HB1605sam004 97TH GENERAL ASSEMBLY

Sen. Don Harmon

Filed: 5/16/2012

09700HB1605sam004 LRB097 07147 EFG 69537 a

AMENDMENT TO HOUSE BILL 1605

AMENDMENT NO. ______. Amend House Bill 1605 AS AMENDED, by replacing everything after the enacting clause with the following:

"Section 5. The Illinois Pension Code is amended by changing Sections 3-124.1 and 4-117 and by adding Sections 3-124.3 and 4-117.2 as follows:

(40 ILCS 5/3-124.1) (from Ch. 108 1/2, par. 3-124.1)

Sec. 3-124.1. Re-entry into active service.

(a) If a police officer who is receiving pension payments other than as provided in Section 3-109.3 or Section 3-124.3 re-enters active service, pension payment shall be suspended while he or she is in service. When he or she again retires, pension payments shall be resumed. If the police officer remains in service after re-entry for a period of less than 5 years, the pension shall be the same as upon first retirement. If the officer's service after re-entry is at least 5 years and the officer makes the required contributions during the period of re-entry, his or her pension shall be recomputed by taking into account the additional period of service and salary.

(Source: P.A. 91-939, eff. 2-1-01.)

(40 ILCS 5/3-124.3 new)

Sec. 3-124.3. Pension payments during contractual return to active service.

(a) Notwithstanding any other provisions of this Code, if a police officer receiving pension payments accepts on a contractual basis a position to provide services to a municipality from which he or she has retired, then that police officer shall continue to receive the pension payments earned during active service, provided:

(1) he or she is at least age 55 and has at least 30 years of service;

(2) his or her annual salary during the period of contractual service is not more than 35% of his or her salary from the last 12 months preceding retirement;

(3) his or her salary did not increase by more than 10% per year during the 2 years preceding retirement; and

(4) the contractual employment is for a period not exceeding the lesser of (i) 75 working days or (ii) 600 hours in any calendar year. Any part of a day on contractual employment is considered a full day of employment.

(b) The municipality shall pay to the pension fund an amount equal to 14% of the annual salary of the police officer during each calendar year, or portion thereof, that he or she is performing contractual service as described in subsection (a).

(c) Except as set forth in subsection (b) of this Section, no employer contribution shall be required from a municipality for any police officer providing contractual service as described in subsection (a) of this Section. No contribution shall be required pursuant to Section 3-125.1 from any police officer performing contractual service as described in subsection (a) of this Section.

(d) The period of contractual service described in subsection (a) of this Section shall not provide a basis for the recomputation of the police officer's pension.

(40 ILCS 5/4-117) (from Ch. 108 1/2, par. 4-117)

Sec. 4-117. Reentry into active service.

(a) Except as set forth in Section 4-117.2, if If a firefighter receiving pension payments reenters active service, pension payments shall be suspended while he or she is in service. If the firefighter again retires or is discharged, his or her monthly pension shall be resumed in the same amount as was paid upon first retirement or discharge unless he or she remained in active service 3 or more years after re-entry in which case the monthly pension shall be based on the salary attached to the firefighter's rank at the date of last retirement.

(b) If a deferred pensioner re-enters active service, and again retires or is discharged from the fire service, his or her pension shall be based on the salary attached to the rank held in the fire service at the date of earlier retirement, unless the firefighter remains in active service for 3 or more years after re-entry, in which case the monthly pension shall be based on the salary attached to the firefighter's rank at the date of last retirement.

(c) If a pensioner or deferred pensioner re-enters or is recalled to active service and is thereafter injured, and the injury is not related to an injury for which he or she was previously receiving a disability pension, the 3 year service requirement shall not apply in order for the firefighter to qualify for the increased pension based on the rate of pay at the time of the new injury.

(Source: P.A. 83-1440.)

(40 ILCS 5/4-117.2 new)

Sec. 4-117.2. Pension payments during contractual return to active service.

(a) Notwithstanding any other provisions of this Code, if a firefighter receiving pension payments accepts on a contractual basis a position to provide services to a municipality from which he or she has retired, then that firefighter shall continue to receive the pension payments earned during active service, provided:

(1) he or she is at least age 55 and has at least 30 years of service;

(2) his or her annual salary during the period of contractual service is not more than 35% of his or her salary from the last 12 months preceding retirement;

(3) his or her salary did not increase by more than 10% per year during the 2 years preceding retirement; and

(4) the contractual employment is for a period not exceeding the lesser of (i) 75 working days or (ii) 600 hours in any calendar year. Any part of a day on contractual employment is considered a full day of employment.

(b) The municipality shall pay to the pension fund an amount equal to 14% of the annual salary of the firefighter during each calendar year, or portion thereof, that he or she is performing contractual service as described in subsection (a).

(c) Except as set forth in subsection (b) of this Section, no employer contribution shall be required from a municipality for any firefighter providing contractual service as described in subsection (a) of this Section. No contribution shall be required pursuant to Section 4-118.1 from any firefighter performing contractual service as described in subsection (a) of this Section

(d) The period of contractual service described in subsection (a) of this Section shall not provide a basis for the recomputation of the firefighter's pension.".