Bill Text: IL HB4398 | 2015-2016 | 99th General Assembly | Introduced

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

Spectrum: Moderate Partisan Bill (Republican 4-1)

Status: (Introduced - Dead) 2016-08-16 - Added Co-Sponsor Rep. David S. Olsen [HB4398 Detail]

Download: Illinois-2015-HB4398-Introduced.html

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99TH GENERAL ASSEMBLY State of Illinois 2015 and 2016 HB4398 Introduced , by Rep. Elaine Nekritz SYNOPSIS AS INTRODUCED:
40 ILCS 5/7-114 from Ch. 108 1/2, par. 7-114
40 ILCS 5/7-116 from Ch. 108 1/2, par. 7-116
40 ILCS 5/7-139 from Ch. 108 1/2, par. 7-139
40 ILCS 5/9-219 from Ch. 108 1/2, par. 9-219
40 ILCS 5/9-220 from Ch. 108 1/2, par. 9-220
40 ILCS 5/14-104.3 from Ch. 108 1/2, par. 14-104.3
40 ILCS 5/14-106 from Ch. 108 1/2, par. 14-106
40 ILCS 5/15-112 from Ch. 108 1/2, par. 15-112
40 ILCS 5/15-113.4 from Ch. 108 1/2, par. 15-113.4
40 ILCS 5/16-121 from Ch. 108 1/2, par. 16-121
40 ILCS 5/16-127 from Ch. 108 1/2, par. 16-127
40 ILCS 5/17-116 from Ch. 108 1/2, par. 17-116
40 ILCS 5/17-134 from Ch. 108 1/2, par. 17-134
Amends the Illinois Municipal Retirement Fund (IMRF), Cook County, State Employees, State Universities, Downstate Teachers, and Chicago Teachers Articles of the Illinois Pension Code. For participants who first become participants on or after the effective date of the amendatory Act, prohibits (i) payments for unused sick or vacation time from being used to calculate pensionable earnings and salary and (ii) unused sick or vacation time from being used to establish service credit. Effective immediately.
LRB099 15024 RPS 39226 b
FISCAL NOTE ACT MAY APPLY PENSION IMPACT NOTE ACT MAY APPLY
A BILL FOR
HB4398 LRB099 15024 RPS 39226 b
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 7-114, 7-116, 7-139, 9-219, 9-220, 14-104.3, 14-106,
15-112, 15-113.4, 16-121, 16-127, 17-116, and 17-134 as
follows:
(40 ILCS 5/7-114) (from Ch. 108 1/2, par. 7-114)
(Text of Section WITHOUT the changes made by P.A. 98-599,
which has been held unconstitutional)
Sec. 7-114. Earnings. "Earnings":
(a) An amount to be determined by the board, equal to the
sum of:
1. The total amount of money paid to an employee for
personal services or official duties as an employee (except
those employed as independent contractors) paid out of the
general fund, or out of any special funds controlled by the
municipality, or by any instrumentality thereof, or
participating instrumentality, including compensation,
fees, allowances, or other emolument paid for official
duties (but not including automobile maintenance, travel
expense, or reimbursements for expenditures incurred in
the performance of duties, or, in the case of a person who

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first becomes a participant on or after the effective date
of this amendatory Act of the 99th General Assembly,
payments for unused sick or vacation time) and, for fee
offices, the fees or earnings of the offices to the extent
such fees are paid out of funds controlled by the
municipality, or instrumentality or participating
instrumentality; and
2. The money value, as determined by rules prescribed
by the governing body of the municipality, or
instrumentality thereof, of any board, lodging, fuel,
laundry, and other allowances provided an employee in lieu
of money.
(b) For purposes of determining benefits payable under this
fund payments to a person who is engaged in an independently
established trade, occupation, profession or business and who
is paid for his service on a basis other than a monthly or
other regular salary, are not earnings.
(c) If a disabled participating employee is eligible to
receive Workers' Compensation for an accidental injury and the
participating municipality or instrumentality which employed
the participating employee when injured continues to pay the
participating employee regular salary or other compensation or
pays the employee an amount in excess of the Workers'
Compensation amount, then earnings shall be deemed to be the
total payments, including an amount equal to the Workers'
Compensation payments. These payments shall be subject to

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employee contributions and allocated as if paid to the
participating employee when the regular payroll amounts would
have been paid if the participating employee had continued
working, and creditable service shall be awarded for this
period.
(d) If an elected official who is a participating employee
becomes disabled but does not resign and is not removed from
office, then earnings shall include all salary payments made
for the remainder of that term of office and the official shall
be awarded creditable service for the term of office.
(e) If a participating employee is paid pursuant to "An Act
to provide for the continuation of compensation for law
enforcement officers, correctional officers and firemen who
suffer disabling injury in the line of duty", approved
September 6, 1973, as amended, the payments shall be deemed
earnings, and the participating employee shall be awarded
creditable service for this period.
(f) Additional compensation received by a person while
serving as a supervisor of assessments, assessor, deputy
assessor or member of a board of review from the State of
Illinois pursuant to Section 4-10 or 4-15 of the Property Tax
Code shall not be earnings for purposes of this Article and
shall not be included in the contribution formula or
calculation of benefits for such person pursuant to this
Article.
(Source: P.A. 87-740; 88-670, eff. 12-2-94.)

