(40 ILCS 5/16‑106) (from Ch. 108 1/2, par. 16‑106)
Sec. 16‑106.
Teacher.
"Teacher": The following individuals, provided
that, for employment prior to July 1, 1990, they are employed on a
full‑time basis, or if not full‑time, on a permanent and continuous basis
in a position in which services are expected to be rendered for at least
one school term:
(1) Any educational, administrative, professional or |
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other staff employed in the public common schools included within this system in a position requiring certification under the law governing the certification of teachers;
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(2) Any educational, administrative, professional or
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other staff employed in any facility of the Department of Children and Family Services or the Department of Human Services, in a position requiring certification under the law governing the certification of teachers, and any person who (i) works in such a position for the Department of Corrections, (ii) was a member of this System on May 31, 1987, and (iii) did not elect to become a member of the State Employees' Retirement System pursuant to Section 14‑108.2 of this Code; except that "teacher" does not include any person who (A) becomes a security employee of the Department of Human Services, as defined in Section 14‑110, after June 28, 2001 (the effective date of Public Act 92‑14), or (B) becomes a member of the State Employees' Retirement System pursuant to Section 14‑108.2c of this Code;
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(3) Any regional superintendent of schools,
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assistant regional superintendent of schools, State Superintendent of Education; any person employed by the State Board of Education as an executive; any executive of the boards engaged in the service of public common school education in school districts covered under this system of which the State Superintendent of Education is an ex‑officio member;
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(4) Any employee of a school board association
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operating in compliance with Article 23 of the School Code who is certificated under the law governing the certification of teachers;
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(5) Any person employed by the retirement system
who:
(i) was an employee of and a participant in the
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system on August 17, 2001 (the effective date of Public Act 92‑416), or
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(ii) becomes an employee of the system on or
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(6) Any educational, administrative, professional or
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other staff employed by and under the supervision and control of a regional superintendent of schools, provided such employment position requires the person to be certificated under the law governing the certification of teachers and is in an educational program serving 2 or more districts in accordance with a joint agreement authorized by the School Code or by federal legislation;
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(7) Any educational, administrative, professional or
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other staff employed in an educational program serving 2 or more school districts in accordance with a joint agreement authorized by the School Code or by federal legislation and in a position requiring certification under the laws governing the certification of teachers;
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(8) Any officer or employee of a statewide teacher
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organization or officer of a national teacher organization who is certified under the law governing certification of teachers, provided: (i) the individual had previously established creditable service under this Article, (ii) the individual files with the system an irrevocable election to become a member, and (iii) the individual does not receive credit for such service under any other Article of this Code;
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(9) Any educational, administrative, professional,
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or other staff employed in a charter school operating in compliance with the Charter Schools Law who is certificated under the law governing the certification of teachers.
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An annuitant receiving a retirement annuity under this Article or under
Article 17 of this Code who is employed by a board of education
or other employer as permitted under Section 16‑118
or 16‑150.1 is not a "teacher" for purposes of this Article. A person who
has received a single‑sum retirement benefit under Section 16‑136.4 of this
Article is not a "teacher" for purposes of this Article.
(Source: P.A. 92‑14, eff. 6‑28‑01; 92‑416, eff. 8‑17‑01;
92‑651, eff. 7‑11‑02; 93‑320, eff. 7‑23‑03.)
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(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 |
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equivalent to that of a teacher, in the public common schools in school districts in this State not included within the provisions of this System, or of any other State, territory, dependency or possession of the United States, or in schools operated by or under the auspices of the United States, or under the auspices of any agency or department of any other State, and service during any period of professional speech correction or special education experience for a public agency within this State or any other State, territory, dependency or possession of the United States, and service prior to February 1, 1951 as a recreation worker for the Illinois Department of Public Safety, for a period not exceeding the lesser of 2/5 of the total creditable service of the member or 10 years. The maximum service of 10 years which is allowable under this paragraph shall be reduced by the service credit which is validated by other retirement systems 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.
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(3) Any periods immediately following teaching
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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.
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The changes to this Section and Section 16‑128
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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 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.
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Credit for military service shall be determined as
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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.
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The total period of military service for which
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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.
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(4) Any periods served as a member of the General
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(5)(i) Any periods for which a teacher, as defined
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in Section 16‑106, is granted a leave of absence, provided he or she returns to teaching service creditable under this System or the State Universities Retirement System following the leave; (ii) periods during which a teacher is involuntarily laid off from teaching, provided he or she returns to teaching following the lay‑off; (iii) periods prior to July 1, 1983 during which a teacher ceased covered employment due to pregnancy, provided that the teacher returned to teaching service creditable under this System or the State Universities Retirement System following the pregnancy and submits evidence satisfactory to the Board documenting that the employment ceased due to pregnancy; and (iv) periods prior to July 1, 1983 during which a teacher ceased covered employment for the purpose of adopting an infant under 3 years of age or caring for a newly adopted infant under 3 years of age, provided that 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.
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Any qualified member or annuitant may apply for
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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 following the System's receipt of the required evidence and contribution. The increase in an annuity recalculated under this provision shall be included in the calculation of automatic annual increases in the annuity accruing after the effective date of the recalculation.
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Optional credit may be purchased under this
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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.
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The change in this paragraph made by Public Act
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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.
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(6) Any days of unused and uncompensated accumulated
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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.
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Credit for sick leave shall, at retirement, be
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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.
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(7) Periods prior to February 1, 1987 served as an
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employee of the Illinois Mathematics and Science Academy for which credit has not been terminated under Section 15‑113.9 of this Code.
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(8) Service as a substitute teacher for work
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performed prior to July 1, 1990.
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(9) Service as a part‑time teacher for work
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performed prior to July 1, 1990.
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(10) Up to 2 years of employment with Southern
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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.
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(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 least 10 years of contributing service as a teacher as defined in
Section 16‑106, and (v) pays the contribution required in subsection (d‑5) of
Section 16‑128. The member may apply for credit under this subsection and pay
the required contribution before completing the 10 years of contributing
service required under item (iv), but the credit may not be used until the
item (iv) contributing service requirement has been met.
(c) The service credits specified in this Section shall be granted only
if: (1) such service credits are not used for 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. 92‑867, eff. 1‑3‑03.)
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(40 ILCS 5/16‑129.1)
Sec. 16‑129.1.
Optional increase in retirement annuity.
(a) A member of the System may qualify for the augmented rate under
subdivision (a)(B)(1) of Section 16‑133 for all years of creditable service
earned before July 1, 1998 by making the optional contribution specified in
subsection (b). A member may not elect to qualify for the augmented rate for
only a portion of his or her creditable service earned before July 1, 1998.
(b) The contribution shall be an amount equal to 1.0% of the member's
highest salary rate in the 4 consecutive school years immediately prior to but
not including the school year in which the application occurs, multiplied by
the number of years of creditable service earned by the member before July 1,
1998 or 20, whichever is less. This contribution shall be reduced by 1.0% of
that salary rate for every 3 full years of creditable service earned by the
member after June 30, 1998. The contribution shall be further reduced at
the rate of 25% of the contribution (as reduced for service after June 30,
1998) for each year of the member's total creditable service in excess of 34
years. The contribution shall not in any event exceed 20% of that salary
rate.
