Sen. Mike Jacobs
Filed: 11/18/2010
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1 | AMENDMENT TO HOUSE BILL 306
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2 | AMENDMENT NO. ______. Amend House Bill 306 by replacing | ||||||
3 | everything after the enacting clause with the following:
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4 | "Section 5. The Illinois Pension Code is amended by | ||||||
5 | changing Section 3-110 as follows:
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6 | (40 ILCS 5/3-110) (from Ch. 108 1/2, par. 3-110)
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7 | Sec. 3-110. Creditable service.
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8 | (a) "Creditable service" is the time served by a police | ||||||
9 | officer as a member
of a regularly constituted police force of | ||||||
10 | a municipality. In computing
creditable service furloughs | ||||||
11 | without pay exceeding 30 days shall not be
counted, but all | ||||||
12 | leaves of absence for illness or accident, regardless of
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13 | length, and all periods of disability retirement for which a | ||||||
14 | police officer has
received no disability pension payments | ||||||
15 | under this Article shall be counted.
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16 | (a-5) Up to 3 years of time during which the police officer |
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1 | receives
a disability pension under Section 3-114.1, 3-114.2, | ||||||
2 | 3-114.3, or 3-114.6
shall be counted as creditable service, | ||||||
3 | provided that
(i) the police officer returns to active service | ||||||
4 | after the disability for a
period at least equal to the period | ||||||
5 | for which credit is to be established and
(ii) the police | ||||||
6 | officer makes contributions to the fund based on the rates
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7 | specified in Section 3-125.1 and the salary upon which the | ||||||
8 | disability pension
is based. These contributions may be paid at | ||||||
9 | any time prior to the
commencement of a retirement pension. The | ||||||
10 | police officer may, but need not,
elect to have the | ||||||
11 | contributions deducted from the disability pension or to
pay | ||||||
12 | them in installments on a schedule approved by the board. If | ||||||
13 | not
deducted from the disability pension, the contributions | ||||||
14 | shall include
interest at the rate of 6% per year, compounded | ||||||
15 | annually, from the date
for which service credit is being | ||||||
16 | established to the date of payment. If
contributions are paid | ||||||
17 | under this subsection (a-5) in excess of those
needed to | ||||||
18 | establish the credit, the excess shall be refunded. This
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19 | subsection (a-5) applies to persons receiving a disability | ||||||
20 | pension under
Section 3-114.1, 3-114.2, 3-114.3, or 3-114.6 on | ||||||
21 | the effective date of this
amendatory Act of the 91st General | ||||||
22 | Assembly, as well as persons who begin to
receive such a | ||||||
23 | disability pension after that date.
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24 | (b) Creditable service includes all periods of service in | ||||||
25 | the military,
naval or air forces of the United States entered | ||||||
26 | upon while an active police
officer of a municipality, provided |
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1 | that upon applying for a permanent pension,
and in accordance | ||||||
2 | with the rules of the board, the police officer pays into the
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3 | fund the amount the officer would have contributed if he or she | ||||||
4 | had been a
regular contributor during such period, to the | ||||||
5 | extent that the municipality
which the police officer served | ||||||
6 | has not made such contributions in the
officer's behalf. The | ||||||
7 | total amount of such creditable service shall not
exceed 5 | ||||||
8 | years, except that any police officer who on July 1, 1973 had | ||||||
9 | more
than 5 years of such creditable service shall receive the | ||||||
10 | total amount thereof.
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11 | (b-5) Creditable service includes up to 24 months all | ||||||
12 | periods of service in the military, naval, or air forces of the | ||||||
13 | United States entered upon before beginning service as an | ||||||
14 | active police officer of a municipality, provided that, in | ||||||
15 | accordance with the rules of the board, the police officer | ||||||
16 | applies to the pension fund in writing and pays into the fund | ||||||
17 | the employee contributions that would have been required had | ||||||
18 | the service been rendered as a member of the fund on the date | ||||||
19 | of membership in the fund amount the police officer would have | ||||||
20 | contributed if he or she had been a regular contributor during | ||||||
21 | such period , plus an amount determined by the Board to be equal | ||||||
22 | to the municipality's normal cost of the benefit, plus interest | ||||||
23 | on those amounts at the actuarially assumed rate , compounded | ||||||
24 | annually, calculated from the date of membership in the fund to | ||||||
25 | the date of payment the employee last became a police officer | ||||||
26 | under this Article . The total amount of such creditable service |
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1 | shall not exceed 2 years. The changes made to this subsection | ||||||
2 | (b-5) by this amendatory Act of the 96th General Assembly apply | ||||||
3 | only to participating employees while in service on or after | ||||||
4 | July 23, 2010. | ||||||
5 | (c) Creditable service also includes service rendered by a | ||||||
6 | police
officer while on leave of absence from a police | ||||||
7 | department to serve as an
executive of an organization whose | ||||||
8 | membership consists of members of a
police department, subject | ||||||
9 | to the following conditions: (i) the police
officer is a | ||||||
10 | participant of a fund established under this Article with at
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11 | least 10 years of service as a police officer; (ii) the police | ||||||
12 | officer
received no credit for such service under any other | ||||||
13 | retirement system,
pension fund, or annuity and benefit fund | ||||||
14 | included in this Code; (iii)
pursuant to the rules of the board | ||||||
15 | the police officer pays to the fund the
amount he or she would | ||||||
16 | have contributed had the officer been an active
member of the | ||||||
17 | police department; and (iv) the organization pays a
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18 | contribution equal to the municipality's normal cost for that
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19 | period of service.
