Bill Text: IL HB3264 | 2013-2014 | 98th General Assembly | Introduced

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Bill Title: Amends the State Employee, State Universities, and Downstate Teacher Articles of the Illinois Pension Code. Provides that service credit is not available for unused sick leave accumulated by a person who first participates in the System on or after the effective date of this amendatory Act. Effective immediately.

Spectrum: Moderate Partisan Bill (Republican 9-1)

Status: (Failed) 2014-12-03 - Session Sine Die [HB3264 Detail]

Download: Illinois-2013-HB3264-Introduced.html

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98TH GENERAL ASSEMBLY State of Illinois 2013 and 2014 HB3264 Introduced , by Rep. Pam Roth SYNOPSIS AS INTRODUCED:
40 ILCS 5/14-106 from Ch. 108 1/2, par. 14-106
40 ILCS 5/15-113.4 from Ch. 108 1/2, par. 15-113.4
40 ILCS 5/16-127 from Ch. 108 1/2, par. 16-127
Amends the State Employee, State Universities, and Downstate Teacher Articles of the Illinois Pension Code. Provides that service credit is not available for unused sick leave accumulated by a person who first participates in the System on or after the effective date of this amendatory Act. Effective immediately.
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FISCAL NOTE ACT MAY APPLY PENSION IMPACT NOTE ACT MAY APPLY
A BILL FOR
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AN ACT concerning public employee benefits.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Pension Code is amended by changing
Sections 14-106, 15-113.4, and 16-127 as follows:
(40 ILCS 5/14-106) (from Ch. 108 1/2, par. 14-106)
Sec. 14-106. Membership service credit.
(a) After January 1, 1944, all service of a member since he
last became a member with respect to which contributions are
made shall count as membership service; provided, that for
service on and after July 1, 1950, 12 months of service shall
constitute a year of membership service, the completion of 15
days or more of service during any month shall constitute 1
month of membership service, 8 to 15 days shall constitute 1/2
month of membership service and less than 8 days shall
constitute 1/4 month of membership service. The payroll record
of each department shall constitute conclusive evidence of the
record of service rendered by a member.
(b) For a member who is employed and paid on an
academic-year basis rather than on a 12-month annual basis,
employment for a full academic year shall constitute a full
year of membership service, except that the member shall not
receive more than one year of membership service credit (plus

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any additional service credit granted for unused sick leave)
for service during any 12-month period. This subsection (b)
applies to all such service for which the member has not begun
to receive a retirement annuity before January 1, 2001.
(c) A member who first participated in this System before
the effective date of this amendatory Act of the 98th General
Assembly shall be entitled to additional service credit, under
rules prescribed by the Board, for accumulated unused sick
leave credited to his account in the last Department on the
date of withdrawal from service or for any period for which he
would have been eligible to receive benefits under a sick pay
plan authorized by law, if he had suffered a sickness or
accident on the date of withdrawal from service. It shall be
the responsibility of the last Department to certify to the
Board the length of time salary or benefits would have been
paid to the member based upon the accumulated unused sick leave
or the applicable sick pay plan if he had become entitled
thereto because of sickness on the date that his status as an
employee terminated. This period of service credit granted
under this paragraph shall not be considered in determining the
date the retirement annuity is to begin, or final average
compensation.
Service credit is not available for unused sick leave
accumulated by a person who first participates in this System
on or after the effective date of this amendatory Act of the
98th General Assembly.