The member shall pay to the System the amount of the contribution as
calculated at the time of application under this Section. The amount of the
contribution determined under this subsection shall be recalculated at the time
of retirement, and if the System determines that the amount paid by the member
exceeds the recalculated amount, the System shall refund the difference to the
member with regular interest from the date of payment to the date of refund.
The contribution required by this subsection shall be paid in one of the
following ways or in a combination of the following ways that does not extend
over more than 5 years:
(i) in a lump sum on or before the date of |
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(ii) in substantially equal installments over a
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period of time not to exceed 5 years, as a deduction from salary in accordance with subsection (b) of Section 16‑154;
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(iii) in substantially equal monthly installments
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over a 24‑month period, by reducing the annuitant's monthly benefit over a 24‑month period by the amount of the otherwise applicable contribution. For federal and Illinois tax purposes, the monthly amount by which the annuitant's benefit is reduced shall not be treated as a contribution by the annuitant, but rather as a reduction of the annuitant's monthly benefit.
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(c) If the member fails to make the full contribution under this Section
in a timely fashion, the payments made under this Section shall be refunded
to the member, without interest. If the member dies before making the full
contribution, the payments made under this Section, together with regular
interest thereon, shall be refunded to the member's designated beneficiary
for benefits under Section 16‑138.
(d) For purposes of this Section and subdivision (a)(B)(1) of Section
16‑133, optional creditable service established by a member shall be deemed to
have been earned at the time of the employment or other qualifying event upon
which the service is based, rather than at the time the credit was established
in this System.
(e) The contributions required under this Section are the responsibility of
the teacher and not the teacher's employer. However, an employer of teachers
may, after the effective date of this amendatory Act of 1998, specifically
agree, through collective bargaining or otherwise, to make the contributions
required by this Section on behalf of those teachers.
(f) A person who, on or after July 1, 1998 and before June 4, 1999, began
receiving a retirement annuity calculated at the augmented rate may apply in
writing to have the annuity recalculated to reflect the changes to this Section
and Section 16‑133 that were enacted in Public Act 91‑17. The amount of any
resulting decrease in the optional contribution shall be refunded to the
annuitant, without interest. Any resulting increase in retirement annuity
shall take effect on the next annuity payment date following the date of
application under this subsection.
(Source: P.A. 92‑416, eff. 8‑17‑01; 93‑469, eff. 8‑8‑03.)
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(40 ILCS 5/16‑133) (from Ch. 108 1/2, par. 16‑133)
Sec. 16‑133. Retirement annuity; amount.
(a) The amount of the retirement annuity shall be (i) in the case of a person who first became a teacher under this Article before July 1, 2005, the larger of the
amounts determined under paragraphs (A) and (B) below, or (ii) in the case of a person who first becomes a teacher under this Article on or after July 1, 2005, the amount determined under the applicable provisions of paragraph (B):
(A) An amount consisting of the sum of the following:
(1) An amount that can be provided on an
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actuarially equivalent basis by the member's accumulated contributions at the time of retirement; and
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(2) The sum of (i) the amount that can be
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provided on an actuarially equivalent basis by the member's accumulated contributions representing service prior to July 1, 1947, and (ii) the amount that can be provided on an actuarially equivalent basis by the amount obtained by multiplying 1.4 times the member's accumulated contributions covering service subsequent to June 30, 1947; and
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(3) If there is prior service, 2 times the
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amount that would have been determined under subparagraph (2) of paragraph (A) above on account of contributions which would have been made during the period of prior service creditable to the member had the System been in operation and had the member made contributions at the contribution rate in effect prior to July 1, 1947.
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This paragraph (A) does not apply to a person who
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first becomes a teacher under this Article on or after July 1, 2005.
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(B) An amount consisting of the greater of the
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(1) For creditable service earned before July 1,
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1998 that has not been augmented under Section 16‑129.1: 1.67% of final average salary for each of the first 10 years of creditable service, 1.90% of final average salary for each year in excess of 10 but not exceeding 20, 2.10% of final average salary for each year in excess of 20 but not exceeding 30, and 2.30% of final average salary for each year in excess of 30; and
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For creditable service earned on or after July
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1, 1998 by a member who has at least 24 years of creditable service on July 1, 1998 and who does not elect to augment service under Section 16‑129.1: 2.2% of final average salary for each year of creditable service earned on or after July 1, 1998 but before the member reaches a total of 30 years of creditable service and 2.3% of final average salary for each year of creditable service earned on or after July 1, 1998 and after the member reaches a total of 30 years of creditable service; and
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For all other creditable service: 2.2% of final
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average salary for each year of creditable service; or
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(2) 1.5% of final average salary for each year
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of creditable service plus the sum $7.50 for each of the first 20 years of creditable service.
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The amount of the retirement annuity determined under
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this paragraph (B) shall be reduced by 1/2 of 1% for each month that the member is less than age 60 at the time the retirement annuity begins. However, this reduction shall not apply (i) if the member has at least 35 years of creditable service, or (ii) if the member retires on account of disability under Section 16‑149.2 of this Article with at least 20 years of creditable service, or (iii) if the member (1) has earned during the period immediately preceding the last day of service at least one year of contributing creditable service as an employee of a department as defined in Section 14‑103.04, (2) has earned at least 5 years of contributing creditable service as an employee of a department as defined in Section 14‑103.04, (3) retires on or after January 1, 2001, and (4) retires having attained an age which, when added to the number of years of his or her total creditable service, equals at least 85. Portions of years shall be counted as decimal equivalents.
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(b) For purposes of this Section, final average salary shall be the
average salary for the highest 4 consecutive years within the last 10 years
of creditable service as determined under rules of the board. The minimum
final average salary shall be considered to be $2,400 per year.
In the determination of final average salary for members other than
elected officials and their appointees when such appointees are allowed by
statute, that part of a member's salary for any year beginning after June
30, 1979 which exceeds the member's annual full‑time salary rate with the
same employer for the preceding year by more than 20% shall be excluded.
The exclusion shall not apply in any year in which the member's creditable
earnings are less than 50% of the preceding year's mean salary for downstate
teachers as determined by the survey of school district salaries provided in
Section 2‑3.103 of the School Code.
(c) In determining the amount of the retirement annuity under paragraph
(B) of this Section, a fractional year shall be granted proportional credit.
(d) The retirement annuity determined under paragraph (B) of this Section
shall be available only to members who render teaching service after July
1, 1947 for which member contributions are required, and to annuitants who
re‑enter under the provisions of Section 16‑150.
(e) The maximum retirement annuity provided under paragraph (B) of this
Section shall be 75% of final average salary.
(f) A member retiring after the effective date of this amendatory Act
of 1998 shall receive a pension equal to 75% of final average salary if the
member is qualified to receive a retirement annuity equal to at least 74.6%
of final average salary under this Article or as proportional annuities under
Article 20 of this Code.
(Source: P.A. 94‑4, eff. 6‑1‑05.)
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(40 ILCS 5/16‑133.1) (from Ch. 108 1/2, par. 16‑133.1)
Sec. 16‑133.1.
Automatic annual increase in annuity.
(a) Each member with creditable service and retiring on or after August 26,
1969 is entitled to the automatic annual increases in annuity provided under
this Section while receiving a retirement annuity or disability retirement
annuity from the system.
