There Is a Newer Version of the Illinois Compiled Statutes
2005 Illinois 40 ILCS 5/ Illinois Pension Code. Article 17 - Public School Teachers\' Pension And Retirement Fund--Cities Of Over 500,000 Inhabitants
(40 ILCS 5/17‑101) (from Ch. 108 1/2, par. 17‑101)
Sec. 17‑101.
Creation of fund.
In each city with a population over 500,000, there is created a Public
School Teachers' Pension and Retirement Fund to be maintained and
administered in the manner prescribed in this Article and to be known as
the Public School Teachers' Pension and Retirement Fund of ....(city).
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/17‑102) (from Ch. 108 1/2, par. 17‑102)
Sec. 17‑102.
Terms defined.
The terms used in this Article shall have the meanings ascribed to them
in Sections 17‑‑103 to 17‑‑113, inclusive, except when the context
otherwise requires.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/17‑103) (from Ch. 108 1/2, par. 17‑103)
Sec. 17‑103.
Actuarial equivalent.
"Actuarial equivalent": A pension equal to the value of another sum or
pension when computed according to the actuarial tables and rate of
interest in use by the board.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/17‑104) (from Ch. 108 1/2, par. 17‑104)
Sec. 17‑104.
Board.
"Board": Board of Trustees of the Public School Teachers' Pension and
Retirement Fund of ....(city) as created in this Article.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/17‑105) (from Ch. 108 1/2, par. 17‑105)
Sec. 17‑105.
Board of Education.
"Board of Education": The Board of Education in a city in which the fund
provided by this Article is maintained and operated.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/17‑105.1)
Sec. 17‑105.1.
Employer.
"Employer": The Board of Education and a
charter school as defined under the provisions of Section 27a‑5 of the School
Code.
(Source: P.A. 90‑566, eff. 1‑2‑98.)
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(40 ILCS 5/17‑106) (from Ch. 108 1/2, par. 17‑106)
Sec. 17‑106.
Contributor, member or teacher.
"Contributor", "member"
or "teacher": All members of the teaching force of the city, including
principals, assistant principals, the general superintendent of schools,
deputy superintendents of schools, associate superintendents of schools,
assistant and district superintendents of schools, members of the Board of
Examiners, all other persons whose employment requires a teaching certificate
issued under the laws governing the certification of teachers, any educational,
administrative, professional, or other staff employed in a charter school
operating in compliance with the Charter Schools Law who is certified under
the law governing the certification of teachers, and employees of the Board,
but excluding persons contributing concurrently to any other public employee
pension system in Illinois for the same employment or receiving retirement
pensions under another Article of this Code for that same employment, persons
employed on an hourly basis, and persons receiving pensions from the Fund who
are employed temporarily by an Employer and not on an annual basis.
In the case of a person who has been making contributions and otherwise
participating in this Fund prior to the effective date of this amendatory
Act of the 91st General Assembly, and whose right to participate in
the Fund is established or confirmed by this amendatory Act, such prior
participation in the Fund, including all contributions previously made and
service credits previously earned by the person, are hereby validated.
The changes made to this Section and Section 17‑149 by this amendatory
Act of the 92nd General Assembly apply without regard to whether the person
was in service on or after the effective date of this amendatory Act,
notwithstanding Sections 1‑103.1 and 17‑157.
(Source: P.A. 91‑887, eff. 7‑6‑00; 92‑416, eff. 8‑17‑01; 92‑599, eff.
6‑28‑02.)
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(40 ILCS 5/17‑107) (from Ch. 108 1/2, par. 17‑107)
Sec. 17‑107.
Creditable service.
"Creditable service": Service for which pension credits have not been
validated concurrently with its rendition, but which may be validated for
pension purposes upon compliance with the conditions prescribed in this
Article.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/17‑108) (from Ch. 108 1/2, par. 17‑108)
Sec. 17‑108.
Fiscal year and school year.
"Fiscal year" and "school year": Beginning July 1, 1999, the period
beginning on the 1st day of July of one calendar year and ending on the 30th
day of June of the next calendar year. Each fiscal year and each school year
shall be designated for convenience with the same number as the calendar year
in which that fiscal year or school year ends. The fiscal year which begins
September 1, 1998 shall end June 30, 1999.
(Source: P.A. 90‑548, eff. 12‑4‑97.)
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(40 ILCS 5/17‑109) (from Ch. 108 1/2, par. 17‑109)
Sec. 17‑109.
Fund.
"Fund": The Public School Teachers' Pension and Retirement Fund of
....(city).
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/17‑109.1) (from Ch. 108 1/2, par. 17‑109.1)
Sec. 17‑109.1.
Pension deferred.
"Pension deferred": A pension of a sum determined on termination of
service but payable upon the expiration of a fixed period of time, provided
the person concerned is alive at such date. All such pensions shall be
calculated in accordance with the laws in effect at the date of termination
of service.
(Source: P.A. 83‑792.)
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(40 ILCS 5/17‑109.2) (from Ch. 108 1/2, par. 17‑109.2)
Sec. 17‑109.2.
Pension pending period.
"Pension pending period": The time required to process all details attendant on
the granting of a pension after (1) filing an application therefor and (2)
official termination of service.
(Source: P.A. 83‑792.)
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(40 ILCS 5/17‑110) (from Ch. 108 1/2, par. 17‑110)
Sec. 17‑110.
Pension period.
"Pension period": All time during which service is creditable for
pension purposes pursuant to this Article.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/17‑111) (from Ch. 108 1/2, par. 17‑111)
Sec. 17‑111.
Reversionary pension.
"Reversionary pension": A pension computed on an actuarially equated
basis and payable to a contributor's beneficiary designated under a
prescribed option before retirement, commencing upon the death of the
contributor after retirement on pension and continuing thereafter during
the life of the beneficiary.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/17‑111.1) (from Ch. 108 1/2, par. 17‑111.1)
Sec. 17‑111.1.
Gender.
Whenever used in this Act, the masculine gender shall be understood to
include the feminine gender.
(Source: P. A. 78‑1129.)
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(40 ILCS 5/17‑112) (from Ch. 108 1/2, par. 17‑112)
Sec. 17‑112.
Supplementary payment.
"Supplementary payment": The payment from the retired teachers'
supplementary payment fund necessary to increase a retired teacher's
service or disability retirement pension to the amount provided in Section
17‑‑154.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/17‑113) (from Ch. 108 1/2, par. 17‑113)
Sec. 17‑113.
Validated service.
"Validated service": Service accredited for pension purposes under this
Article.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/17‑114) (from Ch. 108 1/2, par. 17‑114)
Sec. 17‑114.
Computation of service.
When computing validated service, 10 months or more shall constitute one
year of service unless a lesser number of months is established as a school
year by an Employer. Salary representing 5 days'
or more
employment paid in a semi‑monthly or bi‑weekly payroll period, whichever
the case may be, shall be considered for the purpose of computing service
credit and shall entitle a contributor to 1/2 month of service. When
computing total service rendered, 3 to 10 days' employment in the final
total of such service shall entitle a contributor to 1/2 month of service.
(Source: P.A. 90‑566, eff. 1‑2‑98.)
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(40 ILCS 5/17‑114.1) (from Ch. 108 1/2, par. 17‑114.1)
Sec. 17‑114.1.
(a) Any active member of the General Assembly Retirement
System may apply for transfer of his credits and creditable service accumulated
under this Fund to the General Assembly System. Such credits and creditable
service shall be transferred forthwith. Payment by this Fund to the General
Assembly Retirement System shall be made at the same time and shall consist of:
(1) the amounts accumulated to the credit of the applicant, including
interest, on the books of the Fund on the date of transfer, but excluding any additional
or optional credits, which credits shall be refunded to the applicant; and
(2) employer credits computed and credited under this Article including
interest, on the books of the Fund on the date the member terminated service
under the Fund. Participation in this Fund as to any credits transferred
under this Section shall terminate on the date of transfer.
(b) An active member of the General Assembly may reinstate service and
service credits terminated upon receipt of a separation benefit, by payment
to the Fund of the amount of the separation benefit plus interest thereon
to the date of payment.
(Source: P.A. 81‑1128.)
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(40 ILCS 5/17‑114.2) (from Ch. 108 1/2, par. 17‑114.2)
Sec. 17‑114.2.
Transfer of creditable service to Article 8, 9 or 13
Fund.
(a) Any city officer as defined in Section 8‑243.2
of this Code, any county officer elected by vote of the people
who is a participant in the pension fund established under Article 9 of this
Code, and any elected sanitary district commissioner who is a participant in a
pension fund established under Article 13 of this Code,
may apply for transfer of his credits and creditable service
accumulated under this Fund to such Article 8, 9 or 13 fund. Such
creditable service shall be transferred forthwith. Payment by this Fund to
the Article 8, 9 or 13 fund shall be made at the same time and shall consist of:
(1) the amounts accumulated to the credit of the | ||
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(2) employer contributions computed by the Board and | ||
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Participation in this Fund as to any credits transferred under this
Section shall terminate on the date of transfer.
(b) Any such elected city officer, county officer or sanitary
district commissioner
may reinstate credits and creditable service terminated upon receipt of a
separation benefit, by payment to the Fund of the amount of the separation
benefit plus interest thereon to the date of payment.
(Source: P.A. 85‑964; 86‑1488.)
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(40 ILCS 5/17‑114.3) (from Ch. 108 1/2, par. 17‑114.3)
Sec. 17‑114.3.
(a) Persons otherwise required or eligible to participate
in the Fund who elect to continue participation in the General Assembly
System under Section 2‑117.1 may not participate in the Fund for the duration
of such continued participation under Section 2‑117.1.
(b) Upon terminating such continued participation, a person may transfer
credits and creditable service accumulated under Section 2‑117.1 to this
Fund, upon payment to the Fund of the amount by which (1) the employer
and employee contributions that would have been required if he had participated
in this Fund during the period for which credit under Section 2‑117.1 is
being transferred, plus interest thereon at 6% per annum
compounded annually from the date of such participation to the date of
payment, exceeds (2) the amounts actually transferred under that Section to
the Fund.
(Source: P.A. 86‑272.)
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(40 ILCS 5/17‑115) (from Ch. 108 1/2, par. 17‑115)
Sec. 17‑115.
Eligibility for service retirement pension.
(a) The Board shall find a contributor eligible for service
retirement pension when he has:
(1) Left the employment of an Employer after | ||
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(2) Contributed to the Fund the total sums provided | ||
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(3) Contributed as a member of the teaching force in | ||
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(4) Filed a written application for pension.
(b) In computing the years of service for which annuity is granted, the
following conditions shall apply:
(1) No more than 10 years of teaching service in | ||
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(2) Up to 5 years of military active service, if | ||
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(Source: P.A. 90‑32, eff. 6‑27‑97; 90‑566, eff. 1‑2‑98.)
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(40 ILCS 5/17‑116) (from Ch. 108 1/2, par. 17‑116)
Sec. 17‑116.
Service retirement pension.
(a) Each teacher having 20 years of service upon attainment of age 55,
or who thereafter attains age 55 shall be entitled to a service retirement
pension upon or after attainment of age 55; and each teacher in service on or
after July 1, 1971, with 5 or more but less than 20 years of service shall be
entitled to receive a service retirement pension upon or after attainment of
age 62.
(b) The service retirement pension
for a teacher who retires on or after June 25, 1971, at age
60 or over, shall be calculated as follows:
(1) For creditable service earned before July 1, | ||
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(2) For creditable service earned on or after July | ||
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(3) For all other creditable service: 2.2% of | ||
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(c) When computing such service retirement pensions, the
following conditions shall apply:
1. Average salary shall consist of the average | ||
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2. Proportionate credit shall be given for validated | ||
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3. For retirement at age 60 or over the pension | ||
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4. For separation from service below age 60 to a | ||
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5. No additional pension shall be granted for | ||
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6. Service retirement pensions shall begin on the | ||
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7. A member who is eligible to receive a retirement | ||
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8. A member retiring after the effective date of | ||
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(Source: P.A. 90‑566, eff. 1‑2‑98; 90‑582, eff. 5‑27‑98.)
