Illinois General Assembly - Full Text of HB3070
Illinois General Assembly

Previous General Assemblies

Full Text of HB3070  100th General Assembly

HB3070sam001 100TH GENERAL ASSEMBLY

Sen. James F. Clayborne, Jr.

Filed: 5/16/2017

 

 


 

 


 
10000HB3070sam001LRB100 09046 RPS 26244 a

1
AMENDMENT TO HOUSE BILL 3070

2    AMENDMENT NO. ______. Amend House Bill 3070 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Illinois Pension Code is amended by
5changing Sections 7-139, 7-139.2, 7-142.1, 7-145.1, and 7-169
6as follows:
 
7    (40 ILCS 5/7-139)  (from Ch. 108 1/2, par. 7-139)
8    (Text of Section WITHOUT the changes made by P.A. 98-599,
9which has been held unconstitutional)
10    Sec. 7-139. Credits and creditable service to employees.
11    (a) Each participating employee shall be granted credits
12and creditable service, for purposes of determining the amount
13of any annuity or benefit to which he or a beneficiary is
14entitled, as follows:
15        1. For prior service: Each participating employee who
16    is an employee of a participating municipality or

 

 

10000HB3070sam001- 2 -LRB100 09046 RPS 26244 a

1    participating instrumentality on the effective date shall
2    be granted creditable service, but no credits under
3    paragraph 2 of this subsection (a), for periods of prior
4    service for which credit has not been received under any
5    other pension fund or retirement system established under
6    this Code, as follows:
7        If the effective date of participation for the
8    participating municipality or participating
9    instrumentality is on or before January 1, 1998, creditable
10    service shall be granted for the entire period of prior
11    service with that employer without any employee
12    contribution.
13        If the effective date of participation for the
14    participating municipality or participating
15    instrumentality is after January 1, 1998, creditable
16    service shall be granted for the last 20% of the period of
17    prior service with that employer, but no more than 5 years,
18    without any employee contribution. A participating
19    employee may establish creditable service for the
20    remainder of the period of prior service with that employer
21    by making an application in writing, accompanied by payment
22    of an employee contribution in an amount determined by the
23    Fund, based on the employee contribution rates in effect at
24    the time of application for the creditable service and the
25    employee's salary rate on the effective date of
26    participation for that employer, plus interest at the

 

 

10000HB3070sam001- 3 -LRB100 09046 RPS 26244 a

1    effective rate from the date of the prior service to the
2    date of payment. Application for this creditable service
3    may be made at any time while the employee is still in
4    service.
5        A municipality that (i) has at least 35 employees; (ii)
6    is located in a county with at least 2,000,000 inhabitants;
7    and (iii) maintains an independent defined benefit pension
8    plan for the benefit of its eligible employees may restrict
9    creditable service in whole or in part for periods of prior
10    service with the employer if the governing body of the
11    municipality adopts an irrevocable resolution to restrict
12    that creditable service and files the resolution with the
13    board before the municipality's effective date of
14    participation.
15        Any person who has withdrawn from the service of a
16    participating municipality or participating
17    instrumentality prior to the effective date, who reenters
18    the service of the same municipality or participating
19    instrumentality after the effective date and becomes a
20    participating employee is entitled to creditable service
21    for prior service as otherwise provided in this subdivision
22    (a)(1) only if he or she renders 2 years of service as a
23    participating employee after the effective date.
24    Application for such service must be made while in a
25    participating status. The salary rate to be used in the
26    calculation of the required employee contribution, if any,

 

 

10000HB3070sam001- 4 -LRB100 09046 RPS 26244 a

1    shall be the employee's salary rate at the time of first
2    reentering service with the employer after the employer's
3    effective date of participation.
4        2. For current service, each participating employee
5    shall be credited with:
6            a. Additional credits of amounts equal to each
7        payment of additional contributions received from him
8        under Section 7-173, as of the date the corresponding
9        payment of earnings is payable to him.
10            b. Normal credits of amounts equal to each payment
11        of normal contributions received from him, as of the
12        date the corresponding payment of earnings is payable
13        to him, and normal contributions made for the purpose
14        of establishing out-of-state service credits as
15        permitted under the conditions set forth in paragraph 6
16        of this subsection (a).
17            c. Municipality credits in an amount equal to 1.4
18        times the normal credits, except those established by
19        out-of-state service credits, as of the date of
20        computation of any benefit if these credits would
21        increase the benefit.
22            d. Survivor credits equal to each payment of
23        survivor contributions received from the participating
24        employee as of the date the corresponding payment of
25        earnings is payable, and survivor contributions made
26        for the purpose of establishing out-of-state service

 

 