An annuitant shall first be entitled to an initial increase under this
Section on the January 1 next following the first anniversary of retirement,
or January 1 of the year next following attainment of age 61, whichever is
later. At such time, the system shall pay an initial increase determined as
follows:
(1) 1.5% of the originally granted retirement |
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annuity or disability retirement annuity multiplied by the number of years elapsed, if any, from the date of retirement until January 1, 1972, plus
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(2) 2% of the originally granted annuity multiplied
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by the number of years elapsed, if any, from the date of retirement or January 1, 1972, whichever is later, until January 1, 1978, plus
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(3) 3% of the originally granted annuity multiplied
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by the number of years elapsed from the date of retirement or January 1, 1978, whichever is later, until the effective date of the initial increase.
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However, the initial annual increase calculated under this Section for the
recipient of a disability retirement annuity granted under Section 16‑149.2
shall be reduced by an amount equal to the total of all increases in that
annuity received under Section 16‑149.5 (but not exceeding 100% of the amount
of the initial increase otherwise provided under this Section).
Following the initial increase, automatic annual increases in annuity shall
be payable on each January 1 thereafter during the lifetime of the annuitant,
determined as a percentage of the originally granted retirement annuity
or disability retirement annuity for increases granted prior to January
1, 1990, and calculated as a percentage of the total amount of annuity,
including previous increases under this Section, for increases granted on
or after January 1, 1990, as follows: 1.5% for periods prior to January 1,
1972, 2% for periods after December 31, 1971 and prior to January 1, 1978,
and 3% for periods after December 31, 1977.
(b) The automatic annual increases in annuity provided under this Section
shall not be applicable unless a member has made contributions toward such
increases for a period equivalent to one full year of creditable service.
If a member contributes for service performed after August 26, 1969 but
the member becomes an annuitant before such contributions amount to one
full year's contributions based on the salary at the date of retirement,
he or she may pay the necessary balance of the contributions to the system
and be eligible for the automatic annual increases in annuity provided under
this Section.
(c) Each member shall make contributions toward the cost of the automatic
annual increases in annuity as provided under Section 16‑152.
(d) An annuitant receiving a retirement annuity or disability retirement
annuity on July 1, 1969, who subsequently re‑enters service as a teacher
is eligible for the automatic annual increases in annuity provided under
this Section if he or she renders at least one year of creditable service
following the latest re‑entry.
(e) In addition to the automatic annual increases in annuity provided
under this Section, an annuitant who meets the service requirements of this
Section and whose retirement annuity or disability retirement annuity began
on or before January 1, 1971 shall receive, on January 1, 1981, an increase
in the annuity then being paid of one dollar per month for each year of
creditable service. On January 1, 1982, an annuitant whose retirement
annuity or disability retirement annuity began on or before January 1, 1977
shall receive an increase in the annuity then being paid of one dollar per
month for each year of creditable service.
On January 1, 1987, any annuitant whose retirement annuity began
on or before January 1, 1977, shall receive an increase in the monthly
retirement annuity equal to 8¢ per year of creditable service times the
number of years that have elapsed since the annuity began.
(Source: P.A. 91‑927, eff. 12‑14‑00.)
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(40 ILCS 5/16‑133.2) (from Ch. 108 1/2, par. 16‑133.2)
Sec. 16‑133.2. Early retirement without discount.
(a) A member
retiring after June 1, 1980 and on or before June 30, 2005 (or as provided in subsection (b) of this Section), and
applying for a retirement annuity within 6 months of the last day of
teaching for which retirement contributions were required,
may elect at the time of application for a retirement annuity, to make
a one time member contribution to the System and thereby
avoid the reduction in the retirement annuity for retirement before age
60 specified in paragraph (B) of Section 16‑133. The exercise of the
election shall also obligate the last employer to make a one time
non‑refundable contribution to the System. Substitute teachers wishing to
exercise this election must teach 85 or more days in one school term with
one employer, who shall be deemed the last employer for purposes of this
Section. The last day of teaching with that employer must be within 6
months of the date of application for retirement. All substitute
teaching credit applied toward the required 85 days must be earned after
June 30, 1990.
The one time member and employer contributions shall be a percentage of
the retiring member's highest annual salary rate used in the determination
of the average salary for retirement annuity purposes. However, when
determining the one‑time member and employer contributions, that part of a
member's salary with the same employer which exceeds the annual salary rate
for the preceding year by more than 20% shall be excluded. The member
contribution shall be at the rate of 7% for the lesser of the following 2
periods: (1) for each year that the member is less than age 60; or (2) for
each year that the member's creditable service is less than 35 years. If a
member is at least age 55 and has at least 34 years of creditable service, no
member or employer contribution for the early retirement option shall be
required. The employer contribution shall be at the rate of 20% for each year
the member is under age 60.
Upon receipt of the application and election, the System shall determine
the one time employee and employer contributions required. The member
contribution shall be credited to the individual account of the member and
the employer contribution shall be credited to the Benefit Trust Reserve. The
provisions of this subsection (a) providing for the avoidance of the reduction in retirement annuity shall
not be applicable until the member's contribution, if any, has been received
by the System; however, the date such contributions are received shall not be
considered in determining the effective date of retirement.
The number of members working for a single employer who may
retire under this subsection or subsection (b) in any year may be limited at the option
of the employer to a specified percentage of those eligible, not less
than 30%, with the right to participate to be allocated among those
applying on the basis of seniority in the service of the employer.
(b) The provisions of subsection (a) of this Section shall remain in effect for a member retiring after June 30, 2005 and on or before July 1, 2007, provided that the member satisfies both of the following requirements:
(1) the member notified his or her employer of intent
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to retire under this Article on or before the effective date of this amendatory Act of the 94th General Assembly under the terms of a contract or collective bargaining agreement entered into, amended, or renewed with the employer on or before the effective date of this amendatory Act of the 94th General Assembly; and
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(2) the effective date of the member's retirement is
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on or before July 1, 2007.
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The member's employer must give evidence of the member's notification by providing to the System:
(i) a copy of the member's notification to the
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employer or the record of that notification;
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(ii) an affidavit signed by the member and the
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employer, verifying the notification; and
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(iii) any additional documentation that the System
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(c) Except as otherwise provided in subsection (b), and subject to the provisions of Section 16‑176, a member retiring on or after July 1, 2005, and applying for a retirement annuity within 6 months of the last day of teaching for which retirement contributions were required, may elect at the time of application for a retirement annuity, to make a one‑time member contribution to the System and thereby avoid the reduction in the retirement annuity for retirement before age 60 specified in paragraph (B) of Section 16‑133. The exercise of the election shall also obligate the last employer to make a one‑time nonrefundable contribution to the System. Substitute teachers wishing to exercise this election must teach 85 or more days in one school term with one employer, who shall be deemed the last employer for purposes of this Section. The last day of teaching with that employer must be within 6 months of the date of application for retirement. All substitute teaching credit applied toward the required 85 days must be earned after June 30, 1990.