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(40 ILCS 5/17‑116.3)
Sec. 17‑116.3.
Early retirement incentives.
(a) A teacher who is covered by a collective bargaining agreement shall
not be eligible for the early retirement incentives provided under this
Section unless the collective bargaining agent and the Board of Education
have entered into an agreement under which the agent agrees that any
payment for accumulated unused sick days to which the employee is entitled
upon withdrawal from service may be paid by the Board of Education in
installments over a period of up to 5 years, and a copy of this agreement
has been filed with the Board of the Fund.
To be eligible for the benefits provided in this Section,
a person must:
(1) be a member of this Fund who, on or after May 1, | ||
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(2) have not previously received a retirement | ||
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(3) file with the Board and the Board of Education, | ||
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(4) be eligible to receive a retirement pension | ||
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(5) have attained age 50 (without the use of any age | ||
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(6) have at least 5 years of creditable service | ||
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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's age at retirement shall
be deemed to be increased by an equal 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 purposes of Section 17‑116.1, and the determination of
average salary or compensation under this or any other Article of this Code.
The age enhancement established under this Section may be used for all
purposes under this Article (including calculation of a proportionate
pension payable by this Fund under the Retirement Systems Reciprocal
Act), except for purposes of the reversionary pension under
Section 17‑120, and distributions required by federal law on
account of age. 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 Fund an employer contribution consisting of
12% of the member's highest annual full‑time rate of compensation for each
year of creditable service granted under this Section.
The employer contribution shall be paid to the Fund 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 Fund, 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 Fund 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 pension.
For all creditable service established under this Section, the
employee must pay to the Fund an employee contribution consisting of
4% of the member's highest annual salary rate used in the determination of
the retirement pension for each year of creditable service granted under
this Section. The employee contribution shall be 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 whose pension is suspended or cancelled
under Section 17‑149 or 17‑150 shall thereby forfeit the age enhancement
and creditable service. 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 apply for early
retirement under this Section exceeds 30% of those eligible, the employer may
require that, for any or all of the number of applicants in excess of that 30%,
the starting date of the retirement pension enhanced under this Section be no
earlier than June 1, 1994 and no later than September 1, 1994. The right to
have the retirement pension begin before June 1, 1994 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
beginning to receive a retirement pension on the earliest date upon which
the person is otherwise eligible under this Article.
(f) For a member who is notified after July 30, 1993, but before November
29, 1993, that he or she will become a supernumerary or reserve teacher in the
1993‑1994 school year: (1) the August 15, 1993 application deadline in
subdivision (a)(3) of this Section is extended to December 14, 1993, (2) the
September 1, 1993 deadline in subdivision (a)(4) of this Section is extended to
December 14, 1993, and (3) 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.
(f‑5) For a member who is notified after January 1, 1994, but before March
1, 1994, that he or she will become a reserve teacher in the 1993‑1994 school
year: (1) the August 15, 1993 application deadline in subdivision (a)(3) of
this Section is extended to April 1, 1994; (2) the September 1, 1993 deadline
in subdivision (a)(4) of this Section is extended to April 1, 1994; and (3) 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
17‑116.4, 17‑116.5 or 17‑116.6 may not receive any early retirement
incentive under this Section.
(h) The version of this Section included in Public Act 88‑85 is
intended to and shall control over the version of this Section included in
Public Act 88‑89, notwithstanding Section 6 of the Statute on Statutes. All
persons qualifying for early retirement incentives under this Section shall be
subject to the limitations and restrictions provided in the version of this
Section included in Public Act 88‑85, as amended by Public Act 88‑511.
(i) In addition to the benefits provided under the other provisions of
this Section, every person who receives early retirement benefits under this
Section is entitled to one additional year of creditable service and a
corresponding year of additional age enhancement, for which no additional
contribution is required. Every person who receives early retirement benefits
under this Section whose retirement annuity has been calculated on the basis of
a 4‑year average salary is also entitled to have the annuity recalculated on
the basis of the average salary for the 3 highest consecutive years within the
last 10 years of service.
The additional benefits provided by this subsection (i) shall begin to accrue
on the date the retirement annuity began, notwithstanding Section 17‑157. The
Fund shall recalculate all annuities originally calculated under this Section
to reflect the additional benefits provided under this subsection and shall pay
to the annuitant in a lump sum the difference between the annuity payments paid
before the date of the recalculation and the recalculated amount of those
payments.
(Source: P.A. 92‑416, eff. 8‑17‑01.)
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(40 ILCS 5/17‑116.4)
Sec. 17‑116.4.
Early retirement incentives.
(a) A teacher who is covered by a collective bargaining agreement shall
not be eligible for the early retirement incentives provided under this
Section unless the collective bargaining agent and the Board of Education
have entered into an agreement under which the agent agrees that any
payment for accumulated unused sick days to which the employee is entitled
upon withdrawal from service may be paid by the Board of Education in
installments over a period of up to 5 years, and a copy of this agreement
has been filed with the Board of the Fund.
To be eligible for the benefits provided in this Section,
a person must:
(1) be a member of this Fund who, on or after May 1, | ||
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(2) have not previously received a retirement | ||
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(3) file with the Board and the Board of Education, | ||
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(4) be eligible to receive a retirement pension | ||
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(5) have attained age 50 (without the use of any age | ||
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(6) have at least 5 years of creditable service | ||
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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's age at retirement shall
be deemed to be increased by an equal 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 purposes of Section 17‑116.1, and the determination of
average salary or compensation under this or any other Article of this Code.
The age enhancement established under this Section may be used for all
purposes under this Article (including calculation of a proportionate
pension payable by this Fund under the Retirement Systems Reciprocal
Act), except for purposes of the reversionary pension under
Section 17‑120, and distributions required by federal law on
account of age. 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 Fund an employer contribution consisting of
12% of the member's highest annual full‑time rate of compensation for each
year of creditable service granted under this Section.
The employer contribution shall be paid to the Fund 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 Fund, 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 Fund 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 pension.
For all creditable service established under this Section, the
employee must pay to the Fund an employee contribution consisting of
4% of the member's highest annual salary rate used in the determination of
the retirement pension for each year of creditable service granted under
this Section. The employee contribution shall be 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 whose pension is suspended or cancelled
under Section 17‑149 or 17‑150 shall thereby forfeit the age enhancement
and creditable service. 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 apply for early
retirement under this Section exceeds 30% of those eligible, the employer may
require that, for any or all of the number of applicants in excess of that 30%,
the starting date of the retirement pension enhanced under this Section be no
earlier than June 1, 1995 and no later than September 1, 1995. The right to
have the retirement pension begin before June 1, 1995 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
beginning to receive a retirement pension 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
17‑116.3 may not receive any early retirement incentive under this Section.
(g) Notwithstanding Section 17‑157, a person who is receiving early
retirement benefits under this Section may establish service credit for a
period of up to 3 weeks during the month of January, 1968, during which the
person was prevented from working due to civil unrest or a wildcat strike.
A person wishing to establish this credit must apply in writing to the Board
within 30 days after the effective date of this amendatory Act of the 92nd
General Assembly and pay to the Fund an employee contribution calculated at
the rate and salary applicable to the employee at the time for which credit
is being established, without interest. When a person establishes additional
service credit under this subsection, the Fund shall recalculate the annuity
originally granted under this Section to reflect the additional credit and
shall pay to the annuitant in a lump sum the difference between the annuity
payments paid before the date of the recalculation and the recalculated amount
of those payments.
(Source: P.A. 92‑416, eff. 8‑17‑01.)
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(40 ILCS 5/17‑116.5)
Sec. 17‑116.5.
Early retirement incentives.
(a) A teacher who is covered by a collective bargaining agreement shall
not be eligible for the early retirement incentives provided under this
Section unless the collective bargaining agent and the Board of Education
have entered into an agreement under which the agent agrees that any
payment for accumulated unused sick days to which the employee is entitled
upon withdrawal from service may be paid by the Board of Education in
installments over a period of up to 5 years, and a copy of this agreement
has been filed with the Board of the Fund.
To be eligible for the benefits provided in this Section,
a person must:
(1) be a member of this Fund who, on November 1, | ||
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(2) be a member of this Fund who, on or after May 1, | ||
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(3) have not previously received a retirement | ||
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(4) file with the Board and the Board of Education, | ||
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(5) be eligible to receive a retirement pension | ||
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(6) have attained age 50 (without the use of any age | ||
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(7) have at least 5 years of creditable service | ||
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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's age at retirement shall
be deemed to be increased by an equal 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 purposes of Section 17‑116.1, and the determination of
average salary or compensation under this or any other Article of this Code.
The age enhancement established under this Section may be used for all
purposes under this Article (including calculation of a proportionate
pension payable by this Fund under the Retirement Systems Reciprocal
Act), except for purposes of the reversionary pension under
Section 17‑120, and distributions required by federal law on
account of age. 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 Fund an employer contribution consisting of
12% of the member's highest annual full‑time rate of compensation for each
year of creditable service granted under this Section.
The employer contribution shall be paid to the Fund 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 Fund, 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 Fund 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 pension.
For all creditable service established under this Section, the
employee must pay to the Fund an employee contribution consisting of
4% of the member's highest annual salary rate used in the determination of
the retirement pension for each year of creditable service granted under
this Section. The employee contribution shall be 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 whose pension is suspended or cancelled
under Section 17‑149 or 17‑150 shall thereby forfeit the age enhancement
and creditable service. 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 apply for early
retirement under this Section exceeds 30% of those eligible, the employer may
require that, for any or all of the number of applicants in excess of that 30%,
the starting date of the retirement pension enhanced under this Section be no
earlier than June 1, 1995 and no later than
September 1, 1995. The right to have the retirement pension begin before
June 1, 1995 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
beginning to receive a retirement pension on the earliest date upon which
the person is otherwise eligible under this Article.
(f) For a member who receives notice that he or she has been declared a
reserve teacher pursuant to a collective
bargaining agreement after February 15, 1994, but before
September 15, 1994:
(1) the March 1, 1994 application deadline in subdivision (a)(4) of
this Section is extended to a date 15 days after the date of notification
of the reserve teacher declaration, (2) the September 1, 1994 deadline in
subdivision (a)(5) of
this Section is extended to October 1, 1994, and (3) 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
17‑116.3, 17‑116.4, or 17‑116.6 may not receive any early retirement incentive
under this
Section.
(Source: P.A. 88‑511.)
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(40 ILCS 5/17‑116.6)
Sec. 17‑116.6.
Early retirement incentives.
(a) A teacher who is covered by a collective bargaining agreement shall
not be eligible for the early retirement incentives provided under this
Section unless the collective bargaining agent and the Board of Education
have entered into an agreement under which the agent agrees that any
payment for accumulated unused sick days to which the employee is entitled
upon withdrawal from service may be paid by the Board of Education in
installments over a period of up to 5 years, and a copy of this agreement
has been filed with the Board of the Fund.
To be eligible for the benefits provided in this Section,
a person must:
(1) be a member of this Fund who is a reserve | ||
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(2) have not previously received a bachelor's or | ||
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(3) have not previously received a retirement | ||
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(4) file with the Board and the Board of Education, | ||
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(5) be eligible to receive a retirement pension | ||
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(6) have attained age 50 (without the use of any age | ||
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(7) have at least 5 years of creditable service | ||
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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's age at retirement shall
be deemed to be increased by an equal 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 purposes of Section 17‑116.1, and the determination of
average salary or compensation under this or any other Article of this Code.
The age enhancement established under this Section may be used for all
purposes under this Article (including calculation of a proportionate
pension payable by this Fund under the Retirement Systems Reciprocal
Act), except for purposes of the reversionary pension under
Section 17‑120, and distributions required by federal law on
account of age. 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 Fund an employer contribution consisting of
12% of the member's highest annual full‑time rate of compensation for each
year of creditable service granted under this Section.
