Bill Text: IL HB3813 | 2011-2012 | 97th General Assembly | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Amends the Chicago Municipal, Chicago Laborers, and Chicago Teachers Articles of the Illinois Pension Code to provide that, for certain leaves of absence during which a participant is employed by a labor organization, contributions shall be based upon the participant's regular salary (rather than the salary received from the organization). Effective immediately.

Spectrum: Moderate Partisan Bill (Republican 23-6)

Status: (Passed) 2012-01-05 - Public Act . . . . . . . . . 97-0651 [HB3813 Detail]

Download: Illinois-2011-HB3813-Amended.html

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Sen. Kwame Raoul

Filed: 11/8/2011

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AMENDMENT TO HOUSE BILL 3813
AMENDMENT NO. ______. Amend House Bill 3813 by replacing
everything after the enacting clause with the following:
"Section 5. The Illinois Pension Code is amended by
changing Sections 1-114, 1-135, 3-110, 4-108, 5-214, 6-209,
8-226, 8-233, 9-219, 11-215, 11-217, 15-107, 16-106, and 17-134
as follows:
(40 ILCS 5/1-114) (from Ch. 108 1/2, par. 1-114)
Sec. 1-114. Liability for Breach of Fiduciary Duty. (a) Any
person who is a fiduciary with respect to a retirement system
or pension fund established under this Code who breaches any
duty imposed upon fiduciaries by this Code, including, but not
limited to, a failure to report a reasonable suspicion of a
false statement specified in Section 1-135 of this Code, shall
be personally liable to make good to such retirement system or
pension fund any losses to it resulting from each such breach,

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and to restore to such retirement system or pension fund any
profits of such fiduciary which have been made through use of
assets of the retirement system or pension fund by the
fiduciary, and shall be subject to such equitable or remedial
relief as the court may deem appropriate, including the removal
of such fiduciary.
(b) No person shall be liable with respect to a breach of
fiduciary duty under this Code if such breach occurred before
such person became a fiduciary or after such person ceased to
be a fiduciary.
(Source: P.A. 82-960.)
(40 ILCS 5/1-135)
Sec. 1-135. Fraud. Any person who knowingly makes any false
statement or falsifies or permits to be falsified any record of
a retirement system or pension fund created under this Code or
the Illinois State Board of Investment in an attempt to defraud
the retirement system or pension fund created under this Code
or the Illinois State Board of Investment is guilty of a Class
3 felony. Any reasonable suspicion by any appointed or elected
commissioner, trustee, director, or board member of a
retirement system or pension fund created under this Code or
the State Board of Investment of a false statement or falsified
record being submitted or permitted by a person under this Code
shall be immediately referred to the board of trustees of the
applicable retirement system or pension fund created under this

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Code, the State Board of Investment, or the State's Attorney of
the jurisdiction where the alleged fraudulent activity
occurred. The board of trustees of a retirement system or
pension fund created under this Code or the State Board of
Investment shall immediately notify the State's Attorney of the
jurisdiction where any alleged fraudulent activity occurred
for investigation. For the purposes of this Section,
"reasonable suspicion" means a belief, based upon specific and
articulable facts, taken together with rational inferences
from those facts, that would lead a reasonable person to
believe that fraud has been, or will be, committed. A
reasonable suspicion is more than a non-particularized
suspicion. A mere inconsistency, standing alone, does not give
rise to a reasonable suspicion.
(Source: P.A. 96-6, eff. 4-3-09.)
(40 ILCS 5/3-110) (from Ch. 108 1/2, par. 3-110)
Sec. 3-110. Creditable service.
(a) "Creditable service" is the time served by a police
officer as a member of a regularly constituted police force of
a municipality. In computing creditable service furloughs
without pay exceeding 30 days shall not be counted, but all
leaves of absence for illness or accident, regardless of
length, and all periods of disability retirement for which a
police officer has received no disability pension payments
under this Article shall be counted.

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(a-5) Up to 3 years of time during which the police officer
receives a disability pension under Section 3-114.1, 3-114.2,
3-114.3, or 3-114.6 shall be counted as creditable service,
provided that (i) the police officer returns to active service
after the disability for a period at least equal to the period
for which credit is to be established and (ii) the police
officer makes contributions to the fund based on the rates
specified in Section 3-125.1 and the salary upon which the
disability pension is based. These contributions may be paid at
any time prior to the commencement of a retirement pension. The
police officer may, but need not, elect to have the
contributions deducted from the disability pension or to pay
them in installments on a schedule approved by the board. If
not deducted from the disability pension, the contributions
shall include interest at the rate of 6% per year, compounded
annually, from the date for which service credit is being
established to the date of payment. If contributions are paid
under this subsection (a-5) in excess of those needed to
establish the credit, the excess shall be refunded. This
subsection (a-5) applies to persons receiving a disability
pension under Section 3-114.1, 3-114.2, 3-114.3, or 3-114.6 on
the effective date of this amendatory Act of the 91st General
Assembly, as well as persons who begin to receive such a
disability pension after that date.
(b) Creditable service includes all periods of service in
the military, naval or air forces of the United States entered

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upon while an active police officer of a municipality, provided
that upon applying for a permanent pension, and in accordance
with the rules of the board, the police officer pays into the
fund the amount the officer would have contributed if he or she
had been a regular contributor during such period, to the
extent that the municipality which the police officer served
has not made such contributions in the officer's behalf. The
total amount of such creditable service shall not exceed 5
years, except that any police officer who on July 1, 1973 had
more than 5 years of such creditable service shall receive the
total amount thereof.
(b-5) Creditable service includes all periods of service in
the military, naval, or air forces of the United States entered
upon before beginning service as an active police officer of a
municipality, provided that, in accordance with the rules of
the board, the police officer pays into the fund the amount the
police officer would have contributed if he or she had been a
regular contributor during such period, plus an amount
determined by the Board to be equal to the municipality's
normal cost of the benefit, plus interest at the actuarially
assumed rate calculated from the date the employee last became
a police officer under this Article. The total amount of such
creditable service shall not exceed 2 years.
(c) Creditable service also includes service rendered by a
police officer while on leave of absence from a police
department to serve as an executive of an organization whose

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membership consists of members of a police department, subject
to the following conditions: (i) the police officer is a
participant of a fund established under this Article with at
least 10 years of service as a police officer; (ii) the police
officer received no credit for such service under any other
retirement system, pension fund, or annuity and benefit fund
included in this Code; (iii) pursuant to the rules of the board
the police officer pays to the fund the amount he or she would
have contributed had the officer been an active member of the
police department; and (iv) the organization pays a
contribution equal to the municipality's normal cost for that
period of service; and (v) for all leaves of absence under this
subsection (c), including those beginning before the effective
date of this amendatory Act of the 97th General Assembly, the
police officer continues to remain in sworn status, subject to
the professional standards of the public employer or those
terms established in statute.
(d)(1) Creditable service also includes periods of
service originally established in another police pension
fund under this Article or in the Fund established under
Article 7 of this Code for which (i) the contributions have
been transferred under Section 3-110.7 or Section 7-139.9
and (ii) any additional contribution required under
paragraph (2) of this subsection has been paid in full in
accordance with the requirements of this subsection (d).
(2) If the board of the pension fund to which

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creditable service and related contributions are
transferred under Section 7-139.9 determines that the
amount transferred is less than the true cost to the
pension fund of allowing that creditable service to be
established, then in order to establish that creditable
service the police officer must pay to the pension fund,
within the payment period specified in paragraph (3) of
this subsection, an additional contribution equal to the
difference, as determined by the board in accordance with
the rules and procedures adopted under paragraph (6) of
this subsection. If the board of the pension fund to which
creditable service and related contributions are
transferred under Section 3-110.7 determines that the
amount transferred is less than the true cost to the
pension fund of allowing that creditable service to be
established, then the police officer may elect (A) to
establish that creditable service by paying to the pension
fund, within the payment period specified in paragraph (3)
of this subsection (d), an additional contribution equal to
the difference, as determined by the board in accordance
with the rules and procedures adopted under paragraph (6)
of this subsection (d) or (B) to have his or her creditable
service reduced by an amount equal to the difference
between the amount transferred under Section 3-110.7 and
the true cost to the pension fund of allowing that
creditable service to be established, as determined by the

