Bill Text: IL HB4661 | 2019-2020 | 101st General Assembly | Introduced

---

Bill Title: Amends the Downstate Teacher Article of the Illinois Pension Code. Allows a member to establish optional credit for up to 2 years of service as a teacher or administrator employed by a private school recognized by the Illinois State Board of Education, provided that the teacher (i) was certified under the law governing the certification of teachers at the time the service was rendered, (ii) applies in writing on or before June 30, 2021, (iii) supplies satisfactory evidence of the employment, (iv) completes at least 10 years of contributing service as a teacher, and (v) pays the required contribution. Effective immediately.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2020-06-23 - Rule 19(b) / Re-referred to Rules Committee [HB4661 Detail]

Download: Illinois-2019-HB4661-Introduced.html

---

101ST GENERAL ASSEMBLY State of Illinois 2019 and 2020 HB4661 Introduced , by Rep. Norine K. Hammond SYNOPSIS AS INTRODUCED:
40 ILCS 5/16-127 from Ch. 108 1/2, par. 16-127
Amends the Downstate Teacher Article of the Illinois Pension Code. Allows a member to establish optional credit for up to 2 years of service as a teacher or administrator employed by a private school recognized by the Illinois State Board of Education, provided that the teacher (i) was certified under the law governing the certification of teachers at the time the service was rendered, (ii) applies in writing on or before June 30, 2021, (iii) supplies satisfactory evidence of the employment, (iv) completes at least 10 years of contributing service as a teacher, and (v) pays the required contribution. Effective immediately.
LRB101 17943 RPS 67379 b
FISCAL NOTE ACT MAY APPLY PENSION IMPACT NOTE ACT MAY APPLY
A BILL FOR
HB4661 LRB101 17943 RPS 67379 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
Section 16-127 as follows:
(40 ILCS 5/16-127) (from Ch. 108 1/2, par. 16-127)
Sec. 16-127. Computation of creditable service.
(a) Each member shall receive regular credit for all
service as a teacher from the date membership begins, for which
satisfactory evidence is supplied and all contributions have
been paid.
(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

HB4661 - 2 - LRB101 17943 RPS 67379 b
department of any other State, and service during any
period of professional speech correction or special
education experience for a public agency within this State
or any other State, territory, dependency or possession of
the United States, and service prior to February 1, 1951 as
a recreation worker for the Illinois Department of Public
Safety, for a period not exceeding the lesser of 2/5 of the
total creditable service of the member or 10 years. The
maximum service of 10 years which is allowable under this
paragraph shall be reduced by the service credit which is
validated by other retirement systems under paragraph (i)
of Section 15-113 and paragraph 1 of Section 17-133. Credit
granted under this paragraph may not be used in
determination of a retirement annuity or disability
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

HB4661 - 3 - LRB101 17943 RPS 67379 b
System, but also to persons whose status as such a teacher
terminated prior to such effective date, whether or not
such person is an annuitant on that date.
(3) Any periods immediately following teaching
service, under this System or under Article 17, (or
immediately following service prior to February 1, 1951 as
a recreation worker for the Illinois Department of Public
Safety) spent in active service with the military forces of
the United States; periods spent in educational programs
that prepare for return to teaching sponsored by the
federal government following such active military service;
if a teacher returns to teaching service within one
calendar year after discharge or after the completion of
the educational program, a further period, not exceeding
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

HB4661 - 4 - LRB101 17943 RPS 67379 b
under this Section for a period of military service that
did not immediately follow employment, and who has made the
required contributions for such credit, the annuity shall
be recalculated to include the additional service credit,
with the increase taking effect on the date the System
received written notification of the annuitant's intent to
purchase the credit, if payment of all the required
contributions is made within 60 days of such notice, or
else on the first annuity payment date following the date
of payment of the required contributions. In calculating
the automatic annual increase for an annuity that has been
recalculated under this Section, the increase attributable
to the additional service allowable under P.A. 87-794 shall
be included in the calculation of automatic annual
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

HB4661 - 5 - LRB101 17943 RPS 67379 b
service.
The total period of military service for which credit
is granted shall not exceed 5 years for any member unless
the service: (A) is validated before July 1, 1964, and (B)
does not extend beyond July 1, 1963. Credit for military
service shall be granted under this Section only if not
more than 5 years of the military service for which credit
is granted under this Section is used by the member to
qualify for a military retirement allotment from any branch
of the armed forces of the United States. The changes to
this subdivision (b)(3) made by Public Act 86-272 shall
apply not only to persons who on or after its effective
date (August 23, 1989) are in service as a teacher under
the System, but also to persons whose status as such a
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

HB4661 - 6 - LRB101 17943 RPS 67379 b
employment due to pregnancy, provided that the teacher
returned to teaching service creditable under this System
or the State Universities Retirement System following the
pregnancy and submits evidence satisfactory to the Board
documenting that the employment ceased due to pregnancy;
and (iv) periods prior to July 1, 1983 during which a
teacher ceased covered employment for the purpose of
adopting an infant under 3 years of age or caring for a
newly adopted infant under 3 years of age, provided that
the teacher returned to teaching service creditable under
this System or the State Universities Retirement System
following the adoption and submits evidence satisfactory
to the Board documenting that the employment ceased for the
purpose of adopting an infant under 3 years of age or
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

HB4661 - 7 - LRB101 17943 RPS 67379 b
credit, if the required evidence is submitted and the
required contribution paid within 60 days of that
notification, otherwise on the first annuity payment date
following the System's receipt of the required evidence and
contribution. The increase in an annuity recalculated
under this provision shall be included in the calculation
of automatic annual increases in the annuity accruing after
the effective date of the recalculation.
Optional credit may be purchased under this subsection
(b)(5) for periods during which a teacher has been granted
a leave of absence pursuant to Section 24-13 of the School
Code. A teacher whose service under this Article terminated
prior to the effective date of P.A. 86-1488 shall be
eligible to purchase such optional credit. If a teacher who
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.

HB4661 - 8 - LRB101 17943 RPS 67379 b
(6) Any days of unused and uncompensated accumulated
sick leave earned by a teacher. The service credit granted
under this paragraph shall be the ratio of the number of
unused and uncompensated accumulated sick leave days to 170
days, subject to a maximum of 2 years of service credit.
Prior to the member's retirement, each former employer
shall certify to the System the number of unused and
uncompensated accumulated sick leave days credited to the
member at the time of termination of service. The period of
unused sick leave shall not be considered in determining
the effective date of retirement. A member is not required
to make contributions in order to obtain service credit for
unused sick leave.
Credit for sick leave shall, at retirement, be granted
by the System for any retiring regional or assistant
regional superintendent of schools at the rate of 6 days
per year of creditable service or portion thereof
established while serving as such superintendent or
assistant superintendent.
(7) Periods prior to February 1, 1987 served as an
employee of the Illinois Mathematics and Science Academy
for which credit has not been terminated under Section
15-113.9 of this Code.
(8) Service as a substitute teacher for work performed
prior to July 1, 1990.
(9) Service as a part-time teacher for work performed

HB4661 - 9 - LRB101 17943 RPS 67379 b
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 before June
30, 2021 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

HB4661 - 10 - LRB101 17943 RPS 67379 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.
Credit may not be granted under this Section for service as
an employee of an entity that provides substitute teaching
services under Section 2-3.173 of the School Code and is not a
school district.
(Source: P.A. 100-813, eff. 8-13-18.)
Section 99. Effective date. This Act takes effect upon
becoming law.