The employer contribution shall be paid to the Fund 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 Fund, 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 Fund 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 pension.
For all creditable service established under this Section, the
employee must pay to the Fund an employee contribution consisting of
4% of the member's highest annual salary rate used in the determination of
the retirement pension for each year of creditable service granted under
this Section. The employee contribution shall be 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 whose pension is suspended or cancelled
under Section 17‑149 or 17‑150 shall thereby forfeit the age enhancement
and creditable service. 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) A member who receives any early retirement incentive under Section
17‑116.3, 17‑116.4, or 17‑116.5 may not receive any early retirement incentive
under this Section.
(Source: P.A. 90‑655, eff. 7‑30‑98.)
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(40 ILCS 5/17‑117) (from Ch. 108 1/2, par. 17‑117)
Sec. 17‑117.
Disability retirement pension.
(a) The conditions prescribed in items 1 and 2 in Section 17‑116 for
computing service retirement pensions shall apply in the computation of
disability retirement pensions.
(1) Each teacher retired or retiring after 10 years | ||
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(2) If the total service is 20 years and less than | ||
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(3) If the total service is 20 years or more and the | ||
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(4) If the total service is 25 years or more | ||
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(5) If the total service is 20 years or more and the | ||
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(b) For disability retirement pensions, the following further
conditions shall apply:
(1) Written application shall be submitted within 3 | ||
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(2) The applicant shall submit to examination by | ||
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(3) Two physicians, appointed by the Board, shall | ||
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(c) Disability retirement pensions shall begin on the effective date of
resignation or the day following the close of the payroll period for
which credit was validated, whichever is later.
(Source: P.A. 90‑32; eff. 6‑27‑97; 90‑566, eff. 1‑2‑98; 91‑887, eff. 7‑6‑00.)
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(40 ILCS 5/17‑117.1) (from Ch. 108 1/2, par. 17‑117.1)
Sec. 17‑117.1. Duty disability. A teacher who becomes wholly and
presumably permanently incapacitated for duty while under age
65 as the proximate result of injuries sustained or a hazardous
condition encountered in the performance and within the scope of his
duties, if such injury or hazard was not the result of his own
negligence, shall be entitled to a duty disability benefit, provided:
(1) application for the benefit is made to the Board | ||
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(2) certification is received from 2 or more | ||
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(3) the teacher provides the Board with a copy of | ||
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The benefit shall be payable during disability and shall be 75% of
the salary in effect at date of disability, payable until the teacher's
attainment of age 65. At such time if disability still exists, the
teacher shall become entitled to a service retirement pension.
Creditable service shall accrue during the period the disability benefit
is payable.
Before any action is taken by the Board on an application for a
duty
disability benefit, the teacher shall file a claim with the Illinois Workers' Compensation
Commission to establish that the disability was incurred while the
teacher was acting within the scope of and in the course of his duties
under the terms of the Workers' Compensation or Occupational Diseases
Acts, whichever may be applicable. The benefit shall be payable after a
finding by the Commission that the claim was compensable under either of
the aforesaid Acts; but if such finding is appealed the benefit shall be
payable only upon affirmance of the Commission's finding. After the
teacher has made timely application for a duty disability benefit
supported by the certificate of two or more physicians, he shall be
entitled to a disability retirement pension provided in Section 17‑117
of this Act until such time as the Illinois Workers' Compensation Commission award finding
that his disability is duty‑connected as provided in this Section
becomes final.
Any amounts provided for the teacher under such Acts shall be applied
as an offset to the duty disability benefit payable hereunder in such
manner as may be prescribed by the rules of the Board.
(Source: P.A. 93‑721, eff. 1‑1‑05.)
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(40 ILCS 5/17‑118) (from Ch. 108 1/2, par. 17‑118)
Sec. 17‑118.
Disability pension administration.
A disability
pensioner may be required to submit to an examination periodically by a
physician or physicians appointed by the Board. The purpose of
the
examination is to establish whether the disability still exists and to
determine whether the person is still incapacitated for teaching service
or service as an employee of the Board. The Board
may require disability
pensioners to submit evidence of the continued existence of the
disability. The Board may also employ investigative services to
determine whether such pensioners are employed elsewhere as teachers or
to establish whether they are still disabled.
The Board shall cancel a disability pension upon evidence that
a
pensioner is no longer incapacitated for teaching or service as an
employee of the Board. However, if a pensioner has attained age
55 and
has 20 or more years of service, the pension shall not be cancelled
unless he is re‑employed as a teacher or as a pensioner‑substitute. If a
disability pensioner is re‑employed as a teacher or
pensioner‑substitute, the pension shall be cancelled on the first day of
re‑employment. The pensioner shall reimburse the Fund for pension
payments received after the date of re‑employment (if any), plus 5%
interest compounded annually beginning one year after the Fund's
notification of the cancellation and indebtedness. Upon cancellation of
a disability pension, unless such person re‑enters service and becomes a
contributor, a refund shall be payable of the excess, if any, of the
refundable contributions paid by him over the amount
paid in disability
pension.
(Source: P.A. 90‑566, eff. 1‑2‑98.)
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(40 ILCS 5/17‑119) (from Ch. 108 1/2, par. 17‑119)
Sec. 17‑119.
Automatic annual increase in pension.
Each teacher
retiring on or after September 1, 1959, is entitled to the annual
increase in pension, defined herein, while he is receiving a
pension from the Fund.
1. The term "base pension" means a service retirement or disability
retirement pension in the amount fixed and payable at the date of
retirement of a teacher.
2. The annual increase in pension shall be at the rate of 1 1/2% of
base pension. This increase shall first occur in January of the year
next following the first anniversary of retirement. At such time the
Fund shall pay the pro rata part of the increase for the period
from the
first anniversary date to the date of the first increase in
pension. Beginning January 1, 1972, the rate of annual increase in
pension shall be 2% of the base pension. Beginning January 1, 1979, the
rate of annual increase in pension shall be 3% of the base pension.
Beginning January 1, 1990, all automatic annual increases payable under
this Section shall be calculated as a percentage of the total pension
payable at the time of the increase, including all increases previously
granted under this Article, notwithstanding Section 17‑157.
3. An increase in pension shall be granted only if the retired
teacher is age 60 or over. If the teacher attains age 60 after
retirement, the increase in pension shall begin in January of the
year following the 61st birthday. At such time the Fund also shall
pay
the pro rata part of the increase from the 61st birthday to the date of
first increase in pension.
In addition to other increases which may be provided by this Section, on
January 1, 1981 any teacher who was receiving a retirement pension on or
before January 1, 1971 shall have his retirement pension then being paid
increased $1 per month for each year of creditable service. On January
1, 1982, any teacher whose retirement pension began on or before January 1,
1977, shall have his retirement pension then being paid increased $1 per
month for each year of creditable service.
On January 1, 1987, any teacher whose retirement pension began
on or before January 1, 1977, shall have the monthly retirement pension
increased by an amount equal to 8¢ per year of creditable service times the
number of years that have elapsed since the retirement pension began.
(Source: P.A. 90‑566, eff. 1‑2‑98.)
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(40 ILCS 5/17‑119.1)
Sec. 17‑119.1.
Optional increase in retirement annuity.
(a) A member of the Fund may qualify for the augmented rate under
subdivision (b)(3) of Section 17‑116 for all years of creditable service
earned before July 1, 1998 by making the optional contribution specified in
subsection (b); except that a member who retires on or after July 1, 1998
with at least 30 years of creditable service at retirement qualifies for the
augmented rate without making any contribution under subsection (b). Any
member who retires on or after July 1, 1998 and before the effective date of
this amendatory Act of the 92nd General Assembly with at least 30 years of
creditable service shall be paid a lump sum equal to the amount he or she would
have received under the augmented rate minus the amount he or she actually
received. 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 Fund 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 Fund determines that the amount paid by the member
exceeds the recalculated amount, the Fund 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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(iii) in substantially equal monthly installments | ||
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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 (including a member who has
become an annuitant) dies before making the full
contribution, the payments made under this Section shall be refunded to the
member's designated beneficiary if there is no survivor's or children's
pension benefit payable. If there is a survivor's or children's benefit
payable, then all payments made under this Section shall be retained by the
Fund and all such survivor's or children's benefits payable shall be calculated
as if all contributions required under this Section have been paid in full.
(d) For purposes of this Section and subsection (b) of Section
17‑116, 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 Fund.
(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.
(Source: P.A. 91‑17, eff. 6‑4‑99; 92‑416, eff. 8‑17‑01; 92‑599, eff. 6‑28‑02;
92‑651, eff. 7‑11‑02.)
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(40 ILCS 5/17‑120) (from Ch. 108 1/2, par. 17‑120)
Sec. 17‑120.
Reversionary pension.
Any contributor, at any
time prior to retirement on a service
retirement pension, may exercise an option of taking a lesser amount of
service retirement pension and providing with the remainder of his equity,
determined on an actuarial equivalent basis, a reversionary pension benefit
for any person named in a written designation filed by the contributor with
the Board, provided that the pension resulting from such election
is not
less than $40 per month, or more than the reduced pension payable after the
exercise of the option. If the reduced pension to the retired teacher is
less than that provided for a beneficiary, whether or not the aforesaid
minimum amount is payable, the election shall be void.
The pension to a beneficiary shall begin on the first day of the month
next following the month in which the retired teacher dies.
If the beneficiary survives the date of retirement of the teacher, but does
not survive the retired teacher, no reversionary pensions shall be payable,
and the teacher's service pension shall be restored
to the full service pension amount beginning on the first day of the month next
following the month in which the beneficiary dies or on the effective date
of this amendatory Act of 1997, whichever occurs later.
If the beneficiary dies after the election but before the
retirement of the teacher, the election shall be void. No change shall be
permitted in the written designation filed with the Board.
In the case of a reversionary annuity elected on or after January 1,
1984, no reversionary annuity shall be paid if the teacher dies before the
expiration of 730 days from the date that a written designation was filed
with the Board, even though the teacher was receiving a reduced
annuity.
Sections 1‑103.1 and 17‑157 do not apply to the changes made to this
Section by this amendatory Act of 1997.
(Source: P.A. 90‑32, eff. 6‑27‑97; 90‑566, eff. 1‑2‑98.)
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(40 ILCS 5/17‑121) (from Ch. 108 1/2, par. 17‑121)
Sec. 17‑121.
Survivor's pensions ‑ Eligibility.
(a) A surviving spouse of a teacher shall be entitled to a survivor's
pension only if the surviving spouse was married to the teacher for at least one year immediately prior to
the teacher's death.
The changes made to this subsection (a) by this amendatory Act of the 92nd
General Assembly apply (i) only to the surviving spouse of a person who dies on
or after the effective date of this amendatory Act, and only if the amount of
any refund of contributions for survivor's pension is repaid with interest in
accordance with subsection (f), and (ii) notwithstanding Section 17‑157 and
without regard to whether the deceased person was in service on or after the
effective date of this amendatory Act.
(b) If the surviving spouse is under age 50 and there are no eligible
minor children born to or legally adopted by the contributor and his or her
surviving spouse, payment of the survivor's pension shall begin when the
surviving spouse attains age 50.
(c) Beginning January 1, 2003, the remarriage of a surviving spouse at
any age does not terminate his or her survivor's pension.
A surviving spouse whose survivor's pension (or expectation of a survivor's
pension upon attainment of age 50) was terminated before January 1, 2003 due
to remarriage and who applies for reinstatement of that pension and repays the
amount of any refund of contributions for survivor's pension with interest in
accordance with subsection (f) shall be entitled to have the survivor's pension
(or
expectation of a survivor's pension upon attainment of age 50) reinstated.
The reinstated pension shall begin to accrue on the first day of the month
following the month in which the application and repayment, if any, are
received by the Fund, but in no event sooner than January 1, 2003 and, if
subsection (b) applies, no sooner than upon attainment of age 50. The
reinstated pension shall include any one‑time or annual increases in the
survivor's pension received prior to the date of termination, but not any
increases that would otherwise have accrued from the date of termination to
the date of reinstatement.