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20 | (d)(1) Creditable service also includes periods of | ||||||
21 | service originally
established in another police pension | ||||||
22 | fund under this Article or in the Fund
established under | ||||||
23 | Article 7 of this Code for which (i) the contributions have
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24 | been transferred under Section 3-110.7 or Section 7-139.9 | ||||||
25 | and (ii) any
additional contribution required under | ||||||
26 | paragraph (2) of this subsection has
been paid in full in |
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1 | accordance with the requirements of this subsection (d).
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2 | (2) If the board of the pension fund to which | ||||||
3 | creditable service and
related
contributions are | ||||||
4 | transferred under Section 7-139.9 determines that
the | ||||||
5 | amount transferred is less than the true cost to the | ||||||
6 | pension fund of
allowing that creditable service to be | ||||||
7 | established, then in order to establish
that creditable | ||||||
8 | service the police officer must pay to the pension fund, | ||||||
9 | within
the payment period specified in paragraph (3) of | ||||||
10 | this subsection, an additional
contribution equal to the | ||||||
11 | difference, as determined by the board in accordance
with | ||||||
12 | the rules and procedures adopted under paragraph (6) of | ||||||
13 | this subsection. If the board of the pension fund to which | ||||||
14 | creditable service and
related
contributions are | ||||||
15 | transferred under Section 3-110.7 determines that
the | ||||||
16 | amount transferred is less than the true cost to the | ||||||
17 | pension fund of
allowing that creditable service to be | ||||||
18 | established, then the police officer may elect (A) to | ||||||
19 | establish
that creditable service by paying to the pension | ||||||
20 | fund, within
the payment period specified in paragraph (3) | ||||||
21 | of this subsection (d), an additional
contribution equal to | ||||||
22 | the difference, as determined by the board in accordance
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23 | with the rules and procedures adopted under paragraph (6) | ||||||
24 | of this subsection (d) or (B) to have his or her creditable | ||||||
25 | service reduced by an amount equal to the difference | ||||||
26 | between the amount transferred under Section 3-110.7 and |
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1 | the true cost to the pension fund of allowing that | ||||||
2 | creditable service to be established, as determined by the | ||||||
3 | board in accordance with the rules and procedures adopted | ||||||
4 | under paragraph (6) of this subsection (d).
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5 | (3) Except as provided in paragraph (4), the additional
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6 | contribution that is required or elected under paragraph | ||||||
7 | (2) of this subsection (d) must be paid to the board (i) | ||||||
8 | within 5 years from the date of the
transfer of | ||||||
9 | contributions under Section 3-110.7 or 7-139.9 and (ii) | ||||||
10 | before the
police officer terminates service with the fund. | ||||||
11 | The additional contribution
may be paid in a lump sum or in | ||||||
12 | accordance with a schedule of installment
payments | ||||||
13 | authorized by the board.
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14 | (4) If the police officer dies in service before | ||||||
15 | payment in full has been
made and before the expiration of | ||||||
16 | the 5-year payment period, the surviving
spouse of the | ||||||
17 | officer may elect to pay the unpaid amount on the officer's
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18 | behalf within 6 months after the date of death, in which | ||||||
19 | case the creditable
service shall be granted as though the | ||||||
20 | deceased police officer had paid the
remaining balance on | ||||||
21 | the day before the date of death.
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22 | (5) If the additional contribution that is required or | ||||||
23 | elected under paragraph (2) of this subsection (d) is not | ||||||
24 | paid in full within the
required time, the creditable | ||||||
25 | service shall not be granted and the
police officer (or the | ||||||
26 | officer's surviving spouse or estate) shall be entitled
to |
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1 | receive a refund of (i) any partial payment of the | ||||||
2 | additional contribution
that has been made by the police | ||||||
3 | officer and (ii) those portions of the amounts
transferred | ||||||
4 | under subdivision (a)(1) of Section 3-110.7 or | ||||||
5 | subdivisions (a)(1)
and (a)(3) of Section 7-139.9 that | ||||||
6 | represent employee contributions paid by the
police | ||||||
7 | officer (but not the accumulated interest on those | ||||||
8 | contributions) and
interest paid by the police officer to | ||||||
9 | the prior pension fund in order to
reinstate service | ||||||
10 | terminated by acceptance of a refund.
