99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
HB2455

 

Introduced 2/17/2015, by Rep. Dwight Kay

 

SYNOPSIS AS INTRODUCED:
 
40 ILCS 5/3-110  from Ch. 108 1/2, par. 3-110
40 ILCS 5/4-108  from Ch. 108 1/2, par. 4-108
40 ILCS 5/5-214  from Ch. 108 1/2, par. 5-214
40 ILCS 5/6-209  from Ch. 108 1/2, par. 6-209
40 ILCS 5/7-132  from Ch. 108 1/2, par. 7-132
40 ILCS 5/8-226  from Ch. 108 1/2, par. 8-226
40 ILCS 5/11-215  from Ch. 108 1/2, par. 11-215
40 ILCS 5/15-107  from Ch. 108 1/2, par. 15-107
40 ILCS 5/16-106  from Ch. 108 1/2, par. 16-106
40 ILCS 5/17-134  from Ch. 108 1/2, par. 17-134

    Amends the Illinois Pension Code. In various Articles of the Code, provides that participants under those Articles are entitled only to creditable service for periods of service with a labor organization if the employee and employer contributions for the service are received by the Fund before the effective date of the amendatory Act. Amends the IMRF Article of the Illinois Pension Code to provide that the Illinois Municipal League and the Will County Governmental League are participating instrumentalities only with respect to service on or before the effective date of the amendatory Act. Effective immediately.


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FISCAL NOTE ACT MAY APPLY
PENSION IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

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1    AN ACT concerning public employee benefits.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Pension Code is amended by changing
5Sections 3-110, 4-108, 5-214, 6-209, 7-132, 8-226, 11-215,
615-107, 16-106, and 17-134 as follows:
 
7    (40 ILCS 5/3-110)  (from Ch. 108 1/2, par. 3-110)
8    Sec. 3-110. Creditable service.
9    (a) "Creditable service" is the time served by a police
10officer as a member of a regularly constituted police force of
11a municipality. In computing creditable service furloughs
12without pay exceeding 30 days shall not be counted, but all
13leaves of absence for illness or accident, regardless of
14length, and all periods of disability retirement for which a
15police officer has received no disability pension payments
16under this Article shall be counted.
17    (a-5) Up to 3 years of time during which the police officer
18receives a disability pension under Section 3-114.1, 3-114.2,
193-114.3, or 3-114.6 shall be counted as creditable service,
20provided that (i) the police officer returns to active service
21after the disability for a period at least equal to the period
22for which credit is to be established and (ii) the police
23officer makes contributions to the fund based on the rates

 

 

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1specified in Section 3-125.1 and the salary upon which the
2disability pension is based. These contributions may be paid at
3any time prior to the commencement of a retirement pension. The
4police officer may, but need not, elect to have the
5contributions deducted from the disability pension or to pay
6them in installments on a schedule approved by the board. If
7not deducted from the disability pension, the contributions
8shall include interest at the rate of 6% per year, compounded
9annually, from the date for which service credit is being
10established to the date of payment. If contributions are paid
11under this subsection (a-5) in excess of those needed to
12establish the credit, the excess shall be refunded. This
13subsection (a-5) applies to persons receiving a disability
14pension under Section 3-114.1, 3-114.2, 3-114.3, or 3-114.6 on
15the effective date of this amendatory Act of the 91st General
16Assembly, as well as persons who begin to receive such a
17disability pension after that date.
18    (b) Creditable service includes all periods of service in
19the military, naval or air forces of the United States entered
20upon while an active police officer of a municipality, provided
21that upon applying for a permanent pension, and in accordance
22with the rules of the board, the police officer pays into the
23fund the amount the officer would have contributed if he or she
24had been a regular contributor during such period, to the
25extent that the municipality which the police officer served
26has not made such contributions in the officer's behalf. The

 

 

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1total amount of such creditable service shall not exceed 5
2years, except that any police officer who on July 1, 1973 had
3more than 5 years of such creditable service shall receive the
4total amount thereof.
5    (b-5) Creditable service includes all periods of service in
6the military, naval, or air forces of the United States entered
7upon before beginning service as an active police officer of a
8municipality, provided that, in accordance with the rules of
9the board, the police officer pays into the fund the amount the
10police officer would have contributed if he or she had been a
11regular contributor during such period, plus an amount
12determined by the Board to be equal to the municipality's
13normal cost of the benefit, plus interest at the actuarially
14assumed rate calculated from the date the employee last became
15a police officer under this Article. The total amount of such
16creditable service shall not exceed 2 years.
17    (c) Creditable service also includes service rendered by a
18police officer while on leave of absence from a police
19department to serve as an executive of an organization whose
20membership consists of members of a police department, subject
21to the following conditions: (i) the police officer is a
22participant of a fund established under this Article with at
23least 10 years of service as a police officer; (ii) the police
24officer received no credit for such service under any other
25retirement system, pension fund, or annuity and benefit fund
26included in this Code; (iii) pursuant to the rules of the board