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board in accordance with the rules and procedures adopted
under paragraph (6) of this subsection (d).
(3) Except as provided in paragraph (4), the additional
contribution that is required or elected under paragraph
(2) of this subsection (d) must be paid to the board (i)
within 5 years from the date of the transfer of
contributions under Section 3-110.7 or 7-139.9 and (ii)
before the police officer terminates service with the fund.
The additional contribution may be paid in a lump sum or in
accordance with a schedule of installment payments
authorized by the board.
(4) If the police officer dies in service before
payment in full has been made and before the expiration of
the 5-year payment period, the surviving spouse of the
officer may elect to pay the unpaid amount on the officer's
behalf within 6 months after the date of death, in which
case the creditable service shall be granted as though the
deceased police officer had paid the remaining balance on
the day before the date of death.
(5) If the additional contribution that is required or
elected under paragraph (2) of this subsection (d) is not
paid in full within the required time, the creditable
service shall not be granted and the police officer (or the
officer's surviving spouse or estate) shall be entitled to
receive a refund of (i) any partial payment of the
additional contribution that has been made by the police

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officer and (ii) those portions of the amounts transferred
under subdivision (a)(1) of Section 3-110.7 or
subdivisions (a)(1) and (a)(3) of Section 7-139.9 that
represent employee contributions paid by the police
officer (but not the accumulated interest on those
contributions) and interest paid by the police officer to
the prior pension fund in order to reinstate service
terminated by acceptance of a refund.
At the time of paying a refund under this item (5), the
pension fund shall also repay to the pension fund from
which the contributions were transferred under Section
3-110.7 or 7-139.9 the amount originally transferred under
subdivision (a)(2) of that Section, plus interest at the
rate of 6% per year, compounded annually, from the date of
the original transfer to the date of repayment. Amounts
repaid to the Article 7 fund under this provision shall be
credited to the appropriate municipality.
Transferred credit that is not granted due to failure
to pay the additional contribution within the required time
is lost; it may not be transferred to another pension fund
and may not be reinstated in the pension fund from which it
was transferred.
(6) The Public Employee Pension Fund Division of the
Department of Insurance shall establish by rule the manner
of making the calculation required under paragraph (2) of
this subsection, taking into account the appropriate

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actuarial assumptions; the police officer's service, age,
and salary history; the level of funding of the pension
fund to which the credits are being transferred; and any
other factors that the Division determines to be relevant.
The rules may require that all calculations made under
paragraph (2) be reported to the Division by the board
performing the calculation, together with documentation of
the creditable service to be transferred, the amounts of
contributions and interest to be transferred, the manner in
which the calculation was performed, the numbers relied
upon in making the calculation, the results of the
calculation, and any other information the Division may
deem useful.
(e)(1) Creditable service also includes periods of
service originally established in the Fund established
under Article 7 of this Code for which the contributions
have been transferred under Section 7-139.11.
(2) If the board of the pension fund to which
creditable service and related contributions are
transferred under Section 7-139.11 determines that the
amount transferred is less than the true cost to the
pension fund of allowing that creditable service to be
established, then the amount of creditable service the
police officer may establish under this subsection (e)
shall be reduced by an amount equal to the difference, as
determined by the board in accordance with the rules and

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procedures adopted under paragraph (3) of this subsection.
(3) The Public Pension Division of the Department of
Financial and Professional Regulation shall establish by
rule the manner of making the calculation required under
paragraph (2) of this subsection, taking into account the
appropriate actuarial assumptions; the police officer's
service, age, and salary history; the level of funding of
the pension fund to which the credits are being
transferred; and any other factors that the Division
determines to be relevant. The rules may require that all
calculations made under paragraph (2) be reported to the
Division by the board performing the calculation, together
with documentation of the creditable service to be
transferred, the amounts of contributions and interest to
be transferred, the manner in which the calculation was
performed, the numbers relied upon in making the
calculation, the results of the calculation, and any other
information the Division may deem useful.
(4) Until January 1, 2010, a police officer who
transferred service from the Fund established under
Article 7 of this Code under the provisions of Public Act
94-356 may establish additional credit, but only for the
amount of the service credit reduction in that transfer, as
calculated under paragraph (3) of this subsection (e). This
credit may be established upon payment by the police
officer of an amount to be determined by the board, equal

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to (1) the amount that would have been contributed as
employee and employer contributions had all of the service
been as an employee under this Article, plus interest
thereon at the rate of 6% per year, compounded annually
from the date of service to the date of transfer, less (2)
the total amount transferred from the Article 7 Fund, plus
(3) interest on the difference at the rate of 6% per year,
compounded annually, from the date of the transfer to the
date of payment. The additional service credit is allowed
under this amendatory Act of the 95th General Assembly
notwithstanding the provisions of Article 7 terminating
all transferred credits on the date of transfer.
(Source: P.A. 95-812, eff. 8-13-08; 96-297, eff. 8-11-09;
96-1260, eff. 7-23-10.)
(40 ILCS 5/4-108) (from Ch. 108 1/2, par. 4-108)
Sec. 4-108. Creditable service.
(a) Creditable service is the time served as a firefighter
of a municipality. In computing creditable service, furloughs
and leaves of absence without pay exceeding 30 days in any one
year shall not be counted, but leaves of absence for illness or
accident regardless of length, and periods of disability for
which a firefighter received no disability pension payments
under this Article, shall be counted.
(b) Furloughs and leaves of absence of 30 days or less in
any one year may be counted as creditable service, if the

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firefighter makes the contribution to the fund that would have
been required had he or she not been on furlough or leave of
absence. To qualify for this creditable service, the
firefighter must pay the required contributions to the fund not
more than 90 days subsequent to the termination of the furlough
or leave of absence, to the extent that the municipality has
not made such contribution on his or her behalf.
(c) Creditable service includes:
(1) Service in the military, naval or air forces of the
United States entered upon when the person was an active
firefighter, provided that, upon applying for a permanent
pension, and in accordance with the rules of the board the
firefighter pays into the fund the amount that would have
been contributed had he or she been a regular contributor
during such period of service, if and to the extent that
the municipality which the firefighter served made no such
contributions in his or her behalf. The total amount of
such creditable service shall not exceed 5 years, except
that any firefighter who on July 1, 1973 had more than 5
years of such creditable service shall receive the total
amount thereof as of that date.
(1.5) Up to 24 months of service in the military,
naval, or air forces of the United States that was served
prior to employment by a municipality or fire protection
district as a firefighter. To receive the credit for the
military service prior to the employment as a firefighter,

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the firefighter must apply in writing to the fund and must
make contributions to the fund equal to (i) the employee
contributions that would have been required had the service
been rendered as a member, plus (ii) an amount determined
by the fund to be equal to the employer's normal cost of
the benefits accrued for that military service, plus (iii)
interest at the actuarially assumed rate provided by the
Department of Financial and Professional Regulation,
compounded annually from the first date of membership in
the fund to the date of payment on items (i) and (ii). The
changes to this paragraph (1.5) by this amendatory Act of
the 95th General Assembly apply only to participating
employees in service on or after its effective date.
(2) Service prior to July 1, 1976 by a firefighter
initially excluded from participation by reason of age who
elected to participate and paid the required contributions
for such service.
(3) Up to 8 years of service by a firefighter as an
officer in a statewide firefighters' association when he is
on a leave of absence from a municipality's payroll,
provided that (i) the firefighter has at least 10 years of
creditable service as an active firefighter, (ii) the
firefighter contributes to the fund the amount that he
would have contributed had he remained an active member of
the fund, and (iii) the employee or statewide firefighter
association contributes to the fund an amount equal to the