10000HB3070sam001- 5 -LRB100 09046 RPS 26244 a

1        credits.
2        3. For periods of temporary and total and permanent
3    disability benefits, each employee receiving disability
4    benefits shall be granted creditable service for the period
5    during which disability benefits are payable. Normal and
6    survivor credits, based upon the rate of earnings applied
7    for disability benefits, shall also be granted if such
8    credits would result in a higher benefit to any such
9    employee or his beneficiary.
10        4. For authorized leave of absence without pay: A
11    participating employee shall be granted credits and
12    creditable service for periods of authorized leave of
13    absence without pay under the following conditions:
14            a. An application for credits and creditable
15        service is submitted to the board while the employee is
16        in a status of active employment.
17            b. Not more than 12 complete months of creditable
18        service for authorized leave of absence without pay
19        shall be counted for purposes of determining any
20        benefits payable under this Article.
21            c. Credits and creditable service shall be granted
22        for leave of absence only if such leave is approved by
23        the governing body of the municipality, including
24        approval of the estimated cost thereof to the
25        municipality as determined by the fund, and employee
26        contributions, plus interest at the effective rate

 

 

10000HB3070sam001- 6 -LRB100 09046 RPS 26244 a

1        applicable for each year from the end of the period of
2        leave to date of payment, have been paid to the fund in
3        accordance with Section 7-173. The contributions shall
4        be computed upon the assumption earnings continued
5        during the period of leave at the rate in effect when
6        the leave began.
7            d. Benefits under the provisions of Sections
8        7-141, 7-146, 7-150 and 7-163 shall become payable to
9        employees on authorized leave of absence, or their
10        designated beneficiary, only if such leave of absence
11        is creditable hereunder, and if the employee has at
12        least one year of creditable service other than the
13        service granted for leave of absence. Any employee
14        contributions due may be deducted from any benefits
15        payable.
16            e. No credits or creditable service shall be
17        allowed for leave of absence without pay during any
18        period of prior service.
19        5. For military service: The governing body of a
20    municipality or participating instrumentality may elect to
21    allow creditable service to participating employees who
22    leave their employment to serve in the armed forces of the
23    United States for all periods of such service, provided
24    that the person returns to active employment within 90 days
25    after completion of full time active duty, but no
26    creditable service shall be allowed such person for any

 

 

10000HB3070sam001- 7 -LRB100 09046 RPS 26244 a

1    period that can be used in the computation of a pension or
2    any other pay or benefit, other than pay for active duty,
3    for service in any branch of the armed forces of the United
4    States. If necessary to the computation of any benefit, the
5    board shall establish municipality credits for
6    participating employees under this paragraph on the
7    assumption that the employee received earnings at the rate
8    received at the time he left the employment to enter the
9    armed forces. A participating employee in the armed forces
10    shall not be considered an employee during such period of
11    service and no additional death and no disability benefits
12    are payable for death or disability during such period.
13        Any participating employee who left his employment
14    with a municipality or participating instrumentality to
15    serve in the armed forces of the United States and who
16    again became a participating employee within 90 days after
17    completion of full time active duty by entering the service
18    of a different municipality or participating
19    instrumentality, which has elected to allow creditable
20    service for periods of military service under the preceding
21    paragraph, shall also be allowed creditable service for his
22    period of military service on the same terms that would
23    apply if he had been employed, before entering military
24    service, by the municipality or instrumentality which
25    employed him after he left the military service and the
26    employer costs arising in relation to such grant of

 

 

10000HB3070sam001- 8 -LRB100 09046 RPS 26244 a

1    creditable service shall be charged to and paid by that
2    municipality or instrumentality.
3        Notwithstanding the foregoing, any participating
4    employee shall be entitled to creditable service as
5    required by any federal law relating to re-employment
6    rights of persons who served in the United States Armed
7    Services. Such creditable service shall be granted upon
8    payment by the member of an amount equal to the employee
9    contributions which would have been required had the
10    employee continued in service at the same rate of earnings
11    during the military leave period, plus interest at the
12    effective rate.
13        5.1. In addition to any creditable service established
14    under paragraph 5 of this subsection (a), creditable
15    service may be granted for up to 48 months of service in
16    the armed forces of the United States.
17        In order to receive creditable service for military
18    service under this paragraph 5.1, a participating employee
19    must (1) apply to the Fund in writing and provide evidence
20    of the military service that is satisfactory to the Board;
21    (2) obtain the written approval of the current employer;
22    and (3) make contributions to the Fund equal to (i) the
23    employee contributions that would have been required had
24    the service been rendered as a member, plus (ii) an amount
25    determined by the board to be equal to the employer's
26    normal cost of the benefits accrued for that military

 

 

10000HB3070sam001- 9 -LRB100 09046 RPS 26244 a

1    service, plus (iii) interest on items (i) and (ii) from the
2    date of first membership in the Fund to the date of
3    payment. The required interest shall be calculated at the
4    regular interest rate.
5        The changes made to this paragraph 5.1 by Public Acts
6    95-483 and 95-486 apply only to participating employees in
7    service on or after August 28, 2007 (the effective date of
8    those Public Acts).
9        6. For out-of-state service: Creditable service shall
10    be granted for service rendered to an out-of-state local
11    governmental body under the following conditions: The
12    employee had participated and has irrevocably forfeited
13    all rights to benefits in the out-of-state public employees
14    pension system; the governing body of his participating
15    municipality or instrumentality authorizes the employee to
16    establish such service; the employee has 2 years current
17    service with this municipality or participating
18    instrumentality; the employee makes a payment of
19    contributions, which shall be computed at 8% (normal) plus
20    2% (survivor) times length of service purchased times the
21    average rate of earnings for the first 2 years of service
22    with the municipality or participating instrumentality
23    whose governing body authorizes the service established
24    plus interest at the effective rate on the date such
25    credits are established, payable from the date the employee
26    completes the required 2 years of current service to date

