Bill Text: IL HB4652 | 2023-2024 | 103rd General Assembly | Engrossed

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Bill Title: Reinserts the contents of the bill as amended by House Amendment No. 1 with the following changes. Amends the Downstate Teacher Article of the Illinois Pension Code. Provides that "salary" includes stipends paid to an eligible cooperating teacher under the Board of Higher Education Act. Authorizes a person to establish optional credit for periods of service as a student teacher under a specified provision of the Board of Higher Education Act. In provisions requiring an additional employer contribution for certain salary increases greater than 6%, provides that the System shall exclude any stipends paid to an eligible cooperating teacher under the Board of Higher Education Act. Provides that any benefit increase that results from the amendatory Act is excluded from the definition of "new benefit increase". Makes changes concerning how funds are to be distributed under the student teaching stipend program. Provides that the Board of Higher Education shall disburse funds to the State Board of Education, who shall disburse funds to each school district or early childhood education provider employing an eligible cooperating teacher (instead of having the Board of Higher Education disburse funds to educator preparation programs employing an eligible cooperating teacher). Makes related changes. Makes changes concerning when the report shall be completed. Provides that the Board of Higher Education shall provide guidance and technical assistance to educator preparation programs on the administration of the stipend program. Effective immediately.

Spectrum: Partisan Bill (Democrat 31-1)

Status: (Failed) 2025-01-07 - Session Sine Die [HB4652 Detail]

Download: Illinois-2023-HB4652-Engrossed.html

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AN ACT concerning education.
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 16-121, 16-127, 16-158, and 16-203 as
follows:
(40 ILCS 5/16-121) (from Ch. 108 1/2, par. 16-121)
(Text of Section WITHOUT the changes made by P.A. 98-599,
which has been held unconstitutional)
Sec. 16-121. Salary. "Salary": The actual compensation
received by a teacher during any school year and recognized by
the system in accordance with rules of the board. "Salary"
includes any stipend paid under Section 9.44 of the Board of
Higher Education Act to an eligible cooperating teacher.
For purposes of this Section, "school year" includes the
regular school term plus any additional period for which a
teacher is compensated and such compensation is recognized by
the rules of the board.
(Source: P.A. 84-1028.)
(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

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service as a teacher from the date membership begins, for
which satisfactory evidence is supplied and all contributions
have been paid.
(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

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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 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
paragraph 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

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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 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 Public Act 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

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annual increase for an annuity that has been recalculated
under this Section, the increase attributable to the
additional service allowable under Public Act P.A. 87-794
shall be included in the calculation of automatic annual
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

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changes to this paragraph 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 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

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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
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 June 27,
1997 (the effective date of Public Act 90-32) 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.

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Optional credit may be purchased under this paragraph
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 Public
Act P.A. 86-1488 shall be eligible to purchase such
optional credit. If a teacher who 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. 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

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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 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 at the rate of 6 days
per year of creditable service or portion thereof
established while serving as such superintendent or
assistant superintendent.
(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 (10), a teacher must apply in writing to

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the Board and pay the required contributions before May 1,
1993 and have at least 12 years of service credit under
this Article.
(11) Periods of service as a student teacher as
described in Section 24-8.5 of the School Code for which
the student teacher received a salary.
(12) Periods of service as a student teacher as
described under Section 9.44 of the Board of Higher
Education Act.
(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 before
June 30, 2028, (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

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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.
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.
Credit may not be granted under this Section for service
as an employee of an entity that provides substitute teaching
services under Section 2-3.173 of the School Code and is not a
school district.
(Source: P.A. 102-525, eff. 8-20-21; 103-17, eff. 6-9-23;
103-525, eff. 8-11-23; revised 9-5-23.)
(40 ILCS 5/16-158) (from Ch. 108 1/2, par. 16-158)
Sec. 16-158. Contributions by State and other employing
units.
(a) The State shall make contributions to the System by
means of appropriations from the Common School Fund and other
State funds of amounts which, together with other employer
contributions, employee contributions, investment income, and

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other income, will be sufficient to meet the cost of
maintaining and administering the System on a 90% funded basis
in accordance with actuarial recommendations.
The Board shall determine the amount of State
contributions required for each fiscal year on the basis of
the actuarial tables and other assumptions adopted by the
Board and the recommendations of the actuary, using the
formula in subsection (b-3).
(a-1) Annually, on or before November 15 until November
15, 2011, the Board shall certify to the Governor the amount of
the required State contribution for the coming fiscal year.
The certification under this subsection (a-1) shall include a
copy of the actuarial recommendations upon which it is based
and shall specifically identify the System's projected State
normal cost for that fiscal year.
On or before May 1, 2004, the Board shall recalculate and
recertify to the Governor the amount of the required State
contribution to the System for State fiscal year 2005, taking
into account the amounts appropriated to and received by the
System under subsection (d) of Section 7.2 of the General
Obligation Bond Act.
On or before July 1, 2005, the Board shall recalculate and
recertify to the Governor the amount of the required State
contribution to the System for State fiscal year 2006, taking
into account the changes in required State contributions made
by Public Act 94-4.

