Statutes > Illinois Statutes > CHAPTER 40 PENSIONS > 40 ILCS 5/ Illinois Pension Code. > Article 16 - Teachers' Retirement System Of The State Of Illinois

Article 16 - Teachers' Retirement System Of The State Of Illinois


      (40 ILCS 5/Art. 16 heading)
ARTICLE 16. TEACHERS' RETIREMENT SYSTEM OF THE STATE OF ILLINOIS

    (40 ILCS 5/16‑101) (from Ch. 108 1/2, par. 16‑101)
    Sec. 16‑101. Creation of system. Effective July 1, 1939, there is created the "Teachers' Retirement System of the State of Illinois" for the purpose of providing retirement annuities and other benefits for teachers, annuitants and beneficiaries. All of its business shall be transacted, its funds invested, and its assets held in such name.
(Source: P.A. 83‑1440.)

    (40 ILCS 5/16‑102) (from Ch. 108 1/2, par. 16‑102)
    Sec. 16‑102. Application of Article. This Article shall not apply to cities and school districts of more than 500,000 population as shown by the last preceding Federal census.
(Source: P.A. 83‑1440.)

    (40 ILCS 5/16‑103) (from Ch. 108 1/2, par. 16‑103)
    Sec. 16‑103. Terms defined. The terms used in this Article shall have the meanings ascribed to them in Sections 16‑104 through 16‑122.1, except when the context otherwise requires.
(Source: P.A. 83‑1440.)

    (40 ILCS 5/16‑104) (from Ch. 108 1/2, par. 16‑104)
    Sec. 16‑104. Retirement system or system.
    "Retirement system" or "system": The Teachers' Retirement System of the State of Illinois.
(Source: Laws 1963, p. 161.)

    (40 ILCS 5/16‑105) (from Ch. 108 1/2, par. 16‑105)
    Sec. 16‑105. Board. "Board": The board of trustees of the retirement system created under this Article.
(Source: P.A. 83‑1440.)