 

 

10000HB3070sam001- 10 -LRB100 09046 RPS 26244 a

1    of payment. In no case shall more than 120 months of
2    creditable service be granted under this provision.
3        7. For retroactive service: Any employee who could have
4    but did not elect to become a participating employee, or
5    who should have been a participant in the Municipal Public
6    Utilities Annuity and Benefit Fund before that fund was
7    superseded, may receive creditable service for the period
8    of service not to exceed 50 months; however, a current or
9    former elected or appointed official of a participating
10    municipality may establish credit under this paragraph 7
11    for more than 50 months of service as an official of that
12    municipality, if the excess over 50 months is approved by
13    resolution of the governing body of the affected
14    municipality filed with the Fund before January 1, 2002.
15        Any employee who is a participating employee on or
16    after September 24, 1981 and who was excluded from
17    participation by the age restrictions removed by Public Act
18    82-596 may receive creditable service for the period, on or
19    after January 1, 1979, excluded by the age restriction and,
20    in addition, if the governing body of the participating
21    municipality or participating instrumentality elects to
22    allow creditable service for all employees excluded by the
23    age restriction prior to January 1, 1979, for service
24    during the period prior to that date excluded by the age
25    restriction. Any employee who was excluded from
26    participation by the age restriction removed by Public Act

 

 

10000HB3070sam001- 11 -LRB100 09046 RPS 26244 a

1    82-596 and who is not a participating employee on or after
2    September 24, 1981 may receive creditable service for
3    service after January 1, 1979. Creditable service under
4    this paragraph shall be granted upon payment of the
5    employee contributions which would have been required had
6    he participated, with interest at the effective rate for
7    each year from the end of the period of service established
8    to date of payment.
9        8. For accumulated unused sick leave: A participating
10    employee who is applying for a retirement annuity shall be
11    entitled to creditable service for that portion of the
12    employee's accumulated unused sick leave for which payment
13    is not received, as follows:
14            a. Sick leave days shall be limited to those
15        accumulated under a sick leave plan established by a
16        participating municipality or participating
17        instrumentality which is available to all employees or
18        a class of employees.
19            b. Except as provided in item b-1, only sick leave
20        days accumulated with a participating municipality or
21        participating instrumentality with which the employee
22        was in service within 60 days of the effective date of
23        his retirement annuity shall be credited; If the
24        employee was in service with more than one employer
25        during this period only the sick leave days with the
26        employer with which the employee has the greatest

 

 

10000HB3070sam001- 12 -LRB100 09046 RPS 26244 a

1        number of unpaid sick leave days shall be considered.
2            b-1. If the employee was in the service of more
3        than one employer as defined in item (2) of paragraph
4        (a) of subsection (A) of Section 7-132, then the sick
5        leave days from all such employers shall be credited,
6        as long as the creditable service attributed to those
7        sick leave days does not exceed the limitation in item
8        f of this paragraph 8. In calculating the creditable
9        service under this item b-1, the sick leave days from
10        the last employer shall be considered first, then the
11        remaining sick leave days shall be considered until
12        there are no more days or the maximum creditable sick
13        leave threshold under item f of this paragraph 8 has
14        been reached.
15            c. The creditable service granted shall be
16        considered solely for the purpose of computing the
17        amount of the retirement annuity and shall not be used
18        to establish any minimum service period required by any
19        provision of the Illinois Pension Code, the effective
20        date of the retirement annuity, or the final rate of
21        earnings.
22            d. The creditable service shall be at the rate of
23        1/20 of a month for each full sick day, provided that
24        no more than 12 months may be credited under this
25        subdivision 8.
26            e. Employee contributions shall not be required

 

 

10000HB3070sam001- 13 -LRB100 09046 RPS 26244 a

1        for creditable service under this subdivision 8.
2            f. Each participating municipality and
3        participating instrumentality with which an employee
4        has service within 60 days of the effective date of his
5        retirement annuity shall certify to the board the
6        number of accumulated unpaid sick leave days credited
7        to the employee at the time of termination of service.
8        9. For service transferred from another system:
9    Credits and creditable service shall be granted for service
10    under Article 4, 5, 8, 14, or 16 of this Act, to any active
11    member of this Fund, and to any inactive member who has
12    been a county sheriff, upon transfer of such credits
13    pursuant to Section 4-108.3, 5-235, 8-226.7, 14-105.6, or
14    16-131.4, and payment by the member of the amount by which
15    (1) the employer and employee contributions that would have
16    been required if he had participated in this Fund as a
17    sheriff's law enforcement employee during the period for
18    which credit is being transferred, plus interest thereon at
19    the effective rate for each year, compounded annually, from
20    the date of termination of the service for which credit is
21    being transferred to the date of payment, exceeds (2) the
22    amount actually transferred to the Fund. Such transferred
23    service shall be deemed to be service as a sheriff's law
24    enforcement employee for the purposes of Section 7-142.1.
25        10. (Blank).
26        11. For service transferred from an Article 3 system