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On or before April 1, 2011, the Board shall recalculate
and recertify to the Governor the amount of the required State
contribution to the System for State fiscal year 2011,
applying the changes made by Public Act 96-889 to the System's
assets and liabilities as of June 30, 2009 as though Public Act
96-889 was approved on that date.
(a-5) On or before November 1 of each year, beginning
November 1, 2012, the Board shall submit to the State Actuary,
the Governor, and the General Assembly a proposed
certification of the amount of the required State contribution
to the System for the next fiscal year, along with all of the
actuarial assumptions, calculations, and data upon which that
proposed certification is based. On or before January 1 of
each year, beginning January 1, 2013, the State Actuary shall
issue a preliminary report concerning the proposed
certification and identifying, if necessary, recommended
changes in actuarial assumptions that the Board must consider
before finalizing its certification of the required State
contributions. On or before January 15, 2013 and each January
15 thereafter, the Board shall certify to the Governor and the
General Assembly the amount of the required State contribution
for the next fiscal year. The Board's certification must note
any deviations from the State Actuary's recommended changes,
the reason or reasons for not following the State Actuary's
recommended changes, and the fiscal impact of not following
the State Actuary's recommended changes on the required State

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contribution.
(a-10) By November 1, 2017, the Board shall recalculate
and recertify to the State Actuary, the Governor, and the
General Assembly the amount of the State contribution to the
System for State fiscal year 2018, taking into account the
changes in required State contributions made by Public Act
100-23. The State Actuary shall review the assumptions and
valuations underlying the Board's revised certification and
issue a preliminary report concerning the proposed
recertification and identifying, if necessary, recommended
changes in actuarial assumptions that the Board must consider
before finalizing its certification of the required State
contributions. The Board's final certification must note any
deviations from the State Actuary's recommended changes, the
reason or reasons for not following the State Actuary's
recommended changes, and the fiscal impact of not following
the State Actuary's recommended changes on the required State
contribution.
(a-15) On or after June 15, 2019, but no later than June
30, 2019, the Board shall recalculate and recertify to the
Governor and the General Assembly the amount of the State
contribution to the System for State fiscal year 2019, taking
into account the changes in required State contributions made
by Public Act 100-587. The recalculation shall be made using
assumptions adopted by the Board for the original fiscal year
2019 certification. The monthly voucher for the 12th month of

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fiscal year 2019 shall be paid by the Comptroller after the
recertification required pursuant to this subsection is
submitted to the Governor, Comptroller, and General Assembly.
The recertification submitted to the General Assembly shall be
filed with the Clerk of the House of Representatives and the
Secretary of the Senate in electronic form only, in the manner
that the Clerk and the Secretary shall direct.
(b) Through State fiscal year 1995, the State
contributions shall be paid to the System in accordance with
Section 18-7 of the School Code.
(b-1) Beginning in State fiscal year 1996, on the 15th day
of each month, or as soon thereafter as may be practicable, the
Board shall submit vouchers for payment of State contributions
to the System, in a total monthly amount of one-twelfth of the
required annual State contribution certified under subsection
(a-1). From March 5, 2004 (the effective date of Public Act
93-665) through June 30, 2004, the Board shall not submit
vouchers for the remainder of fiscal year 2004 in excess of the
fiscal year 2004 certified contribution amount determined
under this Section after taking into consideration the
transfer to the System under subsection (a) of Section 6z-61
of the State Finance Act. These vouchers shall be paid by the
State Comptroller and Treasurer by warrants drawn on the funds
appropriated to the System for that fiscal year.
If in any month the amount remaining unexpended from all
other appropriations to the System for the applicable fiscal