The one‑time member and employer contributions shall be a percentage of the retiring member's highest annual salary rate used in the determination of the average salary for retirement annuity purposes. However, when determining the one‑time member and employer contributions, that part of a member's salary with the same employer which exceeds the annual salary rate for the preceding year by more than 20% shall be excluded. The member contribution shall be at the rate of 11.5% for the lesser of the following 2 periods: (1) for each year that the member is less than age 60; or (2) for each year that the member's creditable service is less than 35 years. The employer contribution shall be at the rate of 23.5% for each year the member is under age 60.
Upon receipt of the application and election, the System shall determine the one‑time employee and employer contributions required. The member contribution shall be credited to the individual account of the member and the employer contribution shall be credited to the Benefit Trust Reserve. The avoidance of the reduction in retirement annuity provided under this subsection (c) is not applicable until the member's contribution, if any, has been received by the System; however, the date that contribution is received shall not be considered in determining the effective date of retirement.
The number of members working for a single employer who may retire under this subsection (c) in any year may be limited at the option of the employer to a specified percentage of those eligible, not less than 10%, with the right to participate to be allocated among those applying on the basis of seniority in the service of the employer.
(Source: P.A. 93‑469, eff. 8‑8‑03; 94‑4, eff. 6‑1‑05.)
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(40 ILCS 5/16‑133.3) (from Ch. 108 1/2, par. 16‑133.3)
Sec. 16‑133.3. Early retirement incentives for State employees.
(a) To be eligible for the benefits provided in this Section, a person
must:
(1) be a member of this System who, on any day during
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June, 2002, is (i) in active payroll status as a full‑time teacher employed by a department and an active contributor to this System with respect to that employment, or (ii) on layoff status from such a position with a right of re‑employment or recall to service, or (iii) receiving a disability benefit under Section 16‑149 or 16‑149.1, but only if the member has not been receiving that benefit for a continuous period of more than 2 years as of the date of application;
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(2) not have received any retirement annuity under
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this Article beginning earlier than August 1, 2002;
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(3) file with the Board on or before December 31,
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2002 a written application requesting the benefits provided in this Section;
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(4) terminate employment under this Article no later
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than December 31, 2002 (or the date established under subsection (d), if applicable);
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(5) by the date of termination of service, have at
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least 8 years of creditable service under this Article, without the use of any creditable service established under this Section;
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(6) by the date of termination of service, have at
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least 5 years of service credit earned while participating in the System as a teacher employed by a department; and
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(7) not receive any early retirement benefit under
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Section 14‑108.3 of this Code.
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For the purposes of this Section, "department" means a department as defined
in Section 14‑103.04 that employs a teacher as defined in this Article.
(b) An eligible person may establish up to 5 years of creditable service
under this Article by making the contributions
specified in subsection (c). In addition, for each period of creditable
service established under this Section, a person's age at retirement shall
be deemed to be enhanced by an equivalent period.
The creditable service established under this Section may be used for all
purposes under this Article and the Retirement Systems Reciprocal Act,
except for the computation of final average salary, the determination of salary
or compensation under this Article or any other Article of this Code, or the
determination of eligibility for or the computation of benefits under Section
16‑133.2.
The age enhancement established under this Section may be used for all
purposes under this Article (including calculation of a proportionate annuity
payable by this System under the Retirement Systems Reciprocal Act), except for
purposes of a retirement annuity under Section 16‑133(a)(A), a
reversionary annuity under Section 16‑136, the required distributions under
Section 16‑142.3, and the determination of eligibility for or the computation
of benefits under Section 16‑133.2. Age enhancement established under this
Section may be used in determining benefits payable under Article 14 of this
Code under the Retirement Systems Reciprocal Act (subject to the limitations
on the use of age enhancement provided in Section 14‑108.3); age enhancement
established under this Section shall not be used in determining benefits
payable under other Articles of this Code under the Retirement Systems
Reciprocal Act.
(c) For all creditable service established under this Section, a person
must pay to the System an employee contribution to be determined by the
System, equal to 9.0% of the member's highest annual salary rate that would be
used in the determination of the average salary for retirement annuity purposes
if the member retired immediately after withdrawal, for each year of creditable
service established under this Section.
If the member receives a lump sum payment for accumulated vacation, sick
leave, and personal leave upon withdrawal from service, and the net amount of
that lump sum payment is at least as great as the amount of the contribution
required under this Section, the entire contribution must be paid by the
employee by payroll deduction. If there is no such lump sum payment, or if it
is less than the contribution required under this Section, the member shall
make an initial payment by payroll deduction, equal to the net amount of the
lump sum payment for accumulated vacation, sick leave, and personal leave,
and have the remaining amount due treated as a reduction from the retirement
annuity in 24 equal monthly installments beginning in the month in which the
retirement annuity takes effect. The required contribution may be paid as a
pre‑tax deduction from earnings.
(d) In order to ensure that the efficient operation of State government
is not jeopardized by the simultaneous retirement of large numbers of key
personnel, the director or other head of a department may, for key employees
of that department, extend the December 31, 2002 deadline for terminating
employment under this Article established in subdivision (a)(4) of this
Section to a date not later than April 30, 2003 by so notifying the
System in writing by December 31, 2002.
(e) A person who has received any age enhancement or creditable service
under this Section and who reenters contributing service under this Article or
Article 14 shall thereby forfeit that age enhancement and creditable service,
and become entitled to a refund of the contributions made pursuant to this
Section.
(f) The System shall determine the amount of the increase in the present value of future benefits resulting from the granting of early retirement incentives
under this Section and shall report that amount to the Governor and the Commission on Government Forecasting and Accountability
on or after the effective date of this amendatory Act of the 93rd General Assembly and on or before November 15,
2004. Beginning with State fiscal year 2008, the increase in
liability reported under this subsection (f) shall be included in the
calculation of the required State contribution under Section 16‑158.
(g)
In addition to the contributions otherwise required under this Article,
the State shall appropriate and pay to the System an amount equal to
$1,000,000 in State fiscal year 2004.
(h) The Pension Laws Commission (or its successor, the Commission on Government Forecasting and Accountability) shall determine
and report to the General
Assembly, on or before January 1, 2004 and annually thereafter through the year
2013, its estimate of (1) the annual amount of payroll savings likely to be
realized by the State as a result of the early retirement of persons receiving
early retirement incentives under this Section and (2) the net annual savings
or cost to the State from the program of early retirement incentives created
under this Section.
The System, the Department of Central Management Services, the
Governor's Office of Management and Budget (formerly
Bureau of
the Budget), and all other departments shall provide to the Commission any
assistance that the Commission may request with respect to its reports under
this Section. The Commission may require departments to provide it with any
information that it deems necessary or useful with respect to its reports under
this Section, including without limitation information about (1) the final
earnings of former department employees who elected to receive benefits under
this Section, (2) the earnings of current department employees holding the
positions vacated by persons who elected to receive benefits under this
Section, and (3) positions vacated by persons who elected to receive benefits
under this Section that have not yet been refilled.
(i) The changes made to this Section by this amendatory Act of the 92nd
General Assembly do not apply to persons who retired under this Section on or
before May 1, 1992.
(Source: P.A. 93‑632, eff. 2‑1‑04; 93‑839, eff. 7‑30‑04; 93‑1067, eff. 1‑15‑05; 94‑4, eff. 6‑1‑05.)
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(40 ILCS 5/16‑133.4) (from Ch. 108 1/2, par. 16‑133.4)
Sec. 16‑133.4.
