less than 20 years of service shall be entitled

18 to receive a service retirement pension upon or after

19 attainment of age 62.

20 (b) The service retirement pension for a teacher who

21 retires on or after June 25, 1971, at age 60 or over, shall be

22 calculated as follows:

23 (1) For creditable service earned before July 1, 1998

24 that has not been augmented under Section 17-119.1: 1.67%

25 for each of the first 10 years of service; 1.90% for each

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1 of the next 10 years of service; 2.10% for each year of

2 service in excess of 20 but not exceeding 30; and 2.30% for

3 each year of service in excess of 30, based upon average

4 salary as herein defined.

5 (2) For creditable service earned on or after July 1,

6 1998 by a member who has at least 30 years of creditable

7 service on July 1, 1998 and who does not elect to augment

8 service under Section 17-119.1: 2.3% of average salary for

9 each year of creditable service earned on or after July 1,

10 1998.

11 (3) For all other creditable service: 2.2% of average

12 salary for each year of creditable service.

13 (c) When computing such service retirement pensions, the

14 following conditions shall apply:

15 1. Average salary shall consist of the average annual

16 rate of salary for the 4 consecutive years of validated

17 service within the last 10 years of service when such

18 average annual rate was highest. In the determination of

19 average salary for retirement allowance purposes, for

20 members who commenced employment after August 31, 1979,

21 that part of the salary for any year shall be excluded

22 which exceeds the annual full-time salary rate for the

23 preceding year by more than 20%. In the case of a member

24 who commenced employment before August 31, 1979 and who

25 receives salary during any year after September 1, 1983

26 which exceeds the annual full time salary rate for the

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1 preceding year by more than 20%, an Employer and other

2 employers of eligible contributors as defined in Section

3 17-106 shall pay to the Fund an amount equal to the present

4 value of the additional service retirement pension

5 resulting from such excess salary. The present value of the

6 additional service retirement pension shall be computed by

7 the Board on the basis of actuarial tables adopted by the

8 Board. If a member elects to receive a pension from this

9 Fund provided by Section 20-121, his salary under the State

10 Universities Retirement System and the Teachers'

11 Retirement System of the State of Illinois shall be

12 considered in determining such average salary. Amounts

13 paid after the effective date of this amendatory Act of

14 1991 for unused vacation time earned after that effective

15 date shall not under any circumstances be included in the

16 calculation of average salary or the annual rate of salary

17 for the purposes of this Article.

18 2. Proportionate credit shall be given for validated

19 service of less than one year.

20 3. For retirement at age 60 or over the pension shall

21 be payable at the full rate.

22 4. For separation from service below age 60 to a

23 minimum age of 55, the pension shall be discounted at the

24 rate of 1/2 of one per cent for each month that the age of

25 the contributor is less than 60, but a teacher may elect to

26 defer the effective date of pension in order to eliminate

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1 or reduce this discount. This discount shall not be

2 applicable to any participant who has at least 34 years of

3 service or a retirement pension of at least 74.6% of

4 average salary on the date the retirement annuity begins.

5 5. No additional pension shall be granted for service

6 exceeding 45 years. Beginning June 26, 1971 no pension

7 shall exceed the greater of $1,500 per month or 75% of

8 average salary as herein defined.

9 6. Service retirement pensions shall begin on the

10 effective date of resignation, retirement, the day

11 following the close of the payroll period for which service

12 credit was validated, or the time the person resigning or

13 retiring attains age 55, or on a date elected by the

14 teacher, whichever shall be latest.

15 7. A member who is eligible to receive a retirement

16 pension of at least 74.6% of average salary and will attain

17 age 55 on or before December 31 during the year which

18 commences on July 1 shall be deemed to attain age 55 on the

19 preceding June 1.

20 8. A member retiring after the effective date of this

21 amendatory Act of 1998 shall receive a pension equal to 75%

22 of average salary if the member is qualified to receive a

23 retirement pension equal to at least 74.6% of average

24 salary under this Article or as proportional annuities

25 under Article 20 of this Code.

26 9. In the case of a person who first becomes a

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1 participant on or after the effective date of this

2 amendatory Act of the 97th General Assembly, payments for

3 unused sick or vacation time shall not be used in the

4 calculation of average salary.

5 (Source: P.A. 90-566, eff. 1-2-98; 90-582, eff. 5-27-98.)

6 (40 ILCS 5/17-134) (from Ch. 108 1/2, par. 17-134)

7 Sec. 17-134. Contributions for leaves of absence; military

8 service; computing service. In computing service for pension

9 purposes the following periods of service shall stand in lieu

10 of a like number of years of teaching service upon payment

11 therefor in the manner hereinafter provided: (a) time spent on

12 a leave of absence granted by the employer; (b) service with

13 teacher or labor organizations based upon special leaves of

14 absence therefor granted by an Employer; (c) a maximum of 5

15 years spent in the military service of the United States, of

16 which up to 2 years may have been served outside the pension

17 period; (d) unused sick days at termination of service to a

18 maximum of 244 days; (e) time lost due to layoff and

19 curtailment of the school term from June 6 through June 21,

20 1976; and (f) time spent after June 30, 1982 as a member of the

21 Board of Education, if required to resign from an

22 administrative or teaching position in order to qualify as a

23 member of the Board of Education.

24 (1) For time spent on or after September 6, 1948 on

25 sabbatical leaves of absence or sick leaves, for which

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1 salaries are paid, an Employer shall make payroll

2 deductions at the applicable rates in effect during such

3 periods.