 

 

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1the police officer pays to the fund the amount he or she would
2have contributed had the officer been an active member of the
3police department; (iv) the organization pays a contribution
4equal to the municipality's normal cost for that period of
5service; and (v) for all leaves of absence under this
6subsection (c), including those beginning before January 5,
72012 (the effective date of Public Act 97-651) this amendatory
8Act of the 97th General Assembly, the police officer continues
9to remain in sworn status, subject to the professional
10standards of the public employer or those terms established in
11statute; and (vi) the employee and employer contributions for
12the service are received by the fund before the effective date
13of this amendatory Act of the 99th General Assembly.
14        (d)(1) Creditable service also includes periods of
15    service originally established in another police pension
16    fund under this Article or in the Fund established under
17    Article 7 of this Code for which (i) the contributions have
18    been transferred under Section 3-110.7 or Section 7-139.9
19    and (ii) any additional contribution required under
20    paragraph (2) of this subsection has been paid in full in
21    accordance with the requirements of this subsection (d).
22        (2) If the board of the pension fund to which
23    creditable service and related contributions are
24    transferred under Section 7-139.9 determines that the
25    amount transferred is less than the true cost to the
26    pension fund of allowing that creditable service to be

 

 

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1    established, then in order to establish that creditable
2    service the police officer must pay to the pension fund,
3    within the payment period specified in paragraph (3) of
4    this subsection, an additional contribution equal to the
5    difference, as determined by the board in accordance with
6    the rules and procedures adopted under paragraph (6) of
7    this subsection. If the board of the pension fund to which
8    creditable service and related contributions are
9    transferred under Section 3-110.7 determines that the
10    amount transferred is less than the true cost to the
11    pension fund of allowing that creditable service to be
12    established, then the police officer may elect (A) to
13    establish that creditable service by paying to the pension
14    fund, within the payment period specified in paragraph (3)
15    of this subsection (d), an additional contribution equal to
16    the difference, as determined by the board in accordance
17    with the rules and procedures adopted under paragraph (6)
18    of this subsection (d) or (B) to have his or her creditable
19    service reduced by an amount equal to the difference
20    between the amount transferred under Section 3-110.7 and
21    the true cost to the pension fund of allowing that
22    creditable service to be established, as determined by the
23    board in accordance with the rules and procedures adopted
24    under paragraph (6) of this subsection (d).
25        (3) Except as provided in paragraph (4), the additional
26    contribution that is required or elected under paragraph

 

 

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1    (2) of this subsection (d) must be paid to the board (i)
2    within 5 years from the date of the transfer of
3    contributions under Section 3-110.7 or 7-139.9 and (ii)
4    before the police officer terminates service with the fund.
5    The additional contribution may be paid in a lump sum or in
6    accordance with a schedule of installment payments
7    authorized by the board.
8        (4) If the police officer dies in service before
9    payment in full has been made and before the expiration of
10    the 5-year payment period, the surviving spouse of the
11    officer may elect to pay the unpaid amount on the officer's
12    behalf within 6 months after the date of death, in which
13    case the creditable service shall be granted as though the
14    deceased police officer had paid the remaining balance on
15    the day before the date of death.
16        (5) If the additional contribution that is required or
17    elected under paragraph (2) of this subsection (d) is not
18    paid in full within the required time, the creditable
19    service shall not be granted and the police officer (or the
20    officer's surviving spouse or estate) shall be entitled to
21    receive a refund of (i) any partial payment of the
22    additional contribution that has been made by the police
23    officer and (ii) those portions of the amounts transferred
24    under subdivision (a)(1) of Section 3-110.7 or
25    subdivisions (a)(1) and (a)(3) of Section 7-139.9 that
26    represent employee contributions paid by the police

 

 

