|
|
Public Act 096-0299
|
| HB3672 Enrolled |
LRB096 11589 AMC 22077 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 7-139 as follows:
|
(40 ILCS 5/7-139) (from Ch. 108 1/2, par. 7-139)
|
Sec. 7-139. Credits and creditable service to employees.
|
(a) Each participating employee shall be granted credits |
and creditable
service, for purposes of determining the amount |
of any annuity or benefit
to which he or a beneficiary is |
entitled, as follows:
|
1. For prior service: Each participating employee who |
is an employee
of a participating municipality or |
participating instrumentality on the
effective date shall |
be granted creditable service, but no credits under
|
paragraph 2 of this subsection (a), for periods of prior |
service for which
credit has not been received under any |
other pension fund or retirement system
established under |
this Code, as follows:
|
If the effective date of participation for the |
participating municipality
or participating |
instrumentality is on or before January 1, 1998, creditable
|
service shall be granted for the entire period of prior |
|
service with that
employer without any employee |
contribution.
|
If the effective date of participation for the |
participating municipality
or participating |
instrumentality is after January 1, 1998, creditable
|
service shall be granted for the last 20% of the period of |
prior service with
that employer, but no more than 5 years, |
without any employee contribution. A
participating |
employee may establish creditable service for the |
remainder of
the period of prior service with that employer |
by making an application in
writing, accompanied by payment |
of an employee contribution in an
amount determined by the |
Fund, based on the employee contribution rates in
effect at |
the time of application for the creditable service and the |
employee's
salary rate on the effective date of |
participation for that employer, plus
interest at the |
effective rate from the date of the prior service to the |
date
of payment. Application for this creditable service |
may be made at any time
while the employee is still in |
service.
|
A municipality that (i) has at least 35 employees; (ii) |
is located in a county with at least 2,000,000 inhabitants; |
and (iii) maintains an independent defined benefit pension |
plan for the benefit of its eligible employees may restrict |
creditable service in whole or in part for periods of prior |
service with the employer if the governing body of the |
|
municipality adopts an irrevocable resolution to restrict |
that creditable service and files the resolution with the |
board before the municipality's effective date of |
participation.
|
Any person who has withdrawn from the service of a |
participating
municipality
or participating |
instrumentality prior to the effective date, who reenters
|
the service of the same municipality or participating |
instrumentality after
the effective date and becomes a |
participating employee is entitled to
creditable service |
for prior service as otherwise provided in this
subdivision |
(a)(1) only if he or she renders 2 years of service as a
|
participating employee after the effective date. |
Application
for such service must be made while in a |
participating status.
The salary rate to be used in the |
calculation of the required employee
contribution, if any, |
shall be the employee's salary rate at the time of first
|
reentering service with the employer after the employer's |
effective date of
participation.
|
2. For current service, each participating employee |
shall be
credited with:
|
a. Additional credits of amounts equal to each |
payment of additional
contributions received from him |
under Section 7-173, as of the
date the corresponding |
payment of earnings is payable to him.
|
b. Normal credits of amounts equal to each payment |
|
of normal
contributions received from him, as of the |
date the corresponding payment of
earnings is payable |
to him, and normal contributions made for the purpose |
of
establishing out-of-state service credits as |
permitted under the conditions set
forth in paragraph 6 |
of this subsection (a).
|
c. Municipality credits in an amount equal to 1.4 |
times the normal
credits, except those established by |
out-of-state service credits, as of
the date of |
computation of any benefit if these credits would |
increase
the benefit.
|
d. Survivor credits equal to each payment of |
survivor contributions
received from the participating |
employee as of the date the
corresponding payment of |
earnings is payable, and survivor contributions made
|
for the purpose of establishing out-of-state service |
credits.
|
3. For periods of temporary and total and permanent |
disability
benefits, each employee receiving disability |
benefits shall be granted
creditable service for the period |
during which disability benefits are
payable. Normal and |
survivor credits, based upon the rate of earnings
applied |
for disability benefits, shall also be granted if such |
credits
would result in a higher benefit to any such |
employee or his
beneficiary.
|
4. For authorized leave of absence without pay: A |
|
participating
employee shall be granted credits and |
creditable service for periods of
authorized leave of |
absence without pay under the following
conditions:
|
a. An application for credits and creditable |
service is submitted to the
board while the employee is |
in a status of
active employment, and within 2 years |
after termination of the
leave of absence period for |
which credits and creditable service are
sought.