 

 

10000HB3070sam001- 14 -LRB100 09046 RPS 26244 a

1    under Section 3-110.3: Credits and creditable service
2    shall be granted for service under Article 3 of this Act as
3    provided in Section 3-110.3, to any active member of this
4    Fund, upon transfer of such credits pursuant to Section
5    3-110.3. If the board determines that the amount
6    transferred is less than the true cost to the Fund of
7    allowing that creditable service to be established, then in
8    order to establish that creditable service, the member must
9    pay to the Fund an additional contribution equal to the
10    difference, as determined by the board in accordance with
11    the rules and procedures adopted under this paragraph. If
12    the member does not make the full additional payment as
13    required by this paragraph prior to termination of his
14    participation with that employer, then his or her
15    creditable service shall be reduced by an amount equal to
16    the difference between the amount transferred under
17    Section 3-110.3, including any payments made by the member
18    under this paragraph prior to termination, and the true
19    cost to the Fund of allowing that creditable service to be
20    established, as determined by the board in accordance with
21    the rules and procedures adopted under this paragraph.
22        The board shall establish by rule the manner of making
23    the calculation required under this paragraph 11, taking
24    into account the appropriate actuarial assumptions; the
25    member's service, age, and salary history, and any other
26    factors that the board determines to be relevant.

 

 

10000HB3070sam001- 15 -LRB100 09046 RPS 26244 a

1        12. For omitted service: Any employee who was employed
2    by a participating employer in a position that required
3    participation, but who was not enrolled in the Fund, may
4    establish such credits under the following conditions:
5            a. Application for such credits is received by the
6        Board while the employee is an active participant of
7        the Fund or a reciprocal retirement system.
8            b. Eligibility for participation and earnings are
9        verified by the Authorized Agent of the participating
10        employer for which the service was rendered.
11        Creditable service under this paragraph shall be
12    granted upon payment of the employee contributions that
13    would have been required had he participated, which shall
14    be calculated by the Fund using the member contribution
15    rate in effect during the period that the service was
16    rendered.
17    (b) Creditable service - amount:
18        1. One month of creditable service shall be allowed for
19    each month for which a participating employee made
20    contributions as required under Section 7-173, or for which
21    creditable service is otherwise granted hereunder. Not
22    more than 1 month of service shall be credited and counted
23    for 1 calendar month, and not more than 1 year of service
24    shall be credited and counted for any calendar year. A
25    calendar month means a nominal month beginning on the first
26    day thereof, and a calendar year means a year beginning

 

 

10000HB3070sam001- 16 -LRB100 09046 RPS 26244 a

1    January 1 and ending December 31.
2        2. A seasonal employee shall be given 12 months of
3    creditable service if he renders the number of months of
4    service normally required by the position in a 12-month
5    period and he remains in service for the entire 12-month
6    period. Otherwise a fractional year of service in the
7    number of months of service rendered shall be credited.
8        3. An intermittent employee shall be given creditable
9    service for only those months in which a contribution is
10    made under Section 7-173.
11    (c) No application for correction of credits or creditable
12service shall be considered unless the board receives an
13application for correction while (1) the applicant is a
14participating employee and in active employment with a
15participating municipality or instrumentality, or (2) while
16the applicant is actively participating in a pension fund or
17retirement system which is a participating system under the
18Retirement Systems Reciprocal Act. A participating employee or
19other applicant shall not be entitled to credits or creditable
20service unless the required employee contributions are made in
21a lump sum or in installments made in accordance with board
22rule. Payments made to establish full or partial service credit
23under paragraph 1, 4, 5, 5.1, 6, 7, 9, or 12 of subsection (a)
24of this Section must be received by the Board while the
25applicant is an active participant in the Fund or a reciprocal
26retirement system, except that an applicant may make one

 

 

10000HB3070sam001- 17 -LRB100 09046 RPS 26244 a

1payment after termination of active participation in the Fund
2or a reciprocal retirement system. Notwithstanding Section
31-103.1, the changes made to this Section by this amendatory
4Act of the 100th General Assembly apply without regard to
5whether the participant was in service on or after the
6effective date of the amendatory Act.
7    (d) Upon the granting of a retirement, surviving spouse or
8child annuity, a death benefit or a separation benefit, on
9account of any employee, all individual accumulated credits
10shall thereupon terminate. Upon the withdrawal of additional
11contributions, the credits applicable thereto shall thereupon
12terminate. Terminated credits shall not be applied to increase
13the benefits any remaining employee would otherwise receive
14under this Article.
15(Source: P.A. 97-415, eff. 8-16-11; 98-439, eff. 8-16-13;
1698-932, eff. 8-15-14.)
 