    (40 ILCS 5/16‑106)(from Ch. 108 1/2, par. 16‑106)
    Sec. 16‑106. Teacher. "Teacher": The following individuals, provided that, for employment prior to July 1, 1990, they are employed on a full‑time basis, or if not full‑time, on a permanent and continuous basis in a position in which services are expected to be rendered for at least one school term:
        (1) Any educational, administrative, professional or
     other staff employed in the public common schools included within this system in a position requiring certification under the law governing the certification of teachers;
        (2) Any educational, administrative, professional or
     other staff employed in any facility of the Department of Children and Family Services or the Department of Human Services, in a position requiring certification under the law governing the certification of teachers, and any person who (i) works in such a position for the Department of Corrections, (ii) was a member of this System on May 31, 1987, and (iii) did not elect to become a member of the State Employees' Retirement System pursuant to Section 14‑108.2 of this Code; except that "teacher" does not include any person who (A) becomes a security employee of the Department of Human Services, as defined in Section 14‑110, after June 28, 2001 (the effective date of Public Act 92‑14), or (B) becomes a member of the State Employees' Retirement System pursuant to Section 14‑108.2c of this Code;
        (3) Any regional superintendent of schools,
     assistant regional superintendent of schools, State Superintendent of Education; any person employed by the State Board of Education as an executive; any executive of the boards engaged in the service of public common school education in school districts covered under this system of which the State Superintendent of Education is an ex‑officio member;
        (4) Any employee of a school board association
     operating in compliance with Article 23 of the School Code who is certificated under the law governing the certification of teachers;
        (5) Any person employed by the retirement system who:
            (i) was an employee of and a participant in the
         system on August 17, 2001 (the effective date of Public Act 92‑416), or
            (ii) becomes an employee of the system on or
         after August 17, 2001;
        (6) Any educational, administrative, professional or
     other staff employed by and under the supervision and control of a regional superintendent of schools, provided such employment position requires the person to be certificated under the law governing the certification of teachers and is in an educational program serving 2 or more districts in accordance with a joint agreement authorized by the School Code or by federal legislation;
        (7) Any educational, administrative, professional or
     other staff employed in an educational program serving 2 or more school districts in accordance with a joint agreement authorized by the School Code or by federal legislation and in a position requiring certification under the laws governing the certification of teachers;
        (8) Any officer or employee of a statewide teacher
     organization or officer of a national teacher organization who is certified under the law governing certification of teachers, provided: (i) the individual had previously established creditable service under this Article, (ii) the individual files with the system an irrevocable election to become a member, and (iii) the individual does not receive credit for such service under any other Article of this Code;
        (9) Any educational, administrative, professional,
     or other staff employed in a charter school operating in compliance with the Charter Schools Law who is certificated under the law governing the certification of teachers.
        (10) Any person employed, on the effective date of
     this amendatory Act of the 94th General Assembly, by the Macon‑Piatt Regional Office of Education in a birth‑through‑age‑three pilot program receiving funds under Section 2‑389 of the School Code who is required by the Macon‑Piatt Regional Office of Education to hold a teaching certificate, provided that the Macon‑Piatt Regional Office of Education makes an election, within 6 months after the effective date of this amendatory Act of the 94th General Assembly, to have the person participate in the system. Any service established prior to the effective date of this amendatory Act of the 94th General Assembly for service as an employee of the Macon‑Piatt Regional Office of Education in a birth‑through‑age‑three pilot program receiving funds under Section 2‑389 of the School Code shall be considered service as a teacher if employee and employer contributions have been received by the system and the system has not refunded those contributions.
    An annuitant receiving a retirement annuity under this Article or under Article 17 of this Code who is employed by a board of education or other employer as permitted under Section 16‑118 or 16‑150.1 is not a "teacher" for purposes of this Article. A person who has received a single‑sum retirement benefit under Section 16‑136.4 of this Article is not a "teacher" for purposes of this Article.
    A person who is a teacher as described in item (8) of
     this Section may establish service credit for similar employment prior to becoming certified as a teacher if he or she (i) is certified as a teacher on or before the effective date of this amendatory Act of the 94th General Assembly, (ii) applies in writing to the system within 6 months after the effective date of this amendatory Act of the 94th General Assembly, and (iii) pays to the system contributions equal to the normal costs calculated from the date of first full‑time employment as described in item (8) to the date of payment, compounded annually at the rate of 8.5% per year for periods before the effective date of this amendatory Act of the 94th General Assembly and for subsequent periods at a rate equal to the System's actuarially assumed rate of return on investments. However, credit shall not be granted under this paragraph for any such prior employment for which the applicant received credit under any other provision of this Code.
(Source: P.A. 93‑320, eff. 7‑23‑03; 94‑1111, eff. 2‑27‑07.)

    (40 ILCS 5/16‑106.1) (from Ch. 108 1/2, par. 16‑106.1)
    Sec. 16‑106.1. Full‑time teacher. "Full‑time teacher": Any teacher employed 4 or more clock hours per day, 5 days per week.
(Source: P.A. 86‑273.)

    (40 ILCS 5/16‑106.2) (from Ch. 108 1/2, par. 16‑106.2)
    Sec. 16‑106.2. Part‑time teacher. "Part‑time teacher": Any teacher employed less than 4 clock hours per day or less than 5 days per week.
(Source: P.A. 86‑273.)

    (40 ILCS 5/16‑106.3) (from Ch. 108 1/2, par. 16‑106.3)
    Sec. 16‑106.3. Substitute teacher. "Substitute teacher": Any teacher employed on a temporary basis to replace another teacher.
(Source: P.A. 86‑273.)

    (40 ILCS 5/16‑107) (from Ch. 108 1/2, par. 16‑107)
    Sec. 16‑107. Member.
    "Member": any teacher included in the membership of this system during such membership.
(Source: Laws 1963, p. 161.)

