|
|||||||||||||||||||||||||||
|
|||||||||||||||||||||||||||
| |||||||||||||||||||||||||||
| |||||||||||||||||||||||||||
| |||||||||||||||||||||||||||
1 | AN ACT in relation to public employee benefits.
| ||||||||||||||||||||||||||
2 | Be it enacted by the People of the State of Illinois, | ||||||||||||||||||||||||||
3 | represented in the General Assembly:
| ||||||||||||||||||||||||||
4 | Section 5. The Illinois Pension Code is amended by changing | ||||||||||||||||||||||||||
5 | Section 3-110
as follows:
| ||||||||||||||||||||||||||
6 | (40 ILCS 5/3-110) (from Ch. 108 1/2, par. 3-110)
| ||||||||||||||||||||||||||
7 | Sec. 3-110. Creditable service.
| ||||||||||||||||||||||||||
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
| ||||||||||||||||||||||||||
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.
| ||||||||||||||||||||||||||
16 | (a-5) Up to 3 years of time during which the police officer | ||||||||||||||||||||||||||
17 | receives
a disability pension under Section 3-114.1, 3-114.2, | ||||||||||||||||||||||||||
18 | 3-114.3, or 3-114.6
shall be counted as creditable service, | ||||||||||||||||||||||||||
19 | provided that
(i) the police officer returns to active service | ||||||||||||||||||||||||||
20 | after the disability for a
period at least equal to the period | ||||||||||||||||||||||||||
21 | for which credit is to be established and
(ii) the police | ||||||||||||||||||||||||||
22 | officer makes contributions to the fund based on the rates
| ||||||||||||||||||||||||||
23 | specified in Section 3-125.1 and the salary upon which the |
| |||||||
| |||||||
1 | disability pension
is based. These contributions may be paid at | ||||||
2 | any time prior to the
commencement of a retirement pension. The | ||||||
3 | police officer may, but need not,
elect to have the | ||||||
4 | contributions deducted from the disability pension or to
pay | ||||||
5 | them in installments on a schedule approved by the board. If | ||||||
6 | not
deducted from the disability pension, the contributions | ||||||
7 | shall include
interest at the rate of 6% per year, compounded | ||||||
8 | annually, from the date
for which service credit is being | ||||||
9 | established to the date of payment. If
contributions are paid | ||||||
10 | under this subsection (a-5) in excess of those
needed to | ||||||
11 | establish the credit, the excess shall be refunded. This
| ||||||
12 | subsection (a-5) applies to persons receiving a disability | ||||||
13 | pension under
Section 3-114.1, 3-114.2, 3-114.3, or 3-114.6 on | ||||||
14 | the effective date of this
amendatory Act of the 91st General | ||||||
15 | Assembly, as well as persons who begin to
receive such a | ||||||
16 | disability pension after that date.
| ||||||
17 | (b) Creditable service includes all periods of service in | ||||||
18 | the military,
naval or air forces of the United States entered | ||||||
19 | upon while an active police
officer of a municipality, provided | ||||||
20 | that upon applying for a permanent pension,
and in accordance | ||||||
21 | with the rules of the board, the police officer pays into the
| ||||||
22 | fund the amount the officer would have contributed if he or she | ||||||
23 | had been a
regular contributor during such period, to the | ||||||
24 | extent that the municipality
which the police officer served | ||||||
25 | has not made such contributions in the
officer's behalf. The | ||||||
26 | total amount of such creditable service shall not
exceed 5 |
| |||||||
| |||||||
1 | years, except that any police officer who on July 1, 1973 had | ||||||
2 | more
than 5 years of such creditable service shall receive the | ||||||
3 | total amount thereof.
| ||||||
4 | (b-1) In addition to any creditable service established | ||||||
5 | under subsection
(b), creditable service may be granted for up | ||||||
6 | to 24 months of service in the
armed forces of the United | ||||||
7 | States that was not immediately preceded by
employment as a | ||||||
8 | police officer. In order to receive creditable service for
| ||||||
9 | military service under this subsection (b-1), a police officer | ||||||
10 | must (1) apply
to the Fund in writing and provide evidence of | ||||||
11 | the military service that is
satisfactory to the Board and (2) | ||||||
12 | make contributions to the Fund equal to (i)
the employee | ||||||
13 | contributions that would have been required had the service | ||||||
14 | been
rendered as a member, plus (ii) an amount determined by | ||||||
15 | the board to be equal
to the employer's normal cost of the | ||||||
16 | benefits accrued for that military
service, plus (iii) interest | ||||||
17 | on items (i) and (ii) from the date of first
membership in the | ||||||
18 | Fund to the date of payment. If payment is made during
the | ||||||
19 | 6-month period that begins 3 months after the effective date of | ||||||
20 | this
amendatory Act of the 96th General Assembly, the required | ||||||
21 | interest shall be
at the rate of 2.5% per year, compounded | ||||||
22 | annually; otherwise, the required
interest shall be calculated | ||||||
23 | at the rate of 6% per year, compounded annually. | ||||||
24 | (c) Creditable service also includes service rendered by a | ||||||
25 | police
officer while on leave of absence from a police | ||||||
26 | department to serve as an
executive of an organization whose |
| |||||||
| |||||||
1 | membership consists of members of a
police department, subject | ||||||
2 | to the following conditions: (i) the police
officer is a | ||||||
3 | participant of a fund established under this Article with at
| ||||||
4 | least 10 years of service as a police officer; (ii) the police | ||||||
5 | officer
received no credit for such service under any other | ||||||
6 | retirement system,
pension fund, or annuity and benefit fund | ||||||
7 | included in this Code; (iii)
pursuant to the rules of the board | ||||||
8 | the police officer pays to the fund the
amount he or she would | ||||||
9 | have contributed had the officer been an active
member of the | ||||||
10 | police department; and (iv) the organization pays a
| ||||||
11 | contribution equal to the municipality's normal cost for that
| ||||||
12 | period of service.