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year (including the appropriations to the System under Section
8.12 of the State Finance Act and Section 1 of the State
Pension Funds Continuing Appropriation Act) is less than the
amount lawfully vouchered under this subsection, the
difference shall be paid from the Common School Fund under the
continuing appropriation authority provided in Section 1.1 of
the State Pension Funds Continuing Appropriation Act.
(b-2) Allocations from the Common School Fund apportioned
to school districts not coming under this System shall not be
diminished or affected by the provisions of this Article.
(b-3) For State fiscal years 2012 through 2045, the
minimum contribution to the System to be made by the State for
each fiscal year shall be an amount determined by the System to
be sufficient to bring the total assets of the System up to 90%
of the total actuarial liabilities of the System by the end of
State fiscal year 2045. In making these determinations, the
required State contribution shall be calculated each year as a
level percentage of payroll over the years remaining to and
including fiscal year 2045 and shall be determined under the
projected unit credit actuarial cost method.
For each of State fiscal years 2018, 2019, and 2020, the
State shall make an additional contribution to the System
equal to 2% of the total payroll of each employee who is deemed
to have elected the benefits under Section 1-161 or who has
made the election under subsection (c) of Section 1-161.
A change in an actuarial or investment assumption that

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increases or decreases the required State contribution and
first applies in State fiscal year 2018 or thereafter shall be
implemented in equal annual amounts over a 5-year period
beginning in the State fiscal year in which the actuarial
change first applies to the required State contribution.
A change in an actuarial or investment assumption that
increases or decreases the required State contribution and
first applied to the State contribution in fiscal year 2014,
2015, 2016, or 2017 shall be implemented:
(i) as already applied in State fiscal years before
2018; and
(ii) in the portion of the 5-year period beginning in
the State fiscal year in which the actuarial change first
applied that occurs in State fiscal year 2018 or
thereafter, by calculating the change in equal annual
amounts over that 5-year period and then implementing it
at the resulting annual rate in each of the remaining
fiscal years in that 5-year period.
For State fiscal years 1996 through 2005, the State
contribution to the System, as a percentage of the applicable
employee payroll, shall be increased in equal annual
increments so that by State fiscal year 2011, the State is
contributing at the rate required under this Section; except
that in the following specified State fiscal years, the State
contribution to the System shall not be less than the
following indicated percentages of the applicable employee

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payroll, even if the indicated percentage will produce a State
contribution in excess of the amount otherwise required under
this subsection and subsection (a), and notwithstanding any
contrary certification made under subsection (a-1) before May
27, 1998 (the effective date of Public Act 90-582): 10.02% in
FY 1999; 10.77% in FY 2000; 11.47% in FY 2001; 12.16% in FY
2002; 12.86% in FY 2003; and 13.56% in FY 2004.
Notwithstanding any other provision of this Article, the
total required State contribution for State fiscal year 2006
is $534,627,700.
Notwithstanding any other provision of this Article, the
total required State contribution for State fiscal year 2007
is $738,014,500.
For each of State fiscal years 2008 through 2009, the
State contribution to the System, as a percentage of the
applicable employee payroll, shall be increased in equal
annual increments from the required State contribution for
State fiscal year 2007, so that by State fiscal year 2011, the
State is contributing at the rate otherwise required under
this Section.
Notwithstanding any other provision of this Article, the
total required State contribution for State fiscal year 2010
is $2,089,268,000 and shall be made from the proceeds of bonds
sold in fiscal year 2010 pursuant to Section 7.2 of the General
Obligation Bond Act, less (i) the pro rata share of bond sale
expenses determined by the System's share of total bond

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proceeds, (ii) any amounts received from the Common School
Fund in fiscal year 2010, and (iii) any reduction in bond
proceeds due to the issuance of discounted bonds, if
applicable.
Notwithstanding any other provision of this Article, the
total required State contribution for State fiscal year 2011
is the amount recertified by the System on or before April 1,
2011 pursuant to subsection (a-1) of this Section and shall be
made from the proceeds of bonds sold in fiscal year 2011
pursuant to Section 7.2 of the General Obligation Bond Act,
less (i) the pro rata share of bond sale expenses determined by
the System's share of total bond proceeds, (ii) any amounts
received from the Common School Fund in fiscal year 2011, and
(iii) any reduction in bond proceeds due to the issuance of
discounted bonds, if applicable. This amount shall include, in
addition to the amount certified by the System, an amount
necessary to meet employer contributions required by the State
as an employer under paragraph (e) of this Section, which may
also be used by the System for contributions required by
paragraph (a) of Section 16-127.
Beginning in State fiscal year 2046, the minimum State
contribution for each fiscal year shall be the amount needed
to maintain the total assets of the System at 90% of the total
actuarial liabilities of the System.
Amounts received by the System pursuant to Section 25 of
the Budget Stabilization Act or Section 8.12 of the State