17    (40 ILCS 5/7-139.2)  (from Ch. 108 1/2, par. 7-139.2)
18    Sec. 7-139.2. Validation of service credits. An active
19member of the General Assembly having no service credits or
20creditable service in the Fund, may establish service credit
21and creditable service for periods during which he was an
22employee of a municipality in an elective office and could have
23elected to participate in the Fund but did not so elect.
24Service credits and creditable service may be established by
25payment to the Fund of an amount equal to the contributions he

 

 

10000HB3070sam001- 18 -LRB100 09046 RPS 26244 a

1would have made if he had elected to participate plus interest
2to the date of payment, together with the applicable
3municipality credits including interest, but the total period
4of such creditable service that may be validated shall not
5exceed 8 years. Payments made to establish such service credit
6must be received by the Board while the member is an active
7participant in the General Assembly Retirement System, except
8that one payment will be permitted after the member terminates
9such service. Notwithstanding Section 1-103.1, the changes
10made to this Section by this amendatory Act of the 100th
11General Assembly apply without regard to whether the employee
12was in service on or after the effective date of the amendatory
13Act.
14(Source: P.A. 81-1536.)
 
15    (40 ILCS 5/7-142.1)  (from Ch. 108 1/2, par. 7-142.1)
16    Sec. 7-142.1. Sheriff's law enforcement employees.
17    (a) In lieu of the retirement annuity provided by
18subparagraph 1 of paragraph (a) of Section 7-142:
19    Any sheriff's law enforcement employee who has 20 or more
20years of service in that capacity and who terminates service
21prior to January 1, 1988 shall be entitled at his option to
22receive a monthly retirement annuity for his service as a
23sheriff's law enforcement employee computed by multiplying 2%
24for each year of such service up to 10 years, 2 1/4% for each
25year of such service above 10 years and up to 20 years, and 2

 

 

10000HB3070sam001- 19 -LRB100 09046 RPS 26244 a

11/2% for each year of such service above 20 years, by his
2annual final rate of earnings and dividing by 12.
3    Any sheriff's law enforcement employee who has 20 or more
4years of service in that capacity and who terminates service on
5or after January 1, 1988 and before July 1, 2004 shall be
6entitled at his option to receive a monthly retirement annuity
7for his service as a sheriff's law enforcement employee
8computed by multiplying 2.5% for each year of such service up
9to 20 years, 2% for each year of such service above 20 years
10and up to 30 years, and 1% for each year of such service above
1130 years, by his annual final rate of earnings and dividing by
1212.
13    Any sheriff's law enforcement employee who has 20 or more
14years of service in that capacity and who terminates service on
15or after July 1, 2004 shall be entitled at his or her option to
16receive a monthly retirement annuity for service as a sheriff's
17law enforcement employee computed by multiplying 2.5% for each
18year of such service by his annual final rate of earnings and
19dividing by 12.
20    If a sheriff's law enforcement employee has service in any
21other capacity, his retirement annuity for service as a
22sheriff's law enforcement employee may be computed under this
23Section and the retirement annuity for his other service under
24Section 7-142.
25    In no case shall the total monthly retirement annuity for
26persons who retire before July 1, 2004 exceed 75% of the

 

 

10000HB3070sam001- 20 -LRB100 09046 RPS 26244 a

1monthly final rate of earnings. In no case shall the total
2monthly retirement annuity for persons who retire on or after
3July 1, 2004 exceed 80% of the monthly final rate of earnings.
4    (b) Whenever continued group insurance coverage is elected
5in accordance with the provisions of Section 367h of the
6Illinois Insurance Code, as now or hereafter amended, the total
7monthly premium for such continued group insurance coverage or
8such portion thereof as is not paid by the municipality shall,
9upon request of the person electing such continued group
10insurance coverage, be deducted from any monthly pension
11benefit otherwise payable to such person pursuant to this
12Section, to be remitted by the Fund to the insurance company or
13other entity providing the group insurance coverage.
14    (c) A sheriff's law enforcement employee who began service
15in that capacity prior to the effective date of this amendatory
16Act of the 97th General Assembly and who has service in any
17other capacity may convert up to 10 years of that service into
18service as a sheriff's law enforcement employee by paying to
19the Fund an amount equal to (1) the additional employee
20contribution required under Section 7-173.1, plus (2) the
21additional employer contribution required under Section 7-172,
22plus (3) interest on items (1) and (2) at the prescribed rate
23from the date of the service to the date of payment.
24Application must be received by the Board while the employee is
25an active participant in the Fund. Payment must be received
26while the member is an active participant, except that one

 

 

10000HB3070sam001- 21 -LRB100 09046 RPS 26244 a

1payment will be permitted after termination of participation.
2Notwithstanding Section 1-103.1, the changes made to this
3Section by this amendatory Act of the 100th General Assembly
4apply without regard to whether the participant was in service
5on or after the effective date of the amendatory Act.
6    (d) The changes to subsections (a) and (b) of this Section
7made by this amendatory Act of the 94th General Assembly apply
8only to persons in service on or after July 1, 2004. In the
9case of such a person who begins to receive a retirement
10annuity before the effective date of this amendatory Act of the
1194th General Assembly, the annuity shall be recalculated
12prospectively to reflect those changes, with the resulting
13increase beginning to accrue on the first annuity payment date
14following the effective date of this amendatory Act.
15    (e) Any elected county officer who was entitled to receive
16a stipend from the State on or after July 1, 2009 and on or
17before June 30, 2010 may establish earnings credit for the
18amount of stipend not received, if the elected county official
19applies in writing to the fund within 6 months after the
20effective date of this amendatory Act of the 96th General
21Assembly and pays to the fund an amount equal to (i) employee
22contributions on the amount of stipend not received, (ii)
23employer contributions determined by the Board equal to the
24employer's normal cost of the benefit on the amount of stipend
25not received, plus (iii) interest on items (i) and (ii) at the
26actuarially assumed rate.