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1    officer (but not the accumulated interest on those
2    contributions) and interest paid by the police officer to
3    the prior pension fund in order to reinstate service
4    terminated by acceptance of a refund.
5        At the time of paying a refund under this item (5), the
6    pension fund shall also repay to the pension fund from
7    which the contributions were transferred under Section
8    3-110.7 or 7-139.9 the amount originally transferred under
9    subdivision (a)(2) of that Section, plus interest at the
10    rate of 6% per year, compounded annually, from the date of
11    the original transfer to the date of repayment. Amounts
12    repaid to the Article 7 fund under this provision shall be
13    credited to the appropriate municipality.
14        Transferred credit that is not granted due to failure
15    to pay the additional contribution within the required time
16    is lost; it may not be transferred to another pension fund
17    and may not be reinstated in the pension fund from which it
18    was transferred.
19        (6) The Public Employee Pension Fund Division of the
20    Department of Insurance shall establish by rule the manner
21    of making the calculation required under paragraph (2) of
22    this subsection, taking into account the appropriate
23    actuarial assumptions; the police officer's service, age,
24    and salary history; the level of funding of the pension
25    fund to which the credits are being transferred; and any
26    other factors that the Division determines to be relevant.

 

 

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1    The rules may require that all calculations made under
2    paragraph (2) be reported to the Division by the board
3    performing the calculation, together with documentation of
4    the creditable service to be transferred, the amounts of
5    contributions and interest to be transferred, the manner in
6    which the calculation was performed, the numbers relied
7    upon in making the calculation, the results of the
8    calculation, and any other information the Division may
9    deem useful.
10        (e)(1) Creditable service also includes periods of
11    service originally established in the Fund established
12    under Article 7 of this Code for which the contributions
13    have been transferred under Section 7-139.11.
14        (2) If the board of the pension fund to which
15    creditable service and related contributions are
16    transferred under Section 7-139.11 determines that the
17    amount transferred is less than the true cost to the
18    pension fund of allowing that creditable service to be
19    established, then the amount of creditable service the
20    police officer may establish under this subsection (e)
21    shall be reduced by an amount equal to the difference, as
22    determined by the board in accordance with the rules and
23    procedures adopted under paragraph (3) of this subsection.
24        (3) The Public Pension Division of the Department of
25    Financial and Professional Regulation shall establish by
26    rule the manner of making the calculation required under

 

 

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1    paragraph (2) of this subsection, taking into account the
2    appropriate actuarial assumptions; the police officer's
3    service, age, and salary history; the level of funding of
4    the pension fund to which the credits are being
5    transferred; and any other factors that the Division
6    determines to be relevant. The rules may require that all
7    calculations made under paragraph (2) be reported to the
8    Division by the board performing the calculation, together
9    with documentation of the creditable service to be
10    transferred, the amounts of contributions and interest to
11    be transferred, the manner in which the calculation was
12    performed, the numbers relied upon in making the
13    calculation, the results of the calculation, and any other
14    information the Division may deem useful.
15        (4) Until January 1, 2010, a police officer who
16    transferred service from the Fund established under
17    Article 7 of this Code under the provisions of Public Act
18    94-356 may establish additional credit, but only for the
19    amount of the service credit reduction in that transfer, as
20    calculated under paragraph (3) of this subsection (e). This
21    credit may be established upon payment by the police
22    officer of an amount to be determined by the board, equal
23    to (1) the amount that would have been contributed as
24    employee and employer contributions had all of the service
25    been as an employee under this Article, plus interest
26    thereon at the rate of 6% per year, compounded annually

 

 

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1    from the date of service to the date of transfer, less (2)
2    the total amount transferred from the Article 7 Fund, plus
3    (3) interest on the difference at the rate of 6% per year,
4    compounded annually, from the date of the transfer to the
5    date of payment. The additional service credit is allowed
6    under this amendatory Act of the 95th General Assembly
7    notwithstanding the provisions of Article 7 terminating
8    all transferred credits on the date of transfer.
9(Source: P.A. 96-297, eff. 8-11-09; 96-1260, eff. 7-23-10;
1097-651, eff. 1-5-12.)
 