Early retirement incentives for teachers.
(a) To be eligible for the benefits provided in this Section, a member must:
(1) be a member of this System who, on or after May |
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1, 1993, is (i) in active payroll status as a full‑time teacher employed by an employer under this Article, or (ii) on layoff status from such a position with a right of re‑employment or recall to service, or (iii) on disability or a leave of absence from such a position, but only if the member has not been receiving benefits under Section 16‑149 or 16‑149.1 for a continuous period of 2 years or more as of the date of application;
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(2) have never previously received a retirement
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annuity under this Article, except that receipt of a disability retirement annuity does not disqualify a member if the annuity has been terminated and the member has returned to full‑time employment under this Article before the effective date of this Section;
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(3) file with the Board before March 1, 1993, an
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application requesting the benefits provided in this Section;
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(4) in the case of an employee of an employer that
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is a not State agency, be eligible to receive a retirement annuity under this Article (for which purpose any age enhancement or creditable service received under this Section may be used), and elect to receive the retirement annuity beginning not earlier than June 1, 1993 and not later than September 1, 1993 (September 1, 1994 if retirement is delayed under subsection (e) of this Section);
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(5) in the case of an employee of an employer that
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is a State agency, be eligible to receive a retirement annuity under this Article (for which purpose any age enhancement or creditable service received under this Section may be used), and elect to receive the retirement annuity beginning not earlier than July 1, 1993 and not later than March 1, 1994 (March 1, 1995 if retirement is delayed under subsection (e) of this Section);
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(6) have attained age 50 (without the use of any age
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enhancement received under this Section) by the effective date of the retirement annuity;
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(7) have at least 5 years of creditable service
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under this System or any of the participating systems under the Retirement Systems Reciprocal Act (without the use of any creditable service received under this Section) by the effective date of the retirement annuity.
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(b) An eligible person may establish up to 5 years of creditable service
under this Section. In addition, for each period of creditable service
established under this Section, a person shall have his or her age at
retirement deemed enhanced by an equivalent period.
The creditable service established under this Section may be used for all
purposes under this Article and the Retirement Systems Reciprocal Act,
except for the computation of final average salary, the determination of
salary or compensation under this or any other Article of the Code, or the
determination of eligibility for and the computation of benefits under
Section 16‑133.2 of this Article.
The age enhancement established under this Section may be used for all
purposes under this Article (including calculation of a proportionate
annuity payable by this System under the Retirement Systems Reciprocal
Act), except for purposes of a reversionary annuity under Section 16‑136,
the retirement annuity under Section 16‑133(a)(A), the required
distributions under Section 16‑142.3, and the determination of eligibility
for and the computation of benefits under Section 16‑133.2 of this Article.
However, age enhancement established under this Section shall not be used
in determining benefits payable under other Articles of this Code under the
Retirement Systems Reciprocal Act.
(c) For all creditable service established under this Section by an
employee of an employer that is not a State agency, the employer must pay
to the System an employer contribution consisting of 20% of the member's
highest annual salary rate used in the determination of the average salary
for retirement annuity purposes for each year of creditable service granted
under this Section. No employer contribution is required under this
Section from any employer that is a State agency.
The employer contribution shall be paid to the System in one of the
following ways: (i) in a single sum at the time of the member's
retirement, (ii) in equal quarterly installments over a period of 5 years
from the date of retirement, or (iii) subject to the approval of the Board
of the System, in unequal installments over a period of no more than 5
years from the date of retirement, as provided in a payment plan designed
by the System to accommodate the needs of the employer. The employer's
failure to make the required contributions in a timely manner shall not
affect the payment of the retirement annuity.
For all creditable service established under this Section, the
employee must pay to the System an employee contribution consisting of
4% of the member's highest annual salary rate used in the determination of
the retirement annuity for each year of creditable service granted under
this Section. The employee may elect either to pay the employee contribution in
full before the retirement annuity commences, or to have it deducted from the
retirement annuity in 24 monthly installments.
(d) An annuitant who has received any age enhancement or creditable
service under this Section and who re‑enters contributing service under
this Article shall thereby forfeit the age enhancement and creditable service,
and upon re‑retirement the annuity shall be recomputed. The forfeiture of
creditable service under this subsection shall not entitle the employer to a
refund of the employer contribution paid under this Section, nor to forgiveness
of any part of that contribution that remains unpaid. The forfeiture of
creditable service under this subsection shall not entitle the employee to a
refund of the employee contribution paid under this Section.
(e) If the number of employees of an employer that actually apply for
early retirement under this Section exceeds 30% of those eligible, the
employer may require that, for the number of applicants in excess of that
30%, the starting date of the retirement annuity enhanced under this
Section may not be earlier than June 1, 1994. The right to have the
retirement annuity begin before that date shall be allocated among the
applicants on the basis of seniority in the service of that employer.
This delay applies only to persons who are applying for early
retirement incentives under this Section, and does not prevent a person
whose application for early retirement incentives has been withdrawn from
receiving a retirement annuity on the earliest date upon which
the person is otherwise eligible under this Article.
(f) For a member who is notified after February 15, 1993, but before
September 15, 1993, that he or she will be laid off in the 1993‑1994 school
year: (1) the March 1 application deadline in subdivision (a)(3) of this
Section is extended to a date 15 days after the date of issuance of the
layoff notice, and (2) the member shall not be included in the calculation
of the 30% under subsection (e) and is not subject to delay in retirement
under that subsection.
(g) A member who receives any early retirement incentive under Section
16‑133.5 may not receive any early retirement incentive under
this Section.
(Source: P.A. 87‑1265.)
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(40 ILCS 5/16‑133.5) (from Ch. 108 1/2, par. 16‑133.5)
Sec. 16‑133.5.
Early retirement incentives for teachers.
(a) To be eligible for the benefits provided in this Section, a member must:
(1) be a member of this System who, on or after May |
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1, 1994, is (i) in active payroll status as a full‑time teacher employed by an employer under this Article, or (ii) on layoff status from such a position with a right of re‑employment or recall to service, or (iii) on disability or a leave of absence from such a position, but only if the member has not been receiving benefits under Section 16‑149 or 16‑149.1 for a continuous period of 2 years or more as of the date of application;
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(2) have never previously received a retirement
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annuity under this Article, except that receipt of a disability retirement annuity does not disqualify a member if the annuity has been terminated and the member has returned to full‑time employment under this Article before the effective date of this Section;
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(3) file with the Board before March 1, 1994, an
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application requesting the benefits provided in this Section;
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(4) be eligible to receive a retirement annuity
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under this Article (for which purpose any age enhancement or creditable service received under this Section may be used), and elect to receive the retirement annuity beginning not earlier than June 1, 1994 and not later than September 1, 1994 (September 1, 1995 if retirement is delayed under subsection (e) of this Section);
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(5) have attained age 50 (without the use of any age
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enhancement received under this Section) by the effective date of the retirement annuity;
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(6) have at least 5 years of creditable service
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under this System or any of the participating systems under the Retirement Systems Reciprocal Act (without the use of any creditable service received under this Section) by the effective date of the retirement annuity.