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employer's required contribution as determined by the
board, and (iv) for all leaves of absence under this
subdivision (3), including those beginning before the
effective date of this amendatory Act of the 97th General
Assembly, the firefighter continues to remain in sworn
status, subject to the professional standards of the public
employer or those terms established in statute.
(4) Time spent as an on-call fireman for a
municipality, calculated at the rate of one year of
creditable service for each 5 years of time spent as an
on-call fireman, provided that (i) the firefighter has at
least 18 years of creditable service as an active
firefighter, (ii) the firefighter spent at least 14 years
as an on-call firefighter for the municipality, (iii) the
firefighter applies for such creditable service within 30
days after the effective date of this amendatory Act of
1989, (iv) the firefighter contributes to the Fund an
amount representing employee contributions for the number
of years of creditable service granted under this
subdivision (4), based on the salary and contribution rate
in effect for the firefighter at the date of entry into the
Fund, to be determined by the board, and (v) not more than
3 years of creditable service may be granted under this
subdivision (4).
Except as provided in Section 4-108.5, creditable
service shall not include time spent as a volunteer

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firefighter, whether or not any compensation was received
therefor. The change made in this Section by Public Act
83-0463 is intended to be a restatement and clarification
of existing law, and does not imply that creditable service
was previously allowed under this Article for time spent as
a volunteer firefighter.
(5) Time served between July 1, 1976 and July 1, 1988
in the position of protective inspection officer or
administrative assistant for fire services, for a
municipality with a population under 10,000 that is located
in a county with a population over 3,000,000 and that
maintains a firefighters' pension fund under this Article,
if the position included firefighting duties,
notwithstanding that the person may not have held an
appointment as a firefighter, provided that application is
made to the pension fund within 30 days after the effective
date of this amendatory Act of 1991, and the corresponding
contributions are paid for the number of years of service
granted, based upon the salary and contribution rate in
effect for the firefighter at the date of entry into the
pension fund, as determined by the Board.
(6) Service before becoming a participant by a
firefighter initially excluded from participation by
reason of age who becomes a participant under the amendment
to Section 4-107 made by this amendatory Act of 1993 and
pays the required contributions for such service.

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(7) Up to 3 years of time during which the firefighter
receives a disability pension under Section 4-110,
4-110.1, or 4-111, provided that (i) the firefighter
returns to active service after the disability for a period
at least equal to the period for which credit is to be
established and (ii) the firefighter makes contributions
to the fund based on the rates specified in Section 4-118.1
and the salary upon which the disability pension is based.
These contributions may be paid at any time prior to the
commencement of a retirement pension. The firefighter may,
but need not, elect to have the contributions deducted from
the disability pension or to pay them in installments on a
schedule approved by the board. If not deducted from the
disability pension, the contributions shall include
interest at the rate of 6% per year, compounded annually,
from the date for which service credit is being established
to the date of payment. If contributions are paid under
this subdivision (c)(7) in excess of those needed to
establish the credit, the excess shall be refunded. This
subdivision (c)(7) applies to persons receiving a
disability pension under Section 4-110, 4-110.1, or 4-111
on the effective date of this amendatory Act of the 91st
General Assembly, as well as persons who begin to receive
such a disability pension after that date.
(Source: P.A. 94-856, eff. 6-15-06; 95-1056, eff. 4-10-09.)

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(40 ILCS 5/5-214) (from Ch. 108 1/2, par. 5-214)
Sec. 5-214. Credit for other service. Any participant in
this fund (other than a member of the fire department of the
city) who has rendered service as a member of the police
department of the city for a period of 3 years or more is
entitled to credit for the various purposes of this Article for
service rendered prior to becoming a member or subsequent
thereto for the following periods:
(a) While on leave of absence from the police
department assigned or detailed to investigative,
protective, security or police work for the park district
of the city, the department of the Port of Chicago or the
sanitary district in which the city is located.
(b) As a temporary police officer in the city or while
serving in the office of the mayor or in the office of the
corporation counsel, as a member of the city council of the
city, as an employee of the Policemen's Annuity and Benefit
Fund created by this Article, as the head of an
organization whose membership consists of members of the
police department, the Public Vehicle License Commission
and the board of election commissioners of the city,
provided that, in each of these cases and for all periods
specified in this item (b), including those beginning
before the effective date of this amendatory Act of the
97th General Assembly, the police officer is on leave to
special duty assignments and continues to remain in sworn

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status, subject to the professional standards of the public
employer or those terms established in statute.
(c) While performing safety or investigative work for
the county in which such city is principally located or for
the State of Illinois or for the federal government, on
leave of absence from the department of police, or while
performing investigative work for the department as a
civilian employee of the department.
(d) While on leave of absence from the police
department of the city and serving as the chief of police
of a police department outside the city.
No credit shall be granted in this fund, however, for this
service if the policeman has credit therefor in any other
annuity and benefit fund, or unless he contributes to this fund
the amount he would have contributed with interest had he
remained an active member of the police department in the
position he occupied as a result of a civil service competitive
examination, certification and appointment by the Civil
Service Board; or in the case of a city operating under the
provisions of a personnel ordinance the position he occupied as
a result of a personnel ordinance competitive examination
certification and appointment under the authority of a
Municipal Personnel ordinance.
Concurrently with such contributions, the city shall
contribute the amounts provided by this Article. No credit
shall be allowed for any period of time for which contributions

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by the policeman have not been paid. The period of service
rendered by such policeman prior to the date he became a member
of the police department of the city or while detailed,
assigned or on leave of absence and employed in any of the
departments set forth hereinabove in this Section for which
such policeman has contributed to this fund shall be credited
to him as service for all the purposes of this Article, except
that he shall not have any of the rights conferred by the
provisions of Sections 5-127 and 5-162 of this Article.
The changes in this Section made by Public Act 86-273 shall
apply to members of the fund who have not begun receiving a
pension under this Article on August 23, 1989, without regard
to whether employment is terminated before that date.
(Source: P.A. 86-273; 87-1265.)
(40 ILCS 5/6-209) (from Ch. 108 1/2, par. 6-209)
Sec. 6-209. In computing the service rendered by a fireman
prior to the effective date, the following periods shall be
counted, in addition to all periods during which he performed
the duties of his position, as periods of service for annuity
purposes only: All periods of (a) vacation, (b) leave of
absence with whole or part pay, (c) leave of absence without
pay which were necessary on account of disability, and (d)
leave of absence during which he was engaged in the military or
naval service of the United States of America. Service credit
shall not be allowed for any period during which a fireman was

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in receipt of pension on account of disability from any pension
fund superseded by this fund.
In computing the service rendered by a fireman on and after
the effective date, the following periods shall be counted in
addition to all periods during which he performed the duties of
his position, as periods of service for annuity purposes only:
All periods of (a) vacation, (b) leave of absence with whole or
part pay, (c) leave of absence during which he was engaged in
the military or naval service of the United States of America,
(d) disability for which he receives any disability benefit,
(e) disability for which he receives whole or part pay, (f)
leave of absence, or other authorized relief from active duty,
during which he served as president of The Firemen's
Association of Chicago, provided that for all leaves of absence
or other authorized relief under this item (f), including those
beginning before the effective date of this amendatory Act of
the 97th General Assembly, the fireman continues to remain in
sworn status, subject to the professional standards of the
public employer or those terms established in statute, (g)
periods of suspension from duty not to exceed a total of one
year during the total period of service of the fireman, and (h)
a period of time not to exceed 23 days in 1980 in accordance
with an agreement with the City on a settlement of strike;
provided that the fireman elects to make contributions to the
Fund for the various annuity and benefit purposes according to
the provisions of this Article as though he were an active

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fireman, based upon the salary attached to the civil service
rank held by him during such absence from duty, and if the
fireman so elects, the city shall make the prescribed
concurrent contributions for such annuity and benefit purposes
as provided in this Article, all to the end that such fireman
shall be entitled to receive the same annuities and benefits
for which he would otherwise be eligible if he had continued as
an active fireman during the periods of absence from duty.
In computing service on and after the effective date for
ordinary disability benefit, all periods described in the
preceding paragraph, except any period for which a fireman
receives ordinary disability benefit, shall be counted as
periods of service.
In computing service for any of the purposes of this
Article, credit shall be given for any periods prior to January
9, 1997, during which an active fireman (or fire paramedic) who
is a member of the General Assembly is on leave of absence or
is otherwise authorized to be absent from duty to enable him to
perform his legislative duties, notwithstanding any reduction
in salary for such periods and notwithstanding that the
contributions paid by the fireman were based on such reduced
salary rather than the full amount of salary attached to his
civil service rank.
In computing service for any of the purposes of this
Article, no credit shall be given for any period during which a
fireman was not rendering active service because of his