 

 

10000HB3070sam001- 22 -LRB100 09046 RPS 26244 a

1    (f) Notwithstanding any other provision of this Article,
2the provisions of this subsection (f) apply to a person who
3first becomes a sheriff's law enforcement employee under this
4Article on or after January 1, 2011.
5    A sheriff's law enforcement employee age 55 or more who has
610 or more years of service in that capacity shall be entitled
7at his option to receive a monthly retirement annuity for his
8or her service as a sheriff's law enforcement employee computed
9by multiplying 2.5% for each year of such service by his or her
10final rate of earnings.
11    The retirement annuity of a sheriff's law enforcement
12employee who is retiring after attaining age 50 with 10 or more
13years of creditable service shall be reduced by one-half of 1%
14for each month that the sheriff's law enforcement employee's
15age is under age 55.
16    The maximum retirement annuity under this subsection (f)
17shall be 75% of final rate of earnings.
18    For the purposes of this subsection (f), "final rate of
19earnings" means the average monthly earnings obtained by
20dividing the total salary of the sheriff's law enforcement
21employee during the 96 consecutive months of service within the
22last 120 months of service in which the total earnings was the
23highest by the number of months of service in that period.
24    Notwithstanding any other provision of this Article,
25beginning on January 1, 2011, for all purposes under this Code
26(including without limitation the calculation of benefits and

 

 

10000HB3070sam001- 23 -LRB100 09046 RPS 26244 a

1employee contributions), the annual earnings of a sheriff's law
2enforcement employee to whom this Section applies shall not
3include overtime and shall not exceed $106,800; however, that
4amount shall annually thereafter be increased by the lesser of
5(i) 3% of that amount, including all previous adjustments, or
6(ii) one-half the annual unadjusted percentage increase (but
7not less than zero) in the consumer price index-u for the 12
8months ending with the September preceding each November 1,
9including all previous adjustments.
10    (g) Notwithstanding any other provision of this Article,
11the monthly annuity of a person who first becomes a sheriff's
12law enforcement employee under this Article on or after January
131, 2011 shall be increased on the January 1 occurring either on
14or after the attainment of age 60 or the first anniversary of
15the annuity start date, whichever is later. Each annual
16increase shall be calculated at 3% or one-half the annual
17unadjusted percentage increase (but not less than zero) in the
18consumer price index-u for the 12 months ending with the
19September preceding each November 1, whichever is less, of the
20originally granted retirement annuity. If the annual
21unadjusted percentage change in the consumer price index-u for
22a 12-month period ending in September is zero or, when compared
23with the preceding period, decreases, then the annuity shall
24not be increased.
25    (h) Notwithstanding any other provision of this Article,
26for a person who first becomes a sheriff's law enforcement

 

 

10000HB3070sam001- 24 -LRB100 09046 RPS 26244 a

1employee under this Article on or after January 1, 2011, the
2annuity to which the surviving spouse, children, or parents are
3entitled under this subsection (h) shall be in the amount of 66
42/3% of the sheriff's law enforcement employee's earned annuity
5at the date of death.
6    (i) Notwithstanding any other provision of this Article,
7the monthly annuity of a survivor of a person who first becomes
8a sheriff's law enforcement employee under this Article on or
9after January 1, 2011 shall be increased on the January 1 after
10attainment of age 60 by the recipient of the survivor's annuity
11and each January 1 thereafter by 3% or one-half the annual
12unadjusted percentage increase in the consumer price index-u
13for the 12 months ending with the September preceding each
14November 1, whichever is less, of the originally granted
15pension. If the annual unadjusted percentage change in the
16consumer price index-u for a 12-month period ending in
17September is zero or, when compared with the preceding period,
18decreases, then the annuity shall not be increased.
19    (j) For the purposes of this Section, "consumer price
20index-u" means the index published by the Bureau of Labor
21Statistics of the United States Department of Labor that
22measures the average change in prices of goods and services
23purchased by all urban consumers, United States city average,
24all items, 1982-84 = 100. The new amount resulting from each
25annual adjustment shall be determined by the Public Pension
26Division of the Department of Insurance and made available to

 

 

10000HB3070sam001- 25 -LRB100 09046 RPS 26244 a

1the boards of the pension funds.
2(Source: P.A. 96-961, eff. 7-2-10; 96-1495, eff. 1-1-11;
397-272, eff. 8-8-11; 97-609, eff. 8-26-11.)
 