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(Source: P.A. 92-14, eff. 6-28-01.)
(40 ILCS 5/15-113.4) (from Ch. 108 1/2, par. 15-113.4)
Sec. 15-113.4. Service for unused sick leave. "Service for
unused sick leave": A participant who first participated in
this System before the effective date of this amendatory Act of
the 98th General Assembly and who is an employee under this
System or one of the other systems subject to Article 20 of
this Code within 60 days immediately preceding the date on
which his or her retirement annuity begins, is entitled to
credit for service for that portion of unused sick leave earned
in the course of employment with an employer and credited on
the date of termination of employment by an employer for which
payment is not received, in accordance with the following
schedule: 30 through 90 full calendar days and 20 through 59
full work days of unused sick leave, 1/4 of a year of service;
91 through 180 full calendar days and 60 through 119 full work
days, 1/2 of a year of service; 181 through 270 full calendar
days and 120 through 179 full work days, 3/4 of a year of
service; 271 through 360 full calendar days and 180 through 240
full work days, one year of service. Only uncompensated, unused
sick leave earned in accordance with an employer's sick leave
accrual policy generally applicable to employees or a class of
employees shall be taken into account in calculating service
credit under this Section. Any uncompensated, unused sick leave
granted by an employer to facilitate the hiring, retirement,

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termination, or other special circumstances of an employee
shall not be taken into account in calculating service credit
under this Section. If a participant transfers from one
employer to another, the unused sick leave credited by the
previous employer shall be considered in determining service to
be credited under this Section, even if the participant
terminated service prior to the effective date of P.A. 86-272
(August 23, 1989); if necessary, the retirement annuity shall
be recalculated to reflect such sick leave credit. Each
employer shall certify to the board the number of days of
unused sick leave accrued to the participant's credit on the
date that the participant's status as an employee terminated.
This period of unused sick leave shall not be considered in
determining the date the retirement annuity begins.
Service credit is not available for unused sick leave
accumulated by a person who first participates in this System
on or after the effective date of this amendatory Act of the
98th General Assembly.
(Source: P.A. 90-65, eff. 7-7-97; 90-511, eff. 8-22-97.)
(40 ILCS 5/16-127) (from Ch. 108 1/2, par. 16-127)
Sec. 16-127. Computation of creditable service.
(a) Each member shall receive regular credit for all
service as a teacher from the date membership begins, for which
satisfactory evidence is supplied and all contributions have
been paid.

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(b) The following periods of service shall earn optional
credit and each member shall receive credit for all such
service for which satisfactory evidence is supplied and all
contributions have been paid as of the date specified:
(1) Prior service as a teacher.
(2) Service in a capacity essentially similar or
equivalent to that of a teacher, in the public common
schools in school districts in this State not included
within the provisions of this System, or of any other
State, territory, dependency or possession of the United
States, or in schools operated by or under the auspices of
the United States, or under the auspices of any agency or
department of any other State, and service during any
period of professional speech correction or special
education experience for a public agency within this State
or any other State, territory, dependency or possession of
the United States, and service prior to February 1, 1951 as
a recreation worker for the Illinois Department of Public
Safety, for a period not exceeding the lesser of 2/5 of the
total creditable service of the member or 10 years. The
maximum service of 10 years which is allowable under this
paragraph shall be reduced by the service credit which is
validated by other retirement systems under paragraph (i)
of Section 15-113 and paragraph 1 of Section 17-133. Credit
granted under this paragraph may not be used in
determination of a retirement annuity or disability

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benefits unless the member has at least 5 years of
creditable service earned subsequent to this employment
with one or more of the following systems: Teachers'
Retirement System of the State of Illinois, State
Universities Retirement System, and the Public School
Teachers' Pension and Retirement Fund of Chicago. Whenever
such service credit exceeds the maximum allowed for all
purposes of this Article, the first service rendered in
point of time shall be considered. The changes to this
subdivision (b)(2) made by Public Act 86-272 shall apply
not only to persons who on or after its effective date
(August 23, 1989) are in service as a teacher under the
System, but also to persons whose status as such a teacher
terminated prior to such effective date, whether or not
such person is an annuitant on that date.
(3) Any periods immediately following teaching
service, under this System or under Article 17, (or
immediately following service prior to February 1, 1951 as
a recreation worker for the Illinois Department of Public
Safety) spent in active service with the military forces of
the United States; periods spent in educational programs
that prepare for return to teaching sponsored by the
federal government following such active military service;
if a teacher returns to teaching service within one
calendar year after discharge or after the completion of
the educational program, a further period, not exceeding