| ||||||
13 | (d)(1) Creditable service also includes periods of | ||||||
14 | service originally
established in another police pension | ||||||
15 | fund under this Article or in the Fund
established under | ||||||
16 | Article 7 of this Code for which (i) the contributions have
| ||||||
17 | been transferred under Section 3-110.7 or Section 7-139.9 | ||||||
18 | and (ii) any
additional contribution required under | ||||||
19 | paragraph (2) of this subsection has
been paid in full in | ||||||
20 | accordance with the requirements of this subsection (d).
| ||||||
21 | (2) If the board of the pension fund to which | ||||||
22 | creditable service and
related
contributions are | ||||||
23 | transferred under Section 3-110.7 or 7-139.9 determines | ||||||
24 | that
the amount transferred is less than the true cost to | ||||||
25 | the pension fund of
allowing that creditable service to be | ||||||
26 | established, then in order to establish
that creditable |
| |||||||
| |||||||
1 | service the police officer must pay to the pension fund, | ||||||
2 | within
the payment period specified in paragraph (3) of | ||||||
3 | this subsection, an additional
contribution equal to the | ||||||
4 | difference, as determined by the board in accordance
with | ||||||
5 | the rules and procedures adopted under paragraph (6) of | ||||||
6 | this subsection.
| ||||||
7 | (3) Except as provided in paragraph (4), the additional
| ||||||
8 | contribution must be paid to the board (i) within 5 years | ||||||
9 | from the date of the
transfer of contributions under | ||||||
10 | Section 3-110.7 or 7-139.9 and (ii) before the
police | ||||||
11 | officer terminates service with the fund. The additional | ||||||
12 | contribution
may be paid in a lump sum or in accordance | ||||||
13 | with a schedule of installment
payments authorized by the | ||||||
14 | board.
| ||||||
15 | (4) If the police officer dies in service before | ||||||
16 | payment in full has been
made and before the expiration of | ||||||
17 | the 5-year payment period, the surviving
spouse of the | ||||||
18 | officer may elect to pay the unpaid amount on the officer's
| ||||||
19 | behalf within 6 months after the date of death, in which | ||||||
20 | case the creditable
service shall be granted as though the | ||||||
21 | deceased police officer had paid the
remaining balance on | ||||||
22 | the day before the date of death.
| ||||||
23 | (5) If the additional contribution is not paid in full | ||||||
24 | within the
required time, the creditable service shall not | ||||||
25 | be granted and the
police officer (or the officer's | ||||||
26 | surviving spouse or estate) shall be entitled
to receive a |
| |||||||
| |||||||
1 | refund of (i) any partial payment of the additional | ||||||
2 | contribution
that has been made by the police officer and | ||||||
3 | (ii) those portions of the amounts
transferred under | ||||||
4 | subdivision (a)(1) of Section 3-110.7 or subdivisions | ||||||
5 | (a)(1)
and (a)(3) of Section 7-139.9 that represent | ||||||
6 | employee contributions paid by the
police officer (but not | ||||||
7 | the accumulated interest on those contributions) and
| ||||||
8 | interest paid by the police officer to the prior pension | ||||||
9 | fund in order to
reinstate service terminated by acceptance | ||||||
10 | of a refund.
| ||||||
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.
| ||||||
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.
| ||||||
25 | (6) The Public Employee Pension Fund Division of the | ||||||
26 | Department of
Insurance
shall establish by rule the manner |
| |||||||
| |||||||
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
| ||||||
14 | calculation, and any other information the Division may | ||||||
15 | deem useful.
| ||||||
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.
| ||||||
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) |
| |||||||
| |||||||
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.
| ||||||
4 | (3) The Public Pension Division of the Department of
| ||||||
5 | Financial and Professional Regulation
shall establish by | ||||||
6 | rule the manner of making the calculation required under
| ||||||
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
| ||||||
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.
| ||||||
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 |
| |||||||
| |||||||
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. 94-356, eff. 7-29-05; 95-812, eff. 8-13-08.)
| ||||||
16 | Section 90. The State Mandates Act is amended by adding | ||||||
17 | Section 8.33 as follows: | ||||||
18 | (30 ILCS 805/8.33 new) | ||||||
19 | Sec. 8.33. Exempt mandate. Notwithstanding Sections 6 and 8 | ||||||
20 | of this Act, no reimbursement by the State is required for the | ||||||
21 | implementation of any mandate created by this amendatory Act of | ||||||
22 | the 96th General Assembly. | ||||||
23 | Section 99. Effective date. This Act takes effect upon | ||||||
24 | becoming law. |