Public Act 096-0297
 
HB3656 Enrolled LRB096 11614 AMC 22140 b

    AN ACT concerning public employee benefits.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 5. The Illinois Pension Code is amended by changing
Section 3-110 as follows:
 
    (40 ILCS 5/3-110)  (from Ch. 108 1/2, par. 3-110)
    Sec. 3-110. Creditable service.
    (a) "Creditable service" is the time served by a police
officer as a member of a regularly constituted police force of
a municipality. In computing creditable service furloughs
without pay exceeding 30 days shall not be counted, but all
leaves of absence for illness or accident, regardless of
length, and all periods of disability retirement for which a
police officer has received no disability pension payments
under this Article shall be counted.
    (a-5) Up to 3 years of time during which the police officer
receives a disability pension under Section 3-114.1, 3-114.2,
3-114.3, or 3-114.6 shall be counted as creditable service,
provided that (i) the police officer returns to active service
after the disability for a period at least equal to the period
for which credit is to be established and (ii) the police
officer makes contributions to the fund based on the rates
specified in Section 3-125.1 and the salary upon which the
disability pension is based. These contributions may be paid at
any time prior to the commencement of a retirement pension. The
police officer may, but need not, elect to have the
contributions deducted from the disability pension or to pay
them in installments on a schedule approved by the board. If
not deducted from the disability pension, the contributions
shall include interest at the rate of 6% per year, compounded
annually, from the date for which service credit is being
established to the date of payment. If contributions are paid
under this subsection (a-5) in excess of those needed to
establish the credit, the excess shall be refunded. This
subsection (a-5) applies to persons receiving a disability
pension under Section 3-114.1, 3-114.2, 3-114.3, or 3-114.6 on
the effective date of this amendatory Act of the 91st General
Assembly, as well as persons who begin to receive such a
disability pension after that date.
    (b) Creditable service includes all periods of service in
the military, naval or air forces of the United States entered
upon while an active police officer of a municipality, provided
that upon applying for a permanent pension, and in accordance
with the rules of the board, the police officer pays into the
fund the amount the officer would have contributed if he or she
had been a regular contributor during such period, to the
extent that the municipality which the police officer served
has not made such contributions in the officer's behalf. The
total amount of such creditable service shall not exceed 5
years, except that any police officer who on July 1, 1973 had
more than 5 years of such creditable service shall receive the
total amount thereof.
    (c) Creditable service also includes service rendered by a
police officer while on leave of absence from a police
department to serve as an executive of an organization whose
membership consists of members of a police department, subject
to the following conditions: (i) the police officer is a
participant of a fund established under this Article with at
least 10 years of service as a police officer; (ii) the police
officer received no credit for such service under any other
retirement system, pension fund, or annuity and benefit fund
included in this Code; (iii) pursuant to the rules of the board
the police officer pays to the fund the amount he or she would
have contributed had the officer been an active member of the
police department; and (iv) the organization pays a
contribution equal to the municipality's normal cost for that
period of service.
        (d)(1) Creditable service also includes periods of
    service originally established in another police pension
    fund under this Article or in the Fund established under
    Article 7 of this Code for which (i) the contributions have
    been transferred under Section 3-110.7 or Section 7-139.9
    and (ii) any additional contribution required under
    paragraph (2) of this subsection has been paid in full in
    accordance with the requirements of this subsection (d).
        (2) If the board of the pension fund to which
    creditable service and related contributions are
    transferred under Section 3-110.7 or 7-139.9 determines
    that the amount transferred is less than the true cost to
    the pension fund of allowing that creditable service to be
    established, then in order to establish that creditable
    service the police officer must pay to the pension fund,
    within the payment period specified in paragraph (3) of
    this subsection, an additional contribution equal to the
    difference, as determined by the board in accordance with
    the rules and procedures adopted under paragraph (6) of
    this subsection. If the board of the pension fund to which
    creditable service and related contributions are
    transferred under Section 3-110.7 determines that the
    amount transferred is less than the true cost to the
    pension fund of allowing that creditable service to be
    established, then the police officer may elect (A) to
    establish that creditable service by paying to the pension
    fund, within the payment period specified in paragraph (3)
    of this subsection (d), an additional contribution equal to
    the difference, as determined by the board in accordance
    with the rules and procedures adopted under paragraph (6)
    of this subsection (d) or (B) to have his or her creditable
    service reduced by an amount equal to the difference
    between the amount transferred under Section 3-110.7 and
    the true cost to the pension fund of allowing that
    creditable service to be established, as determined by the
    board in accordance with the rules and procedures adopted
    under paragraph (6) of this subsection (d).
        (3) Except as provided in paragraph (4), the additional
    contribution that is required or elected under paragraph
    (2) of this subsection (d) must be paid to the board (i)
    within 5 years from the date of the transfer of
    contributions under Section 3-110.7 or 7-139.9 and (ii)
    before the police officer terminates service with the fund.
    The additional contribution may be paid in a lump sum or in
    accordance with a schedule of installment payments
    authorized by the board.
        (4) If the police officer dies in service before