09700HB3813sam001 - 23 - LRB097 13613 JDS 59696 a
discharge from the service, unless proceedings to test the
legality of the discharge are filed in a court of competent
jurisdiction within one year from the date of discharge and a
final judgment is entered therein declaring the discharge
illegal.
No overtime or extra service shall be included in computing
service of a fireman and not more than one year or a proper
fractional part thereof of service shall be allowed for service
rendered during any calendar year.
(Source: P.A. 86-273; 86-1488; 87-1265.)
(40 ILCS 5/8-226) (from Ch. 108 1/2, par. 8-226)
Sec. 8-226. Computation of service. In computing the term
of service of an employee prior to the effective date, the
entire period beginning on the date he was first appointed and
ending on the day before the effective date, except any
intervening period during which he was separated by withdrawal
from service, shall be counted for all purposes of this
Article, except that for any employee who was not in service on
the day before the effective date, service rendered prior to
such date shall not be considered for the purposes of Section
8-138.
For a person employed by an employer for whom this Article
was in effect prior to January 1, 1950, from whose salary
deductions are first made under this Article after December 31,
1949, any period of service rendered prior to the effective

09700HB3813sam001 - 24 - LRB097 13613 JDS 59696 a
date, unless he was in service on the day before the effective
date, shall not be counted as service.
The time a person was an employee of any territory annexed
to the city prior to the effective date shall be counted as a
period of service.
In computing the term of service of any employee subsequent
to the day before the effective date, the following periods
shall be counted as periods of service for age and service,
widow's and child's annuity purposes:
(a) The time during which he performed the duties of
his position;
(b) Vacations, leaves of absence with whole or part
pay, and leaves of absence without pay not longer than 90
days;
(c) Leaves of absence without pay that begin before the
effective date of this amendatory Act of the 97th General
Assembly and during which a participant is employed
full-time by a local labor organization that represents
municipal employees, provided that (1) the participant
continues to make employee contributions to the Fund as
though he were an active employee, based on the regular
salary rate received by the participant for his municipal
employment immediately prior to such leave of absence (and
in the case of such employment prior to December 9, 1987,
pays to the Fund an amount equal to the employee
contributions for such employment plus regular interest

09700HB3813sam001 - 25 - LRB097 13613 JDS 59696 a
thereon as calculated by the board), and based on his
current salary with such labor organization after the
effective date of this amendatory Act of 1991, (2) after
January 1, 1989 the participant, or the labor organization
on the participant's behalf, makes contributions to the
Fund as though it were the employer, in the same amount and
same manner as specified under this Article, based on the
regular salary rate received by the participant for his
municipal employment immediately prior to such leave of
absence, and based on his current salary with such labor
organization after the effective date of this amendatory
Act of 1991, and (3) the participant does not receive
credit in any pension plan established by the local labor
organization based on his employment by the organization;
(d) Any period of disability for which he received (i)
a disability benefit under this Article, or (ii) a
temporary total disability benefit under the Workers'
Compensation Act if the disability results from a condition
commonly termed heart attack or stroke or any other
condition falling within the broad field of coronary
involvement or heart disease, or (iii) whole or part pay;
(e) Any period for which contributions and service
credit have been transferred to this Fund under subsection
(d) of Section 9-121.1 or subsection (d) of Section
12-127.1 of this Code.
For a person employed by an employer in which the 1921 Act

09700HB3813sam001 - 26 - LRB097 13613 JDS 59696 a
was in effect prior to January 1, 1950, from whose salary
deductions are first made under the 1921 Act or this Article
after December 31, 1949, any period of service rendered
subsequent to the effective date and prior to the date he
became an employee and contributor, shall not be counted as a
period of service under this Article, except such period for
which he made payment as provided in Section 8-230 of this
Article, in which case such period shall be counted as a period
of service for all annuity purposes hereunder.
In computing the term of service of an employee subsequent
to the day before the effective date for ordinary disability
benefit purposes, all periods described in the preceding
paragraph, except any such period for which he receives
ordinary disability benefit, shall be counted as periods of
service; provided, that for any person employed by an employer
in which this Article was in effect prior to January 1, 1950,
from whose salary deductions are first made under this Article
after December 31, 1949, any period of service rendered
subsequent to the effective date and prior to the date he
became an employee and contributor, shall not be counted as a
period of service for ordinary disability benefit purposes,
unless the person made payment for the period as provided in
Section 8-230 of this Article, in which case the period shall
be counted as a period of service for ordinary disability
purposes for periods of disability on or after the effective
date of this amendatory Act of 1997.

09700HB3813sam001 - 27 - LRB097 13613 JDS 59696 a
Overtime or extra service shall not be included in
computing any term of service. Not more than 1 year of service
shall be allowed for service rendered during any calendar year.
For the purposes of this Section, the phrase "any pension
plan established by the local labor organization" means any
pension plan in which a participant may receive credit as a
result of his or her membership in the local labor
organization, including, but not limited to, the local labor
organization itself and its affiliates at the local,
intrastate, State, multi-state, national, or international
level. The definition of this phrase is a declaration of
existing law and shall not be construed as a new enactment.
(Source: P.A. 90-511, eff. 8-22-97.)
(40 ILCS 5/8-233) (from Ch. 108 1/2, par. 8-233)
Sec. 8-233. Basis of annual salary. For the purpose of this
Article, the annual salary of an employee whose salary or wage
is appropriated, fixed, or arranged in the annual appropriation
ordinance upon other than an annual basis shall be determined
as follows:
(a) If the employee is paid on a monthly basis, the annual
salary is 12 times the monthly salary. If the employee is paid
on a weekly basis, the annual salary is 52 times the weekly
salary.
"Monthly salary" means the amount of compensation or salary
appropriated and payable for a normal and regular month's work

09700HB3813sam001 - 28 - LRB097 13613 JDS 59696 a
in the employee's position in the service. "Weekly salary"
means the amount of compensation or salary appropriated and
payable for a normal and regular week's work in the employee's
position in the service. If the work is on a regularly
scheduled part time basis, then "monthly salary" and "weekly
salary" refer, respectively, to the part time monthly or weekly
salary.
If the appropriation for the position is for a shorter
period than 12 months a year, or 52 weeks a year if on a weekly
basis, or the employee is in a class, grade, or category in
which the employee normally works for fewer than 12 months or
52 weeks a year, then the basis shall be adjusted downward to
the extent that the appropriated or customary work period is
less than the normal 12 months or 52 weeks of service in a
year.
Compensation for overtime, at regular or overtime rates,
that is paid in addition to the appropriated regular and normal
monthly or weekly salary shall not be considered.
(b) If the employee is paid on a daily basis, the annual
salary is 260 times the daily wage. If the employee is paid on
an hourly basis, the annual salary is 2080 times the hourly
wage.
The norm is based on a 12-month per year, 5-day work week
of 8 hours per day and 40 hours per week, with consideration
given only to time compensated for at the straight time rate of
compensation or wage. The norm shall be increased (subject to a

09700HB3813sam001 - 29 - LRB097 13613 JDS 59696 a
maximum of 300 days or 2400 hours per year) or decreased for an
employee to the extent that the normal and established work
period, at the straight time compensation or wage for the
position held in the class, grade, or category in which the
employee is assigned, is for a greater or lesser number of
months, weeks, days, or hours than the period on which the
established norm is based.
"Daily wage" and "hourly wage" mean, respectively, the
normal, regular, or basic straight time rate of compensation or
wage appropriated and payable for a normal and regular day's
work, or hour's work, in the employee's position in the
service.
Any time worked in excess of the norm (or the increased or
decreased norm, whichever is applicable) that is compensated
for at overtime, premium, or other than regular or basic
straight time rates shall not be considered as time worked, and
the compensation for that work shall not be considered as
salary or wage. Such time and compensation shall in every case
and for all purposes be considered overtime and shall be
excluded for all purposes under this Article. However, the
straight time portion of compensation or wage, for time worked
on holidays that fall within an employee's established norm,
shall be included for all purposes under this Article.
(c) For minimum annuity purposes under Section 8-138, where
a salary rate change occurs during the year, it shall be
considered that the annual salary for that year is (1) the