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Finance Act in any fiscal year do not reduce and do not
constitute payment of any portion of the minimum State
contribution required under this Article in that fiscal year.
Such amounts shall not reduce, and shall not be included in the
calculation of, the required State contributions under this
Article in any future year until the System has reached a
funding ratio of at least 90%. A reference in this Article to
the "required State contribution" or any substantially similar
term does not include or apply to any amounts payable to the
System under Section 25 of the Budget Stabilization Act.
Notwithstanding any other provision of this Section, the
required State contribution for State fiscal year 2005 and for
fiscal year 2008 and each fiscal year thereafter, as
calculated under this Section and certified under subsection
(a-1), shall not exceed an amount equal to (i) the amount of
the required State contribution that would have been
calculated under this Section for that fiscal year if the
System had not received any payments under subsection (d) of
Section 7.2 of the General Obligation Bond Act, minus (ii) the
portion of the State's total debt service payments for that
fiscal year on the bonds issued in fiscal year 2003 for the
purposes of that Section 7.2, as determined and certified by
the Comptroller, that is the same as the System's portion of
the total moneys distributed under subsection (d) of Section
7.2 of the General Obligation Bond Act. In determining this
maximum for State fiscal years 2008 through 2010, however, the

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amount referred to in item (i) shall be increased, as a
percentage of the applicable employee payroll, in equal
increments calculated from the sum of the required State
contribution for State fiscal year 2007 plus the applicable
portion of the State's total debt service payments for fiscal
year 2007 on the bonds issued in fiscal year 2003 for the
purposes of Section 7.2 of the General Obligation Bond Act, so
that, by State fiscal year 2011, the State is contributing at
the rate otherwise required under this Section.
(b-4) Beginning in fiscal year 2018, each employer under
this Article shall pay to the System a required contribution
determined as a percentage of projected payroll and sufficient
to produce an annual amount equal to:
(i) for each of fiscal years 2018, 2019, and 2020, the
defined benefit normal cost of the defined benefit plan,
less the employee contribution, for each employee of that
employer who has elected or who is deemed to have elected
the benefits under Section 1-161 or who has made the
election under subsection (b) of Section 1-161; for fiscal
year 2021 and each fiscal year thereafter, the defined
benefit normal cost of the defined benefit plan, less the
employee contribution, plus 2%, for each employee of that
employer who has elected or who is deemed to have elected
the benefits under Section 1-161 or who has made the
election under subsection (b) of Section 1-161; plus
(ii) the amount required for that fiscal year to

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amortize any unfunded actuarial accrued liability
associated with the present value of liabilities
attributable to the employer's account under Section
16-158.3, determined as a level percentage of payroll over
a 30-year rolling amortization period.
In determining contributions required under item (i) of
this subsection, the System shall determine an aggregate rate
for all employers, expressed as a percentage of projected
payroll.
In determining the contributions required under item (ii)
of this subsection, the amount shall be computed by the System
on the basis of the actuarial assumptions and tables used in
the most recent actuarial valuation of the System that is
available at the time of the computation.
The contributions required under this subsection (b-4)
shall be paid by an employer concurrently with that employer's
payroll payment period. The State, as the actual employer of
an employee, shall make the required contributions under this
subsection.
(c) Payment of the required State contributions and of all
pensions, retirement annuities, death benefits, refunds, and
other benefits granted under or assumed by this System, and
all expenses in connection with the administration and
operation thereof, are obligations of the State.
If members are paid from special trust or federal funds
which are administered by the employing unit, whether school

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district or other unit, the employing unit shall pay to the
System from such funds the full accruing retirement costs
based upon that service, which, beginning July 1, 2017, shall
be at a rate, expressed as a percentage of salary, equal to the
total employer's normal cost, expressed as a percentage of
payroll, as determined by the System. Employer contributions,
based on salary paid to members from federal funds, may be
forwarded by the distributing agency of the State of Illinois
to the System prior to allocation, in an amount determined in
accordance with guidelines established by such agency and the
System. Any contribution for fiscal year 2015 collected as a
result of the change made by Public Act 98-674 shall be
considered a State contribution under subsection (b-3) of this
Section.
(d) Effective July 1, 1986, any employer of a teacher as
defined in paragraph (8) of Section 16-106 shall pay the
employer's normal cost of benefits based upon the teacher's
service, in addition to employee contributions, as determined
by the System. Such employer contributions shall be forwarded
monthly in accordance with guidelines established by the
System.
However, with respect to benefits granted under Section
16-133.4 or 16-133.5 to a teacher as defined in paragraph (8)
of Section 16-106, the employer's contribution shall be 12%
(rather than 20%) of the member's highest annual salary rate
for each year of creditable service granted, and the employer

