HB 5142 — PENSION CD-TRS-PREGNANCY LEAVE

*LRB09518517AMC44603b* HB5142 95THEngrossed GENERALLRB095 ASSEMBLY18517 StateAMC of44603 Illinoisb andAN 2008ACT HB5142concerning bypublic Rep.employee benefits.

Robert F.

Flider SYNOPSIS AS INTRODUCED:

ILCS 5/16-127 from Ch.

108 1/2, par.

16-127 ILCS 5/16-128 from Ch.

108 1/2, par.

16-128 ILCS 5/16-203.1 new Allows a teacher to establish credit for certain leaves of absence due to pregnancy.

Includes new benefit increase compliance language.

Effective immediately.

LRB095 18517 AMC 44603 b FISCAL NOTE ACT PENSION IMPACT MAY APPLY NOTE ACT MAY APPLY A BILL FOR HB5142 LRB095 18517 AMC 44603 b AN ACT concerning public employee benefits.

(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 HB5142 Engrossed - 2 - LRB095 18517 AMC 44603 b the United States, or under the auspices of any agency or department of any other State, and service during any period of professional speech correction or special education experience for a public agency within this State or any other State, territory, dependency or possession of the United States, and service prior to February 1, 1951 as a recreation worker for the Illinois Department of Public Safety, for a period not exceeding the lesser of 2/5 of the total creditable service of the member or 10 years.

The 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 HB5142 Engrossed - 3 - LRB095 18517 AMC 44603 b (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.

In HB5142 Engrossed - 4 - LRB095 18517 AMC 44603 b the case of an annuitant who applies for credit allowable under this Section for a period of military service that did not immediately follow employment, and who has made the required contributions for such credit, the annuity shall be recalculated to include the additional service credit, with the increase taking effect on the date the System received written notification of the annuitant’s intent to purchase the credit, if payment of all the required contributions is made within 60 days of such notice, or else on the first annuity payment date following the date of payment of the required contributions.

In all other cases where credit for military service is allowed, HB5142 Engrossed - 5 - LRB095 18517 AMC 44603 b credit shall be granted from the date of entry into the service.

(iii) periods HB5142 Engrossed - 6 - LRB095 18517 AMC 44603 b prior to July 1, 1983 during which a teacher ceased covered employment due to pregnancy, provided that the teacher returned to teaching service creditable under this System or the State Universities Retirement System following the pregnancy and submits evidence satisfactory to the Board documenting that the employment ceased due to pregnancy;

The increase in annuity shall take effect on the date the System receives written HB5142 Engrossed - 7 - LRB095 18517 AMC 44603 b notification of the annuitant’s intent to purchase the credit, if the required evidence is submitted and the required contribution paid within 60 days of that notification, otherwise on the first annuity payment date following the System’s receipt of the required evidence and contribution.

The 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 HB5142 Engrossed - 8 - LRB095 18517 AMC 44603 b date.

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 HB5142 Engrossed - 9 - LRB095 18517 AMC 44603 b established while serving as such superintendent or assistant superintendent.

(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 June 1, 2002 and on or before June 1, 2005, (iii) supplies satisfactory evidence of the employment, (iv) completes at HB5142 Engrossed - 10 - LRB095 18517 AMC 44603 b 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.

(a) In order to receive the creditable service specified under subsection (b) of Section 16-127,16-127 a(other memberthan isparagraph required to HB5142 Engrossed - 11 - LRB095 18517 AMC 44603 b (5.1) of subsection (b)), a member is required to make the following contributions:

(ii) for a leave of absence due to pregnancy during creditable service established under subdivision (b) (5.1) of Section 16-127 and (iii) for military service not immediately following employment and for service established under subdivision (b)(10) of Section 16-127, an amount determined by the Board to be equal to the employer’s normal cost of the benefits accrued for such service;

(b)(a-5) In order to receive the creditable service underspecified in paragraph (2)(5.1) of subsection (b) of Section 16-12716-127, fora thosemember whois were not members on June 30, 1963, the minimum required contributionto shallmake be $420 per year of service together with interest at 4% per year compounded annually from July 1, preceding the datefollowing ofcontributions: membership until June 30, 1977 and at regular interest compounded annually thereafter to the date of payment.

(c)(i) Inan determiningamount theequal contribution required in order to HB5142the -contributions 12which -would LRB095have 18517been AMCrequired 44603had bsuch receive creditable service underbeen paragraphrendered (3)as of subsection (b) of Section 16-127, the salary rate for the remainder of the school term in which a member entersunder militarythis serviceSystem; shall be assumed to be equal to the member’s salary rate at the time of entering military service.

(ii) an amount determined by the Board to be equal to the employer’s normal cost of the benefits accrued for such service;

and (iii) interest from the date the contributions would have been due to the date of payment at the actuarially assumed interest rate.

HB5142 Engrossed - 12 - LRB095 18517 AMC 44603 b (b) In order to receive creditable service under paragraph (2) of subsection (b) of Section 16-127 for those who were not members on June 30, 1963, the minimum required contribution shall be $420 per year of service together with interest at 4% per year compounded annually from July 1, preceding the date of membership until June 30, 1977 and at regular interest compounded annually thereafter to the date of payment.

(c) In determining the contribution required in order to receive creditable service under paragraph (3) of subsection (b) of Section 16-127, the salary rate for the remainder of the school term in which a member enters military service shall be assumed to be equal to the member’s salary rate at the time of entering military service.

(d) In determining the contribution required in order to receive creditable service under paragraph (5) and (5.1) of subsection (b) of Section 16-127, a member’s salary rate during the period for which credit is being established shall be assumed to be equal to the member’s last salary rate HB5142 Engrossed - 13 - LRB095 18517 AMC 44603 b immediately preceding that period.

(d-5) For each year of service credit to be established under subsection (b-1) of Section 16-127, a member is required to contribute to the System (i) 16.5% of the annual salary rate during the first year of full-time employment as a teacher under this Article following the private school service, plus (ii) interest thereon from the date of first full-time employment as a teacher under this Article following the HB5142 - 13 - LRB095 18517 AMC 44603 b private school service to the date of payment, compounded annually, at the rate of 8.5% per year for periods before the effective date of this amendatory Act of the 92nd General Assembly, and for subsequent periods at a rate equal to the System’s actuarially assumed rate of return on investments.

(e) Except for contributions under subsection (d-10), the HB5142 Engrossed - 14 - LRB095 18517 AMC 44603 b contributions required under this Section may be made from the date the statement for such creditable service is issued until retirement date.

The General Assembly HB5142 - 14 - LRB095 18517 AMC 44603 b finds and declares that the amendment to Section 16-127 made by this amendatory Act of the 95th General Assembly that allows a teacher to establish credit for a leave of absence due to a pregnancy constitutes a new benefit increase within the meaning of Section 16-203.