    (40 ILCS 5/16‑108) (from Ch. 108 1/2, par. 16‑108)
    Sec. 16‑108. Prior service.
    "Prior service": Service rendered prior to July 1, 1939.
(Source: Laws 1963, p. 161.)

    (40 ILCS 5/16‑109) (from Ch. 108 1/2, par. 16‑109)
    Sec. 16‑109. Membership service.
    "Membership service": Service rendered on and after July 1, 1939.
(Source: Laws 1963, p. 161.)

    (40 ILCS 5/16‑110) (from Ch. 108 1/2, par. 16‑110)
    Sec. 16‑110. Creditable service.
    "Creditable service": The total of prior service and membership service for which credit is allowed under this Article.
(Source: Laws 1963, p. 161.)

    (40 ILCS 5/16‑111) (from Ch. 108 1/2, par. 16‑111)
    Sec. 16‑111. Beneficiary. "Beneficiary": Any person, organization or other entity designated in writing to receive or any person receiving a survivor benefit or reversionary annuity provided by this system or granted under any superseded retirement fund or system.
(Source: P.A. 83‑1440.)

    (40 ILCS 5/16‑111.1) (from Ch. 108 1/2, par. 16‑111.1)
    Sec. 16‑111.1. Annuitant. "Annuitant": Any person retired on a retirement annuity or disability retirement annuity under this system or any superseded retirement fund or system.
(Source: P.A. 83‑1440.)

    (40 ILCS 5/16‑112) (from Ch. 108 1/2, par. 16‑112)
    Sec. 16‑112. Regular interest. "Regular interest": (a) For computations based upon prior service credits, interest at the following rates compounded annually: For periods prior to July 1, 1947, 4% per year; for periods from July 1, 1947 through June 30, 1971, 3% per year; for periods from July 1, 1971 through June 30, 1977 at the rate of 4% per year; for periods from July 1, 1977 through June 30, 1981, 5% per year; for periods after June 30, 1981, 6% per year.
    (b) For computations based upon membership service credits, interest at the following rates, compounded annually: For periods prior to July 1, 1971, 3% per year; for periods from July 1, 1971 through June 30, 1977, 4% per year; for periods from July 1, 1977 through June 30, 1981, 5% per year; for periods after June 30, 1981, 6% per year.
(Source: P.A. 83‑1440.)

    (40 ILCS 5/16‑113) (from Ch. 108 1/2, par. 16‑113)
    Sec. 16‑113. Accumulated contributions. "Accumulated contributions": The sum of all contributions to this System made by or on behalf of a member in respect to membership service and credited to his or her account in the Benefit Trust Reserve, together with regular interest thereon.
(Source: P.A. 93‑469, eff. 8‑8‑03.)

    (40 ILCS 5/16‑114) (from Ch. 108 1/2, par. 16‑114)
    Sec. 16‑114. Annuity. "Annuity": A series of monthly payments.
(Source: P.A. 83‑1440.)

    (40 ILCS 5/16‑118)(from Ch. 108 1/2, par. 16‑118)
    Sec. 16‑118. Retirement. "Retirement": Entry upon a retirement annuity or receipt of a single‑sum retirement benefit granted under this Article after termination of active service as a teacher.
    (a) An annuitant receiving a retirement annuity other than a disability retirement annuity may accept employment as a teacher from a school board or other employer specified in Section 16‑106 without impairing retirement status, if that employment: (1) is not within the school year during which service was terminated; and (2) does not exceed 100 paid days or 500 paid hours in any school year (during the period beginning July 1, 2001 through June 30, 2011, 120 paid days or 600 paid hours in each school year). Where such permitted employment is partly on a daily and partly on an hourly basis, a day shall be considered as 5 hours.
    (b) Subsection (a) does not apply to an annuitant who returns to teaching under the program established in Section 16‑150.1, for the duration of his or her participation in that program.
(Source: P.A. 93‑320, eff. 7‑23‑03; 94‑914, eff. 6‑23‑06.)