4    (40 ILCS 5/7-145.1)
5    Sec. 7-145.1. Alternative annuity for county officers.
6    (a) The benefits provided in this Section and Section
77-145.2 are available only if, prior to the effective date of
8this amendatory Act of the 97th General Assembly, the county
9board has filed with the Board of the Fund a resolution or
10ordinance expressly consenting to the availability of these
11benefits for its elected county officers. The county board's
12consent is irrevocable with respect to persons participating in
13the program, but may be revoked at any time with respect to
14persons who have not paid an additional optional contribution
15under this Section before the date of revocation.
16    An elected county officer may elect to establish
17alternative credits for an alternative annuity by electing in
18writing before the effective date of this amendatory Act of the
1997th General Assembly to make additional optional
20contributions in accordance with this Section and procedures
21established by the board. These alternative credits are
22available only for periods of service as an elected county
23officer. The elected county officer may discontinue making the
24additional optional contributions by notifying the Fund in
25writing in accordance with this Section and procedures

 

 

10000HB3070sam001- 26 -LRB100 09046 RPS 26244 a

1established by the board.
2    Additional optional contributions for the alternative
3annuity shall be as follows:
4        (1) For service as an elected county officer after the
5    option is elected, an additional contribution of 3% of
6    salary shall be contributed to the Fund on the same basis
7    and under the same conditions as contributions required
8    under Section 7-173.
9        (2) For service as an elected county officer before the
10    option is elected, an additional contribution of 3% of the
11    salary for the applicable period of service, plus interest
12    at the effective rate from the date of service to the date
13    of payment, plus any additional amount required by the
14    county board under paragraph (3). All payments for past
15    service must be paid in full before credit is given.
16    Payment must be received by the Board while the member is
17    an active participant, except that one payment will be
18    permitted after termination of participation.
19        (3) With respect to service as an elected county
20    officer before the option is elected, if payment is made
21    after the county board has filed with the Board of the Fund
22    a resolution or ordinance requiring an additional
23    contribution under this paragraph, then the contribution
24    required under paragraph (2) shall include an amount to be
25    determined by the Fund, equal to the actuarial present
26    value of the additional employer cost that would otherwise

 

 

10000HB3070sam001- 27 -LRB100 09046 RPS 26244 a

1    result from the alternative credits being established for
2    that service. A county board's resolution or ordinance
3    requiring additional contributions under this paragraph
4    (3) is irrevocable. Payment must be received by the Board
5    while the member is an active participant, except that one
6    payment will be permitted after termination of
7    participation.
8    No additional optional contributions may be made for any
9period of service for which credit has been previously
10forfeited by acceptance of a refund, unless the refund is
11repaid in full with interest at the effective rate from the
12date of refund to the date of repayment.
13    Notwithstanding Section 1-103.1, the changes made to this
14Section by this amendatory Act of the 100th General Assembly
15apply without regard to whether the participant was in service
16on or after the effective date of the amendatory Act.
17    (b) In lieu of the retirement annuity otherwise payable
18under this Article, an elected county officer who (1) has
19elected to participate in the Fund and make additional optional
20contributions in accordance with this Section, (2) has held and
21made additional optional contributions with respect to the same
22elected county office for at least 8 years, and (3) has
23attained age 55 with at least 8 years of service credit (or has
24attained age 50 with at least 20 years of service as a
25sheriff's law enforcement employee) may elect to have his
26retirement annuity computed as follows: 3% of the participant's

 

 

10000HB3070sam001- 28 -LRB100 09046 RPS 26244 a

1salary for each of the first 8 years of service credit, plus 4%
2of that salary for each of the next 4 years of service credit,
3plus 5% of that salary for each year of service credit in
4excess of 12 years, subject to a maximum of 80% of that salary.
5    This formula applies only to service in an elected county
6office that the officer held for at least 8 years, and only to
7service for which additional optional contributions have been
8paid under this Section. If an elected county officer qualifies
9to have this formula applied to service in more than one
10elected county office, the qualifying service shall be
11accumulated for purposes of determining the applicable accrual
12percentages, but the salary used for each office shall be the
13separate salary calculated for that office, as defined in
14subsection (g).
15    To the extent that the elected county officer has service
16credit that does not qualify for this formula, his retirement
17annuity will first be determined in accordance with this
18formula with respect to the service to which this formula
19applies, and then in accordance with the remaining Sections of
20this Article with respect to the service to which this formula
21does not apply.
22    (c) In lieu of the disability benefits otherwise payable
23under this Article, an elected county officer who (1) has
24elected to participate in the Fund, and (2) has become
25permanently disabled and as a consequence is unable to perform
26the duties of his office, and (3) was making optional

 

 