11    (40 ILCS 5/4-108)  (from Ch. 108 1/2, par. 4-108)
12    Sec. 4-108. Creditable service.
13    (a) Creditable service is the time served as a firefighter
14of a municipality. In computing creditable service, furloughs
15and leaves of absence without pay exceeding 30 days in any one
16year shall not be counted, but leaves of absence for illness or
17accident regardless of length, and periods of disability for
18which a firefighter received no disability pension payments
19under this Article, shall be counted.
20    (b) Furloughs and leaves of absence of 30 days or less in
21any one year may be counted as creditable service, if the
22firefighter makes the contribution to the fund that would have
23been required had he or she not been on furlough or leave of
24absence. To qualify for this creditable service, the
25firefighter must pay the required contributions to the fund not

 

 

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1more than 90 days subsequent to the termination of the furlough
2or leave of absence, to the extent that the municipality has
3not made such contribution on his or her behalf.
4    (c) Creditable service includes:
5        (1) Service in the military, naval or air forces of the
6    United States entered upon when the person was an active
7    firefighter, provided that, upon applying for a permanent
8    pension, and in accordance with the rules of the board the
9    firefighter pays into the fund the amount that would have
10    been contributed had he or she been a regular contributor
11    during such period of service, if and to the extent that
12    the municipality which the firefighter served made no such
13    contributions in his or her behalf. The total amount of
14    such creditable service shall not exceed 5 years, except
15    that any firefighter who on July 1, 1973 had more than 5
16    years of such creditable service shall receive the total
17    amount thereof as of that date.
18        (1.5) Up to 24 months of service in the military,
19    naval, or air forces of the United States that was served
20    prior to employment by a municipality or fire protection
21    district as a firefighter. To receive the credit for the
22    military service prior to the employment as a firefighter,
23    the firefighter must apply in writing to the fund and must
24    make contributions to the fund equal to (i) the employee
25    contributions that would have been required had the service
26    been rendered as a member, plus (ii) an amount determined

 

 

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1    by the fund to be equal to the employer's normal cost of
2    the benefits accrued for that military service, plus (iii)
3    interest at the actuarially assumed rate provided by the
4    Department of Financial and Professional Regulation,
5    compounded annually from the first date of membership in
6    the fund to the date of payment on items (i) and (ii). The
7    changes to this paragraph (1.5) by this amendatory Act of
8    the 95th General Assembly apply only to participating
9    employees in service on or after its effective date.
10        (2) Service prior to July 1, 1976 by a firefighter
11    initially excluded from participation by reason of age who
12    elected to participate and paid the required contributions
13    for such service.
14        (3) Up to 8 years of service by a firefighter as an
15    officer in a statewide firefighters' association when he is
16    on a leave of absence from a municipality's payroll,
17    provided that (i) the firefighter has at least 10 years of
18    creditable service as an active firefighter, (ii) the
19    firefighter contributes to the fund the amount that he
20    would have contributed had he remained an active member of
21    the fund, (iii) the employee or statewide firefighter
22    association contributes to the fund an amount equal to the
23    employer's required contribution as determined by the
24    board, and (iv) for all leaves of absence under this
25    subdivision (3), including those beginning before January
26    5, 2012 (the effective date of Public Act 97-651) this

 

 

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1    amendatory Act of the 97th General Assembly, the
2    firefighter continues to remain in sworn status, subject to
3    the professional standards of the public employer or those
4    terms established in statute, and (v) the employee and
5    employer contributions for the service are received by the
6    fund before the effective date of this amendatory Act of
7    the 99th General Assembly.
8        (4) Time spent as an on-call fireman for a
9    municipality, calculated at the rate of one year of
10    creditable service for each 5 years of time spent as an
11    on-call fireman, provided that (i) the firefighter has at
12    least 18 years of creditable service as an active
13    firefighter, (ii) the firefighter spent at least 14 years
14    as an on-call firefighter for the municipality, (iii) the
15    firefighter applies for such creditable service within 30
16    days after the effective date of this amendatory Act of
17    1989, (iv) the firefighter contributes to the Fund an
18    amount representing employee contributions for the number
19    of years of creditable service granted under this
20    subdivision (4), based on the salary and contribution rate
21    in effect for the firefighter at the date of entry into the
22    Fund, to be determined by the board, and (v) not more than
23    3 years of creditable service may be granted under this
24    subdivision (4).
25        Except as provided in Section 4-108.5, creditable
26    service shall not include time spent as a volunteer

 

 

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1    firefighter, whether or not any compensation was received
2    therefor. The change made in this Section by Public Act
3    83-0463 is intended to be a restatement and clarification
4    of existing law, and does not imply that creditable service
5    was previously allowed under this Article for time spent as
6    a volunteer firefighter.
7        (5) Time served between July 1, 1976 and July 1, 1988
8    in the position of protective inspection officer or
9    administrative assistant for fire services, for a
10    municipality with a population under 10,000 that is located
11    in a county with a population over 3,000,000 and that
12    maintains a firefighters' pension fund under this Article,
13    if the position included firefighting duties,
14    notwithstanding that the person may not have held an
15    appointment as a firefighter, provided that application is
16    made to the pension fund within 30 days after the effective
17    date of this amendatory Act of 1991, and the corresponding
18    contributions are paid for the number of years of service
19    granted, based upon the salary and contribution rate in
20    effect for the firefighter at the date of entry into the
21    pension fund, as determined by the Board.
22        (6) Service before becoming a participant by a
23    firefighter initially excluded from participation by
24    reason of age who becomes a participant under the amendment
25    to Section 4-107 made by this amendatory Act of 1993 and
26    pays the required contributions for such service.