4 (2) For time spent on a leave of absence granted by the

5 employer for which no salaries are paid, teachers desiring

6 credit therefor shall pay the required contributions at the

7 rates in effect during such periods as though they were in

8 teaching service. If an Employer pays salary for vacations

9 which occur during a teacher's sick leave or maternity or

10 paternity leave without salary, vacation pay for which the

11 teacher would have qualified while in active service shall

12 be considered part of the teacher's total salary for

13 pension purposes. No more than 36 months of leave credit

14 may be allowed any person during the entire term of

15 service. Sabbatical leave credit shall be limited to the

16 time the person on leave without salary under an Employer's

17 rules is allowed to engage in an activity for which he

18 receives salary or compensation.

19 (3) For time spent prior to September 6, 1948, on

20 sabbatical leaves of absence or sick leaves for which

21 salaries were paid, teachers desiring service credit

22 therefor shall pay the required contributions at the

23 maximum applicable rates in effect during such periods.

24 (4) For service with teacher or labor organizations

25 authorized by special leaves of absence, for which no

26 payroll deductions are made by an Employer, teachers

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1 desiring service credit therefor shall contribute to the

2 Fund upon the basis of the actual salary received from such

3 organizations at the percentage rates in effect during such

4 periods for certified positions with such Employer. To the

5 extent the actual salary exceeds the regular salary, which

6 shall be defined as the salary rate, as calculated by the

7 Board, in effect for the teacher's regular position in

8 teaching service on September 1, 1983 or on the effective

9 date of the leave with the organization, whichever is

10 later, the organization shall pay to the Fund the

11 employer's normal cost as set by the Board on the

12 increment.

13 (5) For time spent in the military service, teachers

14 entitled to and desiring credit therefor shall contribute

15 the amount required for each year of service or fraction

16 thereof at the rates in force (a) at the date of

17 appointment, or (b) on return to teaching service as a

18 regularly certified teacher, as the case may be; provided

19 such rates shall not be less than $450 per year of service.

20 These conditions shall apply unless an Employer elects to

21 and does pay into the Fund the amount which would have been

22 due from such person had he been employed as a teacher

23 during such time. In the case of credit for military

24 service not during the pension period, the teacher must

25 also pay to the Fund an amount determined by the Board to

26 be equal to the employer's normal cost of the benefits

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1 accrued from such service, plus interest thereon at 5% per

2 year, compounded annually, from the date of appointment to

3 the date of payment.

4 The changes to this Section made by Public Act 87-795

5 shall apply not only to persons who on or after its

6 effective date are in service under the Fund, but also to

7 persons whose status as a teacher terminated prior to that

8 date, whether or not the person is an annuitant on that

9 date. In the case of an annuitant who applies for credit

10 allowable under this Section for a period of military

11 service that did not immediately follow employment, and who

12 has made the required contributions for such credit, the

13 annuity shall be recalculated to include the additional

14 service credit, with the increase taking effect on the date

15 the Fund received written notification of the annuitant's

16 intent to purchase the credit, if payment of all the

17 required contributions is made within 60 days of such

18 notice, or else on the first annuity payment date following

19 the date of payment of the required contributions. In

20 calculating the automatic annual increase for an annuity

21 that has been recalculated under this Section, the increase

22 attributable to the additional service allowable under

23 this amendatory Act of 1991 shall be included in the

24 calculation of automatic annual increases accruing after

25 the effective date of the recalculation.

26 The total credit for military service shall not exceed

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1 5 years, except that any teacher who on July 1, 1963, had

2 validated credit for more than 5 years of military service

3 shall be entitled to the total amount of such credit.

4 (6) For persons who first become teachers before the

5 effective date of this amendatory Act of the 97th General

6 Assembly, a ~~A~~ maximum of 244 unused sick days credited to

7 his account by an Employer on the date of termination of

8 employment. Members, upon verification of unused sick

9 days, may add this service time to total creditable

10 service.

11 (7) In all cases where time spent on leave is

12 creditable and no payroll deductions therefor are made by

13 an Employer, persons desiring service credit shall make the

14 required contributions directly to the Fund.

15 (8) For time lost without pay due to layoff and

16 curtailment of the school term from June 6 through June 21,

17 1976, as provided in item (e) of the first paragraph of

18 this Section, persons who were contributors on the days

19 immediately preceding such layoff shall receive credit

20 upon paying to the Fund a contribution based on the rates

21 of compensation and employee contributions in effect at the

22 time of such layoff, together with an additional amount

23 equal to 12.2% of the compensation computed for such period

24 of layoff, plus interest on the entire amount at 5% per

25 annum from January 1, 1978 to the date of payment. If such

26 contribution is paid, salary for pension purposes for any

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1 year in which such a layoff occurred shall include the

2 compensation recognized for purposes of computing that

3 contribution.

4 (9) For time spent after June 30, 1982, as a

5 nonsalaried member of the Board of Education, if required

6 to resign from an administrative or teaching position in

7 order to qualify as a member of the Board of Education, an

8 administrator or teacher desiring credit therefor shall

9 pay the required contributions at the rates and salaries in

10 effect during such periods as though the member were in

11 service.

12 Effective September 1, 1974, the interest charged for

13 validation of service described in paragraphs (2) through (5)

14 of this Section shall be compounded annually at a rate of 5%

15 commencing one year after the termination of the leave or

16 return to service.

17 (Source: P.A. 92-599, eff. 6-28-02.)

18 Section 99. Effective date. This Act takes effect upon

19 becoming law.