09700HB3813sam001 - 30 - LRB097 13613 JDS 59696 a
annual equivalent of the monthly, weekly, daily, or hourly
salary or wage rate that was applicable for the greater number
of months, weeks, days, or hours (whichever is applicable) in
the year under consideration, or (2) the annual equivalent of
the average salary or wage rate in effect for the employee
during the year, whichever is greater. The average salary or
wage rate shall be calculated by multiplying each salary or
wage rate in effect for the employee during the year by the
number of months, weeks, days, or hours (whichever is
applicable) during which that rate was in effect, and dividing
the sum of the resulting products by the total number of
months, weeks, days, or hours (whichever is applicable) worked
by the employee during the year.
(d) The changes to subsection (c) made by this amendatory
Act of 1997 apply to persons withdrawing from service on or
after July 1, 1990 and for each such person are intended to be
retroactive to the date upon which the affected annuity began.
The Fund shall recompute the affected annuity and shall pay the
additional amount due for the period before the increase
resulting from this amendatory Act in a lump sum, without
interest.
(e) This Article shall not be construed to authorize a
salary paid by an entity other than an employer, as defined in
Section 8-110, to be used to calculate the highest average
annual salary of a participant. This subsection (e) is a
declaration of existing law and shall not be construed as a new

09700HB3813sam001 - 31 - LRB097 13613 JDS 59696 a
enactment.
(Source: P.A. 90-31, eff. 6-27-97.)
(40 ILCS 5/9-219) (from Ch. 108 1/2, par. 9-219)
Sec. 9-219. Computation of service.
(1) In computing the term of service of an employee prior
to the effective date, the entire period beginning on the date
he was first appointed and ending on the day before the
effective date, except any intervening period during which he
was separated by withdrawal from service, shall be counted for
all purposes of this Article.
(2) In computing the term of service of any employee on or
after the effective date, the following periods of time shall
be counted as periods of service for age and service, widow's
and child's annuity purposes:
(a) The time during which he performed the duties of
his position.
(b) Vacations, leaves of absence with whole or part
pay, and leaves of absence without pay not longer than 90
days.
(c) For an employee who is a member of a county police
department or a correctional officer with the county
department of corrections, approved leaves of absence
without pay during which the employee serves as a full-time
officer or employee of an employee association, the
membership of which consists of other participants in the

09700HB3813sam001 - 32 - LRB097 13613 JDS 59696 a
Fund, provided that the employee contributes to the Fund
(1) the amount that he would have contributed had he
remained an active employee in the position he occupied at
the time the leave of absence was granted, (2) an amount
calculated by the Board representing employer
contributions, and (3) regular interest thereon from the
date of service to the date of payment. However, if the
employee's application to establish credit under this
subsection is received by the Fund on or after July 1, 2002
and before July 1, 2003, the amount representing employer
contributions specified in item (2) shall be waived.
For a former member of a county police department who
has received a refund under Section 9-164, periods during
which the employee serves as head of an employee
association, the membership of which consists of other
police officers, provided that the employee contributes to
the Fund (1) the amount that he would have contributed had
he remained an active member of the county police
department in the position he occupied at the time he left
service, (2) an amount calculated by the Board representing
employer contributions, and (3) regular interest thereon
from the date of service to the date of payment. However,
if the former member of the county police department
retires on or after January 1, 1993 but no later than March
1, 1993, the amount representing employer contributions
specified in item (2) shall be waived.

09700HB3813sam001 - 33 - LRB097 13613 JDS 59696 a
For leaves of absence to which this item (c) applies
and for other periods to which this item (c) applies,
including those leaves of absence and other periods of
service beginning before the effective date of this
amendatory Act of the 97th General Assembly, the employee
or former member must continue to remain in sworn status,
subject to the professional standards of the public
employer or those terms established in statute.
(d) Any period of disability for which he received
disability benefit or whole or part pay.
(e) Accumulated vacation or other time for which an
employee who retires on or after November 1, 1990 receives
a lump sum payment at the time of retirement, provided that
contributions were made to the fund at the time such lump
sum payment was received. The service granted for the lump
sum payment shall not change the employee's date of
withdrawal for computing the effective date of the annuity.
(f) An employee may receive service credit for annuity
purposes for accumulated sick leave as of the date of the
employee's withdrawal from service, not to exceed a total
of 180 days, provided that the amount of such accumulated
sick leave is certified by the County Comptroller to the
Board and the employee pays an amount equal to 8.5% (9% for
members of the County Police Department who are eligible to
receive an annuity under Section 9-128.1) of the amount
that would have been paid had such accumulated sick leave

09700HB3813sam001 - 34 - LRB097 13613 JDS 59696 a
been paid at the employee's final rate of salary. Such
payment shall be made within 30 days after the date of
withdrawal and prior to receipt of the first annuity check.
The service credit granted for such accumulated sick leave
shall not change the employee's date of withdrawal for the
purpose of computing the effective date of the annuity.
(3) In computing the term of service of an employee on or
after the effective date for ordinary disability benefit
purposes, the following periods of time shall be counted as
periods of service:
(a) Unless otherwise specified in Section 9-157, the
time during which he performed the duties of his position.
(b) Paid vacations and leaves of absence with whole or
part pay.
(c) Any period for which he received duty disability
benefit.
(d) Any period of disability for which he received
whole or part pay.
(4) For an employee who on January 1, 1958, was transferred
by Act of the 70th General Assembly from his position in a
department of welfare of any city located in the county in
which this Article is in force and effect to a similar position
in a department of such county, service shall also be credited
for ordinary disability benefit and child's annuity for such
period of department of welfare service during which period he
was a contributor to a statutory annuity and benefit fund in

09700HB3813sam001 - 35 - LRB097 13613 JDS 59696 a
such city and for which purposes service credit would otherwise
not be credited by virtue of such involuntary transfer.
(5) An employee described in subsection (e) of Section
9-108 shall receive credit for child's annuity and ordinary
disability benefit for the period of time for which he was
credited with service in the fund from which he was
involuntarily separated through class or group transfer;
provided, that no such credit shall be allowed to the extent
that it results in a duplication of credits or benefits, and
neither shall such credit be allowed to the extent that it was
or may be forfeited by the application for and acceptance of a
refund from the fund from which the employee was transferred.
(6) Overtime or extra service shall not be included in
computing service. Not more than 1 year of service shall be
allowed for service rendered during any calendar year.
(Source: P.A. 92-599, eff. 6-28-02.)
(40 ILCS 5/11-215) (from Ch. 108 1/2, par. 11-215)
Sec. 11-215. Computation of service.
(a) In computing the term of service of an employee prior
to the effective date, the entire period beginning on the date
he was first appointed and ending on the day before the
effective date, except any intervening period during which he
was separated by withdrawal from service, shall be counted for
all purposes of this Article. Only the first year of each
period of lay-off or leave of absence without pay, continuing

09700HB3813sam001 - 36 - LRB097 13613 JDS 59696 a
or extending for a period in excess of one year, shall be
counted as such service.
(b) For a person employed by an employer for whom this
Article was in effect prior to August 1, 1949, from whose
salary deductions are first made under this Article after July
31, 1949, any period of service rendered prior to the effective
date, unless he was in service on the day before the effective
date, shall not be counted as service.
(c) In computing the term of service of an employee
subsequent to the day before the effective date, the following
periods of time shall be counted as periods of service for
annuity purposes:
(1) the time during which he performed the duties of
his position;
(2) leaves of absence with whole or part pay, and
leaves of absence without pay not longer than 90 days;
(3) leaves of absence without pay that begin before the
effective date of this amendatory Act of the 97th General
Assembly and during which a participant is employed
full-time by a local labor organization that represents
municipal employees, provided that (A) the participant
continues to make employee contributions to the Fund as
though he were an active employee, based on the regular
salary rate received by the participant for his municipal
employment immediately prior to such leave of absence (and
in the case of such employment prior to December 9, 1987,