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(40 ILCS 5/7-116) (from Ch. 108 1/2, par. 7-116)
(Text of Section WITHOUT the changes made by P.A. 98-599,
which has been held unconstitutional)
Sec. 7-116. "Final rate of earnings":
(a) For retirement and survivor annuities, the monthly
earnings obtained by dividing the total earnings received by
the employee during the period of either (1) the 48 consecutive
months of service within the last 120 months of service in
which his total earnings were the highest or (2) the employee's
total period of service, by the number of months of service in
such period.
(b) For death benefits, the higher of the rate determined
under paragraph (a) of this Section or total earnings received
in the last 12 months of service divided by twelve. If the
deceased employee has less than 12 months of service, the
monthly final rate shall be the monthly rate of pay the
employee was receiving when he began service.
(c) For disability benefits, the total earnings of a
participating employee in the last 12 calendar months of
service prior to the date he becomes disabled divided by 12.
(d) In computing the final rate of earnings: (1) the
earnings rate for all periods of prior service shall be
considered equal to the average earnings rate for the last 3
calendar years of prior service for which creditable service is
received under Section 7-139 or, if there is less than 3 years

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of creditable prior service, the average for the total prior
service period for which creditable service is received under
Section 7-139; (2) for out of state service and authorized
leave, the earnings rate shall be the rate upon which service
credits are granted; (3) periods of military leave shall not be
considered; (4) the earnings rate for all periods of disability
shall be considered equal to the rate of earnings upon which
the employee's disability benefits are computed for such
periods; (5) the earnings to be considered for each of the
final three months of the final earnings period for persons who
first became participants before January 1, 2012 and the
earnings to be considered for each of the final 24 months for
participants who first become participants on or after January
1, 2012 shall not exceed 125% of the highest earnings of any
other month in the final earnings period; and (6) the annual
amount of final rate of earnings shall be the monthly amount
multiplied by the number of months of service normally required
by the position in a year; and (7) in the case of a person who
first becomes a participant on or after the effective date of
this amendatory Act of the 99th General Assembly, payments for
unused sick or vacation time shall not be considered.
(Source: P.A. 97-609, eff. 1-1-12.)
(40 ILCS 5/7-139) (from Ch. 108 1/2, par. 7-139)
(Text of Section WITHOUT the changes made by P.A. 98-599,
which has been held unconstitutional)

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Sec. 7-139. Credits and creditable service to employees.
(a) Each participating employee shall be granted credits
and creditable service, for purposes of determining the amount
of any annuity or benefit to which he or a beneficiary is
entitled, as follows:
1. For prior service: Each participating employee who
is an employee of a participating municipality or
participating instrumentality on the effective date shall
be granted creditable service, but no credits under
paragraph 2 of this subsection (a), for periods of prior
service for which credit has not been received under any
other pension fund or retirement system established under
this Code, as follows:
If the effective date of participation for the
participating municipality or participating
instrumentality is on or before January 1, 1998, creditable
service shall be granted for the entire period of prior
service with that employer without any employee
contribution.
If the effective date of participation for the
participating municipality or participating
instrumentality is after January 1, 1998, creditable
service shall be granted for the last 20% of the period of
prior service with that employer, but no more than 5 years,
without any employee contribution. A participating
employee may establish creditable service for the

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remainder of the period of prior service with that employer
by making an application in writing, accompanied by payment
of an employee contribution in an amount determined by the
Fund, based on the employee contribution rates in effect at
the time of application for the creditable service and the
employee's salary rate on the effective date of
participation for that employer, plus interest at the
effective rate from the date of the prior service to the
date of payment. Application for this creditable service
may be made at any time while the employee is still in
service.
A municipality that (i) has at least 35 employees; (ii)
is located in a county with at least 2,000,000 inhabitants;
and (iii) maintains an independent defined benefit pension
plan for the benefit of its eligible employees may restrict
creditable service in whole or in part for periods of prior
service with the employer if the governing body of the
municipality adopts an irrevocable resolution to restrict
that creditable service and files the resolution with the
board before the municipality's effective date of
participation.
Any person who has withdrawn from the service of a
participating municipality or participating
instrumentality prior to the effective date, who reenters
the service of the same municipality or participating
instrumentality after the effective date and becomes a

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participating employee is entitled to creditable service
for prior service as otherwise provided in this subdivision
(a)(1) only if he or she renders 2 years of service as a
participating employee after the effective date.
Application for such service must be made while in a
participating status. The salary rate to be used in the
calculation of the required employee contribution, if any,
shall be the employee's salary rate at the time of first
reentering service with the employer after the employer's
effective date of participation.
2. For current service, each participating employee
shall be credited with:
a. Additional credits of amounts equal to each
payment of additional contributions received from him
under Section 7-173, as of the date the corresponding
payment of earnings is payable to him.
b. Normal credits of amounts equal to each payment
of normal contributions received from him, as of the
date the corresponding payment of earnings is payable
to him, and normal contributions made for the purpose
of establishing out-of-state service credits as
permitted under the conditions set forth in paragraph 6
of this subsection (a).
c. Municipality credits in an amount equal to 1.4
times the normal credits, except those established by
out-of-state service credits, as of the date of

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computation of any benefit if these credits would
increase the benefit.
d. Survivor credits equal to each payment of
survivor contributions received from the participating
employee as of the date the corresponding payment of
earnings is payable, and survivor contributions made
for the purpose of establishing out-of-state service
credits.
3. For periods of temporary and total and permanent
disability benefits, each employee receiving disability
benefits shall be granted creditable service for the period
during which disability benefits are payable. Normal and
survivor credits, based upon the rate of earnings applied
for disability benefits, shall also be granted if such
credits would result in a higher benefit to any such
employee or his beneficiary.
4. For authorized leave of absence without pay: A
participating employee shall be granted credits and
creditable service for periods of authorized leave of
absence without pay under the following conditions:
a. An application for credits and creditable
service is submitted to the board while the employee is
in a status of active employment.
b. Not more than 12 complete months of creditable
service for authorized leave of absence without pay
shall be counted for purposes of determining any

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benefits payable under this Article.
c. Credits and creditable service shall be granted
for leave of absence only if such leave is approved by
the governing body of the municipality, including
approval of the estimated cost thereof to the
municipality as determined by the fund, and employee
contributions, plus interest at the effective rate
applicable for each year from the end of the period of
leave to date of payment, have been paid to the fund in
accordance with Section 7-173. The contributions shall
be computed upon the assumption earnings continued
during the period of leave at the rate in effect when
the leave began.
d. Benefits under the provisions of Sections
7-141, 7-146, 7-150 and 7-163 shall become payable to
employees on authorized leave of absence, or their
designated beneficiary, only if such leave of absence
is creditable hereunder, and if the employee has at
least one year of creditable service other than the
service granted for leave of absence. Any employee
contributions due may be deducted from any benefits
payable.
e. No credits or creditable service shall be
allowed for leave of absence without pay during any
period of prior service.
5. For military service: The governing body of a