This subsection (c) applies notwithstanding Section 17‑157 and without
regard to whether the deceased teacher was in service on or after the
effective date of this amendatory Act of the 92nd General Assembly.
(d) Except as provided in subsection (c), remarriage of the surviving
spouse prior to September 1, 1983 while in receipt of a survivor's pension
shall permanently terminate payment thereof, regardless of any subsequent
change in marital status; however, beginning September 1, 1983, remarriage
of a surviving spouse after attainment of age 55 shall not terminate the
survivor's pension.
A surviving spouse whose pension was terminated on or after September
1, 1983 due to remarriage after attainment of age 55, and who applies for
reinstatement of that pension before January 1, 1990, shall be entitled to
have the pension reinstated effective January 1, 1990.
(e) A surviving spouse of a member or annuitant under this Fund who is
also a dependent beneficiary under the provisions of Section 16‑140 is eligible
for a reciprocal survivor's pension, provided that any refund of survivor's
pension contributions is repaid to the Fund and application is made within 30
days after the effective date of this amendatory Act of the 92nd General
Assembly.
(f) If a refund of contributions for survivor's pension has been paid, a
person choosing to establish or reestablish the right to receive a survivor's
pension pursuant to the changes made to this Section by this amendatory Act of
the 92nd General Assembly must first repay to the Fund the amount of the refund
of contributions for survivor's pension, together with interest thereon at the
rate of 5% per year, compounded annually, from the date of the refund to the
date of repayment.
(Source: P.A. 92‑416, eff. 8‑17‑01; 92‑599, eff. 6‑28‑02.)
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(40 ILCS 5/17‑122) (from Ch. 108 1/2, par. 17‑122)
Sec. 17‑122.
Survivor's and children's pensions ‑ Amount.
Upon the
death of a teacher who has completed at least 1 1/2 years of
contributing service with either this Fund or the State Universities
Retirement System or the Teachers' Retirement System of the State of
Illinois, provided his death occurred while (a) in active service
covered by the Fund or during his first 18 months of continuous
employment without a break in service under any other participating
system as defined in the Illinois Retirement Systems Reciprocal Act
except the State Universities Retirement System and the Teachers'
Retirement System of the State of Illinois, (b) on a creditable leave of
absence, (c) on a noncreditable leave of absence of no more than one
year, or (d) a pension was deferred or pending provided the teacher had
at least 10 years of validated service credit, or upon the death of a
pensioner otherwise qualified for such benefit, the surviving spouse and
unmarried minor children of the deceased teacher under age 18 shall be
entitled to pensions, under the conditions stated hereinafter. Such
survivor's and children's pensions shall be based on the average of the
4 highest consecutive years of salary in the last 10 years of service or
on the average salary for total service, if total service has been less
than 4 years, according to the following percentages:
30% of average salary or 50% of the retirement pension earned by the
teacher, whichever is larger, subject to the prescribed maximum monthly
payment, for a surviving spouse alone on attainment of age 50;
60% of average salary for a surviving spouse and eligible minor
children of the deceased teacher.
If no eligible spouse survives, or the surviving spouse remarries, or
the parent of the children of the deceased member is otherwise
ineligible for a survivor's pension, a children's pension for eligible
minor children under age 18 shall be paid to their parent or legal
guardian for their benefit according to the following percentages:
30% of average salary for one child;
60% of average salary for 2 or more children.
On January 1, 1981, any survivor or child who was receiving a survivor's
or children's pension on or before January 1, 1971, shall have his survivor's
or children's pension then being paid increased by 1% for each full year
which has elapsed from the date the pension began. On January 1, 1982,
any survivor or child whose pension began after January 1, 1971, but before
January 1, 1981, shall have his survivor's or children's pension then being
paid increased 1% for each full year which has elapsed from the date the
pension began. On January 1, 1987, any survivor or child whose pension began
on or before January 1, 1977, shall have the monthly survivor's or
children's pension increased by $1 for each full year which has elapsed
since the pension began.
Beginning January 1, 1990, every survivor's and children's pension shall be
increased (1) on each January 1 occurring on or after the commencement of the
pension if the deceased teacher died while receiving a retirement pension, or
(2) in other cases, on each January 1 occurring on or after the first
anniversary of the commencement of the pension, by an amount equal to 3% of the
current amount of the pension, including all increases previously granted under
this Article, notwithstanding Section 17‑157. Such increases shall apply
without regard to whether the deceased teacher was in service on or after the
effective date of this amendatory Act of 1991, but shall not accrue for any
period prior to January 1, 1990.
Subject to the minimum established below, the maximum amount of
pension for a surviving spouse alone or one
minor child shall be $400 per month, and the maximum combined pensions for
a surviving spouse and children of the deceased teacher shall be $600
per month, with individual pensions adjusted for all beneficiaries
pro rata to conform with this limitation. If proration is unnecessary
the minimum survivor's and children's pensions shall be $40 per month. The
minimum total survivor's and children's pension payable upon the death of a
contributor or annuitant which occurs after December 31, 1986, shall be 50% of
the earned retirement pension of such contributor or annuitant, calculated
without early retirement discount in the case of death in service.
On death after retirement, the total survivor's and children's
pensions shall not exceed the monthly retirement or disability pension
paid to the deceased retirant. Survivor's and children's benefits described
in this Section shall apply to all service and disability pensioners eligible
for a pension as of July 1, 1981.
(Source: P.A. 90‑32, eff. 6‑27‑97; 90‑566, eff. 1‑2‑98.)
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(40 ILCS 5/17‑123) (from Ch. 108 1/2, par. 17‑123)
Sec. 17‑123.
Death benefits ‑ Death in service.
If a teacher dies (a) in
service, (b) after resignation or (c) after retirement but before receiving
any pension payment, his or her estate shall be paid a refund of the
amounts he or she contributed to the Fund less (1) any former refund that
has not been repaid, (2) the amount contributed for a survivor's pension in
the event such pension is payable under Sections 17‑121 and 17‑122 and (3) pension payments received; but if a written
direction, signed by the contributor before an officer authorized to take
acknowledgments and stating that the refund shall be paid to named
beneficiaries, was filed with the Board prior to his or her death, the
refund shall be paid to such named beneficiaries. If any of several named
beneficiaries does not survive the contributor and no directive was furnished
by the member to cover this contingency, the deceased beneficiary's share of
the refund shall be paid to the estate of the
contributor.
In addition to the payment provided in the foregoing paragraph, if
such teacher has received service credit within 13 calendar months of
the date of death or was on a sick leave authorized by the Employer
at the time of death, and if no other pensions or benefits
were payable under the provisions of this Article or any other
participating system, as defined in the Illinois Retirement Systems
Reciprocal Act, except a refund of contributions or a survivor's pension,
there shall be paid a single payment death benefit. For a teacher who
dies on or after the effective date of this amendatory Act of 1991, this
benefit shall be equal to the last month's base rate of salary, subject
to the limitations and conditions set forth in this Article, for each
year of validated service, not to exceed 6 times such salary, or $10,000,
whichever is less. The single payment death benefit shall be paid in the
manner prescribed for a refund of contributions to the Fund.
Death benefits shall be paid only on written application to the
Board.
(Source: P.A. 90‑566, eff. 1‑2‑98; 91‑357, eff. 7‑29‑99.)
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(40 ILCS 5/17‑124) (from Ch. 108 1/2, par. 17‑124)
Sec. 17‑124.
Death Benefits ‑ Death on pension.
On written application to the Board, there shall be paid to the
estate of a deceased teacher‑pensioner pension payments, accrued,
temporarily withheld or represented by checks uncashed at the date of
his death and the excess, if any, of an amount equal to his refundable
contributions for service or disability retirement pension over pension
to the date of death; provided, that if there be filed with the Board
prior to the death of the pensioner his written direction, signed and
acknowledged before an officer authorized to take acknowledgments, that
such payments be paid to designated beneficiaries, they shall be so paid
on written application therefor to the Board. If none of several
named
beneficiaries survives the pensioner and no directive was furnished by
the member to cover this contingency, the deceased beneficiary's share
shall be paid to the estate of the pensioner.
If a reversionary pension is payable upon death of a pensioner, the
determination and payment of any refund of contributions payable under
this Section shall be made upon death of the reversionary pensioner. At
such time a refund of contributions less (1) the amount contributed for
annual increases in pension and (2) total pension payments to the
teacher‑pensioner and survivor shall be paid in the manner provided in
this Section to the designated beneficiaries, or estate of the deceased
survivor.
If a pension is payable to a surviving spouse and/or minor children
upon death of a pensioner, the determination of any refund of
contributions payable under this Section shall be made upon death of the
survivor and marriage or attainment of age 18 of minor children. At that
time a refund of contributions for retirement and survivors' and
children's pensions less total pension payments to teacher‑pensioner,
survivor and minor children shall be paid in the manner provided in this
Section to the designated beneficiaries, or estate of the deceased
survivor.
If eligible beneficiaries for survivors' or children's benefits
existed at the time of a pensioner's retirement but not on the date of
his death thereafter, the excess of total contributions for retirement
and survivors' and children's pensions over pensions paid shall be
determined upon death of the pensioner and paid in the manner provided
in this Section to the designated beneficiaries, or estate of the
deceased teacher‑pensioner.
Reversionary or survivor's pension payments accrued, temporarily
withheld, or represented by uncashed checks to the date of death shall
be paid to the reversionary pensioner's or survivor's designated
beneficiaries, or estate in the manner provided in this Section.
On death of a retired teacher whose death occurs on
or after the effective date of this amendatory Act of 1991, there shall
be payable a lump sum
death benefit equal to 6 times the teacher's salary rate for his last
month of service or $10,000, whichever is less, upon death during the
first year on pension minus 1/5 of the death benefit, as defined herein,
for each year or fraction thereof on pension after the first full year,
to a minimum of $5,000.
Notwithstanding Section 17‑157, the changes made in this Section and
Section 17‑123 by this amendatory Act of 1991 shall apply to teachers dying
on or after the effective date of this amendatory Act of 1991 without
regard to whether service terminated prior to that date.
(Source: P.A. 90‑566, eff. 1‑2‑98.)
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(40 ILCS 5/17‑125) (from Ch. 108 1/2, par. 17‑125)
Sec. 17‑125.
Refund of contributions.
Upon certification by the Employer of his resignation or cancellation
of his teaching certificate prior to completion of the
minimum term of service required to establish eligibility for a pension
and on written application therefor, a teacher shall be paid a refund of
all the amounts he has contributed to the Fund, less any former
refund
that has not been repaid.
Upon certification by the Employer of his resignation or
cancellation of his teaching certificate after completion of the minimum
term of service required to establish eligibility for a pension and on
written application therefor, a teacher shall be paid a refund of all
the amounts he has contributed, less (1) any former refund that has not
been repaid, and (2) pension payments received, provided he has executed
and delivered to the Board his written receipt and release in
that
behalf. Thereupon, he shall have no further interest in or claim against
the Fund.
A request for refund under either of the preceding paragraphs shall
be considered valid if withdrawal from service occurred at least 2
months prior to the filing of such request.
Upon retirement of a teacher either on immediate or deferred pension,
if the teacher is not then married, or if his spouse or children do not
meet the qualifying conditions for survivor's or children's pensions,
the total amount contributed by him or otherwise paid by deductions from
salary for survivor's pension, shall be refunded to him, without
interest. No survivor's or children's pension rights shall be effective
thereafter in such a case.
During a teacher's term of service, no refund is payable except
contributions made in error.
(Source: P.A. 90‑566, eff. 1‑2‑98.)
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(40 ILCS 5/17‑126) (from Ch. 108 1/2, par. 17‑126)
Sec. 17‑126.
Repayment of refund.