    (40 ILCS 5/16‑121) (from Ch. 108 1/2, par. 16‑121)
    Sec. 16‑121. Salary. "Salary": The actual compensation received by a teacher during any school year and recognized by the system in accordance with rules of the board. For purposes of this Section, "school year" includes the regular school term plus any additional period for which a teacher is compensated and such compensation is recognized by the rules of the board.
(Source: P.A. 84‑1028.)

    (40 ILCS 5/16‑122) (from Ch. 108 1/2, par. 16‑122)
    Sec. 16‑122. Actuarial equivalent. "Actuarial equivalent": A benefit or sum of equal value to another benefit or sum when computed on the basis of mortality tables and interest rates adopted by the board.
(Source: P.A. 83‑1440.)

    (40 ILCS 5/16‑122.1) (from Ch. 108 1/2, par. 16‑122.1)
    Sec. 16‑122.1. School term. "School term": The period specified under Section 24‑1 of the School Code.
(Source: P.A. 83‑1440.)

    (40 ILCS 5/16‑123) (from Ch. 108 1/2, par. 16‑123)
    Sec. 16‑123. Membership of System.
    (a) The membership of this System shall be composed of all teachers employed after June 30, 1939 who become members as a condition of employment on the date they become teachers. Membership shall continue until the date a member becomes an annuitant, dies, accepts a single‑sum retirement benefit, accepts a refund, or forfeits the rights to a refund.
    (b) This Article does not apply to any person first employed after June 30, 1979 as a public service employment program participant under the Federal Comprehensive Employment and Training Act and whose wages or fringe benefits are paid in whole or in part by funds provided under such Act.
(Source: P.A. 87‑11.)

    (40 ILCS 5/16‑125) (from Ch. 108 1/2, par. 16‑125)
    Sec. 16‑125. Creditable service ‑ statement of services. A member claiming service credit shall file a detailed statement covering the period for which credit is claimed. As soon as practicable after the filing of a statement of service credits, the system shall investigate the validity of the claims for service specified therein. Under rules of the board, and on the basis of verified service, the board shall furnish the member a statement of the accumulated service arising therefrom, the required payment to be made and other conditions to be fulfilled by the member in order to receive the creditable service. The member may, within one year from the date of issuance of such statement, request the board to modify or correct the statement.
(Source: P.A. 83‑1440.)