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municipality or participating instrumentality may elect to
allow creditable service to participating employees who
leave their employment to serve in the armed forces of the
United States for all periods of such service, provided
that the person returns to active employment within 90 days
after completion of full time active duty, but no
creditable service shall be allowed such person for any
period that can be used in the computation of a pension or
any other pay or benefit, other than pay for active duty,
for service in any branch of the armed forces of the United
States. If necessary to the computation of any benefit, the
board shall establish municipality credits for
participating employees under this paragraph on the
assumption that the employee received earnings at the rate
received at the time he left the employment to enter the
armed forces. A participating employee in the armed forces
shall not be considered an employee during such period of
service and no additional death and no disability benefits
are payable for death or disability during such period.
Any participating employee who left his employment
with a municipality or participating instrumentality to
serve in the armed forces of the United States and who
again became a participating employee within 90 days after
completion of full time active duty by entering the service
of a different municipality or participating
instrumentality, which has elected to allow creditable

HB4398 - 12 - LRB099 15024 RPS 39226 b
service for periods of military service under the preceding
paragraph, shall also be allowed creditable service for his
period of military service on the same terms that would
apply if he had been employed, before entering military
service, by the municipality or instrumentality which
employed him after he left the military service and the
employer costs arising in relation to such grant of
creditable service shall be charged to and paid by that
municipality or instrumentality.
Notwithstanding the foregoing, any participating
employee shall be entitled to creditable service as
required by any federal law relating to re-employment
rights of persons who served in the United States Armed
Services. Such creditable service shall be granted upon
payment by the member of an amount equal to the employee
contributions which would have been required had the
employee continued in service at the same rate of earnings
during the military leave period, plus interest at the
effective rate.
5.1. In addition to any creditable service established
under paragraph 5 of this subsection (a), creditable
service may be granted for up to 48 months of service in
the armed forces of the United States.
In order to receive creditable service for military
service under this paragraph 5.1, a participating employee
must (1) apply to the Fund in writing and provide evidence

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of the military service that is satisfactory to the Board;
(2) obtain the written approval of the current employer;
and (3) make contributions to the Fund equal to (i) the
employee contributions that would have been required had
the service been rendered as a member, plus (ii) an amount
determined by the board to be equal to the employer's
normal cost of the benefits accrued for that military
service, plus (iii) interest on items (i) and (ii) from the
date of first membership in the Fund to the date of
payment. The required interest shall be calculated at the
regular interest rate.
The changes made to this paragraph 5.1 by Public Acts
95-483 and 95-486 apply only to participating employees in
service on or after August 28, 2007 (the effective date of
those Public Acts).
6. For out-of-state service: Creditable service shall
be granted for service rendered to an out-of-state local
governmental body under the following conditions: The
employee had participated and has irrevocably forfeited
all rights to benefits in the out-of-state public employees
pension system; the governing body of his participating
municipality or instrumentality authorizes the employee to
establish such service; the employee has 2 years current
service with this municipality or participating
instrumentality; the employee makes a payment of
contributions, which shall be computed at 8% (normal) plus

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2% (survivor) times length of service purchased times the
average rate of earnings for the first 2 years of service
with the municipality or participating instrumentality
whose governing body authorizes the service established
plus interest at the effective rate on the date such
credits are established, payable from the date the employee
completes the required 2 years of current service to date
of payment. In no case shall more than 120 months of
creditable service be granted under this provision.
7. For retroactive service: Any employee who could have
but did not elect to become a participating employee, or
who should have been a participant in the Municipal Public
Utilities Annuity and Benefit Fund before that fund was
superseded, may receive creditable service for the period
of service not to exceed 50 months; however, a current or
former elected or appointed official of a participating
municipality may establish credit under this paragraph 7
for more than 50 months of service as an official of that
municipality, if the excess over 50 months is approved by
resolution of the governing body of the affected
municipality filed with the Fund before January 1, 2002.
Any employee who is a participating employee on or
after September 24, 1981 and who was excluded from
participation by the age restrictions removed by Public Act
82-596 may receive creditable service for the period, on or
after January 1, 1979, excluded by the age restriction and,

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in addition, if the governing body of the participating
municipality or participating instrumentality elects to
allow creditable service for all employees excluded by the
age restriction prior to January 1, 1979, for service
during the period prior to that date excluded by the age
restriction. Any employee who was excluded from
participation by the age restriction removed by Public Act
82-596 and who is not a participating employee on or after
September 24, 1981 may receive creditable service for
service after January 1, 1979. Creditable service under
this paragraph shall be granted upon payment of the
employee contributions which would have been required had
he participated, with interest at the effective rate for
each year from the end of the period of service established
to date of payment.
8. For accumulated unused sick leave: A participating
employee who first becomes a participating employee before
the effective date of this amendatory Act of the 99th
General Assembly and who is applying for a retirement
annuity shall be entitled to creditable service for that
portion of the employee's accumulated unused sick leave for
which payment is not received, as follows:
a. Sick leave days shall be limited to those
accumulated under a sick leave plan established by a
participating municipality or participating
instrumentality which is available to all employees or