10000HB3070sam001- 29 -LRB100 09046 RPS 26244 a

1contributions in accordance with this Section at the time the
2disability was incurred, may elect to receive a disability
3annuity calculated in accordance with the formula in subsection
4(b). For the purposes of this subsection, an elected county
5officer shall be considered permanently disabled only if: (i)
6disability occurs while in service as an elected county officer
7and is of such a nature as to prevent him from reasonably
8performing the duties of his office at the time; and (ii) the
9board has received a written certification by at least 2
10licensed physicians appointed by it stating that the officer is
11disabled and that the disability is likely to be permanent.
12    (d) Refunds of additional optional contributions shall be
13made on the same basis and under the same conditions as
14provided under Section 7-166, 7-167 and 7-168. Interest shall
15be credited at the effective rate on the same basis and under
16the same conditions as for other contributions.
17    If an elected county officer fails to hold that same
18elected county office for at least 8 years, he or she shall be
19entitled after leaving office to receive a refund of the
20additional optional contributions made with respect to that
21office, plus interest at the effective rate.
22    (e) The plan of optional alternative benefits and
23contributions shall be available to persons who are elected
24county officers and active contributors to the Fund on or after
25November 15, 1994 and elected to establish alternative credit
26before the effective date of this amendatory Act of the 97th

 

 

10000HB3070sam001- 30 -LRB100 09046 RPS 26244 a

1General Assembly. A person who was an elected county officer
2and an active contributor to the Fund on November 15, 1994 but
3is no longer an active contributor may apply to make additional
4optional contributions under this Section at any time within 90
5days after the effective date of this amendatory Act of 1997;
6if the person is an annuitant, the resulting increase in
7annuity shall begin to accrue on the first day of the month
8following the month in which the required payment is received
9by the Fund.
10    (f) For the purposes of this Section and Section 7-145.2,
11the terms "elected county officer" and "elected county office"
12include, but are not limited to: (1) the county clerk,
13recorder, treasurer, coroner, assessor (if elected), auditor,
14sheriff, and State's Attorney; members of the county board; and
15the clerk of the circuit court; and (2) a person who has been
16appointed to fill a vacancy in an office that is normally
17filled by election on a countywide basis, for the duration of
18his or her service in that office. The terms "elected county
19officer" and "elected county office" do not include any officer
20or office of a county that has not consented to the
21availability of benefits under this Section and Section
227-145.2.
23    (g) For the purposes of this Section and Section 7-145.2,
24the term "salary" means the final rate of earnings for the
25elected county office held, calculated in a manner consistent
26with Section 7-116, but for that office only. If an elected

 

 

10000HB3070sam001- 31 -LRB100 09046 RPS 26244 a

1county officer qualifies to have the formula in subsection (b)
2applied to service in more than one elected county office, a
3separate salary shall be calculated and applied with respect to
4each such office.
5    (h) The changes to this Section made by this amendatory Act
6of the 91st General Assembly apply to persons who first make an
7additional optional contribution under this Section on or after
8the effective date of this amendatory Act.
9    (i) Any elected county officer who was entitled to receive
10a stipend from the State on or after July 1, 2009 and on or
11before June 30, 2010 may establish earnings credit for the
12amount of stipend not received, if the elected county official
13applies in writing to the fund within 6 months after the
14effective date of this amendatory Act of the 96th General
15Assembly and pays to the fund an amount equal to (i) employee
16contributions on the amount of stipend not received, (ii)
17employer contributions determined by the Board equal to the
18employer's normal cost of the benefit on the amount of stipend
19not received, plus (iii) interest on items (i) and (ii) at the
20actuarially assumed rate.
21(Source: P.A. 96-961, eff. 7-2-10; 97-272, eff. 8-8-11; 97-609,
22eff. 8-26-11.)
 
23    (40 ILCS 5/7-169)  (from Ch. 108 1/2, par. 7-169)
24    Sec. 7-169. Separation benefits; repayments.
25    (a) If an employee who has received a separation benefit

 

 

10000HB3070sam001- 32 -LRB100 09046 RPS 26244 a

1subsequently becomes a participating employee, and renders at
2least 2 years of contributing service from the date of such
3re-entry, he may pay to the fund the amount of the separation
4benefit, plus interest at the effective rate for each year from
5the date of payment of the separation benefit to the date of
6repayment. Upon payment his creditable service shall be
7reinstated and the payment shall be credited to his account as
8normal contributions. Application must be received by the Board
9while the employee is an active participant in the Fund or a
10reciprocal retirement system. Payment must be received while
11the member is an active participant, except that one payment
12will be permitted after termination of participation in the
13Fund or a reciprocal retirement system. Notwithstanding
14Section 1-103.1, the changes made to this Section by this
15amendatory Act of the 100th General Assembly apply without
16regard to whether the participant was in service on or after
17the effective date of the amendatory Act.
18     (b) Beginning July 1, 2004, the requirement of returning
19to service for at least 2 years does not apply to persons who
20return to service as a sheriff's law enforcement employee. This
21subsection applies only to persons in service on or after July
221, 2004. In the case of such a person who begins to receive a
23retirement annuity before the effective date of this amendatory
24Act of the 94th General Assembly, the annuity shall be
25recalculated prospectively to reflect any credits reinstated
26as a result of this subsection, with the resulting increase in

 

 

10000HB3070sam001- 33 -LRB100 09046 RPS 26244 a

1annuity beginning to accrue on the first annuity payment date
2following the effective date of this amendatory Act, but not
3earlier than the date the repayment is received by the Fund.
4(Source: P.A. 94-712, eff. 6-1-06.)
 
5    Section 99. Effective date. This Act takes effect upon
6becoming law.".