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shall also pay the required employee contribution on behalf of
the teacher. For the purposes of Sections 16-133.4 and
16-133.5, a teacher as defined in paragraph (8) of Section
16-106 who is serving in that capacity while on leave of
absence from another employer under this Article shall not be
considered an employee of the employer from which the teacher
is on leave.
(e) Beginning July 1, 1998, every employer of a teacher
shall pay to the System an employer contribution computed as
follows:
(1) Beginning July 1, 1998 through June 30, 1999, the
employer contribution shall be equal to 0.3% of each
teacher's salary.
(2) Beginning July 1, 1999 and thereafter, the
employer contribution shall be equal to 0.58% of each
teacher's salary.
The school district or other employing unit may pay these
employer contributions out of any source of funding available
for that purpose and shall forward the contributions to the
System on the schedule established for the payment of member
contributions.
These employer contributions are intended to offset a
portion of the cost to the System of the increases in
retirement benefits resulting from Public Act 90-582.
Each employer of teachers is entitled to a credit against
the contributions required under this subsection (e) with

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respect to salaries paid to teachers for the period January 1,
2002 through June 30, 2003, equal to the amount paid by that
employer under subsection (a-5) of Section 6.6 of the State
Employees Group Insurance Act of 1971 with respect to salaries
paid to teachers for that period.
The additional 1% employee contribution required under
Section 16-152 by Public Act 90-582 is the responsibility of
the teacher and not the teacher's employer, unless the
employer agrees, through collective bargaining or otherwise,
to make the contribution on behalf of the teacher.
If an employer is required by a contract in effect on May
1, 1998 between the employer and an employee organization to
pay, on behalf of all its full-time employees covered by this
Article, all mandatory employee contributions required under
this Article, then the employer shall be excused from paying
the employer contribution required under this subsection (e)
for the balance of the term of that contract. The employer and
the employee organization shall jointly certify to the System
the existence of the contractual requirement, in such form as
the System may prescribe. This exclusion shall cease upon the
termination, extension, or renewal of the contract at any time
after May 1, 1998.
(f) If the amount of a teacher's salary for any school year
used to determine final average salary exceeds the member's
annual full-time salary rate with the same employer for the
previous school year by more than 6%, the teacher's employer

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shall pay to the System, in addition to all other payments
required under this Section and in accordance with guidelines
established by the System, the present value of the increase
in benefits resulting from the portion of the increase in
salary that is in excess of 6%. This present value shall be
computed by the System on the basis of the actuarial
assumptions and tables used in the most recent actuarial
valuation of the System that is available at the time of the
computation. If a teacher's salary for the 2005-2006 school
year is used to determine final average salary under this
subsection (f), then the changes made to this subsection (f)
by Public Act 94-1057 shall apply in calculating whether the
increase in his or her salary is in excess of 6%. For the
purposes of this Section, change in employment under Section
10-21.12 of the School Code on or after June 1, 2005 shall
constitute a change in employer. The System may require the
employer to provide any pertinent information or
documentation. The changes made to this subsection (f) by
Public Act 94-1111 apply without regard to whether the teacher
was in service on or after its effective date.
Whenever it determines that a payment is or may be
required under this subsection, the System shall calculate the
amount of the payment and bill the employer for that amount.
The bill shall specify the calculations used to determine the
amount due. If the employer disputes the amount of the bill, it
may, within 30 days after receipt of the bill, apply to the

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System in writing for a recalculation. The application must
specify in detail the grounds of the dispute and, if the
employer asserts that the calculation is subject to subsection
(g), (g-5), (g-10), (g-15), (g-20), (g-25), or (h) of this
Section, must include an affidavit setting forth and attesting
to all facts within the employer's knowledge that are
pertinent to the applicability of that subsection. Upon
receiving a timely application for recalculation, the System
shall review the application and, if appropriate, recalculate
the amount due.
The employer contributions required under this subsection
(f) may be paid in the form of a lump sum within 90 days after
receipt of the bill. If the employer contributions are not
paid within 90 days after receipt of the bill, then interest
will be charged at a rate equal to the System's annual
actuarially assumed rate of return on investment compounded
annually from the 91st day after receipt of the bill. Payments
must be concluded within 3 years after the employer's receipt
of the bill.
(f-1) (Blank).
(g) This subsection (g) applies only to payments made or
salary increases given on or after June 1, 2005 but before July
1, 2011. The changes made by Public Act 94-1057 shall not
require the System to refund any payments received before July
31, 2006 (the effective date of Public Act 94-1057).
When assessing payment for any amount due under subsection