    (40 ILCS 5/16‑127)(from Ch. 108 1/2, par. 16‑127)
    Sec. 16‑127. Computation of creditable service.
    (a) Each member shall receive regular credit for all service as a teacher from the date membership begins, for which satisfactory evidence is supplied and all contributions have been paid.
    (b) The following periods of service shall earn optional credit and each member shall receive credit for all such service for which satisfactory evidence is supplied and all contributions have been paid as of the date specified:
        (1) Prior service as a teacher.
        (2) Service in a capacity essentially similar or
     equivalent to that of a teacher, in the public common schools in school districts in this State not included within the provisions of this System, or of any other State, territory, dependency or possession of the United States, or in schools operated by or under the auspices of the United States, or under the auspices of any agency or department of any other State, and service during any period of professional speech correction or special education experience for a public agency within this State or any other State, territory, dependency or possession of the United States, and service prior to February 1, 1951 as a recreation worker for the Illinois Department of Public Safety, for a period not exceeding the lesser of 2/5 of the total creditable service of the member or 10 years. The maximum service of 10 years which is allowable under this paragraph shall be reduced by the service credit which is validated by other retirement systems under paragraph (i) of Section 15‑113 and paragraph 1 of Section 17‑133. Credit granted under this paragraph may not be used in determination of a retirement annuity or disability benefits unless the member has at least 5 years of creditable service earned subsequent to this employment with one or more of the following systems: Teachers' Retirement System of the State of Illinois, State Universities Retirement System, and the Public School Teachers' Pension and Retirement Fund of Chicago. Whenever such service credit exceeds the maximum allowed for all purposes of this Article, the first service rendered in point of time shall be considered. The changes to this subdivision (b)(2) made by Public Act 86‑272 shall apply not only to persons who on or after its effective date (August 23, 1989) are in service as a teacher under the System, but also to persons whose status as such a teacher terminated prior to such effective date, whether or not such person is an annuitant on that date.
        (3) Any periods immediately following teaching
     service, under this System or under Article 17, (or immediately following service prior to February 1, 1951 as a recreation worker for the Illinois Department of Public Safety) spent in active service with the military forces of the United States; periods spent in educational programs that prepare for return to teaching sponsored by the federal government following such active military service; if a teacher returns to teaching service within one calendar year after discharge or after the completion of the educational program, a further period, not exceeding one calendar year, between time spent in military service or in such educational programs and the return to employment as a teacher under this System; and a period of up to 2 years of active military service not immediately following employment as a teacher.
        The changes to this Section and Section 16‑128
     relating to military service made by P.A. 87‑794 shall apply not only to persons who on or after its effective date are in service as a teacher under the System, but also to persons whose status as a teacher terminated prior to that date, whether or not the person is an annuitant on that date. In the case of an annuitant who applies for credit allowable under this Section for a period of military service that did not immediately follow employment, and who has made the required contributions for such credit, the annuity shall be recalculated to include the additional service credit, with the increase taking effect on the date the System received written notification of the annuitant's intent to purchase the credit, if payment of all the required contributions is made within 60 days of such notice, or else on the first annuity payment date following the date of payment of the required contributions. In calculating the automatic annual increase for an annuity that has been recalculated under this Section, the increase attributable to the additional service allowable under P.A. 87‑794 shall be included in the calculation of automatic annual increases accruing after the effective date of the recalculation.
        Credit for military service shall be determined as
     follows: if entry occurs during the months of July, August, or September and the member was a teacher at the end of the immediately preceding school term, credit shall be granted from July 1 of the year in which he or she entered service; if entry occurs during the school term and the teacher was in teaching service at the beginning of the school term, credit shall be granted from July 1 of such year. In all other cases where credit for military service is allowed, credit shall be granted from the date of entry into the service.
        The total period of military service for which
     credit is granted shall not exceed 5 years for any member unless the service: (A) is validated before July 1, 1964, and (B) does not extend beyond July 1, 1963. Credit for military service shall be granted under this Section only if not more than 5 years of the military service for which credit is granted under this Section is used by the member to qualify for a military retirement allotment from any branch of the armed forces of the United States. The changes to this subdivision (b)(3) made by Public Act 86‑272 shall apply not only to persons who on or after its effective date (August 23, 1989) are in service as a teacher under the System, but also to persons whose status as such a teacher terminated prior to such effective date, whether or not such person is an annuitant on that date.
        (4) Any periods served as a member of the General
     Assembly.
        (5)(i) Any periods for which a teacher, as defined
     in Section 16‑106, is granted a leave of absence, provided he or she returns to teaching service creditable under this System or the State Universities Retirement System following the leave; (ii) periods during which a teacher is involuntarily laid off from teaching, provided he or she returns to teaching following the lay‑off; (iii) periods prior to July 1, 1983 during which a teacher ceased covered employment due to pregnancy, provided that the teacher returned to teaching service creditable under this System or the State Universities Retirement System following the pregnancy and submits evidence satisfactory to the Board documenting that the employment ceased due to pregnancy; and (iv) periods prior to July 1, 1983 during which a teacher ceased covered employment for the purpose of adopting an infant under 3 years of age or caring for a newly adopted infant under 3 years of age, provided that the teacher returned to teaching service creditable under this System or the State Universities Retirement System following the adoption and submits evidence satisfactory to the Board documenting that the employment ceased for the purpose of adopting an infant under 3 years of age or caring for a newly adopted infant under 3 years of age. However, total credit under this paragraph (5) may not exceed 3 years.
        Any qualified member or annuitant may apply for