 

 

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1        (7) Up to 3 years of time during which the firefighter
2    receives a disability pension under Section 4-110,
3    4-110.1, or 4-111, provided that (i) the firefighter
4    returns to active service after the disability for a period
5    at least equal to the period for which credit is to be
6    established and (ii) the firefighter makes contributions
7    to the fund based on the rates specified in Section 4-118.1
8    and the salary upon which the disability pension is based.
9    These contributions may be paid at any time prior to the
10    commencement of a retirement pension. The firefighter may,
11    but need not, elect to have the contributions deducted from
12    the disability pension or to pay them in installments on a
13    schedule approved by the board. If not deducted from the
14    disability pension, the contributions shall include
15    interest at the rate of 6% per year, compounded annually,
16    from the date for which service credit is being established
17    to the date of payment. If contributions are paid under
18    this subdivision (c)(7) in excess of those needed to
19    establish the credit, the excess shall be refunded. This
20    subdivision (c)(7) applies to persons receiving a
21    disability pension under Section 4-110, 4-110.1, or 4-111
22    on the effective date of this amendatory Act of the 91st
23    General Assembly, as well as persons who begin to receive
24    such a disability pension after that date.
25(Source: P.A. 97-651, eff. 1-5-12.)
 

 

 

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1    (40 ILCS 5/5-214)  (from Ch. 108 1/2, par. 5-214)
2    Sec. 5-214. Credit for other service. Any participant in
3this fund (other than a member of the fire department of the
4city) who has rendered service as a member of the police
5department of the city for a period of 3 years or more is
6entitled to credit for the various purposes of this Article for
7service rendered prior to becoming a member or subsequent
8thereto for the following periods:
9        (a) While on leave of absence from the police
10    department assigned or detailed to investigative,
11    protective, security or police work for the park district
12    of the city, the department of the Port of Chicago or the
13    sanitary district in which the city is located.
14        (b) As a temporary police officer in the city or while
15    serving in the office of the mayor or in the office of the
16    corporation counsel, as a member of the city council of the
17    city, as an employee of the Policemen's Annuity and Benefit
18    Fund created by this Article, as the head of an
19    organization whose membership consists of members of the
20    police department, the Public Vehicle License Commission
21    and the board of election commissioners of the city,
22    provided that, in each of these cases and for all periods
23    specified in this item (b), including those beginning
24    before January 5, 2012 (the effective date of Public Act
25    97-651) this amendatory Act of the 97th General Assembly,
26    the police officer is on leave and continues to remain in

 

 

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1    sworn status, subject to the professional standards of the
2    public employer or those terms established in statute.
3        (c) While performing safety or investigative work for
4    the county in which such city is principally located or for
5    the State of Illinois or for the federal government, on
6    leave of absence from the department of police, or while
7    performing investigative work for the department as a
8    civilian employee of the department.
9        (d) While on leave of absence from the police
10    department of the city and serving as the chief of police
11    of a police department outside the city.
12    No credit shall be granted in this fund, however, for this
13service if the policeman has credit therefor in any other
14annuity and benefit fund, or unless he contributes to this fund
15the amount he would have contributed with interest had he
16remained an active member of the police department in the
17position he occupied as a result of a civil service competitive
18examination, certification and appointment by the Civil
19Service Board; or in the case of a city operating under the
20provisions of a personnel ordinance the position he occupied as
21a result of a personnel ordinance competitive examination
22certification and appointment under the authority of a
23Municipal Personnel ordinance.
24    Concurrently with such contributions, the city shall
25contribute the amounts provided by this Article. No credit
26shall be allowed for any period of time for which contributions

 

 