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one calendar year, between time spent in military service
or in such educational programs and the return to
employment as a teacher under this System; and a period of
up to 2 years of active military service not immediately
following employment as a teacher.
The changes to this Section and Section 16-128 relating
to military service made by P.A. 87-794 shall apply not
only to persons who on or after its effective date are in
service as a teacher under the System, but also to persons
whose status as a teacher terminated prior to that date,
whether or not the person is an annuitant on that date. In
the case of an annuitant who applies for credit allowable
under this Section for a period of military service that
did not immediately follow employment, and who has made the
required contributions for such credit, the annuity shall
be recalculated to include the additional service credit,
with the increase taking effect on the date the System
received written notification of the annuitant's intent to
purchase the credit, if payment of all the required
contributions is made within 60 days of such notice, or
else on the first annuity payment date following the date
of payment of the required contributions. In calculating
the automatic annual increase for an annuity that has been
recalculated under this Section, the increase attributable
to the additional service allowable under P.A. 87-794 shall
be included in the calculation of automatic annual

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increases accruing after the effective date of the
recalculation.
Credit for military service shall be determined as
follows: if entry occurs during the months of July, August,
or September and the member was a teacher at the end of the
immediately preceding school term, credit shall be granted
from July 1 of the year in which he or she entered service;
if entry occurs during the school term and the teacher was
in teaching service at the beginning of the school term,
credit shall be granted from July 1 of such year. In all
other cases where credit for military service is allowed,
credit shall be granted from the date of entry into the
service.
The total period of military service for which credit
is granted shall not exceed 5 years for any member unless
the service: (A) is validated before July 1, 1964, and (B)
does not extend beyond July 1, 1963. Credit for military
service shall be granted under this Section only if not
more than 5 years of the military service for which credit
is granted under this Section is used by the member to
qualify for a military retirement allotment from any branch
of the armed forces of the United States. The changes to
this subdivision (b)(3) made by Public Act 86-272 shall
apply not only to persons who on or after its effective
date (August 23, 1989) are in service as a teacher under
the System, but also to persons whose status as such a

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teacher terminated prior to such effective date, whether or
not such person is an annuitant on that date.
(4) Any periods served as a member of the General
Assembly.
(5)(i) Any periods for which a teacher, as defined in
Section 16-106, is granted a leave of absence, provided he
or she returns to teaching service creditable under this
System or the State Universities Retirement System
following the leave; (ii) periods during which a teacher is
involuntarily laid off from teaching, provided he or she
returns to teaching following the lay-off; (iii) periods
prior to July 1, 1983 during which a teacher ceased covered
employment due to pregnancy, provided that the teacher
returned to teaching service creditable under this System
or the State Universities Retirement System following the
pregnancy and submits evidence satisfactory to the Board
documenting that the employment ceased due to pregnancy;
and (iv) periods prior to July 1, 1983 during which a
teacher ceased covered employment for the purpose of
adopting an infant under 3 years of age or caring for a
newly adopted infant under 3 years of age, provided that
the teacher returned to teaching service creditable under
this System or the State Universities Retirement System
following the adoption and submits evidence satisfactory
to the Board documenting that the employment ceased for the
purpose of adopting an infant under 3 years of age or

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caring for a newly adopted infant under 3 years of age.
However, total credit under this paragraph (5) may not
exceed 3 years.
Any qualified member or annuitant may apply for credit
under item (iii) or (iv) of this paragraph (5) without
regard to whether service was terminated before the
effective date of this amendatory Act of 1997. In the case
of an annuitant who establishes credit under item (iii) or
(iv), the annuity shall be recalculated to include the
additional service credit. The increase in annuity shall
take effect on the date the System receives written
notification of the annuitant's intent to purchase the
credit, if the required evidence is submitted and the
required contribution paid within 60 days of that
notification, otherwise on the first annuity payment date
following the System's receipt of the required evidence and
contribution. The increase in an annuity recalculated
under this provision shall be included in the calculation
of automatic annual increases in the annuity accruing after
the effective date of the recalculation.
Optional credit may be purchased under this subsection
(b)(5) for periods during which a teacher has been granted
a leave of absence pursuant to Section 24-13 of the School
Code. A teacher whose service under this Article terminated
prior to the effective date of P.A. 86-1488 shall be
eligible to purchase such optional credit. If a teacher who