If any person who has received a refund
is reemployed by an Employer and again becomes a contributor for a period of at
least 2
years, or has established credit of at least 2 years of service
subsequent to the date of such refund, in a retirement system which has
subscribed to the "Retirement Systems Reciprocal Act" and is a contributor
thereto, he may repay to the Fund the amount he received as a
refund,
together with interest thereon at 5% per annum compounded annually from
the time the refund
was paid to the date of repayment.
(Source: P.A. 90‑566, eff. 1‑2‑98.)
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(40 ILCS 5/17‑127) (from Ch. 108 1/2, par. 17‑127)
Sec. 17‑127.
Financing; revenues for the Fund.
(a) The revenues for the Fund shall consist of: (1) amounts paid into
the Fund by contributors thereto and from employer contributions and State
appropriations in accordance with this Article; (2) amounts contributed to the
Fund by an Employer; (3) amounts contributed to the Fund pursuant to any law
now in force or hereafter to be enacted; (4) contributions from any other
source; and (5) the earnings on investments.
(b) The General Assembly finds that for many years the State has
contributed to the Fund an annual amount that is between 20% and 30% of the
amount of the annual State contribution to the Article 16 retirement system,
and the General Assembly declares that it is its goal and intention to continue
this level of contribution to the Fund in the future.
Beginning in State fiscal year 1999, the State shall include in its annual
contribution to the Fund an additional amount equal to 0.544% of the Fund's
total teacher payroll; except that this additional contribution need not be
made in a fiscal year if the Board has certified in the previous fiscal year
that the Fund is at least 90% funded, based on actuarial determinations. These
additional State contributions are intended to offset a portion of the cost to
the Fund of the increases in retirement benefits resulting from this amendatory
Act of 1998.
(Source: P.A. 90‑548, eff. 12‑4‑97; 90‑566, eff. 1‑2‑98; 90‑582, eff.
5‑27‑98; 90‑655, eff. 7‑30‑98.)
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(40 ILCS 5/17‑127.1) (from Ch. 108 1/2, par. 17‑127.1)
Sec. 17‑127.1.
Special revenues.
Donations, gifts, and legacies received
by the fund shall be held and accounted
for as the Board so provides by appropriate
resolution. Nothing
in this Article shall be so construed as to prevent the
Board from directing such resources to be
used for memorial or other commemorative purposes
honoring the grantors, while alive or posthumously, of such special revenues.
(Source: P.A. 90‑566, eff. 1‑2‑98.)
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(40 ILCS 5/17‑127.2)
Sec. 17‑127.2.
Additional contributions by employer of teachers.
Beginning July 1, 1998, the employer of a teacher shall pay to the
Fund an employer contribution computed as follows:
(1) Beginning July 1, 1998 through June 30, 1999, | ||
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(2) Beginning July 1, 1999 and thereafter, the | ||
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The employer may pay these employer contributions out of any source of funding
available for that purpose and shall forward the contributions to the Fund on
the schedule established for the payment of member contributions.
These employer contributions need not be made in a fiscal year if the Board
has certified in the previous fiscal year that the Fund is at least 90% funded,
based on actuarial determinations.
These employer contributions are intended to offset a portion of the cost to
the Fund of the increases in retirement benefits resulting from Public Act
90‑582.
(Source: P.A. 90‑582, eff. 5‑27‑98; 91‑357, eff. 7‑29‑99.)
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(40 ILCS 5/17‑128) (from Ch. 108 1/2, par. 17‑128)
Sec. 17‑128.
(Repealed).
(Source: Repealed by P.A. 89‑15, eff. 5‑30‑95.)
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(40 ILCS 5/17‑129) (from Ch. 108 1/2, par. 17‑129)
Sec. 17‑129.
Employer contributions; deficiency in Fund.
(a) If in any fiscal year of the Board of Education ending prior to 1997 the
total amounts paid to the Fund from the Board of Education (other than under
this subsection, and other than amounts used for making or "picking up"
contributions on behalf of teachers) and from the State do not equal the total
contributions made by or on behalf of the teachers for such year, or if the
total income of the Fund in any such fiscal year of the Board of Education from
all sources is less than the total such expenditures by the Fund for such year,
the Board of Education shall, in the next succeeding year, in addition to any
other payment to the Fund set apart and appropriate from moneys from its tax
levy for educational purposes, a sum sufficient to remove such deficiency or
deficiencies, and promptly pay such sum into the Fund in order to restore any
of the reserves of the Fund that may have been so temporarily applied. Any
amounts received by the Fund after December 4, 1997 from State appropriations, including under Section
17‑127, shall be a credit against and shall fully satisfy any obligation that
may have arisen, or be claimed to have arisen, under this subsection (a) as a
result of any deficiency or deficiencies in the fiscal year of the Board of
Education ending in calendar year 1997.
(b) (i) For fiscal years 2011 through 2045, the minimum contribution
to the Fund to be made by the Board of Education in each fiscal year shall be
an amount determined by the Fund to be sufficient to bring the total assets of
the Fund up to 90% of the total actuarial liabilities of the Fund by the end of
fiscal year 2045. In making these determinations, the required Board of
Education contribution shall be calculated each year as a level percentage of
the applicable employee payrolls over the years remaining to and including
fiscal year 2045 and shall
be determined under the projected unit credit actuarial cost method.
(ii) For fiscal years 1999 through 2010, the Board of Education's
contribution to the Fund, as a percentage of the applicable employee payroll,
shall be increased in equal annual increments so that by fiscal year 2011, the
Board of Education is contributing at the rate required under this subsection.
(iii) Beginning in fiscal year 2046, the minimum Board of Education
contribution for each fiscal year shall be the amount needed to maintain the
total assets of the Fund at 90% of the total actuarial liabilities of the Fund.
(iv) Notwithstanding the provisions of paragraphs (i), (ii), and (iii)
of this subsection (b), for any fiscal year the contribution to the Fund from
the Board of Education shall not be required to be in excess of the amount
calculated as needed to maintain the assets (or cause the assets to be) at the
90% level by the end of the fiscal year.
(v) Any contribution by the State to or for the benefit of the Fund,
including, without limitation, as referred to under Section 17‑127, shall be a
credit against any contribution required to be made by the Board of Education
under this subsection (b).
(c) The Board shall determine the amount of Board of Education
contributions required for each fiscal year on the basis of the actuarial
tables and other assumptions adopted by the Board and the recommendations of
the actuary, in order to meet the minimum contribution requirements of
subsections (a) and (b). Annually, on or before February 28, the Board shall
certify to the Board of Education the amount of the required Board of Education
contribution for the coming fiscal year. The certification shall include a
copy of the actuarial recommendations upon which it is based.
(Source: P.A. 89‑15, eff. 5‑30‑95; 90‑548, eff. 12‑4‑97; 90‑566, eff. 1‑2‑98;
90‑655, eff. 7‑30‑98.)
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(40 ILCS 5/17‑130) (from Ch. 108 1/2, par. 17‑130)
Sec. 17‑130.
Participants' contributions by payroll deductions.
(a) There shall be deducted from the salary of each teacher 7.50% of his salary for service or disability retirement pension and
0.5% of salary for the annual increase in base pension.
In addition, there shall be deducted from the salary of each teacher
1% of his salary for survivors' and children's pensions.
(b) An Employer and any employer of eligible contributors as defined in
Section 17‑106 is authorized to make the necessary deductions from the salaries
of its teachers. Such amounts shall be included as a part of the Fund. An
Employer and any employer of eligible contributors as defined in Section 17‑106
shall formulate such rules and regulations as may be necessary to give effect
to the provisions of this Section.
(c) All persons employed as teachers shall, by such employment,
accept the provisions of this Article and of Sections 34‑83 to 34‑87,
inclusive, of "The School Code", approved March 18, 1961, as amended,
and thereupon become contributors to the Fund in accordance with the
terms thereof. The provisions of this Article and of those Sections
shall become a part of the contract of employment.
(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 17‑119.1 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.
(Source: P.A. 90‑566, eff. 1‑2‑98; 90‑582, eff. 5‑27‑98.)
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(40 ILCS 5/17‑130.1) (from Ch. 108 1/2, par. 17‑130.1)
Sec. 17‑130.1.
Employer contributions on behalf of employees.
An Employer
and the Board may make and may incur an obligation
to make contributions on behalf of its employees in an amount not to exceed
the employee contributions required by Section 17‑130 for all compensation
earned after September 21, 1981. If the
Employer or the Board of Education determines not to make such
contributions or incur an
obligation to make such contributions, the amount that it could
have contributed on behalf of its employees shall continue to
be deducted from salary. If contributions are made by an Employer or the
Board
on behalf of its employees they shall be treated as employer contributions
in determining tax treatment under the United States Internal Revenue Code.
An Employer or the Board may make these
contributions on behalf
of its employees by a reduction in the cash salary of the employee or by
an offset against a future salary increase or by a combination of a reduction
in salary and offset against
a future salary increase. An Employer or the Board shall
pay these employee contributions
from the same source of funds which is used in paying salary to the employee,
or it may also or alternatively make such contributions from the proceeds
of the tax authorized by Section 34‑60
of the School Code. Such employee contributions shall be treated for all purposes of this
Article 17 in the same manner and to
the same extent as employee contributions made by employees and deducted
from salary; provided, however, that contributions made by the Board of
Education on behalf of its employees which are to be paid from the proceeds
of the tax, as provided in Section
34‑60
of the School Code, shall not be treated as teachers' pension
contributions for the purposes of Section 17‑132 of the Illinois Pension
Code, and provided further, that contributions which are made by the Board
of Education on behalf of its employees shall not be treated as a pension
or retirement obligation of the Board of Education for purposes of Section
12 of "An Act in relation to State revenue sharing with local governmental
entities", approved July 31, 1969.
(Source: P.A. 90‑566, eff. 1‑2‑98.)
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(40 ILCS 5/17‑130.2)
Sec. 17‑130.2.
Pickup of optional contributions.
(a) For the purposes of this Section, "optional contributions" means
contributions that a member elects to make in order to qualify for the
augmented service retirement pension rate under Section 17‑119.1.
(b) Subject to the requirements of federal law and the rules of the
Board, beginning July 1, 1998 a member who is employed on a full‑time basis
may elect to have the Employer pick up optional contributions that the
member has elected to pay to the Fund, and the contributions so picked up
shall be treated as employer contributions for the purposes of determining
federal tax treatment. The election to have optional contributions picked
up is irrevocable. At the time of making the election, the member shall
execute a binding, irrevocable payroll deduction authorization. Upon receiving
notice of the election, the Employer shall pick up the contributions by a
reduction in the cash salary of the member and shall pay the contributions
from the same source of funds that is used to pay earnings to the member.
(c) Each Employer under this Fund shall take the steps necessary to
comply with the requirements of Section 414(h) of the Internal Revenue Code
of 1986, as amended, to permit the pickup of optional contributions on a
tax‑deferred basis.
(Source: P.A. 90‑582, eff. 5‑27‑98.)
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(40 ILCS 5/17‑131) (from Ch. 108 1/2, par. 17‑131)
Sec. 17‑131.
Administration of payroll deductions.
During any period in which salaries are paid, such deductions
by an Employer or the Board shall be made on
the basis of the full
salary rates, exclusive of salaries for overtime, special services or
any employment on an optional basis, such as in summer school. If
salaries represent adjustments on account of error, deductions
by the Employer or the Board shall be at rates in force
during the applicable
payroll period. If teachers receive salaries for the school year, as
established by an Employer, or if they receive
salaries for more
than 10 calendar months, the amount required for each year of service shall be
deducted by such Employer in installments. The
total amounts for
each semimonthly payroll period, or bi‑weekly payroll period, as the case
may be, shall be deducted only when salary payments represent 5 days' pay
or more. If an Employer or the Board pays salaries to
members of
the teaching force for vacation periods, the salary shall be considered
part of the teacher's annual salary, shall be subject to the standard
deductions for pension contributions, and shall be
considered to represent
pay for 5 or more days' employment in a bi‑weekly or semi‑monthly payroll
period for purposes set forth in this Section. If deductions from salaries
result
in amounts of less than one cent, the fractional sums shall be increased
to the next higher cent. Any excess of these fractional increases over the
prescribed annual contributions shall be credited to the teachers' accounts.