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1by the policeman have not been paid. The period of service
2rendered by such policeman prior to the date he became a member
3of the police department of the city or while detailed,
4assigned or on leave of absence and employed in any of the
5departments set forth hereinabove in this Section for which
6such policeman has contributed to this fund shall be credited
7to him as service for all the purposes of this Article, except
8that he shall not have any of the rights conferred by the
9provisions of Sections 5-127 and 5-162 of this Article.
10    The changes in this Section made by Public Act 86-273 shall
11apply to members of the fund who have not begun receiving a
12pension under this Article on August 23, 1989, without regard
13to whether employment is terminated before that date.
14    Notwithstanding any other provision of this Section,
15participants are only entitled to credit for service under
16paragraph (b) of this Section as the head of an organization
17whose membership consists of members of the police department
18if the employee and employer contributions for the service are
19received by the Fund before the effective date of this
20amendatory Act of the 99th General Assembly.
21(Source: P.A. 97-651, eff. 1-5-12.)
 
22    (40 ILCS 5/6-209)  (from Ch. 108 1/2, par. 6-209)
23    Sec. 6-209. In computing the service rendered by a fireman
24prior to the effective date, the following periods shall be
25counted, in addition to all periods during which he performed

 

 

HB2455- 19 -LRB099 03798 SXM 23811 b

1the duties of his position, as periods of service for annuity
2purposes only: All periods of (a) vacation, (b) leave of
3absence with whole or part pay, (c) leave of absence without
4pay which were necessary on account of disability, and (d)
5leave of absence during which he was engaged in the military or
6naval service of the United States of America. Service credit
7shall not be allowed for any period during which a fireman was
8in receipt of pension on account of disability from any pension
9fund superseded by this fund.
10    In computing the service rendered by a fireman on and after
11the effective date, the following periods shall be counted in
12addition to all periods during which he performed the duties of
13his position, as periods of service for annuity purposes only:
14All periods of (a) vacation, (b) leave of absence with whole or
15part pay, (c) leave of absence during which he was engaged in
16the military or naval service of the United States of America,
17(d) disability for which he receives any disability benefit,
18(e) disability for which he receives whole or part pay, (f)
19leave of absence, or other authorized relief from active duty,
20during which he served as president of The Firemen's
21Association of Chicago, provided that for all leaves of absence
22or other authorized relief under this item (f), including those
23beginning before January 5, 2012 (the effective date of Public
24Act 97-651) this amendatory Act of the 97th General Assembly,
25the fireman continues to remain in sworn status, subject to the
26professional standards of the public employer or those terms

 

 

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1established in statute, (g) periods of suspension from duty not
2to exceed a total of one year during the total period of
3service of the fireman, and (h) a period of time not to exceed
423 days in 1980 in accordance with an agreement with the City
5on a settlement of strike; provided that the fireman elects to
6make contributions to the Fund for the various annuity and
7benefit purposes according to the provisions of this Article as
8though he were an active fireman, based upon the salary
9attached to the civil service rank held by him during such
10absence from duty, and if the fireman so elects, the city shall
11make the prescribed concurrent contributions for such annuity
12and benefit purposes as provided in this Article, all to the
13end that such fireman shall be entitled to receive the same
14annuities and benefits for which he would otherwise be eligible
15if he had continued as an active fireman during the periods of
16absence from duty. Notwithstanding any other provision of this
17Section, a fireman may only use a leave of absence, or other
18authorized relief from active duty, during which the fireman
19served as president of The Firemen's Association of Chicago in
20computing his or her service if the employee and employer
21contributions for the service are received by the Fund before
22the effective date of this amendatory Act of the 99th General
23Assembly.
24    In computing service on and after the effective date for
25ordinary disability benefit, all periods described in the
26preceding paragraph, except any period for which a fireman

 

 

HB2455- 21 -LRB099 03798 SXM 23811 b

1receives ordinary disability benefit, shall be counted as
2periods of service.
3    In computing service for any of the purposes of this
4Article, credit shall be given for any periods prior to January
59, 1997, during which an active fireman (or fire paramedic) who
6is a member of the General Assembly is on leave of absence or
7is otherwise authorized to be absent from duty to enable him to
8perform his legislative duties, notwithstanding any reduction
9in salary for such periods and notwithstanding that the
10contributions paid by the fireman were based on such reduced
11salary rather than the full amount of salary attached to his
12civil service rank.
13    In computing service for any of the purposes of this
14Article, no credit shall be given for any period during which a
15fireman was not rendering active service because of his
16discharge from the service, unless proceedings to test the
17legality of the discharge are filed in a court of competent
18jurisdiction within one year from the date of discharge and a
19final judgment is entered therein declaring the discharge
20illegal.
21    No overtime or extra service shall be included in computing
22service of a fireman and not more than one year or a proper
23fractional part thereof of service shall be allowed for service
24rendered during any calendar year.
25(Source: P.A. 97-651, eff. 1-5-12.)
 