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a class of employees.
b. Except as provided in item b-1, only sick leave
days accumulated with a participating municipality or
participating instrumentality with which the employee
was in service within 60 days of the effective date of
his retirement annuity shall be credited; If the
employee was in service with more than one employer
during this period only the sick leave days with the
employer with which the employee has the greatest
number of unpaid sick leave days shall be considered.
b-1. If the employee was in the service of more
than one employer as defined in item (2) of paragraph
(a) of subsection (A) of Section 7-132, then the sick
leave days from all such employers shall be credited,
as long as the creditable service attributed to those
sick leave days does not exceed the limitation in item
f of this paragraph 8. In calculating the creditable
service under this item b-1, the sick leave days from
the last employer shall be considered first, then the
remaining sick leave days shall be considered until
there are no more days or the maximum creditable sick
leave threshold under item f of this paragraph 8 has
been reached.
c. The creditable service granted shall be
considered solely for the purpose of computing the
amount of the retirement annuity and shall not be used

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to establish any minimum service period required by any
provision of the Illinois Pension Code, the effective
date of the retirement annuity, or the final rate of
earnings.
d. The creditable service shall be at the rate of
1/20 of a month for each full sick day, provided that
no more than 12 months may be credited under this
subdivision 8.
e. Employee contributions shall not be required
for creditable service under this subdivision 8.
f. Each participating municipality and
participating instrumentality with which an employee
has service within 60 days of the effective date of his
retirement annuity shall certify to the board the
number of accumulated unpaid sick leave days credited
to the employee at the time of termination of service.
9. For service transferred from another system:
Credits and creditable service shall be granted for service
under Article 4, 5, 8, 14, or 16 of this Act, to any active
member of this Fund, and to any inactive member who has
been a county sheriff, upon transfer of such credits
pursuant to Section 4-108.3, 5-235, 8-226.7, 14-105.6, or
16-131.4, and payment by the member of the amount by which
(1) the employer and employee contributions that would have
been required if he had participated in this Fund as a
sheriff's law enforcement employee during the period for

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which credit is being transferred, plus interest thereon at
the effective rate for each year, compounded annually, from
the date of termination of the service for which credit is
being transferred to the date of payment, exceeds (2) the
amount actually transferred to the Fund. Such transferred
service shall be deemed to be service as a sheriff's law
enforcement employee for the purposes of Section 7-142.1.
10. (Blank).
11. For service transferred from an Article 3 system
under Section 3-110.3: Credits and creditable service
shall be granted for service under Article 3 of this Act as
provided in Section 3-110.3, to any active member of this
Fund, upon transfer of such credits pursuant to Section
3-110.3. If the board determines that the amount
transferred is less than the true cost to the Fund of
allowing that creditable service to be established, then in
order to establish that creditable service, the member must
pay to the Fund an additional contribution equal to the
difference, as determined by the board in accordance with
the rules and procedures adopted under this paragraph. If
the member does not make the full additional payment as
required by this paragraph prior to termination of his
participation with that employer, then his or her
creditable service shall be reduced by an amount equal to
the difference between the amount transferred under
Section 3-110.3, including any payments made by the member

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under this paragraph prior to termination, and the true
cost to the Fund of allowing that creditable service to be
established, as determined by the board in accordance with
the rules and procedures adopted under this paragraph.
The board shall establish by rule the manner of making
the calculation required under this paragraph 11, taking
into account the appropriate actuarial assumptions; the
member's service, age, and salary history, and any other
factors that the board determines to be relevant.
12. For omitted service: Any employee who was employed
by a participating employer in a position that required
participation, but who was not enrolled in the Fund, may
establish such credits under the following conditions:
a. Application for such credits is received by the
Board while the employee is an active participant of
the Fund or a reciprocal retirement system.
b. Eligibility for participation and earnings are
verified by the Authorized Agent of the participating
employer for which the service was rendered.
Creditable service under this paragraph shall be
granted upon payment of the employee contributions that
would have been required had he participated, which shall
be calculated by the Fund using the member contribution
rate in effect during the period that the service was
rendered.
(b) Creditable service - amount:

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1. One month of creditable service shall be allowed for
each month for which a participating employee made
contributions as required under Section 7-173, or for which
creditable service is otherwise granted hereunder. Not
more than 1 month of service shall be credited and counted
for 1 calendar month, and not more than 1 year of service
shall be credited and counted for any calendar year. A
calendar month means a nominal month beginning on the first
day thereof, and a calendar year means a year beginning
January 1 and ending December 31.
2. A seasonal employee shall be given 12 months of
creditable service if he renders the number of months of
service normally required by the position in a 12-month
period and he remains in service for the entire 12-month
period. Otherwise a fractional year of service in the
number of months of service rendered shall be credited.
3. An intermittent employee shall be given creditable
service for only those months in which a contribution is
made under Section 7-173.
(c) No application for correction of credits or creditable
service shall be considered unless the board receives an
application for correction while (1) the applicant is a
participating employee and in active employment with a
participating municipality or instrumentality, or (2) while
the applicant is actively participating in a pension fund or
retirement system which is a participating system under the

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Retirement Systems Reciprocal Act. A participating employee or
other applicant shall not be entitled to credits or creditable
service unless the required employee contributions are made in
a lump sum or in installments made in accordance with board
rule.
(d) Upon the granting of a retirement, surviving spouse or
child annuity, a death benefit or a separation benefit, on
account of any employee, all individual accumulated credits
shall thereupon terminate. Upon the withdrawal of additional
contributions, the credits applicable thereto shall thereupon
terminate. Terminated credits shall not be applied to increase
the benefits any remaining employee would otherwise receive
under this Article.
(Source: P.A. 97-415, eff. 8-16-11; 98-439, eff. 8-16-13;
98-932, eff. 8-15-14.)
(40 ILCS 5/9-219) (from Ch. 108 1/2, par. 9-219)
(Text of Section WITHOUT the changes made by P.A. 98-599,
which has been held unconstitutional)
Sec. 9-219. Computation of service.
(1) In computing the term of service of an employee prior
to the effective date, the entire period beginning on the date
he was first appointed and ending on the day before the
effective date, except any intervening period during which he
was separated by withdrawal from service, shall be counted for
all purposes of this Article.