|
b. Not more than 12 complete months of creditable |
service
for authorized leave of absence without pay |
shall be counted for purposes of
determining any |
benefits payable under this Article.
|
c. Credits and creditable service shall be granted |
for leave of
absence only if such leave is approved by |
the governing body of the
municipality, including |
approval of the estimated cost thereof to the
|
municipality as determined by the fund, and employee |
contributions, plus
interest at the effective rate |
applicable for each year from the end of
the period of |
leave to date of payment, have been paid to the fund in
|
accordance with Section 7-173. The contributions shall |
be computed upon the
assumption earnings continued |
during the period of leave at the rate in
effect when |
the leave began.
|
d. Benefits under the provisions of Sections |
7-141, 7-146, 7-150
and 7-163 shall become payable to |
|
employees on authorized leave of
absence, or their |
designated beneficiary, only if such leave of absence
|
is creditable hereunder, and if the employee has at |
least one year of
creditable service other than the |
service granted for leave of absence.
Any employee |
contributions due may be deducted from any benefits
|
payable.
|
e. No credits or creditable service shall be |
allowed for leave of
absence without pay during any |
period of prior service.
|
5. For military service: The governing body of a |
municipality or
participating instrumentality may elect to |
allow creditable service to
participating employees who |
leave their employment to serve in the armed
forces of the |
United States for all periods of such service, provided
|
that the person returns to active employment within 90 days |
after
completion
of full time active duty, but no |
creditable service shall be allowed such
person for any |
period that can be used in the computation of a pension
or |
any other pay or benefit, other than pay for active duty, |
for service
in any branch of the armed forces of the United |
States. If necessary to
the computation of any benefit, the |
board shall establish municipality
credits for |
participating employees under this paragraph on the
|
assumption that the employee received earnings at the rate |
received at
the time he left the employment to enter the |
|
armed forces. A
participating employee in the armed forces |
shall not be considered an
employee during such period of |
service and no additional death and no
disability benefits |
are payable for death or disability during such period.
|
Any participating employee who left his employment |
with a
municipality or participating instrumentality to |
serve in the armed
forces of the United States and who |
again became a participating
employee within 90 days after |
completion of full time active duty by
entering the service |
of a different municipality or participating
|
instrumentality, which has elected to allow creditable |
service for
periods of military service under the preceding |
paragraph, shall also be
allowed creditable service for his |
period of military service on the
same terms that would |
apply if he had been employed, before entering
military |
service, by the municipality or instrumentality which |
employed
him after he left the military service and the |
employer costs arising in
relation to such grant of |
creditable service shall be charged to and
paid by that |
municipality or instrumentality.
|
Notwithstanding the foregoing, any participating |
employee
shall be entitled to creditable service as |
required by any federal law
relating to re-employment |
rights of persons who served in the United States
Armed |
Services. Such creditable service shall be granted upon |
payment by
the member of an amount equal to the employee |
|
contributions which would
have been required had the |
employee continued in service at the same
rate of earnings |
during the military leave period, plus interest at
the |
effective rate.
|
5.1. In addition to any creditable service established |
under
paragraph 5 of this subsection (a), creditable |
service may be granted for
up to 48 months of service in |
the armed forces of the United States.
|
In order to receive creditable service for military |
service under this
paragraph 5.1, a participating employee |
must (1) apply to the Fund
in writing and provide evidence |
of the military service that is satisfactory
to the Board; |
(2) obtain the written approval of the current employer; |
and (3)
make contributions to the Fund equal to (i)
the |
employee contributions that would have been required had |
the service been
rendered as a member, plus (ii) an amount |
determined by the board to be equal
to the employer's |
normal cost of the benefits accrued for that military
|
service, plus (iii) interest on items (i) and (ii) from the |
date of first
membership in the Fund to the date of |
payment. The required interest shall be
calculated at the |
regular interest rate.
|
The changes made to this paragraph 5.1 by Public Acts |
95-483 and 95-486
apply only to participating employees in |
service on or after August 28, 2007 (the effective date of |
those Public Acts).