In the event that, pursuant to Section 17‑130.1, employee
contributions
are picked up or made by the Board of Education on behalf of its employees
from the proceeds of the tax levied under
Section 34‑60 of the School Code, then the amount of the employee
contributions which are picked up or made in that manner shall not be
deducted from the salaries of such employees.
(Source: P.A. 90‑566, eff. 1‑2‑98.)
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(40 ILCS 5/17‑132) (from Ch. 108 1/2, par. 17‑132)
Sec. 17‑132.
Payments and certification of salary deductions.
An Employer
shall cause the Fund to receive all teachers' pension
contributions within 15 business days of the predesignated paydays. Amount
not received by the fifth day shall be deemed delinquent and subject to
late interest penalty (calculated at the average short‑term rate of interest
earned by the Fund for the calendar month preceding the calendar month in
which the delinquency occurs) starting from the predesignated payday and
ending on the date payment is received.
The appropriate officers of the Employer shall
certify at least monthly to the Fund all amounts
deducted from
the salaries of contributors. The certification shall constitute a
confirmation of the accuracy of such deductions according to the
provisions of this Article. For the purpose of this Section the predesignated
payday shall be determined in accordance with each Employer's
payroll schedule for contributions to the Fund.
The Board has the authority to conduct payroll audits of a charter school
to determine the existence of any delinquencies in contributions to the Fund,
and such charter school shall be required to provide such books and records and
contribution information as the Board or its authorized representative may
require. The Board is also authorized to collect delinquent contributions from
charter schools and develop procedures for the collection of such
delinquencies. Collection procedures may include legal proceedings in the
courts of the State of Illinois. Expenses, including reasonable attorneys'
fees, incurred in the collection of delinquent contributions may be assessed by
the Board against the charter school.
(Source: P.A. 90‑566, eff. 1‑2‑98.)
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(40 ILCS 5/17‑133) (from Ch. 108 1/2, par. 17‑133)
Sec. 17‑133.
Contributions for periods of outside and other service.
Regularly certified and appointed teachers who desire to have the following
described services credited for pension purposes shall submit to the Board
evidence thereof and pay into the Fund the amounts prescribed herein:
1. For teaching service by a certified teacher in | ||
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2. For service as a playground instructor in public | ||
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3. For service prior to September 1, 1955, in the | ||
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4. For service after June 30, 1982 as a member of | ||
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5. For service during the 1986‑87 school year as a | ||
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For service described in sub‑paragraphs 1, 2 and 3 of this Section,
interest shall be charged beginning one year after the effective date of
appointment or reappointment.
Effective September 1, 1974, the interest rate to be charged by the
Fund on contributions provided in sub‑paragraphs 1, 2, 3 and 4 shall
be 5% per annum compounded annually.
(Source: P.A. 90‑566, eff. 1‑2‑98; 91‑887, eff. 7‑6‑00.)
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(2) For time spent on a leave of absence granted by | ||
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(3) For time spent prior to September 6, 1948, on | ||
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(4) For service with teacher or labor organizations | ||
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(5) For time spent in the military service, teachers | ||
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The changes to this Section made by Public Act | ||
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The total credit for military service shall not | ||
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(6) A maximum of 244 unused sick days credited to | ||
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(7) In all cases where time spent on leave is | ||
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(8) For time lost without pay due to layoff and | ||
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(9) For time spent after June 30, 1982, as a | ||
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Effective September 1, 1974, the interest charged for validation of
service described in paragraphs (2) through (5) of this Section shall be
compounded annually at a rate of 5% commencing one
year after the termination of the leave or return to service.
(Source: P.A. 92‑599, eff. 6‑28‑02.)
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(40 ILCS 5/17‑134.1)
Sec. 17‑134.1.
Labor organization employees.
(a) A former teacher who is employed by a teacher or labor organization and
is not eligible to participate under subdivision (4) of Section 17‑134 because
he or she is not on a special leave of absence may elect to participate in the
Fund for the duration of that employment by so notifying the Fund in writing.
Participation shall be subject to the same conditions
as are applicable to persons participating under that subdivision (4), and
service credit shall be contingent upon the required contributions being
received by the Fund.
(b) A person who participates in the Fund under subsection (a) may establish
service credit for periods of such employment that took place before beginning
participation under this Section by submitting a written application to the
Fund. Credit shall be granted upon payment to the Fund
of an amount to be determined by the Fund, equal to (i) the employee
contributions that would have been paid if the person had participated under
subdivision (4) of Section 17‑134 during the period for which service credit is
to be established, based on the actual salary received, plus (ii) the
employer's normal cost associated with that service credit, plus (iii) interest
on items (i) and (ii) at the rate of 6% per year, compounded annually, from the
date of the service established to the date of payment. Service credit under
this subsection shall not be granted until the required contribution has been
paid in full; the contribution may be paid at any time before retirement.
(c) A person who participates in the Fund under subsection (a) may
reestablish any service credits previously forfeited by acceptance of a refund
by paying to the Fund the amount of the refund plus interest thereon at the
rate of 5% per annum, compounded annually, from the date of the refund to the
date of payment.
(d) Rollover contributions from other retirement plans qualified under the
Internal Revenue Code of 1986 may be used to make the payments required under
subsections (b) and (c).
(e) No service credit may be established under this Section for any period
of employment for which the person receives service credit under any other
provision of this Code.
(Source: P.A. 90‑448, eff. 8‑16‑97.)
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(40 ILCS 5/17‑135) (from Ch. 108 1/2, par. 17‑135)
Sec. 17‑135.
Contributions for other service credits.
On payment at the
rates prescribed herein on the date of appointment
or employment as teachers, or as such rates are adjusted by the Board of
Education, but not less than $450 per year of service, members shall be
entitled to have credited for pension purposes service as: (a) a civil
service librarian in the public schools of the city, or in such city;
(b) a playground or recreational instructor for such city or the Park
District in such city; (c) a school clerk, employed by the Board of
Education; and (d) a lunchroom manager for the Board of Education.
Interest on such payments shall be charged commencing one year after the
date of such appointment or employment.
Effective September 1, 1974, the interest rate to be charged by the Fund
shall be 5% per annum compounded annually.
(Source: P.A. 90‑566, eff. 1‑2‑98.)
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(40 ILCS 5/17‑136) (from Ch. 108 1/2, par. 17‑136)
Sec. 17‑136.
Computation of aggregate contributions by
teachers. The
aggregate sum required to be contributed by any person otherwise
entitled to a pension under this Article shall be computed as follows:
1. For service as a teacher after July 6, 1931, by computing the
total of the required deductions at the rates in force
when the service
was rendered and required contributions for optionally creditable
service at rates prescribed in this Article.
2. For service as a teacher after September 1, 1963, by computing
the total of the required deductions at the rates
in force when salary
was paid and required contributions for optionally creditable service at
rates prescribed in this Article.
Effective September 1, 1974, any deficiencies resulting under the
provisions of this section shall accrue at an interest rate of 5% per
annum compounded annually until paid.
(Source: P.A. 81‑1536.)
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(40 ILCS 5/17‑137) (from Ch. 108 1/2, par. 17‑137)
Sec. 17‑137.
Board created.
There shall be elected a Board of Trustees,
herein also referred to as the "Board", to administer and
control the Fund
created by this Article. The Board shall consist of 12
members, 2 of whom shall be members of the Board of Education, 6
of whom shall be contributors who are not principals, one of whom shall be a
contributor who is a principal, and 3 of whom shall be pensioners,
all to be chosen as provided in this Article.
(Source: P.A. 89‑136, eff. 7‑14‑95; 90‑566, eff. 1‑2‑98.)
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(40 ILCS 5/17‑138) (from Ch. 108 1/2, par. 17‑138)
Sec. 17‑138.
Board membership.
At the first meeting of the Board of
Education in November of each year, the Board of Education
shall appoint one of its members to serve, while a member of the Board of
Education, on the Board of Trustees for a term of 2 years.
On the last school day of the 4th week of October of each year there
shall be elected 2 members of the Board from the teachers other
than principals, who shall hold office for terms of 3 years
while retaining their status as teachers other than principals, and other
members to fill unexpired terms. In the event that schools are not in session
on or during the week prior to the last Friday in October, this election shall
be held on the Friday of the first subsequent full week of school. The
election shall be by secret ballot and shall be held in such manner as the
Board by bylaws or rules shall provide. Only teachers who are
not principals shall be eligible to vote in the election.
During the first week of November of 1995 and every third year thereafter,
one contributor who is a principal shall be elected a member of the Board. This trustee shall hold office for a term of 3 years while
retaining
his or her status as a principal. The election shall be by mail ballot and
only contributors who are principals shall be eligible to vote. The election
shall be held in the manner provided by the Board by rule or
bylaw.
During the first week of November of each odd‑numbered year there shall
be elected 3 members of the Board from the pensioners,
who shall hold office for a term of 2 years while retaining their status
as pensioners. The election shall be by mail ballot to all service and
disability pensioners, and shall be held in such manner as the Board by bylaws or rules shall provide.
All trustees, while members of the Board of Education or while
principals, teachers other than principals, or pensioners, as the
case may be, shall hold their offices
until their successors shall have been appointed or elected and qualified by
subscribing to the constitutional oath of office at the immediately succeeding
regular meeting of the Board.
(Source: P.A. 89‑136, eff. 7‑14‑95; 90‑566, eff. 1‑2‑98.)
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(40 ILCS 5/17‑140) (from Ch. 108 1/2, par. 17‑140)
Sec. 17‑140.
Board officers.
The president, recording secretary and other officers of the Board shall
be elected by and from the members of the board at the first meeting of the
Board after the election of trustees.
In case any officer whose signature appears upon any check or draft,
issued pursuant to this Article, ceases (after attaching his signature) to
hold his office before the delivery thereof to the payee, his signature
nevertheless shall be valid and sufficient for all purposes with the same
effect as if he had remained in office until delivery thereof.
(Source: P.A. 90‑566, eff. 1‑2‑98.)
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(40 ILCS 5/17‑141) (from Ch. 108 1/2, par. 17‑141)
Sec. 17‑141.
Board's powers and duties.
The Board shall have the powers and duties stated in Sections 17‑142 to
17‑146, inclusive, in addition to the other powers and duties provided in
this Article.
(Source: P.A. 90‑566, eff. 1‑2‑98.)
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(40 ILCS 5/17‑142) (from Ch. 108 1/2, par. 17‑142)
Sec. 17‑142.
To make payments.
To make payments from the Fund of pensions and other benefits
provided in this Article.
(Source: P.A. 90‑566, eff. 1‑2‑98.)
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(40 ILCS 5/17‑142.1) (from Ch. 108 1/2, par. 17‑142.1)
Sec. 17‑142.1. To defray health insurance costs. To provide for the
partial reimbursement of health insurance costs.
(1) On the first day of September of each year, beginning in 1988,
the Board may, by separate warrant, pay to each recipient of a service
retirement, disability retirement or survivor's pension an amount to be
determined by the Board, which shall represent partial reimbursement for
the cost of the recipient's health insurance coverage.
(2) In lieu of the annual payment authorized in subdivision (1), for
pensioners enrolled in the Fund's regular health care deduction plans, the
Fund may pay the health insurance premium reimbursement on a monthly rather
than annual basis, at the percentage rate established from time to time by
the Board. If the Board so directs, these monthly payments may be made in
the form of a direct payment of premium and a reduction in the amount
deducted from the annuity, rather than in the form of reimbursement by
separate warrant.
(3) Total payments under this Section in any year may not exceed
$65,000,000 plus any amount that was authorized to be paid
under this Section in the preceding year but was not actually paid by the
Board, including any interest earned thereon.
(4) The total amount of payments under this Section in any year may not exceed 75% of the total cost of health insurance coverage in that year for all the recipients who receive payments authorized by this Section in that year.
(Source: P.A. 93‑677, eff. 6‑28‑04.)