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purchases this optional credit is already receiving a
retirement annuity under this Article, the annuity shall be
recalculated as if the annuitant had applied for the leave
of absence credit at the time of retirement. The difference
between the entitled annuity and the actual annuity shall
be credited to the purchase of the optional credit. The
remainder of the purchase cost of the optional credit shall
be paid on or before April 1, 1992.
The change in this paragraph made by Public Act 86-273
shall be applicable to teachers who retire after June 1,
1989, as well as to teachers who are in service on that
date.
(6) Any days of unused and uncompensated accumulated
sick leave earned by a teacher who first participated in
this System before the effective date of this amendatory
Act of the 98th General Assembly. The service credit
granted under this paragraph shall be the ratio of the
number of unused and uncompensated accumulated sick leave
days to 170 days, subject to a maximum of 2 years of
service credit. Prior to the member's retirement, each
former employer shall certify to the System the number of
unused and uncompensated accumulated sick leave days
credited to the member at the time of termination of
service. The period of unused sick leave shall not be
considered in determining the effective date of
retirement. A member is not required to make contributions

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in order to obtain service credit for unused sick leave.
Credit for sick leave shall, at retirement, be granted
by the System for any retiring regional or assistant
regional superintendent of schools who first participated
in this System before the effective date of this amendatory
Act of the 98th General Assembly at the rate of 6 days per
year of creditable service or portion thereof established
while serving as such superintendent or assistant
superintendent.
Service credit is not available for unused sick leave
accumulated by a teacher who first participates in this
System on or after the effective date of this amendatory
Act of the 98th General Assembly.
(7) Periods prior to February 1, 1987 served as an
employee of the Illinois Mathematics and Science Academy
for which credit has not been terminated under Section
15-113.9 of this Code.
(8) Service as a substitute teacher for work performed
prior to July 1, 1990.
(9) Service as a part-time teacher for work performed
prior to July 1, 1990.
(10) Up to 2 years of employment with Southern Illinois
University - Carbondale from September 1, 1959 to August
31, 1961, or with Governors State University from September
1, 1972 to August 31, 1974, for which the teacher has no
credit under Article 15. To receive credit under this item

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(10), a teacher must apply in writing to the Board and pay
the required contributions before May 1, 1993 and have at
least 12 years of service credit under this Article.
(b-1) A member may establish optional credit for up to 2
years of service as a teacher or administrator employed by a
private school recognized by the Illinois State Board of
Education, provided that the teacher (i) was certified under
the law governing the certification of teachers at the time the
service was rendered, (ii) applies in writing on or after
August 1, 2009 and on or before August 1, 2012, (iii) supplies
satisfactory evidence of the employment, (iv) completes at
least 10 years of contributing service as a teacher as defined
in Section 16-106, and (v) pays the contribution required in
subsection (d-5) of Section 16-128. The member may apply for
credit under this subsection and pay the required contribution
before completing the 10 years of contributing service required
under item (iv), but the credit may not be used until the item
(iv) contributing service requirement has been met.
(c) The service credits specified in this Section shall be
granted only if: (1) such service credits are not used for
credit in any other statutory tax-supported public employee
retirement system other than the federal Social Security
program; and (2) the member makes the required contributions as
specified in Section 16-128. Except as provided in subsection
(b-1) of this Section, the service credit shall be effective as
of the date the required contributions are completed.

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Any service credits granted under this Section shall
terminate upon cessation of membership for any cause.
Credit may not be granted under this Section covering any
period for which an age retirement or disability retirement
allowance has been paid.
(Source: P.A. 96-546, eff. 8-17-09.)
Section 99. Effective date. This Act takes effect upon
becoming law.