|
|
6. For out-of-state service: Creditable service shall |
be granted for
service rendered to an out-of-state local |
governmental body under the
following conditions: The |
employee had participated and has irrevocably
forfeited |
all rights to benefits in the out-of-state public employees
|
pension system; the governing body of his participating |
municipality or
instrumentality authorizes the employee to |
establish such service; the
employee has 2 years current |
service with this municipality or
participating |
instrumentality; the employee makes a payment of
|
contributions, which shall be computed at 8% (normal) plus |
2% (survivor)
times length of service purchased times the |
average rate of earnings for the
first 2
years of service |
with the municipality or participating
instrumentality |
whose governing body authorizes the service established
|
plus interest at the effective rate on the date such |
credits are
established, payable from the date the employee |
completes the required 2
years of current service to date |
of payment. In no case shall more than
120 months of |
creditable service be granted under this provision.
|
7. For retroactive service: Any employee who could have |
but did not
elect to become a participating employee, or |
who should have been a
participant in the Municipal Public |
Utilities Annuity and Benefit Fund
before that fund was |
superseded, may receive creditable service for the
period |
of service not to exceed 50 months; however, a current or |
|
former
elected or appointed official of a participating |
municipality may establish credit under this paragraph 7 |
for more than 50
months of service as an official of that |
municipality, if the excess over 50 months is approved by |
resolution of the
governing body of the affected |
municipality filed with
the Fund before January 1, 2002.
|
Any employee who is a
participating employee on or |
after September 24, 1981 and who was
excluded from |
participation by the age restrictions removed by Public Act
|
82-596 may receive creditable service for the period, on or |
after January
1, 1979, excluded by the age restriction and, |
in addition, if the governing
body of the participating |
municipality or participating instrumentality elects
to |
allow creditable service for all employees excluded by the |
age restriction
prior to January 1, 1979, for service |
during the period prior to that date
excluded by the age |
restriction. Any employee who was excluded from
|
participation by the age restriction removed by Public Act |
82-596 and who is
not a participating employee on or after |
September 24, 1981 may receive
creditable service for |
service after January 1,
1979. Creditable service under |
this paragraph
shall be granted upon payment of the |
employee contributions
which would have been required had |
he participated, with interest at the
effective rate for |
each year from the end of the period of service
established |
to date of payment.
|
|
8. For accumulated unused sick leave: A participating |
employee who is
applying for a retirement annuity shall be |
entitled to creditable service
for that portion of the |
employee's accumulated unused sick leave
for which payment |
is not received, as follows:
|
a. Sick leave days shall be limited to those |
accumulated under a sick
leave plan established by a |
participating municipality or participating
|
instrumentality which is available to all employees or |
a class of employees.
|
b. Except as provided in item b-1, only Only sick |
leave days accumulated with a participating |
municipality or
participating instrumentality with |
which the employee was in service within
60 days of the |
effective date of his retirement annuity shall be |
credited;
If the employee was in service with more than |
one employer during this
period only the sick leave |
days with the employer with which the employee
has the |
greatest number of unpaid sick leave days shall be |
considered.
|
b-1. If the employee was in the service of more |
than one employer as defined in item (2) of paragraph |
(a) of subsection (A) of Section 7-132, then the sick |
leave days from all such employers shall be credited, |
as long as the creditable service attributed to those |
sick leave days does not exceed the limitation in item |
|
f of this paragraph 8. In calculating the creditable |
service under this item b-1, the sick leave days from |
the last employer shall be considered first, then the |
remaining sick leave days shall be considered until |
there are no more days or the maximum creditable sick |
leave threshold under item f of this paragraph 8 has |
been reached.
|
c. The creditable service granted shall be |
considered solely for the
purpose of computing the |
amount of the retirement annuity and shall not be
used |
to establish any minimum service period required by any |
provision of the
Illinois Pension Code, the effective |
date of the retirement annuity, or the
final rate of |
earnings.
|
d. The creditable service shall be at the rate of |
1/20 of a month for
each full sick day, provided that |
no more than 12 months may be credited
under this |
subdivision 8.
|
e. Employee contributions shall not be required |
for creditable service
under this subdivision 8.
|
f. Each participating municipality and |
participating instrumentality
with which an employee |
has service within 60 days of the effective date of
his |
retirement annuity shall certify to the board the |
number of accumulated
unpaid sick leave days credited |
to the employee at the time of termination
of service.