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(40 ILCS 5/17‑143) (from Ch. 108 1/2, par. 17‑143)
Sec. 17‑143.
To employ assistance.
To employ such assistance and service as may be necessary for the proper
administration of this Article and carrying into effect the by‑laws and
rules adopted by it.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/17‑143.1) (from Ch. 108 1/2, par. 17‑143.1)
Sec. 17‑143.1.
Office.
To rent, lease, or acquire office space as may
be necessary for the proper administration of the Fund.
(Source: P.A. 90‑566, eff. 1‑2‑98.)
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(40 ILCS 5/17‑144) (from Ch. 108 1/2, par. 17‑144)
Sec. 17‑144.
To fill vacancies.
To fill any vacancies occurring in the Board of members
elected from the teachers or pensioners, until the next annual election, when
the
vacancies shall be filled as provided by this Article.
(Source: P.A. 90‑566, eff. 1‑2‑98.)
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(40 ILCS 5/17‑145) (from Ch. 108 1/2, par. 17‑145)
Sec. 17‑145.
To adopt rules.
To adopt such by‑laws and rules for the administration of the Fund as it
deems advisable.
(Source: P.A. 90‑566, eff. 1‑2‑98.)
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(40 ILCS 5/17‑146) (from Ch. 108 1/2, par. 17‑146)
Sec. 17‑146.
To make investments.
To invest the moneys of the Fund,
subject to the requirements and restrictions set forth in this Article and
in Sections 1‑109, 1‑109.1, 1‑109.2, 1‑110, 1‑111, 1‑114 and 1‑115.
No bank or savings and loan association shall receive investment funds
as permitted by this Section, unless it has complied with the requirements
established pursuant to Section 6 of the Public Funds Investment Act.
Those requirements shall be applicable only at the time of investment and
shall not require the liquidation of any investment at any time.
The Board shall have the authority to enter into any agreements
and to
execute any documents that it determines to be necessary to complete any
investment transaction.
All investments shall be clearly held and accounted for to indicate
ownership by the Fund. The Board may direct the
registration of
securities or the holding of interests in real property in the name of the
Fund or in the name of a nominee created for the express purpose
of
registering securities or holding interests in real property by a
national or state bank or trust company authorized to conduct a trust
business in the State of Illinois. The Board may hold title to
interests
in real property in the name of the fund or in the name of a title
holding corporation created for the express purpose of holding title to
interests in real property.
Investments shall be carried at cost or at a value determined
in accordance with generally accepted accounting principles and accounting
procedures approved by the Board.
The value of investments held by the Fund in one or more
commingled
investment accounts shall be determined in accordance with generally accepted
accounting principles.
The Board may
not transfer its investment authority, nor transfer the assets of the Fund
to any other person or entity for the purpose of consolidating or merging
its assets and management with any other pension fund or public investment
authority, unless the Board resolution authorizing such transfer
is submitted
for approval to the contributors and pensioners of the Fund at
elections
held not less than 30 days after the adoption of such resolution by the
Board, and such resolution is approved by a majority of the votes
cast on
the question in both the contributors election and the pensioners election.
The election procedures and qualifications governing the election of
trustees shall govern the submission of resolutions for approval under this
paragraph, insofar as they may be made applicable.
(Source: P.A. 89‑636, eff. 8‑9‑96; 90‑19, eff. 6‑20‑97; 90‑32, eff.
6‑27‑97.)
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(40 ILCS 5/17‑146.1) (from Ch. 108 1/2, par. 17‑146.1)
Sec. 17‑146.1.
Participation in commingled investment funds; transfer of
investment functions and securities.
(a) The Board may invest in any commingled
investment fund or
funds established and maintained by the Illinois State Board of Investment
under the provisions of Article 22A of this Code. All
commingled fund participations shall be subject to the law governing the
Illinois State Board of Investment and the rules, policies and directives
of that Board.
(b) The Board may, by resolution duly adopted by a
majority
vote of its membership, transfer to the Illinois State Board of Investment
created by Article 22A of this Code, for management and administration, all
investments owned by the Fund of every kind and character. Upon completion
of such transfer, the authority of the Board to make
investments
shall terminate. Thereafter, all investments of the reserves of the Fund
shall be made by the Illinois State Board of Investment in accordance with
the provisions of Article 22A of this Code.
Such transfer shall be made not later than the first day of the fourth
month next following the date of such resolution. Before such transfer an
audit of such investments shall be completed by a certified public
accountant selected by the Illinois State Board of Investment and approved
by the Auditor General of the State of Illinois. The expense of such audit
shall be defrayed by the retirement Board.
(Source: P.A. 90‑19, eff. 6‑20‑97; 90‑32, eff. 6‑27‑97; 90‑566, eff.
1‑2‑98.)
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(40 ILCS 5/17‑146.2) (from Ch. 108 1/2, par. 17‑146.2)
Sec. 17‑146.2.
To lend securities.
The Board may
lend
securities owned by the Fund to a borrower upon such written terms and
conditions as may be mutually agreed. The agreement shall provide that
during the period of the loan the Fund (or the custodian of the Fund, or
agent thereof, as applicable) shall retain the right to receive or collect
from the borrower all dividends, interest and distributions to
which the Fund would have otherwise been entitled. The borrower shall
deposit with the Fund collateral for the loan equal to the market value of
the securities at the time the loan is made, and shall increase the amount
of collateral if the Board requests an additional amount because of
subsequent increased market value of the securities. The Board may accept
from the borrower cash collateral or collateral consisting of assets
described in Section 1‑113 of this Act. To the extent that the Fund
participates in a securities lending program established and maintained by
(1) a national or State bank which is authorized to do business in the
State of Illinois, or (2) an investment manager, the Board may accept
collateral consisting of an undivided interest in a pool of commingled
collateral that has been established by the bank or investment
manager for the purpose of pooling collateral
received for the loans of securities owned by substantially all of
the participants in such bank's or investment manager's securities lending
program. Nothing in Sections 1‑109, 1‑110 or 1‑113 of this Act shall be
construed to prohibit the Fund's lending of securities in accordance with this
Section.
(Source: P.A. 90‑566, eff. 1‑2‑98.)
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(40 ILCS 5/17‑147) (from Ch. 108 1/2, par. 17‑147)
Sec. 17‑147.
Custody of Fund ‑ Bonds ‑ Legal proceedings.
The
city treasurer,
ex‑officio, shall be the custodian of the Fund,
and shall secure and safely keep it, subject to the control and
direction of the Board. He shall keep his books and accounts
concerning
the Fund in the manner prescribed by the Board. The
books and accounts
shall always be subject to the inspection of the Board or any
member
thereof. The city treasurer shall be liable on his official bond for the
proper performance of his duties and the conservation of the Fund.
Payments from the Fund shall be made upon warrants signed by the
president and the secretary of the Board of Education, the president of
the Board, and countersigned by the executive director or
by such person as the Board may designate from time to time
by appropriate resolution.
Neither the treasurer nor any other officer having the custody of the
Fund is entitled to retain any interest accruing thereon, but such
interest shall accrue and inure to the benefit of such Fund,
become a
part thereof, subject to the purposes of this Article.
Any legal proceedings necessary for the enforcement of the provisions
of this Article shall be brought by and in the name of the Board of the Fund.
(Source: P.A. 90‑566, eff. 1‑2‑98.)
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(40 ILCS 5/17‑148) (from Ch. 108 1/2, par. 17‑148)
Sec. 17‑148.
Method of paying pensions.
Annual pensions and automatic annual increases shall be paid in 12
monthly installments and shall be so adjusted that all monthly payments are
the same. This shall apply also to automatic increases accrued from the
anniversary of the pension or the 61st birthdate, whichever is later, to
the following January. In computing the first pension payment for a
fractional part of a month, 30 days shall constitute one month. Beginning
January 1, 1970, the pension payment shall begin on the first day of the
month, with the issuance of the last check on the first day of the month in
which death occurs. If a pensioner is reinstated as a contributor, no
pension shall be paid for the month in which re‑employment occurs.
The pensioner shall reimburse the Fund for any pension payments received
to which he is not legally entitled, plus 5% interest compounded annually
beginning one year after the Fund's notification of the indebtedness.
(Source: P.A. 84‑1028.)
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(40 ILCS 5/17‑149) (from Ch. 108 1/2, par. 17‑149)
Sec. 17‑149.
Cancellation of pensions.
(a) If any person receiving a disability retirement
pension from the Fund is re‑employed as a teacher by an Employer, the pension
shall be cancelled on the date the re‑employment begins, or on the first day of
a payroll period for which service credit was validated, whichever is earlier.
(b) If any person receiving a service retirement pension from the Fund
is re‑employed as a teacher on a permanent or annual basis by an Employer,
the pension shall be cancelled on the date the re‑employment begins, or on
the first day of a payroll period for which service credit was validated,
whichever is earlier. However, the pension shall not be cancelled
in the case of a service retirement pensioner who is
re‑employed on a temporary and non‑annual basis or on an hourly basis.
(c) If the date of re‑employment on a permanent or annual basis
occurs within 5 school months after the date of previous retirement, exclusive
of any vacation period, the member shall be deemed to have been out of service
only temporarily and not permanently retired. Such person shall be entitled
to pension payments for the time he could have been employed as a teacher and
received salary, but shall not be entitled to pension for or during the summer
vacation prior to his return to service.
When the member again retires on pension, the time of service and the
money contributed by him during re‑employment shall be added to the time
and money previously credited. Such person must acquire 3 consecutive years
of additional contributing service before he may retire again on a pension
at a rate and under conditions other than those in force or attained at the
time of his previous retirement.
(d) Notwithstanding Sections 1‑103.1 and 17‑157, the changes to this
Section made by Public Act 90‑32
apply without regard to whether termination of service occurred before the
effective date of that Act and apply
retroactively to August 23, 1989.
Notwithstanding Sections 1‑103.1 and 17‑157, the changes to this Section
and Section 17‑106 made by this amendatory Act of the 92nd General Assembly
apply without regard to whether termination of service occurred before the
effective date of this amendatory Act.
(Source: P.A. 92‑416, eff. 8‑17‑01; 92‑599, eff. 6‑28‑02.)
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(40 ILCS 5/17‑149.1) (from Ch. 108 1/2, par. 17‑149.1)
Sec. 17‑149.1.
Felony conviction.
None of the benefits provided for in this Article shall be paid to any
person who is convicted of any felony relating to or arising out of or in
connection with his or her service as a teacher.
This Section shall not operate to impair any contract or vested right
acquired prior to January 1, 1988, nor to preclude the right to a refund.
All teachers entering service after January 1, 1988 shall be
deemed to have consented to the provisions of this Section as a condition
of membership.
(Source: P.A. 85‑964.)
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(40 ILCS 5/17‑150) (from Ch. 108 1/2, par. 17‑150)
Sec. 17‑150.
Suspension of pensions.
Until July 1, 2000, pension
payments, exclusive of those made to the survivors of persons who were
contributors, shall be suspended while the recipient is employed in a teaching
capacity, outside the City in which the Fund exists, by any public school or
charter school in this State, unless the recipient is so employed temporarily
as a substitute teacher for 100 days or less in a school year or on an hourly
basis with earnings not in excess of the sum payable for 100 days' substitute
service.
Beginning July 1, 2000, pension payments shall no longer be suspended while
the recipient is employed in a teaching capacity, outside the City in which the
Fund exists, by any public school or charter school in this State, and any
pension that is in a state of suspension under this Section on July 1, 2000
shall be reinstated on that date. Notwithstanding Section 17‑157, the change
to this Section made by this amendatory Act of the 91st General Assembly
applies without regard to whether or not the pensioner was in service on or
after the effective date of this amendatory Act.
(Source: P.A. 90‑566, eff. 1‑2‑98; 91‑887, eff. 7‑6‑00.)
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(40 ILCS 5/17‑151) (from Ch. 108 1/2, par. 17‑151)
Sec. 17‑151.
Annuities, etc.
