Bill Text: IL SB2497 | 2011-2012 | 97th General Assembly | Introduced

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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: Partisan Bill (Republican 1-0)

Status: (Failed) 2013-01-08 - Session Sine Die [SB2497 Detail]

Download: Illinois-2011-SB2497-Introduced.html

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97TH GENERAL ASSEMBLY State of Illinois 2011 and 2012 SB2497 Introduced 10/12/2011, by Sen. Ron Sandack SYNOPSIS AS INTRODUCED:
40 ILCS 5/8-226 from Ch. 108 1/2, par. 8-226
40 ILCS 5/11-215 from Ch. 108 1/2, par. 11-215
40 ILCS 5/17-134 from Ch. 108 1/2, par. 17-134
40 ILCS 5/17-134.1
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.
LRB097 13629 AMC 58165 b
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 8-226, 11-215, 17-134, and 17-134.1 as follows:
(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
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

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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 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 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 and until the effective date of this amendatory
Act of the 97th General Assembly, and, after the effective

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date of this amendatory Act of the 97th General Assembly,
based on the regular salary rate received by the
participant for his municipal employment immediately prior
to such leave of absence, (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 until the effective date of this amendatory
Act of the 97th General Assembly, and, after the effective
date of this amendatory Act of the 97th General Assembly,
based on the regular salary rate received by the
participant for his municipal employment immediately prior
to such leave of absence, 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

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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
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

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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.
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.
(Source: P.A. 90-511, eff. 8-22-97.)
(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
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

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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 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, 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 and until the effective date of this amendatory
Act of the 97th General Assembly, and, after the effective

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date of this amendatory Act of the 97th General Assembly,
based on the regular salary rate received by the
participant for his municipal employment immediately prior
to such leave of absence, (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 until the effective date of this amendatory
Act of the 97th General Assembly, and, after the effective
date of this amendatory Act of the 97th General Assembly,
based on the regular salary rate received by the
participant for his municipal employment immediately prior
to such leave of absence, 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

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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
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.

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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
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.
(Source: P.A. 90-511, eff. 8-22-97.)
(40 ILCS 5/17-134) (from Ch. 108 1/2, par. 17-134)
Sec. 17-134. Contributions for leaves of absence; military
service; computing service. In computing service for pension
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

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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
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

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sabbatical leaves of absence or sick leaves for which
salaries were paid, teachers desiring service credit
therefor shall pay the required contributions at the
maximum applicable rates in effect during such periods.
(4) For service with teacher or labor organizations
authorized by special leaves of absence, for which no
payroll deductions are made by an Employer, teachers
desiring service credit therefor shall contribute to the
Fund upon the basis of the actual salary received from such
organizations at the percentage rates in effect during such
periods for certified positions with such Employer. To the
extent the actual salary exceeds the regular salary, which
shall be defined as the salary rate, as calculated by the
Board, in effect for the teacher's regular position in
teaching service on September 1, 1983 or on the effective
date of the leave with the organization, whichever is
later, the organization shall pay to the Fund the
employer's normal cost as set by the Board on the
increment. After the effective date of this amendatory Act
of the 97th General Assembly, contributions to the Fund
under this subdivision (4) shall be based upon the
teacher's regular salary as defined in this subdivision
(4).
(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

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thereof at the rates in force (a) at the date of
appointment, or (b) on return to teaching service as a
regularly certified teacher, as the case may be; provided
such rates shall not be less than $450 per year of service.
These conditions shall apply unless an Employer elects to
and does pay into the Fund the amount which would have been
due from such person had he been employed as a teacher
during such time. In the case of credit for military
service not during the pension period, the teacher must
also pay to the Fund an amount determined by the Board to
be equal to the employer's normal cost of the benefits
accrued from such service, plus interest thereon at 5% per
year, compounded annually, from the date of appointment to
the date of payment.
The changes to this Section made by Public Act 87-795
shall apply not only to persons who on or after its
effective date are in service under the Fund, but also to
persons whose status as a teacher terminated prior to that
date, whether or not the person is an annuitant on that
date. In the case of an annuitant who applies for credit
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

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intent to purchase the credit, if payment of all the
required contributions is made within 60 days of such
notice, or else on the first annuity payment date following
the date of payment of the required contributions. In
calculating the automatic annual increase for an annuity
that has been recalculated under this Section, the increase
attributable to the additional service allowable under
this amendatory Act of 1991 shall be included in the
calculation of automatic annual increases accruing after
the effective date of the recalculation.
The total credit for military service shall not exceed
5 years, except that any teacher who on July 1, 1963, had
validated credit for more than 5 years of military service
shall be entitled to the total amount of such credit.
(6) A maximum of 244 unused sick days credited to his
account by an Employer on the date of termination of
employment. Members, upon verification of unused sick
days, may add this service time to total creditable
service.
(7) In all cases where time spent on leave is
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

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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
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.)

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(40 ILCS 5/17-134.1)
Sec. 17-134.1. Labor organization employees.
(a) A former teacher who is employed by a teacher or labor
organization and is not eligible to participate under
subdivision (4) of Section 17-134 because he or she is not on a
special leave of absence may elect to participate in the Fund
for the duration of that employment by so notifying the Fund in
writing. Participation shall be subject to the same conditions
as are applicable to persons participating under that
subdivision (4), and service credit shall be contingent upon
the required contributions being received by the Fund.
(b) A person who participates in the Fund under subsection
(a) may establish service credit for periods of such employment
that took place before beginning participation under this
Section by submitting a written application to the Fund. Credit
shall be granted upon payment to the Fund of an amount to be
determined by the Fund, equal to (i) the employee contributions
that would have been paid if the person had participated under
subdivision (4) of Section 17-134 during the period for which
service credit is to be established, based on the actual salary
received, plus (ii) the employer's normal cost associated with
that service credit, plus (iii) interest on items (i) and (ii)
at the rate of 6% per year, compounded annually, from the date
of the service established to the date of payment. Service
credit under this subsection shall not be granted until the

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required contribution has been paid in full; the contribution
may be paid at any time before retirement. After the effective
date of this amendatory Act of the 97th General Assembly,
contributions to the Fund under item (i) of this subsection (b)
shall be based upon the teacher's regular salary as defined in
subdivision (4) of Section 17-134.
(c) A person who participates in the Fund under subsection
(a) may reestablish any service credits previously forfeited by
acceptance of a refund by paying to the Fund the amount of the
refund plus interest thereon at the rate of 5% per annum,
compounded annually, from the date of the refund to the date of
payment.
(d) Rollover contributions from other retirement plans
qualified under the Internal Revenue Code of 1986 may be used
to make the payments required under subsections (b) and (c).
(e) No service credit may be established under this Section
for any period of employment for which the person receives
service credit under any other provision of this Code.
(Source: P.A. 90-448, eff. 8-16-97.)
Section 99. Effective date. This Act takes effect upon
becoming law.