 

 

HB2455- 22 -LRB099 03798 SXM 23811 b

1    (40 ILCS 5/7-132)   (from Ch. 108 1/2, par. 7-132)
2    Sec. 7-132. Municipalities, instrumentalities and
3participating instrumentalities included and effective dates.
 
4(A) Municipalities and their instrumentalities.
5    (a) The following described municipalities, but not
6including any with more than 1,000,000 inhabitants, and the
7instrumentalities thereof, shall be included within and be
8subject to this Article beginning upon the effective dates
9specified by the Board:
10        (1) Except as to the municipalities and
11    instrumentalities thereof specifically excluded under this
12    Article, every county shall be subject to this Article, and
13    all cities, villages and incorporated towns having a
14    population in excess of 5,000 inhabitants as determined by
15    the last preceding decennial or subsequent federal census,
16    shall be subject to this Article following publication of
17    the census by the Bureau of the Census. Within 90 days
18    after publication of the census, the Board shall notify any
19    municipality that has become subject to this Article as a
20    result of that census, and shall provide information to the
21    corporate authorities of the municipality explaining the
22    duties and consequences of participation. The notification
23    shall also include a proposed date upon which participation
24    by the municipality will commence.
25        However, for any city, village or incorporated town

 

 

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1    that attains a population over 5,000 inhabitants after
2    having provided social security coverage for its employees
3    under the Social Security Enabling Act, participation
4    under this Article shall not be mandatory but may be
5    elected in accordance with subparagraph (3) or (4) of this
6    paragraph (a), whichever is applicable.
7        (2) School districts, other than those specifically
8    excluded under this Article, shall be subject to this
9    Article, without election, with respect to all employees
10    thereof.
11        (3) Towns and all other bodies politic and corporate
12    which are formed by vote of, or are subject to control by,
13    the electors in towns and are located in towns which are
14    not participating municipalities on the effective date of
15    this Act, may become subject to this Article by election
16    pursuant to Section 7-132.1.
17        (4) Any other municipality (together with its
18    instrumentalities), other than those specifically excluded
19    from participation and those described in paragraph (3)
20    above, may elect to be included either by referendum under
21    Section 7-134 or by the adoption of a resolution or
22    ordinance by its governing body. A copy of such resolution
23    or ordinance duly authenticated and certified by the clerk
24    of the municipality or other appropriate official of its
25    governing body shall constitute the required notice to the
26    board of such action.

 

 

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1    (b) A municipality that is about to begin participation
2shall submit to the Board an application to participate, in a
3form acceptable to the Board, not later than 90 days prior to
4the proposed effective date of participation. The Board shall
5act upon the application within 90 days, and if it finds that
6the application is in conformity with its requirements and the
7requirements of this Article, participation by the applicant
8shall commence on a date acceptable to the municipality and
9specified by the Board, but in no event more than one year from
10the date of application.
11    (c) A participating municipality which succeeds to the
12functions of a participating municipality which is dissolved or
13terminates its existence shall assume and be transferred the
14net accumulation balance in the municipality reserve and the
15municipality account receivable balance of the terminated
16municipality.
17    (d) In the case of a Veterans Assistance Commission whose
18employees were being treated by the Fund on January 1, 1990 as
19employees of the county served by the Commission, the Fund may
20continue to treat the employees of the Veterans Assistance
21Commission as county employees for the purposes of this
22Article, unless the Commission becomes a participating
23instrumentality in accordance with subsection (B) of this
24Section.
 
25(B) Participating instrumentalities.

 

 

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1    (a) The participating instrumentalities designated in
2paragraph (b) of this subsection shall be included within and
3be subject to this Article if:
4        (1) an application to participate, in a form acceptable
5    to the Board and adopted by a two-thirds vote of the
6    governing body, is presented to the Board not later than 90
7    days prior to the proposed effective date; and
8        (2) the Board finds that the application is in
9    conformity with its requirements, that the applicant has
10    reasonable expectation to continue as a political entity
11    for a period of at least 10 years and has the prospective
12    financial capacity to meet its current and future
13    obligations to the Fund, and that the actuarial soundness
14    of the Fund may be reasonably expected to be unimpaired by
15    approval of participation by the applicant.
16    The Board shall notify the applicant of its findings within
1790 days after receiving the application, and if the Board
18approves the application, participation by the applicant shall
19commence on the effective date specified by the Board.
20    (b) The following participating instrumentalities, so long
21as they meet the requirements of Section 7-108 and the area
22served by them or within their jurisdiction is not located
23entirely within a municipality having more than one million
24inhabitants, may be included hereunder:
25        i. Township School District Trustees.
26        ii. Multiple County and Consolidated Health