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(2) In computing the term of service of any employee on or
after the effective date, the following periods of time shall
be counted as periods of service for age and service, widow's
and child's annuity purposes:
(a) The time during which he performed the duties of
his position.
(b) Vacations, leaves of absence with whole or part
pay, and leaves of absence without pay not longer than 90
days.
(c) For an employee who is a member of a county police
department or a correctional officer with the county
department of corrections, approved leaves of absence
without pay during which the employee serves as a full-time
officer or employee of an employee association, the
membership of which consists of other participants in the
Fund, provided that the employee contributes to the Fund
(1) the amount that he would have contributed had he
remained an active employee in the position he occupied at
the time the leave of absence was granted, (2) an amount
calculated by the Board representing employer
contributions, and (3) regular interest thereon from the
date of service to the date of payment. However, if the
employee's application to establish credit under this
subsection is received by the Fund on or after July 1, 2002
and before July 1, 2003, the amount representing employer
contributions specified in item (2) shall be waived.

HB4398 - 23 - LRB099 15024 RPS 39226 b
For a former member of a county police department who
has received a refund under Section 9-164, periods during
which the employee serves as head of an employee
association, the membership of which consists of other
police officers, provided that the employee contributes to
the Fund (1) the amount that he would have contributed had
he remained an active member of the county police
department in the position he occupied at the time he left
service, (2) an amount calculated by the Board representing
employer contributions, and (3) regular interest thereon
from the date of service to the date of payment. However,
if the former member of the county police department
retires on or after January 1, 1993 but no later than March
1, 1993, the amount representing employer contributions
specified in item (2) shall be waived.
For leaves of absence to which this item (c) applies
and for other periods to which this item (c) applies,
including those leaves of absence and other periods of
service beginning before the effective date of this
amendatory Act of the 97th General Assembly, the employee
or former member must continue to remain in sworn status,
subject to the professional standards of the public
employer or those terms established in statute.
(d) Any period of disability for which he received
disability benefit or whole or part pay.
(e) For a person who first becomes an employee before

HB4398 - 24 - LRB099 15024 RPS 39226 b
the effective date of this amendatory Act of the 99th
General Assembly, accumulated Accumulated vacation or
other time for which an employee who retires on or after
November 1, 1990 receives a lump sum payment at the time of
retirement, provided that contributions were made to the
fund at the time such lump sum payment was received. The
service granted for the lump sum payment shall not change
the employee's date of withdrawal for computing the
effective date of the annuity.
(f) An employee who first becomes an employee before
the effective date of this amendatory Act of the 99th
General Assembly may receive service credit for annuity
purposes for accumulated sick leave as of the date of the
employee's withdrawal from service, not to exceed a total
of 180 days, provided that the amount of such accumulated
sick leave is certified by the County Comptroller to the
Board and the employee pays an amount equal to 8.5% (9% for
members of the County Police Department who are eligible to
receive an annuity under Section 9-128.1) of the amount
that would have been paid had such accumulated sick leave
been paid at the employee's final rate of salary. Such
payment shall be made within 30 days after the date of
withdrawal and prior to receipt of the first annuity check.
The service credit granted for such accumulated sick leave
shall not change the employee's date of withdrawal for the
purpose of computing the effective date of the annuity.

HB4398 - 25 - LRB099 15024 RPS 39226 b
(3) In computing the term of service of an employee on or
after the effective date for ordinary disability benefit
purposes, the following periods of time shall be counted as
periods of service:
(a) Unless otherwise specified in Section 9-157, the
time during which he performed the duties of his position.
(b) Paid vacations and leaves of absence with whole or
part pay.
(c) Any period for which he received duty disability
benefit.
(d) Any period of disability for which he received
whole or part pay.
(4) For an employee who on January 1, 1958, was transferred
by Act of the 70th General Assembly from his position in a
department of welfare of any city located in the county in
which this Article is in force and effect to a similar position
in a department of such county, service shall also be credited
for ordinary disability benefit and child's annuity for such
period of department of welfare service during which period he
was a contributor to a statutory annuity and benefit fund in
such city and for which purposes service credit would otherwise
not be credited by virtue of such involuntary transfer.
(5) An employee described in subsection (e) of Section
9-108 shall receive credit for child's annuity and ordinary
disability benefit for the period of time for which he was
credited with service in the fund from which he was

HB4398 - 26 - LRB099 15024 RPS 39226 b
involuntarily separated through class or group transfer;
provided, that no such credit shall be allowed to the extent
that it results in a duplication of credits or benefits, and
neither shall such credit be allowed to the extent that it was
or may be forfeited by the application for and acceptance of a
refund from the fund from which the employee was transferred.
(6) Overtime or extra service shall not be included in
computing service. Not more than 1 year of service shall be
allowed for service rendered during any calendar year.
(7) Unused sick or vacation time shall not be used to
compute the service of an employee who first becomes an
employee on or after the effective date of this amendatory Act
of the 99th General Assembly.
(Source: P.A. 97-651, eff. 1-5-12.)
(40 ILCS 5/9-220) (from Ch. 108 1/2, par. 9-220)
(Text of Section WITHOUT the changes made by P.A. 98-599,
which has been held unconstitutional)
Sec. 9-220. Basis of service credit.
(a) In computing the period of service of any employee for
annuity purposes under Section 9-134, the following provisions
shall govern:
(1) All periods prior to the effective date shall be
computed in accordance with the provisions governing the
computation of such service.
(2) Service on or after the effective date shall

HB4398 - 27 - LRB099 15024 RPS 39226 b
include:
(i) The actual period of time the employee
contributes or has contributed to the fund for service
rendered to age 65 plus the actual period of time after
age 65 for which the employee performs the duties of
his position or performs such duties and is given a
county contribution for age and service annuity or
minimum annuity purposes.
(ii) Leaves of absence from duty, or vacation, for
which an employee receives all or part of his salary.
(iii) For a person who first becomes an employee
before the effective date of this amendatory Act of the
99th General Assembly, accumulated Accumulated
vacation or other time for which an employee who
retires on or after November 1, 1990 receives a lump
sum payment at the time of retirement, provided that
contributions were made to the fund at the time such
lump sum payment was received. The service granted for
the lump sum payment shall not change the employee's
date of withdrawal for computing the effective date of
the annuity.
(iv) For a person who first becomes an employee
before the effective date of this amendatory Act of the
99th General Assembly, accumulated Accumulated sick
leave as of the date of the employee's withdrawal from
service, not to exceed a total of 180 days, provided