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(b) An eligible person may establish up to 5 years of creditable service
under this Section. In addition, for each period of creditable service
established under this Section, a person shall have his or her age at
retirement deemed enhanced by an equivalent period.
The creditable service established under this Section may be used for all
purposes under this Article and the Retirement Systems Reciprocal Act,
except for the computation of final average salary, the determination of
salary or compensation under this or any other Article of the Code, or the
determination of eligibility for and the computation of benefits under
Section 16‑133.2 of this Article.
The age enhancement established under this Section may be used for all
purposes under this Article (including calculation of a proportionate
annuity payable by this System under the Retirement Systems Reciprocal
Act), except for purposes of a reversionary annuity under Section 16‑136,
the retirement annuity under Section 16‑133(a)(A), the required
distributions under Section 16‑142.3, and the determination of eligibility
for and the computation of benefits under Section 16‑133.2 of this Article.
However, age enhancement established under this Section shall not be used
in determining benefits payable under other Articles of this Code under the
Retirement Systems Reciprocal Act.
(c) For all creditable service established under this Section, the
employer must pay to the System an employer contribution consisting of
20% of the member's highest annual salary rate used in the determination of
the average salary for retirement annuity purposes for each year of creditable
service granted under this Section.
The employer contribution shall be paid to the System in one of the
following ways: (i) in a single sum at the time of the member's
retirement, (ii) in equal quarterly installments over a period of 5 years
from the date of retirement, or (iii) subject to the approval of the Board
of the System, in unequal installments over a period of no more than 5
years from the date of retirement, as provided in a payment plan designed
by the System to accommodate the needs of the employer. The employer's
failure to make the required contributions in a timely manner shall not
affect the payment of the retirement annuity.
For all creditable service established under this Section, the
employee must pay to the System an employee contribution consisting of
4% of the member's highest annual salary rate used in the determination of
the retirement annuity for each year of creditable service granted under
this Section.
The employee may elect either to pay the employee contribution in full
before the retirement annuity commences, or to have it deducted from
the retirement annuity in 24 monthly installments.
(d) An annuitant who has received any age enhancement or creditable
service under this Section and who re‑enters contributing service under
this Article shall thereby forfeit the age enhancement and creditable service,
and upon re‑retirement the annuity shall be recomputed. The forfeiture of
creditable service under this subsection shall not entitle the employer to a
refund of the employer contribution paid under this Section, nor to forgiveness
of any part of that contribution that remains unpaid. The forfeiture of
creditable service under this subsection shall not entitle the employee to a
refund of the employee contribution paid under this Section.
(e) If the number of employees of an employer that actually apply for
early retirement under this Section exceeds 30% of those eligible, the
employer may require that, for the number of applicants in excess of that
30%, the starting date of the retirement annuity enhanced under this
Section may not be earlier than June 1, 1995. The right to have the
retirement annuity begin before that date shall be allocated among the
applicants on the basis of seniority in the service of that employer.
This delay applies only to persons who are applying for early
retirement incentives under this Section, and does not prevent a person
whose application for early retirement incentives has been withdrawn from
receiving a retirement annuity on the earliest date upon which
the person is otherwise eligible under this Article.
(f) A member who receives any early retirement incentive under Section
16‑133.4 may not receive any early retirement incentive under
this Section.
(Source: P.A. 87‑1265.)
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(40 ILCS 5/16‑136.1) (from Ch. 108 1/2, par. 16‑136.1)
Sec. 16‑136.1.
Annual increase for certain annuitants.
(a) Any annuitant receiving a retirement annuity on June 30, 1969 and
any member retiring after June 30, 1969 shall be eligible for the annual
increases provided under this Section provided the annuitant is ineligible
for the automatic annual increase in annuity provided under Section
16‑133.1, and provided further that (1) retirement occurred at age 55 or over
and was based on 5 or more years of creditable service or (2) if
retirement occurred prior to age 55, the retirement annuity
was based on 20 or more years of creditable service.
(b) An annuitant entitled to increases under this Section shall be entitled
to the initial increase as of the later of: (1) January 1 following
attainment of age 65, (2) January 1 following the first anniversary
of retirement, or (3) the first day of the month following receipt of
the required qualifying contribution from the annuitant. The initial monthly
increase shall be computed on the basis of the period elapsed between
the later of the date of last retirement or attainment of age 50 and the
date of qualification for the initial increase, at the rate of 1 1/2% of
the original monthly retirement annuity per year for periods
prior to September 1, 1971, and at the rate of 2% per year for periods between
September 1, 1971 and September 1, 1978, and at the rate of 3% per year
for periods thereafter.
An annuitant who has received an initial increase under this Section,
shall be entitled, on each January 1 following the granting of the
initial increase, to an increase of 3% of the original monthly retirement
annuity for increases granted prior to January 1, 1990, and equal to 3%
of the total annuity, including previous increases under this Section, for
increases granted on or after January 1, 1990. The original monthly
retirement annuity for computations under this subsection
(b) shall be considered to be $83.34 for any annuitant entitled to benefits
under Section 16‑134. The minimum original disability retirement annuity
for computations under this subsection (b) shall be considered to be
$33.34 per month for any annuitant retired on account of disability.
(c) An annuitant who otherwise qualifies for annual
increases under this Section must make a one‑time payment of
1% of the monthly final average salary for each full year of the creditable
service forming the basis of the retirement annuity or, if the
retirement annuity was not computed using final average salary, 1% of the
original monthly retirement annuity for each full year of service
forming the basis of the retirement annuity.
(d) In addition to other increases which may be provided by this Section,
regardless of creditable service, annuitants not meeting
the service requirements of Section 16‑133.1 and whose retirement annuity
began on or before January 1, 1971 shall receive, on January
1, 1981, an increase in the retirement annuity then being paid
of one dollar per month for each year of creditable service forming
the basis of the retirement allowance. On January 1, 1982, annuitants
whose retirement annuity began on or before January 1, 1977, shall receive
an increase in the retirement annuity then being paid of one dollar per
month for each year of creditable service.
On January 1, 1987, any annuitant whose retirement annuity began
on or before January 1, 1977, shall receive an increase in the monthly
retirement annuity equal to 8¢ per year of creditable service times the
number of years that have elapsed since the annuity began.
(Source: P.A. 86‑273.)
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(40 ILCS 5/16‑140) (from Ch. 108 1/2, par. 16‑140)
Sec. 16‑140.
Survivors' benefits ‑ definitions.
(a) For the purpose of Sections 16‑138 through 16‑143.2, the following
terms shall have the following meanings, unless the context otherwise
requires:
(1) "Average salary": the average salary for the |
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highest 4 consecutive years within the last 10 years of creditable service immediately preceding date of death or retirement, whichever is applicable, or the average salary for the total creditable service if service is less than 4 years.
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(2) "Member": any teacher included in the membership
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of the system. However, a teacher who becomes an annuitant of the system or a teacher whose services terminate after 20 years of service from any cause other than retirement is considered a member, subject to the conditions and limitations stated in this Article.