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(f), the System shall exclude salary increases paid to
teachers under contracts or collective bargaining agreements
entered into, amended, or renewed before June 1, 2005.
When assessing payment for any amount due under subsection
(f), the System shall exclude salary increases paid to a
teacher at a time when the teacher is 10 or more years from
retirement eligibility under Section 16-132 or 16-133.2.
When assessing payment for any amount due under subsection
(f), the System shall exclude salary increases resulting from
overload work, including summer school, when the school
district has certified to the System, and the System has
approved the certification, that (i) the overload work is for
the sole purpose of classroom instruction in excess of the
standard number of classes for a full-time teacher in a school
district during a school year and (ii) the salary increases
are equal to or less than the rate of pay for classroom
instruction computed on the teacher's current salary and work
schedule.
When assessing payment for any amount due under subsection
(f), the System shall exclude a salary increase resulting from
a promotion (i) for which the employee is required to hold a
certificate or supervisory endorsement issued by the State
Teacher Certification Board that is a different certification
or supervisory endorsement than is required for the teacher's
previous position and (ii) to a position that has existed and
been filled by a member for no less than one complete academic

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year and the salary increase from the promotion is an increase
that results in an amount no greater than the lesser of the
average salary paid for other similar positions in the
district requiring the same certification or the amount
stipulated in the collective bargaining agreement for a
similar position requiring the same certification.
When assessing payment for any amount due under subsection
(f), the System shall exclude any payment to the teacher from
the State of Illinois or the State Board of Education over
which the employer does not have discretion, notwithstanding
that the payment is included in the computation of final
average salary.
(g-5) When assessing payment for any amount due under
subsection (f), the System shall exclude salary increases
resulting from overload or stipend work performed in a school
year subsequent to a school year in which the employer was
unable to offer or allow to be conducted overload or stipend
work due to an emergency declaration limiting such activities.
(g-10) When assessing payment for any amount due under
subsection (f), the System shall exclude salary increases
resulting from increased instructional time that exceeded the
instructional time required during the 2019-2020 school year.
(g-15) When assessing payment for any amount due under
subsection (f), the System shall exclude salary increases
resulting from teaching summer school on or after May 1, 2021
and before September 15, 2022.

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(g-20) When assessing payment for any amount due under
subsection (f), the System shall exclude salary increases
necessary to bring a school board in compliance with Public
Act 101-443 or this amendatory Act of the 103rd General
Assembly.
(g-25) When assessing payment for any amount due under
subsection (f), the System shall exclude any stipends paid to
an eligible cooperating teacher under Section 9.44 of the
Board of Higher Education Act.
(h) When assessing payment for any amount due under
subsection (f), the System shall exclude any salary increase
described in subsection (g) of this Section given on or after
July 1, 2011 but before July 1, 2014 under a contract or
collective bargaining agreement entered into, amended, or
renewed on or after June 1, 2005 but before July 1, 2011.
Notwithstanding any other provision of this Section, any
payments made or salary increases given after June 30, 2014
shall be used in assessing payment for any amount due under
subsection (f) of this Section.
(i) The System shall prepare a report and file copies of
the report with the Governor and the General Assembly by
January 1, 2007 that contains all of the following
information:
(1) The number of recalculations required by the
changes made to this Section by Public Act 94-1057 for
each employer.

HB4652 Engrossed - 31 - LRB103 36983 RJT 67097 b
(2) The dollar amount by which each employer's
contribution to the System was changed due to
recalculations required by Public Act 94-1057.
(3) The total amount the System received from each
employer as a result of the changes made to this Section by
Public Act 94-4.
(4) The increase in the required State contribution
resulting from the changes made to this Section by Public
Act 94-1057.
(i-5) For school years beginning on or after July 1, 2017,
if the amount of a participant's salary for any school year
exceeds the amount of the salary set for the Governor, the
participant's employer shall pay to the System, in addition to
all other payments required under this Section and in
accordance with guidelines established by the System, an
amount determined by the System to be equal to the employer
normal cost, as established by the System and expressed as a
total percentage of payroll, multiplied by the amount of
salary in excess of the amount of the salary set for the
Governor. This amount shall be computed by the System on the
basis of the actuarial assumptions and tables used in the most
recent actuarial valuation of the System that is available at
the time of the computation. The System may require the
employer to provide any pertinent information or
documentation.
Whenever it determines that a payment is or may be