09700HB3813sam001 - 37 - LRB097 13613 JDS 59696 a
pays to the Fund an amount equal to the employee
contributions for such employment plus regular interest
thereon as calculated by the board), and based on his
current salary with such labor organization after the
effective date of this amendatory Act of 1991, (B) after
January 1, 1989 the participant, or the labor organization
on the participant's behalf, makes contributions to the
Fund as though it were the employer, in the same amount and
same manner as specified under this Article, based on the
regular salary rate received by the participant for his
municipal employment immediately prior to such leave of
absence, and based on his current salary with such labor
organization after the effective date of this amendatory
Act of 1991, and (C) the participant does not receive
credit in any pension plan established by the local labor
organization based on his employment by the organization;
(4) any period of disability for which he received (i)
a disability benefit under this Article, or (ii) a
temporary total disability benefit under the Workers'
Compensation Act if the disability results from a condition
commonly termed heart attack or stroke or any other
condition falling within the broad field of coronary
involvement or heart disease, or (iii) whole or part pay.
(d) For a person employed by an employer, or the retirement
board, in which "The 1935 Act" was in effect prior to August 1,
1949, from whose salary deductions are first made under "The

09700HB3813sam001 - 38 - LRB097 13613 JDS 59696 a
1935 Act" or this Article after July 31, 1949, any period of
service rendered subsequent to the effective date and prior to
August 1, 1949, shall not be counted as a period of service
under this Article, except such period for which he made
payment, as provided in Section 11-221 of this Article, in
which case such period shall be counted as a period of service
for all annuity purposes hereunder.
(e) In computing the term of service of an employee
subsequent to the day before the effective date for ordinary
disability benefit purposes, the following periods of time
shall be counted as periods of service:
(1) any period during which he performed the duties of
his position;
(2) leaves of absence with whole or part pay;
(3) any period of disability for which he received (i)
a duty disability benefit under this Article, or (ii) a
temporary total disability benefit under the Workers'
Compensation Act if the disability results from a condition
commonly termed heart attack or stroke or any other
condition falling within the broad field of coronary
involvement or heart disease, or (iii) whole or part pay.
However, any period of service rendered by an employee
contributor prior to the date he became a contributor to the
fund shall not be counted as a period of service for ordinary
disability purposes, unless the person made payment for the
period as provided in Section 11-221 of this Article, in which

09700HB3813sam001 - 39 - LRB097 13613 JDS 59696 a
case the period shall be counted as a period of service for
ordinary disability purposes for periods of disability on or
after the effective date of this amendatory Act of 1997.
Overtime or extra service shall not be included in
computing any term of service. Not more than 1 year of service
shall be allowed for service rendered during any calendar year.
For the purposes of this Section, the phrase "any pension
plan established by the local labor organization" means any
pension plan in which a participant may receive credit as a
result of his or her membership in the local labor
organization, including, but not limited to, the local labor
organization itself and its affiliates at the local,
intrastate, State, multi-state, national, or international
level. The definition of this phrase is a declaration of
existing law and shall not be construed as a new enactment.
(Source: P.A. 90-511, eff. 8-22-97.)
(40 ILCS 5/11-217) (from Ch. 108 1/2, par. 11-217)
Sec. 11-217. Basis of annual salary. For the purpose of
this Article, the annual salary of an employee whose salary or
wage is appropriated, fixed, or arranged in the annual
appropriation ordinance upon other than an annual basis shall
be determined as follows:
(a) If the employee is paid on a monthly basis, the annual
salary is 12 times the monthly salary. If the employee is paid
on a weekly basis, the annual salary is 52 times the weekly

09700HB3813sam001 - 40 - LRB097 13613 JDS 59696 a
salary.
"Monthly salary" means the amount of compensation or salary
appropriated and payable for a normal and regular month's work
in the employee's position in the service. "Weekly salary"
means the amount of compensation or salary appropriated and
payable for a normal and regular week's work in the employee's
position in the service. If the work is on a regularly
scheduled part time basis, then "monthly salary" and "weekly
salary" refer, respectively, to the part time monthly or weekly
salary.
If the appropriation for the position is for a shorter
period than 12 months a year, or 52 weeks a year if on a weekly
basis, or the employee is in a class, grade, or category in
which the employee normally works for fewer than 12 months or
52 weeks a year, then the basis shall be adjusted downward to
the extent that the appropriated or customary work period is
less than the normal 12 months or 52 weeks of service in a
year.
Compensation for overtime, at regular or overtime rates,
that is paid in addition to the appropriated regular and normal
monthly or weekly salary shall not be considered.
(b) If the employee is paid on a daily basis, the annual
salary is 260 times the daily wage. If the employee is paid on
an hourly basis, the annual salary is 2080 times the hourly
wage.
The norm is based on a 12-month per year, 5-day work week

09700HB3813sam001 - 41 - LRB097 13613 JDS 59696 a
of 8 hours per day and 40 hours per week, with consideration
given only to time compensated for at the straight time rate of
compensation or wage. The norm shall be increased (subject to a
maximum of 300 days or 2400 hours per year) or decreased for an
employee to the extent that the normal and established work
period, at the straight time compensation or wage for the
position held in the class, grade, or category in which the
employee is assigned, is for a greater or lesser number of
months, weeks, days, or hours than the period on which the
established norm is based.
"Daily wage" and "hourly wage" mean, respectively, the
normal, regular, or basic straight time rate of compensation or
wage appropriated and payable for a normal and regular day's
work, or hour's work, in the employee's position in the
service.
Any time worked in excess of the norm (or the increased or
decreased norm, whichever is applicable) that is compensated
for at overtime, premium, or other than regular or basic
straight time rates shall not be considered as time worked, and
the compensation for that work shall not be considered as
salary or wage. Such time and compensation shall in every case
and for all purposes be considered overtime and shall be
excluded for all purposes under this Article. However, the
straight time portion of compensation or wage, for time worked
on holidays that fall within an employee's established norm,
shall be included for all purposes under this Article.

09700HB3813sam001 - 42 - LRB097 13613 JDS 59696 a
(c) For minimum annuity purposes under Section 11-134,
where a salary rate change occurs during the year, it shall be
considered that the annual salary for that year is (1) the
annual equivalent of the monthly, weekly, daily, or hourly
salary or wage rate that was applicable for the greater number
of months, weeks, days, or hours (whichever is applicable) in
the year under consideration, or (2) the annual equivalent of
the average salary or wage rate in effect for the employee
during the year, whichever is greater. The average salary or
wage rate shall be calculated by multiplying each salary or
wage rate in effect for the employee during the year by the
number of months, weeks, days, or hours (whichever is
applicable) during which that rate was in effect, and dividing
the sum of the resulting products by the total number of
months, weeks, days, or hours (whichever is applicable) worked
by the employee during the year.
(d) The changes to subsection (c) made by this amendatory
Act of 1997 apply to persons withdrawing from service on or
after July 1, 1990 and for each such person are intended to be
retroactive to the date upon which the affected annuity began.
The Fund shall recompute the affected annuity and shall pay the
additional amount due for the period before the increase
resulting from this amendatory Act in a lump sum, without
interest.
(e) This Article shall not be construed to authorize a
salary paid by an entity other than an employer, as defined in

09700HB3813sam001 - 43 - LRB097 13613 JDS 59696 a
Section 11-107, to be used to calculate the highest average
annual salary of a participant. This subsection (e) is a
declaration of existing law and shall not be construed as a new
enactment.
(Source: P.A. 90-31, eff. 6-27-97.)
(40 ILCS 5/15-107) (from Ch. 108 1/2, par. 15-107)
Sec. 15-107. Employee.
(a) "Employee" means any member of the educational,
administrative, secretarial, clerical, mechanical, labor or
other staff of an employer whose employment is permanent and
continuous or who is employed in a position in which services
are expected to be rendered on a continuous basis for at least
4 months or one academic term, whichever is less, who (A)
receives payment for personal services on a warrant issued
pursuant to a payroll voucher certified by an employer and
drawn by the State Comptroller upon the State Treasurer or by
an employer upon trust, federal or other funds, or (B) is on a
leave of absence without pay. Employment which is irregular,
intermittent or temporary shall not be considered continuous
for purposes of this paragraph.
However, a person is not an "employee" if he or she:
(1) is a student enrolled in and regularly attending
classes in a college or university which is an employer,
and is employed on a temporary basis at less than full
time;