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11 | At the time of paying a refund under this item (5), the | ||||||
12 | pension fund
shall also repay to the pension fund from | ||||||
13 | which the contributions were
transferred under Section | ||||||
14 | 3-110.7 or 7-139.9 the amount originally transferred
under | ||||||
15 | subdivision (a)(2) of that Section, plus interest at the | ||||||
16 | rate of 6% per
year, compounded annually, from the date of | ||||||
17 | the original transfer to the date
of repayment. Amounts | ||||||
18 | repaid to the Article 7 fund under this provision shall
be | ||||||
19 | credited to the appropriate municipality.
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20 | Transferred credit that is not granted due to failure | ||||||
21 | to pay the additional
contribution within the required time | ||||||
22 | is lost; it may not be transferred to
another pension fund | ||||||
23 | and may not be reinstated in the pension fund from which
it | ||||||
24 | was transferred.
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25 | (6) The Public Employee Pension Fund Division of the | ||||||
26 | Department of
Insurance
shall establish by rule the manner |
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1 | of making the calculation required under
paragraph (2) of | ||||||
2 | this subsection, taking into account the appropriate | ||||||
3 | actuarial
assumptions; the police officer's service, age, | ||||||
4 | and salary history; the level
of funding of the pension | ||||||
5 | fund to which the credits are being transferred; and
any | ||||||
6 | other factors that the Division determines to be relevant. | ||||||
7 | The rules may
require that all calculations made under | ||||||
8 | paragraph (2) be reported to the
Division by the board | ||||||
9 | performing the calculation, together with documentation
of | ||||||
10 | the creditable service to be transferred, the amounts of | ||||||
11 | contributions and
interest to be transferred, the manner in | ||||||
12 | which the calculation was performed,
the numbers relied | ||||||
13 | upon in making the calculation, the results of the
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14 | calculation, and any other information the Division may | ||||||
15 | deem useful.
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16 | (e)(1) Creditable service also includes periods of | ||||||
17 | service originally
established in the Fund
established | ||||||
18 | under Article 7 of this Code for which the contributions | ||||||
19 | have
been transferred under Section 7-139.11.
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20 | (2) If the board of the pension fund to which | ||||||
21 | creditable service and
related
contributions are | ||||||
22 | transferred under Section 7-139.11 determines that
the | ||||||
23 | amount transferred is less than the true cost to the | ||||||
24 | pension fund of
allowing that creditable service to be | ||||||
25 | established, then the amount of creditable service the | ||||||
26 | police officer may establish under this subsection (e) |
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1 | shall be reduced by an amount equal to the difference, as | ||||||
2 | determined by the board in accordance
with the rules and | ||||||
3 | procedures adopted under paragraph (3) of this subsection.
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4 | (3) The Public Pension Division of the Department of
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5 | Financial and Professional Regulation
shall establish by | ||||||
6 | rule the manner of making the calculation required under
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7 | paragraph (2) of this subsection, taking into account the | ||||||
8 | appropriate actuarial
assumptions; the police officer's | ||||||
9 | service, age, and salary history; the level
of funding of | ||||||
10 | the pension fund to which the credits are being | ||||||
11 | transferred; and
any other factors that the Division | ||||||
12 | determines to be relevant. The rules may
require that all | ||||||
13 | calculations made under paragraph (2) be reported to the
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14 | Division by the board performing the calculation, together | ||||||
15 | with documentation
of the creditable service to be | ||||||
16 | transferred, the amounts of contributions and
interest to | ||||||
17 | be transferred, the manner in which the calculation was | ||||||
18 | performed,
the numbers relied upon in making the | ||||||
19 | calculation, the results of the
calculation, and any other | ||||||
20 | information the Division may deem useful.
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21 | (4) Until January 1, 2010, a police officer who | ||||||
22 | transferred service from the Fund established under | ||||||
23 | Article 7 of this Code under the provisions of Public Act | ||||||
24 | 94-356 may establish additional credit, but only for the | ||||||
25 | amount of the service credit reduction in that transfer, as | ||||||
26 | calculated under paragraph (3) of this subsection (e). This |
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1 | credit may be established upon payment by the police | ||||||
2 | officer of an amount to be determined by the board, equal | ||||||
3 | to (1) the amount that would have been contributed as | ||||||
4 | employee and employer contributions had all of the service | ||||||
5 | been as an employee under this Article, plus interest | ||||||
6 | thereon at the rate of 6% per year, compounded annually | ||||||
7 | from the date of service to the date of transfer, less (2) | ||||||
8 | the total amount transferred from the Article 7 Fund, plus | ||||||
9 | (3) interest on the difference at the rate of 6% per year, | ||||||
10 | compounded annually, from the date of the transfer to the | ||||||
11 | date of payment. The additional service credit is allowed | ||||||
12 | under this amendatory Act of the 95th General Assembly | ||||||
13 | notwithstanding the provisions of Article 7 terminating | ||||||
14 | all transferred credits on the date of transfer. | ||||||
15 | (Source: P.A. 95-812, eff. 8-13-08; 96-297, eff. 8-11-09; | ||||||
16 | 96-1260, eff. 7-23-10.)
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17 | Section 99. Effective date. This Act takes effect upon | ||||||
18 | becoming law.".
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