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(3) "Dependent beneficiary": (A) a surviving spouse
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of a member or annuitant who was married to the member or annuitant for the 12 month period immediately preceding and on the date of death of such member or annuitant, except where a child is born of such marriage, in which case the qualifying period shall not be applicable; (A‑1) a surviving spouse of a member or annuitant who (i) was married to the member or annuitant on the date of the member or annuitant's death, (ii) was married to the member or annuitant for a period of at least 12 months (but not necessarily the 12 months immediately preceding the member or annuitant's death), and (iii) has not received a benefit under subsection (a) of Section 16‑141 or paragraph (1) of Section 16‑142; (B) an eligible child of a member or annuitant; and (C) a dependent parent.
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Unless otherwise designated by the member,
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eligibility for benefits shall be in the order named, except that a dependent parent shall be eligible only if there is no other dependent beneficiary. Any benefit to be received by or paid to a dependent beneficiary to be determined under this paragraph as provided in Sections 16‑141 and 16‑142 may be received by or paid to a trust established for such dependent beneficiary if such dependent beneficiary is living at the time such benefit would be received by or paid to such trust.
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(4) "Eligible child": an unmarried natural or
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adopted child of the member or annuitant under age 18 (age 22 if a full‑time student). An unmarried natural or adopted child, regardless of age, who is dependent by reason of a physical or mental disability, except any such child receiving benefits under Article III of the Illinois Public Aid Code, is eligible for so long as such physical or mental disability continues. An adopted child, however, is eligible only if the proceedings for adoption were finalized while the child was a minor.
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For purposes of this subsection, "disability" means
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an inability to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or which has lasted or can be expected to last for a continuous period of not less than 12 months.
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The changes made to this Section by Public Act
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90‑448, relating to benefits for certain unmarried children who are full‑time students under age 22, apply without regard to whether the deceased member was in service on or after the effective date of that Act. These changes do not authorize the repayment of a refund or a re‑election of benefits, and any benefit or increase in benefits resulting from these changes is not payable retroactively for any period before the effective date of that Act.
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(5) "Dependent parent": a parent who was receiving
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at least 1/2 of his or her support from a member or annuitant for the 12‑month period immediately preceding and on the date of such member's or annuitant's death, provided however, that such dependent status terminates upon a member's acceptance of a refund for survivor benefit contributions as provided under Section 16‑142.
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(6) "Non‑dependent beneficiary": any person,
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organization or other entity designated by the member who does not qualify as a dependent beneficiary.
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(7) "In service": the condition of a member being in
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receipt of salary as a teacher at any time within 12 months immediately before his or her death, being on leave of absence for which the member, upon return to teaching, would be eligible to purchase service credit under subsection (b)(5) of Section 16‑127, or being in receipt of a disability or occupational disability benefit. This term does not include any annuitant or member who previously accepted a refund of survivor benefit contributions under paragraph (1) of Section 16‑142 unless the conditions specified in subsection (b) of Section 16‑143.2 are met.
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(b) The change to this Section made by Public Act 90‑511 applies without
regard to whether the deceased member or annuitant was in service on or after
the effective date of that Act.
The change to this Section made by this amendatory Act of the 91st General
Assembly applies without regard to whether the deceased member or annuitant was
in service on or after the effective date of this amendatory Act.
(Source: P.A. 90‑448, eff. 8‑16‑97; 90‑511, eff.
8‑22‑97; 90‑655, eff. 7‑30‑98; 91‑887, eff. 7‑6‑00.)
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(40 ILCS 5/16‑141) (from Ch. 108 1/2, par. 16‑141)
Sec. 16‑141.
Survivors' benefits ‑ death in service.
(a) Upon the death of a member in service occurring on or after
July 1, 1990, a beneficiary designated by the member shall be
entitled to receive, in a single sum, for each completed year of service
up to a maximum of 6 years, an amount equal to 1/6 of the member's
highest annual salary rate within the last 4 years of service. If death occurs
prior to completion of the first year of service, the beneficiary shall be
entitled to receive, in a single sum, an amount equal to 1/6 of the most
recent annual salary rate. If no beneficiary is designated by the member or if
no designated beneficiary survives the member, the single sum benefit under
this paragraph shall be paid to the eligible dependent beneficiary or to the
trust established for such eligible dependent beneficiary, as determined under
paragraph (3) of Section 16‑140, or, if there is no dependent beneficiary, to
the decedent's estate upon receipt of proper proof of death.
(b) If the deceased member had at least 1.5 years of creditable service,
had rendered at least 60 days of creditable service within the 18 months
immediately preceding death and had not designated a non‑dependent
beneficiary who survives, a dependent beneficiary may elect to receive,
instead of the benefit under subsection (a) of this Section, a single sum
payment of $1,000, divided by the number of such beneficiaries, together
with a survivor's benefit as specified under the following paragraphs:
(1) A surviving spouse, if no eligible children |
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exist, shall receive a survivor's benefit of 30% of average salary, beginning at age 50 or upon the date of the member's death, whichever is later, except that if the member's death occurred before July 1, 1973 and the surviving spouse is less than age 55 on the effective date of this amendatory Act of 1997, the survivor's benefit shall begin on the effective date of this amendatory Act of 1997 or upon the surviving spouse's attainment of age 50, whichever occurs later.
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(2) A surviving spouse, regardless of age, who is
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providing for the support of the deceased member's eligible child, shall receive a survivor's benefit of 30% of average salary, plus the sum of (A) 20% of average salary on account of each dependent child, and (B) 10% of average salary divided by the number of children entitled to this benefit.
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(3) Each eligible child, if there is no eligible
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surviving spouse, shall receive upon the death of the member a survivor's benefit equal to the sum of: (A) 20% of average salary, and (B) 10% of average salary divided by the number of children entitled to this benefit.
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(4) A dependent parent shall receive upon attainment
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of age 55 or the date of the member's death, whichever is later, a survivor's benefit of 30% of average salary, unless dependency is terminated by remarriage or otherwise.
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(c) No election under this Section may be made by a dependent
beneficiary if a non‑dependent beneficiary designated by the member
survives such member.
(d) Notwithstanding the other provisions of this Section, if the member is
in receipt of a benefit at the time of his or her death, a dependent
beneficiary shall receive a survivor benefit beginning the first of the
month following the death of the member.
(e) In cases where the changes to this Section or Section 16‑142 made
by Public Act 87‑1265 increase the amount
of a single‑sum death benefit that has already been paid by the System, the
System shall pay to the beneficiary the amount of the increase provided by this
amendatory Act.
(Source: P.A. 90‑32, eff. 6‑27‑97.)
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(40 ILCS 5/16‑150.1)
Sec. 16‑150.1. Return to teaching in subject shortage area.
(a) As used in this Section, "eligible employment" means employment
beginning on or after July 1, 2003 and ending no later than June 30, 2008,
in a subject shortage area at a qualified school, in a position requiring
certification under the law governing the certification of teachers.
As used in this Section, "qualified school" means a public elementary or
secondary school that meets all of the following requirements:
(1) At the time of hiring a retired teacher under
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this Section, the school is experiencing a shortage of teachers in the subject shortage area for which the teacher is hired.
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(2) The school district to which the school belongs
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has complied with the requirements of subsection (e), and the regional superintendent has certified that compliance to the System.
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(3) If the school district to which the school
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belongs provides group health benefits for its teachers generally, substantially similar health benefits are made available for teachers participating in the program under this Section, without any limitations based on pre‑existing conditions.