‑ Exempt.
All pensions, annuities, refunds, or death benefits granted under the
provisions of this Article are exempt from State and municipal taxes and
are exempt from attachment or garnishment process. They shall not be seized
or levied upon by virtue of any judgment or any process or proceedings
issued out of or by any court for the payment or satisfaction in whole or
in part of any debt, claim, damage, demand or judgment.
No pensioner has the right to transfer or assign his pension or any part
thereof by way of mortgage or otherwise except for the purpose (1) of
establishing and maintaining membership in nonprofit group health or
hospital plans approved by the Board and (2) of establishing a
living
trust, the trustee of which is authorized to engage in the trust business,
provided all pension payments so assigned are required to be paid monthly
to the trustor or, in the event of his incapacity, expended for his
benefit. The Board is hereby authorized to administer all the
details
involved in establishing and maintaining membership in such health or
hospital plans for the benefit of the annuitants, but it shall not be
obligated to do so or to continue doing so, if in its judgment such
continuance is not desirable.
(Source: P.A. 90‑566, eff. 1‑2‑98.)
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(40 ILCS 5/17‑152) (from Ch. 108 1/2, par. 17‑152)
Sec. 17‑152.
Retirement Systems Reciprocal Act.
The "Retirement Systems Reciprocal Act", being Article 20 of this Code,
as now enacted and hereafter amended, is hereby adopted and made a part of
this Article.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/17‑153) (from Ch. 108 1/2, par. 17‑153)
Sec. 17‑153.
Accounting ‑ Audits.
The assets of the Fund shall
be held
for the express purposes set forth in the provisions of this Article subject
to the conditions prescribed herein. An adequate system of accounts and
records shall be established and maintained that will give effect to the
requirements hereof. All assets of the Fund shall be credited to
designated
reserve accounts according to the purposes for which they are held.
Appropriate reserves shall be maintained representing member
contributions and other revenues accruing from taxes, state
appropriations and miscellaneous sources.
At the end of each fiscal year the Board shall have
the
accounts and records of the Fund audited by certified public
accountants
selected by the Board. Within 2 weeks after receiving the audit
report,
the Board shall file a copy of the audit report with the State
Superintendent
of Education and the Auditor General.
(Source: P.A. 90‑566, eff. 1‑2‑98.)
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(40 ILCS 5/17‑154) (from Ch. 108 1/2, par. 17‑154)
Sec. 17‑154.
Retired teachers supplementary payments.
All persons who were
on June 30, 1975, entitled to a service retirement
pension or disability retirement pension, under this Fund or any
fund of
which this Fund is a continuation, and who meet the conditions
prescribed
hereinafter, shall receive supplementary payments as follows:
(1) In the case of any such retired person, who attained or shall attain
after June 30, 1975, the age of 60 years, who was in receipt of a service
retirement pension, the payment pursuant to this section shall be an amount
equal to the difference between (a) his annual service retirement pension
from the Fund plus any annual payment received under the
provisions of
Section 34‑87 of "The School Code", approved March 18, 1961, as amended,
if the total of such amounts is less than $4500 per year, and (b) an amount
equal to $100 for each year of validated teaching service forming the basis
of the service retirement pension up to a maximum of 45 years of such
service;
(2) In the case of any such retired person, who was in receipt on June
30, 1975, of a disability retirement pension, the payment shall be equal
to the difference between (a) his total annual disability retirement pension
and (b) an amount equal to $100 for each year of validated teaching service
forming the basis of the disability retirement pension.
(Source: P.A. 90‑566, eff. 1‑2‑98.)
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(40 ILCS 5/17‑155) (from Ch. 108 1/2, par. 17‑155)
Sec. 17‑155.
Retired teachers' contributions for supplementary payments.
Supplementary payment to retired teachers under Section 17‑154 shall
not accrue until such retired person has paid a total additional
contribution of $5 per year for each year of validated teaching service,
plus interest at 5% per annum from October
1, 1975. If retirement pension was not computed according to average salary
as defined in Section 17‑116, 1% of the monthly base pension multiplied
by each complete year of service forming the basis of his service retirement
pension shall constitute the total additional contribution.
The supplementary
payment (1) shall be prorated on a monthly basis as a one‑twelfth addition
to monthly payments due on the service retirement and disability retirement
pensions, (2) shall begin on the date on which the payment of such
allowance is next due after such contribution and interest thereon have
been paid, and (3) shall continue to be paid only to the extent that funds
are available in the Retired Teachers Supplementary Payment Fund
established hereunder for this purpose; provided that in no case shall the
present or future service retirement pension or disability retirement
pension of any person be reduced hereby. No part of any such supplementary
payment shall be an obligation of the fund otherwise established under this
Article.
(Source: P.A. 79‑206.)
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(40 ILCS 5/17‑156) (from Ch. 108 1/2, par. 17‑156)
Sec. 17‑156.
Retired Teachers Supplementary Payment Fund.)
A fund to be known as the Retired Teachers Supplementary Payment Fund
shall be established for the purpose of making the supplementary payments
for service and disability retirement under Section 17‑154.
1. This fund shall be credited with:
(a) the contributions made by retired persons to | ||
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(b) amounts appropriated by the State of Illinois | ||
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(c) any interest accruing to this fund.
2. This fund shall be charged with all supplementary payments as they
are made.
3. All supplementary payments shall be paid in the order that the
payments become due and payable from the Retired Teachers Supplementary
Payment Fund. In the event that the moneys in the fund are insufficient to
make full supplementary payments to all persons entitled thereto, a
proportionate amount, determined by the ratio of the moneys available in
the fund to the total supplementary payments then due, shall be payable.
Thereafter supplementary payments shall cease and shall not be resumed
until further funds are made available for this purpose through
appropriation by the State of Illinois. After all supplementary payments to
all persons entitled thereto have been completed, any remaining moneys in
this fund shall be transferred to the Public School Teachers' Pension and
Retirement Fund established by this Article; provided that, notwithstanding
any provision of law to the contrary, in the event such a transfer shall
have been made in prior biennia, and there is insufficient moneys available
in the supplementary payment fund to make full statutory payments to
persons entitled thereto in the current biennium, the Public School
Teachers' Pension and Retirement Fund established by this Article may
transfer back to the supplemental payment fund moneys in an amount not
exceeding the amount so transferred to it at the close of prior biennia.
4. Supplementary payments shall be suspended while the recipient is
employed by the City in which the fund exists, by any other municipal
corporation coterminous with the City or by any public school or charter
school in this
State, unless the recipient is so employed temporarily as a substitute
teacher for 100 days or less in a school year or on an hourly basis with
earnings not in excess of the sum payable for 100 days' substitute service.
5. The Retired Teachers Supplementary Payment Fund shall be held and
administered by the Public School Teachers' Pension and Retirement Fund
established by this Article.
(Source: P.A. 90‑566, eff. 1‑2‑98.)
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(40 ILCS 5/17‑156.1) (from Ch. 108 1/2, par. 17‑156.1)
Sec. 17‑156.1.
Increases to retired members.
A teacher who retired
prior to September 1, 1959 on service retirement pension who was at
least 55 years of age at date of retirement and had at least 20 years of
validated service shall be entitled to receive benefits under this Section.
These benefits shall be in an amount equal to 1‑1/2% of the total of
(1) the initial service retirement pension plus (2) any emeritus payment
payable under Sections 34‑86 and 34‑87 of the School Code, multiplied by the number of full years on
pension. This payment shall begin in January of 1970. An additional
1‑1/2% shall be added in January of each year thereafter. Beginning
January 1, 1972 the rate of increase in the service retirement pension
each year shall be 2%. Beginning January 1, 1979, the rate of increase in
the service retirement pension each year shall be 3%.
Beginning January 1, 1990, all automatic annual increases payable under
this Section shall be calculated as a percentage of the total pension
payable at the time of the increase, including all increases previously
granted under this Article, notwithstanding Section 17‑157.
A pensioner who otherwise qualifies for the aforesaid benefit shall
make a one‑time payment of 1% of the final monthly average salary
multiplied by the number of completed years of service forming the basis
of his service retirement pension or, if the pension was not computed according
to average salary as defined in Section 17‑116, 1% of the monthly
base pension multiplied by each complete year of service forming the
basis of his service retirement pension. Unless the pensioner rejects
the benefits of this Section, such sum shall be deducted from the
pensioner's December 1969 pension check and shall not be refundable.
(Source: P.A. 90‑655, eff. 7‑30‑98.)
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(40 ILCS 5/17‑156.2) (from Ch. 108 1/2, par. 17‑156.2)
Sec. 17‑156.2.
Increases to retired members.
Any teacher who retired prior to September 1, 1959 on a service
retirement pension at age 55 or over with at least 15 years of validated
service, or while under age 55 with at least 20 years of validated service,
or any teacher retired for total and permanent disability who is aged 65
years or over, shall be entitled to receive the benefits of this Section
beginning January 1, 1972, except that no teacher may receive increases in
benefits under both this Section and Section 17‑156.1.
These benefits shall be the same as provided in Section 17‑156.1, as
amended, except that the yearly automatic annual increase to and including
the calendar year 1971 shall be limited to 1 1/2%. This payment shall begin
in January, 1972.
A pensioner who otherwise qualifies for the aforesaid benefit shall make
a one‑time payment of 1% of the monthly base pension multiplied by each
complete year of service forming the basis of his service or disability
retirement pension. Unless the pensioner rejects the benefits of this
Section such sum shall be deducted from the pensioner's December 1971
pension check and shall not be refundable.
(Source: P.A. 82‑581.)
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(40 ILCS 5/17‑156.3) (from Ch. 108 1/2, par. 17‑156.3)
Sec. 17‑156.3.
Minimum retirement pension.
(a) Beginning January 1,
1987, any person who is receiving a monthly retirement pension under this
Article which, after inclusion of (1) all one‑time and automatic annual
increases to which the person is entitled, (2) any supplementary payment
payable under Section 17‑154, and (3) any amount deducted under Section
17‑120 to provide a reversionary pension, is less than the minimum monthly
retirement benefit amount specified in subsection (b) of this Section,
shall be entitled to a monthly supplemental payment equal to the difference.
(b) Beginning January 1, 1996, for purposes of the calculation in
subsection (a), the minimum monthly retirement benefit amount is the sum of
$25 for each year of service, up to a maximum of $750 per month for 30 or more
years of creditable service.
(c) The changes made to this Section by this amendatory Act of 1995 apply to
all persons receiving a retirement pension under this Article, without regard
to whether or not employment terminated prior to the effective date of this
amendatory Act of 1995 and notwithstanding Section 17‑157.
(Source: P.A. 89‑21, eff. 6‑6‑95; 89‑25, eff. 6‑21‑95.)
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(40 ILCS 5/17‑157) (from Ch. 108 1/2, par. 17‑157)
Sec. 17‑157.
Effect of amendments.
Whenever an amendment which is, has
been or may be enacted, proposes
liberalizing changes in qualifying conditions or increases in benefits,
the amendment shall be applicable only to persons who, on or after its
effective date, are teachers, providing that an amendment shall be applicable
to a former teacher who is reinstated as a contributor.
(Source: P.A. 84‑1028.)
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(40 ILCS 5/17‑158) (from Ch. 108 1/2, par. 17‑158)
Sec. 17‑158.
Administrative review.
The provisions of the Administrative
Review Law, and all amendments and modifications thereof and the rules adopted
pursuant thereto, shall apply to and govern all proceedings for the
judicial review of final administrative decisions of the Board
provided for under this Article. The term "administrative decision" is as
defined in Section 3‑101 of the Code of Civil Procedure.
(Source: P.A. 90‑566, eff. 1‑2‑98.)
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(40 ILCS 5/17‑159) (from Ch. 108 1/2, par. 17‑159)
Sec. 17‑159.
General provisions and savings clause.
The provisions of Article 1 and Article 23 of this Code apply to this
Article as though such provisions were fully set forth in this Article as a
part thereof.
(Source: Laws 1963, p. 161.)
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