|
|
9. For service transferred from another system: |
Credits and
creditable service shall be granted for service |
under Article 3, 4, 5, 8, 14,
or 16 of this Act, to any |
active member of this Fund, and to any
inactive member who |
has been a county sheriff, upon
transfer of such credits |
pursuant to Section 3-110.3, 4-108.3, 5-235,
8-226.7,
|
14-105.6, or 16-131.4, and payment by the member of the |
amount by
which (1) the employer and employee contributions |
that would have been required
if he had participated in |
this Fund as a sheriff's law enforcement employee
during |
the period for which credit is
being transferred, plus |
interest thereon at the effective rate for each
year, |
compounded annually, from the date of termination of the |
service for
which credit is being transferred to the date |
of payment, exceeds (2) the
amount actually transferred to |
the Fund.
Such transferred service shall be deemed to be |
service as a sheriff's law
enforcement employee for the |
purposes of Section 7-142.1.
|
10. For service transferred from an Article 3 system |
under Section 3-110.8: Credits and
creditable service |
shall be granted for service under Article 3 of this Act as |
provided in Section 3-110.8, to any active member of this |
Fund upon
transfer of such credits pursuant to Section |
3-110.8. If 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 is
being transferred, plus interest thereon at the |
effective rate for each
year, compounded annually, from the |
date of termination of the service for
which credit is |
being transferred to the date of payment, exceeds (2) the
|
amount actually transferred to the Fund, then the amount of |
creditable service established under this paragraph 10 |
shall be reduced by a corresponding amount in accordance |
with the rules and procedures established under this |
paragraph 10.
|
The board shall establish by rule the manner of making |
the calculation required under
this paragraph 10, taking |
into account the appropriate actuarial
assumptions; the |
member's service, age, and salary history; the level
of |
funding of the employer; and
any other factors that the |
board determines to be relevant.
|
Until January 1, 2010, members who transferred service |
from an Article 3 system under the provisions of Public Act |
94-356 may establish additional credit in this Fund, but |
only up to the amount of the service credit reduction in |
that transfer, as calculated under the actuarial |
assumptions. This credit may be established upon payment by |
the member 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 the service |
been as an employee under this Article, plus interest |
thereon compounded annually from the date of service to the |
|
date of transfer, less (2) the total amount transferred |
from the Article 3 system, plus (3) interest on the |
difference at the effective rate for each 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 3 terminating |
all transferred credits on the date of transfer. |
(b) Creditable service - amount:
|
1. One month of creditable service
shall be allowed for |
each month for which a participating employee made
|
contributions as required under Section 7-173, or for which |
creditable
service is otherwise granted hereunder. Not |
more than 1 month of
service shall be credited and counted |
for 1 calendar month, and not more
than 1 year of service |
shall be credited and counted for any calendar
year. A |
calendar month means a nominal month beginning on the first |
day
thereof, and a calendar year means a year beginning |
January 1 and ending
December 31.
|
2. A seasonal employee shall be given 12 months of |
creditable
service if he renders the number of months of |
service normally required
by the position in a 12-month |
period and he remains in service for the
entire 12-month |
period. Otherwise a fractional year of service in the
|
number of months of service rendered shall be credited.
|
3. An intermittent employee shall be given creditable |
|
service for
only those months in which a contribution is |
made under Section 7-173.
|
(c) No application for correction of credits or creditable |
service shall
be considered unless the board receives an |
application for correction while
(1) the applicant is a |
participating employee and in active employment
with a |
participating municipality or instrumentality, or (2) while |
the
applicant is actively participating in a pension fund or |
retirement
system which is a participating system under the |
Retirement Systems
Reciprocal Act. A participating employee or |
other applicant shall not be
entitled to credits or creditable |
service unless the required employee
contributions are made in |
a lump sum or in installments made in accordance
with board |
rule.
|
(d) Upon the granting of a retirement, surviving spouse or |
child
annuity, a death benefit or a separation benefit, on |
account of any
employee, all individual accumulated credits |
shall thereupon terminate.
Upon the withdrawal of additional |
contributions, the credits applicable
thereto shall thereupon |
terminate. Terminated credits shall not be applied
to increase |
the benefits any remaining employee would otherwise receive |
under
this Article.
|
(Source: P.A. 95-483, eff. 8-28-07; 95-486, eff. 8-28-07; |
95-504, eff. 8-28-07; 95-812, eff. 8-13-08; 95-876, eff. |
8-21-08.)
|