09700HB3813sam001 - 44 - LRB097 13613 JDS 59696 a
(2) is currently receiving a retirement annuity or a
disability retirement annuity under Section 15-153.2 from
this System;
(3) is on a military leave of absence;
(4) is eligible to participate in the Federal Civil
Service Retirement System and is currently making
contributions to that system based upon earnings paid by an
employer;
(5) is on leave of absence without pay for more than 60
days immediately following termination of disability
benefits under this Article;
(6) is hired after June 30, 1979 as a public service
employment program participant under the Federal
Comprehensive Employment and Training Act and receives
earnings in whole or in part from funds provided under that
Act; or
(7) is employed on or after July 1, 1991 to perform
services that are excluded by subdivision (a)(7)(f) or
(a)(19) of Section 210 of the federal Social Security Act
from the definition of employment given in that Section (42
U.S.C. 410).
(b) Any employer may, by filing a written notice with the
board, exclude from the definition of "employee" all persons
employed pursuant to a federally funded contract entered into
after July 1, 1982 with a federal military department in a
program providing training in military courses to federal

09700HB3813sam001 - 45 - LRB097 13613 JDS 59696 a
military personnel on a military site owned by the United
States Government, if this exclusion is not prohibited by the
federally funded contract or federal laws or rules governing
the administration of the contract.
(c) Any person appointed by the Governor under the Civil
Administrative Code of the State is an employee, if he or she
is a participant in this system on the effective date of the
appointment.
(d) A participant on lay-off status under civil service
rules is considered an employee for not more than 120 days from
the date of the lay-off.
(e) A participant is considered an employee during (1) the
first 60 days of disability leave, (2) the period, not to
exceed one year, in which his or her eligibility for disability
benefits is being considered by the board or reviewed by the
courts, and (3) the period he or she receives disability
benefits under the provisions of Section 15-152, workers'
compensation or occupational disease benefits, or disability
income under an insurance contract financed wholly or partially
by the employer.
(f) Absences without pay, other than formal leaves of
absence, of less than 30 calendar days, are not considered as
an interruption of a person's status as an employee. If such
absences during any period of 12 months exceed 30 work days,
the employee status of the person is considered as interrupted
as of the 31st work day.

09700HB3813sam001 - 46 - LRB097 13613 JDS 59696 a
(g) A staff member whose employment contract requires
services during an academic term is to be considered an
employee during the summer and other vacation periods, unless
he or she declines an employment contract for the succeeding
academic term or his or her employment status is otherwise
terminated, and he or she receives no earnings during these
periods.
(h) An individual who was a participating employee employed
in the fire department of the University of Illinois's
Champaign-Urbana campus immediately prior to the elimination
of that fire department and who immediately after the
elimination of that fire department became employed by the fire
department of the City of Urbana or the City of Champaign shall
continue to be considered as an employee for purposes of this
Article for so long as the individual remains employed as a
firefighter by the City of Urbana or the City of Champaign. The
individual shall cease to be considered an employee under this
subsection (h) upon the first termination of the individual's
employment as a firefighter by the City of Urbana or the City
of Champaign.
(i) An individual who is employed on a full-time basis as
an officer or employee of a statewide teacher organization that
serves System participants or an officer of a national teacher
organization that serves System participants may participate
in the System and shall be deemed an employee, provided that
(1) the individual has previously earned creditable service

09700HB3813sam001 - 47 - LRB097 13613 JDS 59696 a
under this Article, (2) the individual files with the System an
irrevocable election to become a participant, and (3) the
individual does not receive credit for that employment under
any other Article of this Code, and (4) the individual first
became a full-time employee of the teacher organization and
becomes a participant before the effective date of this
amendatory Act of the 97th General Assembly. An employee under
this subsection (i) is responsible for paying to the System
both (A) employee contributions based on the actual
compensation received for service with the teacher
organization and (B) employer contributions equal to the normal
costs (as defined in Section 15-155) resulting from that
service; all or any part of these contributions may be paid on
the employee's behalf or picked up for tax purposes (if
authorized under federal law) by the teacher organization.
A person who is an employee as defined in this subsection
(i) may establish service credit for similar employment prior
to becoming an employee under this subsection by paying to the
System for that employment the contributions specified in this
subsection, plus interest at the effective rate from the date
of service to the date of payment. However, credit shall not be
granted under this subsection for any such prior employment for
which the applicant received credit under any other provision
of this Code, or during which the applicant was on a leave of
absence under Section 15-113.2.
(j) A person employed by the State Board of Higher

09700HB3813sam001 - 48 - LRB097 13613 JDS 59696 a
Education in a position with the Illinois Century Network as of
June 30, 2004 shall be considered to be an employee for so long
as he or she remains continuously employed after that date by
the Department of Central Management Services in a position
with the Illinois Century Network, the Bureau of Communication
and Computer Services, or, if applicable, any successor bureau
and meets the requirements of subsection (a).
(Source: P.A. 95-369, eff. 8-23-07.)
(40 ILCS 5/16-106) (from Ch. 108 1/2, par. 16-106)
Sec. 16-106. Teacher. "Teacher": The following
individuals, provided that, for employment prior to July 1,
1990, they are employed on a full-time basis, or if not
full-time, on a permanent and continuous basis in a position in
which services are expected to be rendered for at least one
school term:
(1) Any educational, administrative, professional or
other staff employed in the public common schools included
within this system in a position requiring certification
under the law governing the certification of teachers;
(2) Any educational, administrative, professional or
other staff employed in any facility of the Department of
Children and Family Services or the Department of Human
Services, in a position requiring certification under the
law governing the certification of teachers, and any person
who (i) works in such a position for the Department of

09700HB3813sam001 - 49 - LRB097 13613 JDS 59696 a
Corrections, (ii) was a member of this System on May 31,
1987, and (iii) did not elect to become a member of the
State Employees' Retirement System pursuant to Section
14-108.2 of this Code; except that "teacher" does not
include any person who (A) becomes a security employee of
the Department of Human Services, as defined in Section
14-110, after June 28, 2001 (the effective date of Public
Act 92-14), or (B) becomes a member of the State Employees'
Retirement System pursuant to Section 14-108.2c of this
Code;
(3) Any regional superintendent of schools, assistant
regional superintendent of schools, State Superintendent
of Education; any person employed by the State Board of
Education as an executive; any executive of the boards
engaged in the service of public common school education in
school districts covered under this system of which the
State Superintendent of Education is an ex-officio member;
(4) Any employee of a school board association
operating in compliance with Article 23 of the School Code
who is certificated under the law governing the
certification of teachers;
(5) Any person employed by the retirement system who:
(i) was an employee of and a participant in the
system on August 17, 2001 (the effective date of Public
Act 92-416), or
(ii) becomes an employee of the system on or after

09700HB3813sam001 - 50 - LRB097 13613 JDS 59696 a
August 17, 2001;
(6) Any educational, administrative, professional or
other staff employed by and under the supervision and
control of a regional superintendent of schools, provided
such employment position requires the person to be
certificated under the law governing the certification of
teachers and is in an educational program serving 2 or more
districts in accordance with a joint agreement authorized
by the School Code or by federal legislation;
(7) Any educational, administrative, professional or
other staff employed in an educational program serving 2 or
more school districts in accordance with a joint agreement
authorized by the School Code or by federal legislation and
in a position requiring certification under the laws
governing the certification of teachers;
(8) Any officer or employee of a statewide teacher
organization or officer of a national teacher organization
who is certified under the law governing certification of
teachers, provided: (i) the individual had previously
established creditable service under this Article, (ii)
the individual files with the system an irrevocable
election to become a member, and (iii) the individual does
not receive credit for such service under any other Article
of this Code, and (iv) the individual first became an
officer or employee of the teacher organization and becomes
a member before the effective date of this amendatory Act