HB4398 - 28 - LRB099 15024 RPS 39226 b
that the amount of such accumulated sick leave is
certified by the County Comptroller to the Board and
the employee pays an amount equal to 8.5% (9% for
members of the County Police Department who are
eligible to receive an annuity under Section 9-128.1)
of the amount that would have been paid had such
accumulated sick leave been paid at the employee's
final rate of salary. Such payment shall be made within
30 days after the date of withdrawal and prior to
receipt of the first annuity check. The service credit
granted for such accumulated sick leave shall not
change the employee's date of withdrawal for the
purpose of computing the effective date of the annuity.
(v) Periods during which the employee has had
contributions for annuity purposes made for him in
accordance with law while on military leave of absence
during World War II.
(vi) Periods during which the employee receives a
disability benefit under this Article.
(vii) For any person who first becomes a member on
or after January 1, 2011, the actual period of time the
employee contributes or has contributed to the fund for
service rendered up to the limitation on salary in
subsection (b-5) of Section 1-160 plus the actual
period of time thereafter for which the employee
performs the duties of his position and ceased

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contributing due to the salary limitation in
subsection (b-5) of Section 1-160.
(3) The right to have certain periods of time
considered as service as stated in paragraph (2) of Section
9-164 shall not apply for annuity purposes unless the
refunds shall have been repaid in accordance with this
Article.
(4) All service shall be computed in whole calendar
months, and at least 15 days of service in any one calendar
month shall constitute one calendar month of service, and 1
year of service shall be equal to the number of months,
days or hours for which an appropriation was made in the
annual appropriation ordinance for the position held by the
employee.
(5) Unused sick or vacation time shall not be used to
compute the service of an employee who first becomes an
employee on or after the effective date of this amendatory
Act of the 99th General Assembly.
(b) For all other annuity purposes of this Article the
following schedule shall govern the computation of a year of
service of an employee whose salary or wages is on the basis
stated, and any fractional part of a year of service shall be
determined according to said schedule:
Annual or Monthly Basis: Service during 4 months in any 1
calendar year;
Weekly Basis: Service during any 17 weeks of any 1 calendar

HB4398 - 30 - LRB099 15024 RPS 39226 b
year, and service during any week shall constitute a week of
service;
Daily Basis: Service during 100 days in any 1 calendar
year, and service during any day shall constitute a day of
service;
Hourly Basis: Service during 800 hours in any 1 calendar
year, and service during any hour shall constitute an hour of
service.
(Source: P.A. 96-1490, eff. 1-1-11.)
(40 ILCS 5/14-104.3) (from Ch. 108 1/2, par. 14-104.3)
(Text of Section WITHOUT the changes made by P.A. 98-599,
which has been held unconstitutional)
Sec. 14-104.3. Notwithstanding provisions contained in
Section 14-103.10, any person who first becomes a member before
the effective date of this amendatory Act of the 99th General
Assembly and member who at the time of retirement and after
December 6, 1983 receives compensation in a lump sum for
accumulated vacation, sickness, or personal business may
receive service credit for such periods by making contributions
within 90 days of withdrawal, based on the rate of compensation
in effect immediately prior to retirement and the contribution
rate then in effect. Any person who first becomes a member on
or after the effective date of this amendatory Act of the 99th
General Assembly and who receives compensation in a lump sum
for accumulated vacation, sickness, or personal business may

HB4398 - 31 - LRB099 15024 RPS 39226 b
not receive service credit for such periods. Exercising the
option provided in this Section shall not change a member's
date of withdrawal or final average compensation for purposes
of computing the amount or effective date of a retirement
annuity. Any annuitant who establishes service credit as herein
provided shall have his retirement annuity adjusted
retroactively to the date of retirement.
(Source: P.A. 83-1362.)
(40 ILCS 5/14-106) (from Ch. 108 1/2, par. 14-106)
(Text of Section WITHOUT the changes made by P.A. 98-599,
which has been held unconstitutional)
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,

HB4398 - 32 - LRB099 15024 RPS 39226 b
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
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 person who first becomes a member before the
effective date of this amendatory Act of the 99th General
Assembly member 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.
(d) A person who first becomes a member on or after the

HB4398 - 33 - LRB099 15024 RPS 39226 b
effective date of this amendatory Act of the 99th General
Assembly shall not be entitled to additional service credit for
accumulated unused sick leave.
(Source: P.A. 92-14, eff. 6-28-01.)
(40 ILCS 5/15-112) (from Ch. 108 1/2, par. 15-112)
Sec. 15-112. Final rate of earnings. "Final rate of
earnings":
(a) This subsection (a) applies only to a Tier 1 member.
For an employee who is paid on an hourly basis or who
receives an annual salary in installments during 12 months of
each academic year, the average annual earnings during the 48
consecutive calendar month period ending with the last day of
final termination of employment or the 4 consecutive academic
years of service in which the employee's earnings were the
highest, whichever is greater. For any other employee, the
average annual earnings during the 4 consecutive academic years
of service in which his or her earnings were the highest. For
an employee with less than 48 months or 4 consecutive academic
years of service, the average earnings during his or her entire
period of service. The earnings of an employee with more than
36 months of service under item (a) of Section 15-113.1 prior
to the date of becoming a participant are, for such period,
considered equal to the average earnings during the last 36
months of such service.
(b) This subsection (b) applies to a Tier 2 member.

