The following definitions are provided to help you understand terms we regularly use in our seminars, correspondence, and publications. These definitions are general, not technical, in nature. For detailed definitions, please see the Illinois Pension Code, Article 16.

P

PDP, Payroll Deduction Program

A program that allows full-time teachers to purchase optional service or 2.2 upgrades, to reinstate previously refunded service, or to pay for an estimated ERO cost through irrevocable regular installments deducted on a before-tax basis from their paychecks and remitted to TRS.

part-time contractual teacher

A teacher employed in a TRS-covered position less than four clock hours per day or less than five days per week. The teacher has an employment agreement to work a specified period of time, and an annual salary rate can be established for the position.

part-time noncontractual teacher

A teacher employed on an as-needed basis in a TRS-covered position less than four clock hours per day or less than five days per week. The teacher is paid on an hourly or daily basis, and an annual salary rate cannot be established for the position (e.g., homebound teachers, tutors).

pick up

A form of tax sheltering. Employee payments or contributions are treated for tax purposes as if the employer makes the contribution.

post-retirement employment limitations

Following the school year in which a member ceased contributing service, an annuitant may be employed in a TRS-covered position for up to 120-paid days or 600-paid hours per school year and still receive a TRS retirement annuity. The 120 paid days and 600 paid hours will revert to 100 paid days and 500 paid hours after June 2011.

An individual who received a single-sum annuity may teach in TRS-covered positions without restriction and no contributions are required.

Public Act

Legislation that has become law by being passed by both the House of Representatives and the Senate and signed by the governor.

Public Act 94-0004

This act was signed into law by Governor Blagojevich on June 1, 2005. The legislation provides for changes of benefits in TRS, extends and modifies the Early Retirement Option (ERO) plan, reduces state contributions to TRS, and establishes a pension task force to study other changes to Illinois pension systems.

In addition, Public Act 94-0004 imposes employer contributions on salary increases over 6 percent that are used in the final average salary calculation and sick leave days granted in excess of the district's normal annual allotment. Please see Employer Bulletin 06-03 and Employer Bulletin 07-04 for more information.

Public Act 94-1057

This act was signed into law by Governor Blagojevich on July 31, 2006. This legislation, which revises Public Act 94-0004, provides permanent and temporary exemptions from employer contributions required as a result of salary increases over 6 percent that are used in a final average salary calculation. Please see Employer Bulletin 07-05 for more information (PDF).

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