SB0240 95TH GENERAL ASSEMBLY

LRB095 10626 AMC 30849 b

95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008
SB0240

Introduced 2/7/2007, by Sen. Dale E. Risinger

SYNOPSIS AS INTRODUCED:

40 ILCS 5/14-104.10
40 ILCS 5/14-152.2 new

Amends the State Employees Article of the Illinois Pension Code. Allows contributing employees to establish additional service credit for certain periods of employment by the federal government or a unit of state or local government located outside Illinois. Requires the employee to apply by June 30, 2008 and pay specified contributions. Includes new benefit increase language. Effective immediately.

FISCAL NOTE ACT MAY APPLY

PENSION IMPACT NOTE ACT MAY APPLY

A BILL FOR

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 14-104.10 and by adding Section 14-152.2 as follows:

(40 ILCS 5/14-104.10)

Sec. 14-104.10. Federal or out-of-state employment. A contributing employee may establish additional service credit for periods of full-time employment by the federal government or a unit of state or local government located outside Illinois for which he or she does not qualify for credit under any other provision of this Article, provided that (i) the amount of service credit established by a person under this Section shall not exceed 8 years or 40% of his or her membership service under this Article, whichever is less, (ii) the amount of service credit established by a person under this Section for federal employment, when added to the amount of all military service credit granted to the person under this Article, shall not exceed 8 years, and (iii) any credit received for the federal or out-of-state employment in any federal or other public employee pension fund or retirement system has been terminated or relinquished. Credit may not be established under this Section for any period of military service or for any period for which credit has been or may be established under Section 14-110 or any other provision of this Article.

In order to establish service credit under this Section, the applicant must submit a written application to the System by June 30, 2008 1999, including documentation of the federal or out-of-state employment satisfactory to the Board, and pay to the System (1) employee contributions at the rates provided in this Article based upon the person's salary on the last day as a participating employee prior to the federal or out-of-state employment, or on the first day as a participating employee after that employment, whichever is greater, plus (2) an amount determined by the Board to be equal to the employer's normal cost of the benefits accrued for that employment, plus (3) regular interest on items (1) and (2) from the date of conclusion of the employment to the date of payment.

(Source: P.A. 90-32, eff. 6-27-97; 90-655, eff. 7-30-98; 90-766, eff. 8-14-98.)

(40 ILCS 5/14-152.2 new)

Sec. 14-152.2. New benefit increases. The General Assembly finds and declares that the amendment to Section 14-104.10 of this Article made by this amendatory Act of the 95th General Assembly providing optional service credit for time as a federal employee constitutes a new benefit increase within the meaning of Section 14-152.1. The additional funding required for this new benefit increase shall be provided by employee contributions as specified in Section 14-104.10.

Section 99. Effective date. This Act takes effect upon becoming law.