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(b) An annuitant receiving a retirement annuity under this Article
(other than a disability retirement annuity) may engage in eligible
employment at a qualified school without impairing his or her retirement
status or retirement annuity, subject to the following conditions:
(1) the eligible employment does not begin within
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the school year during which service was terminated;
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(2) the annuitant has not received any early
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retirement incentive under Section 16‑133.3, 16‑133.4, or 16‑133.5;
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(3) if the annuitant retired before age 60 and with
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less than 34 years of service, the eligible employment does not begin within the year following the effective date of the retirement annuity;
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(4) if the annuitant retired at age 60 or above or
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with 34 or more years of service, the eligible employment does not begin within the 90 days following the effective date of the retirement annuity; and
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(5) before the eligible employment begins, the
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employer notifies the System in writing of the annuitant's desire to participate in the program established under this Section.
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(c) An annuitant engaged in eligible employment in accordance with
subsection (b) shall be deemed a participant in the program established
under this Section for so long as he or she remains employed in eligible
employment.
(d) A participant in the program established under this Section continues
to be a retirement annuitant, rather than an active teacher, for all of the
purposes of this Code, but shall be deemed an active teacher for other
purposes, such as inclusion in a collective bargaining unit, eligibility for
group health benefits, and compliance with the laws governing the employment,
regulation, certification, treatment, and conduct of teachers.
With respect to an annuitant's eligible employment under this Section,
neither employee nor employer contributions shall be made to the System and
no additional service credit shall be earned. Eligible employment does not
affect the annuitant's final average salary or the amount of the retirement
annuity.
(e) Before hiring a teacher under this Section, the school district
to which the school belongs must do the following:
(1) If the school district to which the school
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belongs has honorably dismissed, within the calendar year preceding the beginning of the school term for which it seeks to employ a retired teacher under the program established in this Section, any teachers who are legally qualified to hold positions in the subject shortage area and have not yet begun to receive their retirement annuities under this Article, the vacant positions must first be tendered to those teachers.
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(2) For a period of at least 90 days during the 6
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months preceding the beginning of either the fall or spring term for which it seeks to employ a retired teacher under the program established in this Section, the school district must, on an ongoing basis, both (i) advertise its vacancies in the subject shortage area in a newspaper of general circulation in the area in which the school is located and in employment bulletins published by college and university placement offices located near the school; and (ii) search for teachers legally qualified to fill those vacancies through the Illinois Education Job Bank.
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The school district must submit documentation of its compliance with this
subsection to the regional superintendent. Upon receiving satisfactory
documentation from the school district, the regional superintendent shall
certify the district's compliance with this subsection to the System.
(f) This Section applies without regard to whether the annuitant was in
service on or after the effective date of this amendatory Act of the 93rd
General Assembly.
(Source: P.A. 93‑320, eff. 7‑23‑03; 94‑129, eff. 7‑7‑05.)
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(40 ILCS 5/16‑151) (from Ch. 108 1/2, par. 16‑151)
Sec. 16‑151.
Refund.
Upon termination of employment as a teacher for
any cause other than death or retirement, a member shall be paid the
following amount upon demand made at least 4 months after ceasing to teach:
(1) from the Benefit Trust Reserve, the actual total |
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contributions paid by or on behalf of the member for membership service which have not been previously refunded and which are then credited to the member's individual account in the Benefit Trust Reserve, without interest thereon, and
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(2) from the Benefit Trust Reserve, the actual
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contributions not previously refunded, paid by or on behalf of the member for prior service and towards the cost of the automatic annual increase in retirement annuity as provided under Section 16‑152, without interest thereon.
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Any such amounts may be paid to the member either in one sum or, at the
election of the board, in 4 quarterly payments.
Contributions credited to a member for periods of disability as provided in
Sections 16‑149 and 16‑149.1 are not refundable.
Upon acceptance of a refund, all accrued rights and credits in the
System are forfeited and may be reinstated only if the refund is repaid
together with interest from the date of the refund to the date of repayment
at the following rates compounded annually: for periods prior to July 1,
1965, regular interest; for periods from July 1, 1965 to June 30, 1977,
4% per year; for periods on and after July 1, 1977, regular interest.
Repayment shall be permitted upon return to membership; however, service
credit previously forfeited by a refund and
subsequently reinstated may not be used as a basis for the payment of
benefits, other
than a refund of contributions, prior to the completion of one year of creditable
service following the refund, except when
repayment is permitted under the provisions of the "Retirement Systems
Reciprocal Act" contained in Article 20.
(Source: P.A. 93‑469, eff. 8‑8‑03.)
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(40 ILCS 5/16‑152) (from Ch. 108 1/2, par. 16‑152)
Sec. 16‑152. Contributions by members.
(a) Each member shall make contributions for membership service to this
System as follows:
(1) Effective July 1, 1998, contributions of 7.50%
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of salary towards the cost of the retirement annuity. Such contributions shall be deemed "normal contributions".
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(2) Effective July 1, 1969, contributions of 1/2 of
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1% of salary toward the cost of the automatic annual increase in retirement annuity provided under Section 16‑133.1.
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(3) Effective July 24, 1959, contributions of 1% of
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salary towards the cost of survivor benefits. Such contributions shall not be credited to the individual account of the member and shall not be subject to refund except as provided under Section 16‑143.2.
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(4) Effective July 1, 2005, contributions of 0.40% of
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salary toward the cost of the early retirement without discount option provided under Section 16‑133.2. This contribution shall cease upon termination of the early retirement without discount option as provided in Section 16‑176.
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(b) The minimum required contribution for any year of full‑time
teaching service shall be $192.
(c) Contributions shall not be required of any annuitant receiving
a retirement annuity who is given employment as permitted under Section 16‑118 or 16‑150.1.
(d) A person who (i) was a member before July 1, 1998, (ii) retires with
more than 34 years of creditable service, and (iii) does not elect to qualify
for the augmented rate under Section 16‑129.1 shall be entitled, at the time
of retirement, to receive a partial refund of contributions made under this
Section for service occurring after the later of June 30, 1998 or attainment
of 34 years of creditable service, in an amount equal to 1.00% of the salary
upon which those contributions were based.
(e) A member's contributions toward the cost of early retirement without discount made under item (a)(4) of this Section shall not be refunded if the member has elected early retirement without discount under Section 16‑133.2 and has begun to receive a retirement annuity under this Article calculated in accordance with that election. Otherwise, a member's contributions toward the cost of early retirement without discount made under item (a)(4) of this Section shall be refunded according to whichever one of the following circumstances occurs first:
(1) The contributions shall be refunded to the
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member, without interest, within 120 days after the member's retirement annuity commences, if the member does not elect early retirement without discount under Section 16‑133.2.
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(2) The contributions shall be included, without
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interest, in any refund claimed by the member under Section 16‑151.
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(3) The contributions shall be refunded to the
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member's designated beneficiary (or if there is no beneficiary, to the member's estate), without interest, if the member dies without having begun to receive a retirement annuity under this Article.
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(4) The contributions shall be refunded to the
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member, without interest, within 120 days after the early retirement without discount option provided under Section 16‑133.2 is terminated under Section 16‑176.
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(Source: P.A. 93‑320, eff. 7‑23‑03; 94‑4, eff. 6‑1‑05.)
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