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required under this subsection, the System shall calculate the
amount of the payment and bill the employer for that amount.
The bill shall specify the calculations used to determine the
amount due. If the employer disputes the amount of the bill, it
may, within 30 days after receipt of the bill, apply to the
System in writing for a recalculation. The application must
specify in detail the grounds of the dispute. Upon receiving a
timely application for recalculation, the System shall review
the application and, if appropriate, recalculate the amount
due.
The employer contributions required under this subsection
may be paid in the form of a lump sum within 90 days after
receipt of the bill. If the employer contributions are not
paid within 90 days after receipt of the bill, then interest
will be charged at a rate equal to the System's annual
actuarially assumed rate of return on investment compounded
annually from the 91st day after receipt of the bill. Payments
must be concluded within 3 years after the employer's receipt
of the bill.
(j) For purposes of determining the required State
contribution to the System, the value of the System's assets
shall be equal to the actuarial value of the System's assets,
which shall be calculated as follows:
As of June 30, 2008, the actuarial value of the System's
assets shall be equal to the market value of the assets as of
that date. In determining the actuarial value of the System's

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assets for fiscal years after June 30, 2008, any actuarial
gains or losses from investment return incurred in a fiscal
year shall be recognized in equal annual amounts over the
5-year period following that fiscal year.
(k) For purposes of determining the required State
contribution to the system for a particular year, the
actuarial value of assets shall be assumed to earn a rate of
return equal to the system's actuarially assumed rate of
return.
(Source: P.A. 102-16, eff. 6-17-21; 102-525, eff. 8-20-21;
102-558, eff. 8-20-21; 102-813, eff. 5-13-22; 103-515, eff.
8-11-23.)
(40 ILCS 5/16-203)
Sec. 16-203. Application and expiration of new benefit
increases.
(a) As used in this Section, "new benefit increase" means
an increase in the amount of any benefit provided under this
Article, or an expansion of the conditions of eligibility for
any benefit under this Article, that results from an amendment
to this Code that takes effect after June 1, 2005 (the
effective date of Public Act 94-4). "New benefit increase",
however, does not include any benefit increase resulting from
the changes made to Article 1 or this Article by Public Act
95-910, Public Act 100-23, Public Act 100-587, Public Act
100-743, Public Act 100-769, Public Act 101-10, Public Act

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101-49, Public Act 102-16, or Public Act 102-871, or this
amendatory Act of the 103rd General Assembly.
(b) Notwithstanding any other provision of this Code or
any subsequent amendment to this Code, every new benefit
increase is subject to this Section and shall be deemed to be
granted only in conformance with and contingent upon
compliance with the provisions of this Section.
(c) The Public Act enacting a new benefit increase must
identify and provide for payment to the System of additional
funding at least sufficient to fund the resulting annual
increase in cost to the System as it accrues.
Every new benefit increase is contingent upon the General
Assembly providing the additional funding required under this
subsection. The Commission on Government Forecasting and
Accountability shall analyze whether adequate additional
funding has been provided for the new benefit increase and
shall report its analysis to the Public Pension Division of
the Department of Insurance. A new benefit increase created by
a Public Act that does not include the additional funding
required under this subsection is null and void. If the Public
Pension Division determines that the additional funding
provided for a new benefit increase under this subsection is
or has become inadequate, it may so certify to the Governor and
the State Comptroller and, in the absence of corrective action
by the General Assembly, the new benefit increase shall expire
at the end of the fiscal year in which the certification is

HB4652 Engrossed - 35 - LRB103 36983 RJT 67097 b
made.
(d) Every new benefit increase shall expire 5 years after
its effective date or on such earlier date as may be specified
in the language enacting the new benefit increase or provided
under subsection (c). This does not prevent the General
Assembly from extending or re-creating a new benefit increase
by law.
(e) Except as otherwise provided in the language creating
the new benefit increase, a new benefit increase that expires
under this Section continues to apply to persons who applied
and qualified for the affected benefit while the new benefit
increase was in effect and to the affected beneficiaries and
alternate payees of such persons, but does not apply to any
other person, including, without limitation, a person who
continues in service after the expiration date and did not
apply and qualify for the affected benefit while the new
benefit increase was in effect.
(Source: P.A. 102-16, eff. 6-17-21; 102-558, eff. 8-20-21;
102-813, eff. 5-13-22; 102-871, eff. 5-13-22; 103-154, eff.
6-30-23.)
Section 10. The Board of Higher Education Act is amended
by adding Section 9.44 as follows:
(110 ILCS 205/9.44 new)
Sec. 9.44. Student teaching stipend program.

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(a) As used in this Section:
"Educator preparation program" means an approved educator
preparation program offered by a recognized school or
institution under Article 21B of the School Code.
"Eligible cooperating teacher" means a teacher who is
licensed under Article 21B of the School Code or has attained
the Department of Human Services' Gateways to Opportunity
Early Childhood Education Credential Level 5 or 6, who is
qualified to teach in the subject area assigned, and who is
matched with an eligible student.
"Eligible student" means a student who is enrolled in an
educator preparation program, who is maintaining satisfactory
academic progress, who intends to teach in this State, who is
placed as a student teacher, and who is not contracted as the
teacher of record for the student teaching placement.
"Student teaching" means a supervised clinical experience
that prepares a candidate to take full responsibility in an
instructional setting.
(b) Subject to appropriation, the Board shall create a
student teaching stipend program to alleviate the financial
burden of student teaching, to encourage students to pursue
teaching careers to alleviate this State's teacher shortage,
and to encourage teachers to be matched with student teachers.
(c) An educator preparation program shall notify the Board
of all eligible students and eligible cooperating teachers who
qualify for the stipend program.