09700HB3813sam001 - 51 - LRB097 13613 JDS 59696 a
of the 97th General Assembly;
(9) Any educational, administrative, professional, or
other staff employed in a charter school operating in
compliance with the Charter Schools Law who is certificated
under the law governing the certification of teachers.
(10) Any person employed, on the effective date of this
amendatory Act of the 94th General Assembly, by the
Macon-Piatt Regional Office of Education in a
birth-through-age-three pilot program receiving funds
under Section 2-389 of the School Code who is required by
the Macon-Piatt Regional Office of Education to hold a
teaching certificate, provided that the Macon-Piatt
Regional Office of Education makes an election, within 6
months after the effective date of this amendatory Act of
the 94th General Assembly, to have the person participate
in the system. Any service established prior to the
effective date of this amendatory Act of the 94th General
Assembly for service as an employee of the Macon-Piatt
Regional Office of Education in a birth-through-age-three
pilot program receiving funds under Section 2-389 of the
School Code shall be considered service as a teacher if
employee and employer contributions have been received by
the system and the system has not refunded those
contributions.
An annuitant receiving a retirement annuity under this
Article or under Article 17 of this Code who is employed by a

09700HB3813sam001 - 52 - LRB097 13613 JDS 59696 a
board of education or other employer as permitted under Section
16-118 or 16-150.1 is not a "teacher" for purposes of this
Article. A person who has received a single-sum retirement
benefit under Section 16-136.4 of this Article is not a
"teacher" for purposes of this Article.
A person who is a teacher as described in item (8) of this
Section may establish service credit for similar employment
prior to becoming certified as a teacher if he or she (i) is
certified as a teacher on or before the effective date of this
amendatory Act of the 94th General Assembly, (ii) applies in
writing to the system within 6 months after the effective date
of this amendatory Act of the 94th General Assembly, and (iii)
pays to the system contributions equal to the normal costs
calculated from the date of first full-time employment as
described in item (8) to the date of payment, compounded
annually at the rate of 8.5% per year for periods before the
effective date of this amendatory Act of the 94th General
Assembly and for subsequent periods at a rate equal to the
System's actuarially assumed rate of return on investments.
However, credit shall not be granted under this paragraph for
any such prior employment for which the applicant received
credit under any other provision of this Code.
(Source: P.A. 93-320, eff. 7-23-03; 94-1111, eff. 2-27-07.)
(40 ILCS 5/17-134) (from Ch. 108 1/2, par. 17-134)
Sec. 17-134. Contributions for leaves of absence; military

09700HB3813sam001 - 53 - LRB097 13613 JDS 59696 a
service; computing service. In computing service for pension
purposes the following periods of service shall stand in lieu
of a like number of years of teaching service upon payment
therefor in the manner hereinafter provided: (a) time spent on
a leave of absence granted by the employer; (b) service with
teacher or labor organizations based upon special leaves of
absence therefor granted by an Employer; (c) a maximum of 5
years spent in the military service of the United States, of
which up to 2 years may have been served outside the pension
period; (d) unused sick days at termination of service to a
maximum of 244 days; (e) time lost due to layoff and
curtailment of the school term from June 6 through June 21,
1976; and (f) time spent after June 30, 1982 as a member of the
Board of Education, if required to resign from an
administrative or teaching position in order to qualify as a
member of the Board of Education.
(1) For time spent on or after September 6, 1948 on
sabbatical leaves of absence or sick leaves, for which
salaries are paid, an Employer shall make payroll
deductions at the applicable rates in effect during such
periods.
(2) For time spent on a leave of absence granted by the
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

09700HB3813sam001 - 54 - LRB097 13613 JDS 59696 a
which occur during a teacher's sick leave or maternity or
paternity leave without salary, vacation pay for which the
teacher would have qualified while in active service shall
be considered part of the teacher's total salary for
pension purposes. No more than 36 months of leave credit
may be allowed any person during the entire term of
service. Sabbatical leave credit shall be limited to the
time the person on leave without salary under an Employer's
rules is allowed to engage in an activity for which he
receives salary or compensation.
(3) For time spent prior to September 6, 1948, on
sabbatical leaves of absence or sick leaves for which
salaries were paid, teachers desiring service credit
therefor shall pay the required contributions at the
maximum applicable rates in effect during such periods.
(4) For service with teacher or labor organizations
authorized by special leaves of absence, for which no
payroll deductions are made by an Employer, teachers
desiring service credit therefor shall contribute to the
Fund upon the basis of the actual salary received from such
organizations at the percentage rates in effect during such
periods for certified positions with such Employer. To the
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

09700HB3813sam001 - 55 - LRB097 13613 JDS 59696 a
date of the leave with the organization, whichever is
later, the organization shall pay to the Fund the
employer's normal cost as set by the Board on the
increment. Notwithstanding any other provision of this
subdivision (4), teachers are only eligible for credit for
service under this subdivision (4) if the special leave of
absence begins before the effective date of this amendatory
Act of the 97th General Assembly.
(5) For time spent in the military service, teachers
entitled to and desiring credit therefor shall contribute
the amount required for each year of service or fraction
thereof at the rates in force (a) at the date of
appointment, or (b) on return to teaching service as a
regularly certified teacher, as the case may be; provided
such rates shall not be less than $450 per year of service.
These conditions shall apply unless an Employer elects to
and does pay into the Fund the amount which would have been
due from such person had he been employed as a teacher
during such time. In the case of credit for military
service not during the pension period, the teacher must
also pay to the Fund an amount determined by the Board to
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

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shall apply not only to persons who on or after its
effective date are in service under the Fund, but also to
persons whose status as a teacher terminated prior to that
date, whether or not the person is an annuitant on that
date. In the case of an annuitant who applies for credit
allowable under this Section for a period of military
service that did not immediately follow employment, and who
has made the required contributions for such credit, the
annuity shall be recalculated to include the additional
service credit, with the increase taking effect on the date
the Fund received written notification of the annuitant's
intent to purchase the credit, if payment of all the
required contributions is made within 60 days of such
notice, or else on the first annuity payment date following
the date of payment of the required contributions. In
calculating the automatic annual increase for an annuity
that has been recalculated under this Section, the increase
attributable to the additional service allowable under
this amendatory Act of 1991 shall be included in the
calculation of automatic annual increases accruing after
the effective date of the recalculation.
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

09700HB3813sam001 - 57 - LRB097 13613 JDS 59696 a
account by an Employer on the date of termination of
employment. Members, upon verification of unused sick
days, may add this service time to total creditable
service.
(7) In all cases where time spent on leave is
creditable and no payroll deductions therefor are made by
an Employer, persons desiring service credit shall make the
required contributions directly to the Fund.
(8) For time lost without pay due to layoff and
curtailment of the school term from June 6 through June 21,
1976, as provided in item (e) of the first paragraph of
this Section, persons who were contributors on the days
immediately preceding such layoff shall receive credit
upon paying to the Fund a contribution based on the rates
of compensation and employee contributions in effect at the
time of such layoff, together with an additional amount
equal to 12.2% of the compensation computed for such period
of layoff, plus interest on the entire amount at 5% per
annum from January 1, 1978 to the date of payment. If such
contribution is paid, salary for pension purposes for any
year in which such a layoff occurred shall include the
compensation recognized for purposes of computing that
contribution.
(9) For time spent after June 30, 1982, as a
nonsalaried member of the Board of Education, if required
to resign from an administrative or teaching position in

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order to qualify as a member of the Board of Education, an
administrator or teacher desiring credit therefor shall
pay the required contributions at the rates and salaries in
effect during such periods as though the member were in
service.
Effective September 1, 1974, the interest charged for
validation of service described in paragraphs (2) through (5)
of this Section shall be compounded annually at a rate of 5%
commencing one year after the termination of the leave or
return to service.
(Source: P.A. 92-599, eff. 6-28-02.)
Section 97. Retroactive repeal. This amendatory Act of the
97th General Assembly hereby repeals and declares void ab
initio the last paragraph of Section 16-106 of the Illinois
Pension Code as contained in Public Act 94-1111 as that
paragraph furnishes no vested rights because it violates
multiple provisions of the 1970 Illinois Constitution,
including, but not limited to, Article VIII, Section 1. Upon
receipt of an application within 6 months after the effective
date of this amendatory Act of the 97th General Assembly, the
System shall immediately refund any contributions made by or on
behalf of a person to receive service credit pursuant to the
text set forth in Public Act 94-1111, as well as any amount
determined by the Board to be equal to the investment earned by
the System on those contributions since their receipt.

09700HB3813sam001 - 59 - LRB097 13613 JDS 59696 a
Section 99. Effective date. This Act takes effect upon
becoming law.".