HB4398 - 34 - LRB099 15024 RPS 39226 b
For an employee who is paid on an hourly basis or who
receives an annual salary in installments during 12 months of
each academic year, the average annual earnings obtained by
dividing by 8 the total earnings of the employee during the 96
consecutive months in which the total earnings were the highest
within the last 120 months prior to termination.
For any other employee, the average annual earnings during
the 8 consecutive academic years within the 10 years prior to
termination in which the employee's earnings were the highest.
For an employee with less than 96 consecutive months or 8
consecutive academic years of service, whichever is necessary,
the average earnings during his or her entire period of
service.
(c) For an employee on leave of absence with pay, or on
leave of absence without pay who makes contributions during
such leave, earnings are assumed to be equal to the basic
compensation on the date the leave began.
(d) For an employee on disability leave, earnings are
assumed to be equal to the basic compensation on the date
disability occurs or the average earnings during the 24 months
immediately preceding the month in which disability occurs,
whichever is greater.
(e) For a Tier 1 member who retires on or after the
effective date of this amendatory Act of 1997 with at least 20
years of service as a firefighter or police officer under this
Article, the final rate of earnings shall be the annual rate of

HB4398 - 35 - LRB099 15024 RPS 39226 b
earnings received by the participant on his or her last day as
a firefighter or police officer under this Article, if that is
greater than the final rate of earnings as calculated under the
other provisions of this Section.
(f) If a Tier 1 member is an employee for at least 6 months
during the academic year in which his or her employment is
terminated, the annual final rate of earnings shall be 25% of
the sum of (1) the annual basic compensation for that year, and
(2) the amount earned during the 36 months immediately
preceding that year, if this is greater than the final rate of
earnings as calculated under the other provisions of this
Section.
(g) In the determination of the final rate of earnings for
an employee, that part of an employee's earnings for any
academic year beginning after June 30, 1997, which exceeds the
employee's earnings with that employer for the preceding year
by more than 20 percent shall be excluded; in the event that an
employee has more than one employer this limitation shall be
calculated separately for the earnings with each employer. In
making such calculation, only the basic compensation of
employees shall be considered, without regard to vacation or
overtime or to contracts for summer employment.
(h) The following are not considered as earnings in
determining final rate of earnings: (1) severance or separation
pay, (2) retirement pay, (3) payment for unused sick leave, and
(4) payments from an employer for the period used in

HB4398 - 36 - LRB099 15024 RPS 39226 b
determining final rate of earnings for any purpose other than
(i) services rendered, (ii) leave of absence or vacation
granted during that period, and (iii) vacation of up to 56 work
days allowed upon termination of employment; except that, if
the benefit has been collectively bargained between the
employer and the recognized collective bargaining agent
pursuant to the Illinois Educational Labor Relations Act,
payment received during a period of up to 2 academic years for
unused sick leave may be considered as earnings in accordance
with the applicable collective bargaining agreement, subject
to the 20% increase limitation of this Section, and if the
person first becomes a participant on or after the effective
date of this amendatory Act of the 99th General Assembly,
payments for unused sick or vacation time shall not be
considered as earnings. Any unused sick leave considered as
earnings under this Section shall not be taken into account in
calculating service credit under Section 15-113.4.
(i) Intermittent periods of service shall be considered as
consecutive in determining final rate of earnings.
(Source: P.A. 98-92, eff. 7-16-13; 99-450, eff. 8-24-15.)
(40 ILCS 5/15-113.4) (from Ch. 108 1/2, par. 15-113.4)
(Text of Section WITHOUT the changes made by P.A. 98-599,
which has been held unconstitutional)
Sec. 15-113.4. Service for unused sick leave. "Service for
unused sick leave": A person who first becomes a participant

HB4398 - 37 - LRB099 15024 RPS 39226 b
before the effective date of this amendatory Act of the 99th
General Assembly and participant 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,
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

HB4398 - 38 - LRB099 15024 RPS 39226 b
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. A person
who first becomes a participant on or after the effective date
of this amendatory Act of the 99th General Assembly shall not
receive service credit for unused sick leave.
(Source: P.A. 90-65, eff. 7-7-97; 90-511, eff. 8-22-97.)
(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. 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.
In the case of a person who first becomes a member on or
after the effective date of this amendatory Act of the 99th
General Assembly, "salary" shall not include any payment for

HB4398 - 39 - LRB099 15024 RPS 39226 b
unused sick or vacation time.
(Source: P.A. 84-1028.)
(40 ILCS 5/16-127) (from Ch. 108 1/2, par. 16-127)
(Text of Section WITHOUT the changes made by P.A. 98-599,
which has been held unconstitutional)
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.
(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

HB4398 - 40 - LRB099 15024 RPS 39226 b
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
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.

HB4398 - 41 - LRB099 15024 RPS 39226 b
(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
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

HB4398 - 42 - LRB099 15024 RPS 39226 b
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
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

HB4398 - 43 - LRB099 15024 RPS 39226 b
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
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

HB4398 - 44 - LRB099 15024 RPS 39226 b
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
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

HB4398 - 45 - LRB099 15024 RPS 39226 b
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
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) For a person who first becomes a member before the
effective date of this amendatory Act of the 99th General
Assembly, any Any days of unused and uncompensated

HB4398 - 46 - LRB099 15024 RPS 39226 b
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 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 who first becomes a
member before the effective date of this amendatory Act of
the 99th 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.
(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.