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(d) Under the stipend program and subject to available
appropriations, the Board shall disburse to each educator
preparation program funds to distribute to each eligible
student a stipend of up to $10,000 per semester for up to 2
consecutive semesters, plus additional funds to pay the direct
costs of operating the stipend program. The educator
preparation program shall distribute stipend funds using the
standard methods for allocating State-based financial aid or
as wages for employment to each eligible student in monthly
installments.
(e) If there is a surplus appropriated in a fiscal year for
the stipend program, then the Board shall increase the amount
distributed to each educator preparation program by the same
percentage that the surplus bears to the amount required to
fully fund the total number of eligible students who qualify
for the stipend program that fiscal year. An educator
preparation program shall increase the stipend amount
distributed to each eligible student in proportion to the
surplus.
(f) If the amount appropriated in a fiscal year for the
stipend program is insufficient to fully fund stipends for the
total number of eligible students for that fiscal year, then
the Board shall prioritize eligible students based on
demonstrated financial need reported by each educator
preparation program.
(g) Funds not distributed in a particular fiscal year by

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an educator preparation program under this Section shall be
returned to the Board to be used for the subsequent fiscal
year's stipend program.
(h) An educator preparation program may not prohibit an
eligible student from participating in the stipend program or
from receiving a stipend from the stipend program.
(i) Under the stipend program and subject to available
appropriations, the Board shall disburse funds to the State
Board of Education, who shall disburse funds to each school
district or early childhood education provider employing an
eligible cooperating teacher funds to distribute to each
eligible cooperating teacher a stipend of up to $2,000 per
semester for up to 2 consecutive semesters per academic year.
The school district or early childhood education provider
shall distribute stipend funds to an eligible cooperating
teacher in one payment.
(j) An eligible cooperating teacher who receives a stipend
must complete State-approved, evidence-based training that
aligns with training for instructional coaches, covers basic
responsibilities of a cooperating teacher, includes
evidence-based practices in supporting student teachers in
school or early childhood settings, and includes the effective
assessment of student teachers that aligns with State educator
performance evaluation requirements or the equivalent for
early childhood education. The State Board of Education shall
develop training that meets the criteria of this subsection

HB4652 Engrossed - 39 - LRB103 36983 RJT 67097 b
available to cooperating teachers.
(k) If there is a surplus appropriated in a fiscal year for
the stipend program, then the Board shall increase the amount
distributed by the same percentage that the surplus bears to
the amount required to fully fund the total number of eligible
cooperating teachers who qualify for the stipend program that
fiscal year. A school district or early childhood education
provider shall increase the stipend amount distributed to each
eligible cooperating teacher in proportion to the surplus.
(l) If the amount appropriated in a fiscal year for the
stipend program is insufficient to fully fund stipends for the
total number of eligible cooperating teachers for that fiscal
year, then the Board shall reduce the amount distributed by
the same percentage that the deficit bears to the amount
required to fully fund the total number of eligible
cooperating teachers who qualify for the stipend program. A
school district or early childhood education provider shall
reduce the stipend amount distributed to each eligible
cooperating teacher in proportion to the deficit.
(m) Nothing in this Section is intended to preclude an
educator preparation program from providing an eligible
cooperating teacher with additional incentives.
(n) An eligible cooperating teacher participating in the
stipend program may receive professional development hours for
completing cooperating teacher training that count toward the
eligible cooperating teacher's license renewal or the

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equivalent for early childhood education.
(o) Subject to available appropriations, the Board shall
issue a report evaluating the impact of the stipend program on
educator preparation programs, including enrollment and
completion rates, hiring rates, and retention rates. The Board
shall issue this report in collaboration with the State Board
of Education. The Board shall submit this report to the
General Assembly and Governor on or before June 30 of the
fiscal year following the third consecutive fiscal year during
which the stipend program has received funding of at least
$2,000,000.
(p) The Board shall provide guidance and technical
assistance to educator preparation programs on the
administration of the stipend program.
(q) The Board shall adopt rules regarding the
administration of the stipend program, including, but not
limited to, the allocation of funds for the stipend program.