    payment in full has been made and before the expiration of
    the 5-year payment period, the surviving spouse of the
    officer may elect to pay the unpaid amount on the officer's
    behalf within 6 months after the date of death, in which
    case the creditable service shall be granted as though the
    deceased police officer had paid the remaining balance on
    the day before the date of death.
        (5) If the additional contribution that is required or
    elected under paragraph (2) of this subsection (d) is not
    paid in full within the required time, the creditable
    service shall not be granted and the police officer (or the
    officer's surviving spouse or estate) shall be entitled to
    receive a refund of (i) any partial payment of the
    additional contribution that has been made by the police
    officer and (ii) those portions of the amounts transferred
    under subdivision (a)(1) of Section 3-110.7 or
    subdivisions (a)(1) and (a)(3) of Section 7-139.9 that
    represent employee contributions paid by the police
    officer (but not the accumulated interest on those
    contributions) and interest paid by the police officer to
    the prior pension fund in order to reinstate service
    terminated by acceptance of a refund.
        At the time of paying a refund under this item (5), the
    pension fund shall also repay to the pension fund from
    which the contributions were transferred under Section
    3-110.7 or 7-139.9 the amount originally transferred under
    subdivision (a)(2) of that Section, plus interest at the
    rate of 6% per year, compounded annually, from the date of
    the original transfer to the date of repayment. Amounts
    repaid to the Article 7 fund under this provision shall be
    credited to the appropriate municipality.
        Transferred credit that is not granted due to failure
    to pay the additional contribution within the required time
    is lost; it may not be transferred to another pension fund
    and may not be reinstated in the pension fund from which it
    was transferred.
        (6) The Public Employee Pension Fund Division of the
    Department of Insurance shall establish by rule the manner
    of making the calculation required under paragraph (2) of
    this subsection, taking into account the appropriate
    actuarial assumptions; the police officer's service, age,
    and salary history; the level of funding of the pension
    fund to which the credits are being transferred; and any
    other factors that the Division determines to be relevant.
    The rules may require that all calculations made under
    paragraph (2) be reported to the Division by the board
    performing the calculation, together with documentation of
    the creditable service to be transferred, the amounts of
    contributions and interest to be transferred, the manner in
    which the calculation was performed, the numbers relied
    upon in making the calculation, the results of the
    calculation, and any other information the Division may
    deem useful.
        (e)(1) Creditable service also includes periods of
    service originally established in the Fund established
    under Article 7 of this Code for which the contributions
    have been transferred under Section 7-139.11.
        (2) If the board of the pension fund to which
    creditable service and related contributions are
    transferred under Section 7-139.11 determines that the
    amount transferred is less than the true cost to the
    pension fund of allowing that creditable service to be
    established, then the amount of creditable service the
    police officer may establish under this subsection (e)
    shall be reduced by an amount equal to the difference, as
    determined by the board in accordance with the rules and
    procedures adopted under paragraph (3) of this subsection.
        (3) The Public Pension Division of the Department of
    Financial and Professional Regulation shall establish by
    rule the manner of making the calculation required under
    paragraph (2) of this subsection, taking into account the
    appropriate actuarial assumptions; the police officer's
    service, age, and salary history; the level of funding of
    the pension fund to which the credits are being
    transferred; and any other factors that the Division
    determines to be relevant. The rules may require that all
    calculations made under paragraph (2) be reported to the
    Division by the board performing the calculation, together
    with documentation of the creditable service to be
    transferred, the amounts of contributions and interest to
    be transferred, the manner in which the calculation was
    performed, the numbers relied upon in making the
    calculation, the results of the calculation, and any other
    information the Division may deem useful.
        (4) Until January 1, 2010, a police officer who
    transferred service from the Fund established under
    Article 7 of this Code under the provisions of Public Act
    94-356 may establish additional credit, but only for the
    amount of the service credit reduction in that transfer, as
    calculated under paragraph (3) of this subsection (e). This
    credit may be established upon payment by the police
    officer of an amount to be determined by the board, equal
    to (1) the amount that would have been contributed as
    employee and employer contributions had all of the service
    been as an employee under this Article, plus interest
    thereon at the rate of 6% per year, compounded annually
    from the date of service to the date of transfer, less (2)
    the total amount transferred from the Article 7 Fund, plus
    (3) interest on the difference at the rate of 6% per year,
    compounded annually, from the date of the transfer to the
    date of payment. The additional service credit is allowed
    under this amendatory Act of the 95th General Assembly
    notwithstanding the provisions of Article 7 terminating
    all transferred credits on the date of transfer.
(Source: P.A. 94-356, eff. 7-29-05; 95-812, eff. 8-13-08.)
 
    Section 90. The State Mandates Act is amended by adding
Section 8.33 as follows:
 
    (30 ILCS 805/8.33 new)
    Sec. 8.33. Exempt mandate. Notwithstanding Sections 6 and 8
of this Act, no reimbursement by the State is required for the
implementation of any mandate created by this amendatory Act of
the 96th General Assembly.
 
    Section 99. Effective date. This Act takes effect upon
becoming law.