HB4398 - 47 - LRB099 15024 RPS 39226 b
(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 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

HB4398 - 48 - LRB099 15024 RPS 39226 b
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.
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.)
(40 ILCS 5/17-116) (from Ch. 108 1/2, par. 17-116)
(Text of Section WITHOUT the changes made by P.A. 98-599,
which has been held unconstitutional)
Sec. 17-116. Service retirement pension.
(a) Each teacher having 20 years of service upon attainment
of age 55, or who thereafter attains age 55 shall be entitled
to a service retirement pension upon or after attainment of age
55; and each teacher in service on or after July 1, 1971, with
5 or more but less than 20 years of service shall be entitled
to receive a service retirement pension upon or after
attainment of age 62.
(b) The service retirement pension for a teacher who

HB4398 - 49 - LRB099 15024 RPS 39226 b
retires on or after June 25, 1971, at age 60 or over, shall be
calculated as follows:
(1) For creditable service earned before July 1, 1998
that has not been augmented under Section 17-119.1: 1.67%
for each of the first 10 years of service; 1.90% for each
of the next 10 years of service; 2.10% for each year of
service in excess of 20 but not exceeding 30; and 2.30% for
each year of service in excess of 30, based upon average
salary as herein defined.
(2) For creditable service earned on or after July 1,
1998 by a member who has at least 30 years of creditable
service on July 1, 1998 and who does not elect to augment
service under Section 17-119.1: 2.3% of average salary for
each year of creditable service earned on or after July 1,
1998.
(3) For all other creditable service: 2.2% of average
salary for each year of creditable service.
(c) When computing such service retirement pensions, the
following conditions shall apply:
1. Average salary shall consist of the average annual
rate of salary for the 4 consecutive years of validated
service within the last 10 years of service when such
average annual rate was highest. In the determination of
average salary for retirement allowance purposes, for
members who commenced employment after August 31, 1979,
that part of the salary for any year shall be excluded

HB4398 - 50 - LRB099 15024 RPS 39226 b
which exceeds the annual full-time salary rate for the
preceding year by more than 20%. In the case of a member
who commenced employment before August 31, 1979 and who
receives salary during any year after September 1, 1983
which exceeds the annual full time salary rate for the
preceding year by more than 20%, an Employer and other
employers of eligible contributors as defined in Section
17-106 shall pay to the Fund an amount equal to the present
value of the additional service retirement pension
resulting from such excess salary. The present value of the
additional service retirement pension shall be computed by
the Board on the basis of actuarial tables adopted by the
Board. If a member elects to receive a pension from this
Fund provided by Section 20-121, his salary under the State
Universities Retirement System and the Teachers'
Retirement System of the State of Illinois shall be
considered in determining such average salary. Amounts
paid after the effective date of this amendatory Act of
1991 for unused vacation time earned after that effective
date shall not under any circumstances be included in the
calculation of average salary or the annual rate of salary
for the purposes of this Article.
2. Proportionate credit shall be given for validated
service of less than one year.
3. For retirement at age 60 or over the pension shall
be payable at the full rate.

HB4398 - 51 - LRB099 15024 RPS 39226 b
4. For separation from service below age 60 to a
minimum age of 55, the pension shall be discounted at the
rate of 1/2 of one per cent for each month that the age of
the contributor is less than 60, but a teacher may elect to
defer the effective date of pension in order to eliminate
or reduce this discount. This discount shall not be
applicable to any participant who has at least 34 years of
service or a retirement pension of at least 74.6% of
average salary on the date the retirement annuity begins.
5. No additional pension shall be granted for service
exceeding 45 years. Beginning June 26, 1971 no pension
shall exceed the greater of $1,500 per month or 75% of
average salary as herein defined.
6. Service retirement pensions shall begin on the
effective date of resignation, retirement, the day
following the close of the payroll period for which service
credit was validated, or the time the person resigning or
retiring attains age 55, or on a date elected by the
teacher, whichever shall be latest.
7. A member who is eligible to receive a retirement
pension of at least 74.6% of average salary and will attain
age 55 on or before December 31 during the year which
commences on July 1 shall be deemed to attain age 55 on the
preceding June 1.
8. A member retiring after the effective date of this
amendatory Act of 1998 shall receive a pension equal to 75%

HB4398 - 52 - LRB099 15024 RPS 39226 b
of average salary if the member is qualified to receive a
retirement pension equal to at least 74.6% of average
salary under this Article or as proportional annuities
under Article 20 of this Code.
9. In the case of a person who first becomes a
participant on or after the effective date of this
amendatory Act of the 99th General Assembly, payments for
unused sick or vacation time shall not be used in the
calculation of average salary.
(Source: P.A. 90-566, eff. 1-2-98; 90-582, eff. 5-27-98.)
(40 ILCS 5/17-134) (from Ch. 108 1/2, par. 17-134)
(Text of Section WITHOUT the changes made by P.A. 98-599,
which has been held unconstitutional)
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

HB4398 - 53 - LRB099 15024 RPS 39226 b
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

HB4398 - 54 - LRB099 15024 RPS 39226 b
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. Notwithstanding any other provision of this
subdivision (4), teachers are only eligible for credit for
service under this subdivision (4) if the special leave of
absence begins before the effective date of this amendatory
Act of the 97th General Assembly.
(5) For time spent in the military service, teachers
entitled to and desiring credit therefor shall contribute
the amount required for each year of service or fraction

HB4398 - 55 - LRB099 15024 RPS 39226 b
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

HB4398 - 56 - LRB099 15024 RPS 39226 b
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) For persons who first become teachers before the
effective date of this amendatory Act of the 99th General
Assembly, a 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

HB4398 - 57 - LRB099 15024 RPS 39226 b
curtailment of the school term from June 6 through June 21,
1976, as provided in item (e) of the first paragraph of
this Section, persons who were contributors on the days
immediately preceding such layoff shall receive credit
upon paying to the Fund a contribution based on the rates
of compensation and employee contributions in effect at the
time of such layoff, together with an additional amount
equal to 12.2% of the compensation computed for such period
of layoff, plus interest on the entire amount at 5% per
annum from January 1, 1978 to the date of payment. If such
contribution is paid, salary for pension purposes for any
year in which such a layoff occurred shall include the
compensation recognized for purposes of computing that
contribution.
(9) For time spent after June 30, 1982, as a
nonsalaried member of the Board of Education, if required
to resign from an administrative or teaching position in
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

HB4398 - 58 - LRB099 15024 RPS 39226 b
return to service.
(Source: P.A. 97-651, eff. 1-5-12.)
Section 99. Effective date. This Act takes effect upon
becoming law.