 

 

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1    Departments created under Division 5-25 of the Counties
2    Code or its predecessor law.
3        iii. Public Building Commissions created under the
4    Public Building Commission Act, and located in counties of
5    less than 1,000,000 inhabitants.
6        iv. A multitype, consolidated or cooperative library
7    system created under the Illinois Library System Act. Any
8    library system created under the Illinois Library System
9    Act that has one or more predecessors that participated in
10    the Fund may participate in the Fund upon application. The
11    Board shall establish procedures for implementing the
12    transfer of rights and obligations from the predecessor
13    system to the successor system.
14        v. Regional Planning Commissions created under
15    Division 5-14 of the Counties Code or its predecessor law.
16        vi. Local Public Housing Authorities created under the
17    Housing Authorities Act, located in counties of less than
18    1,000,000 inhabitants.
19        vii. Illinois Municipal League, but only with respect
20    to service on or before the effective date of this
21    amendatory Act of the 99th General Assembly.
22        viii. Northeastern Illinois Metropolitan Area Planning
23    Commission.
24        ix. Southwestern Illinois Metropolitan Area Planning
25    Commission.
26        x. Illinois Association of Park Districts.

 

 

HB2455- 27 -LRB099 03798 SXM 23811 b

1        xi. Illinois Supervisors, County Commissioners and
2    Superintendents of Highways Association.
3        xii. Tri-City Regional Port District.
4        xiii. An association, or not-for-profit corporation,
5    membership in which is authorized under Section 85-15 of
6    the Township Code.
7        xiv. Drainage Districts operating under the Illinois
8    Drainage Code.
9        xv. Local mass transit districts created under the
10    Local Mass Transit District Act.
11        xvi. Soil and water conservation districts created
12    under the Soil and Water Conservation Districts Law.
13        xvii. Commissions created to provide water supply or
14    sewer services or both under Division 135 or Division 136
15    of Article 11 of the Illinois Municipal Code.
16        xviii. Public water districts created under the Public
17    Water District Act.
18        xix. Veterans Assistance Commissions established under
19    Section 9 of the Military Veterans Assistance Act that
20    serve counties with a population of less than 1,000,000.
21        xx. The governing body of an entity, other than a
22    vocational education cooperative, created under an
23    intergovernmental cooperative agreement established
24    between participating municipalities under the
25    Intergovernmental Cooperation Act, which by the terms of
26    the agreement is the employer of the persons performing

 

 

HB2455- 28 -LRB099 03798 SXM 23811 b

1    services under the agreement under the usual common law
2    rules determining the employer-employee relationship. The
3    governing body of such an intergovernmental cooperative
4    entity established prior to July 1, 1988 may make
5    participation retroactive to the effective date of the
6    agreement and, if so, the effective date of participation
7    shall be the date the required application is filed with
8    the fund. If any such entity is unable to pay the required
9    employer contributions to the fund, then the participating
10    municipalities shall make payment of the required
11    contributions and the payments shall be allocated as
12    provided in the agreement or, if not so provided, equally
13    among them.
14        xxi. The Illinois Municipal Electric Agency.
15        xxii. The Waukegan Port District.
16        xxiii. The Fox Waterway Agency created under the Fox
17    Waterway Agency Act.
18        xxiv. The Illinois Municipal Gas Agency.
19        xxv. The Kaskaskia Regional Port District.
20        xxvi. The Southwestern Illinois Development Authority.
21        xxvii. The Cairo Public Utility Company.
22        xxviii. Except with respect to employees who elect to
23    participate in the State Employees' Retirement System of
24    Illinois under Section 14-104.13 of this Code, the Chicago
25    Metropolitan Agency for Planning created under the
26    Regional Planning Act, provided that, with respect to the

 

 

HB2455- 29 -LRB099 03798 SXM 23811 b

1    benefits payable pursuant to Sections 7-146, 7-150, and
2    7-164 and the requirement that eligibility for such
3    benefits is conditional upon satisfying a minimum period of
4    service or a minimum contribution, any employee of the
5    Chicago Metropolitan Agency for Planning that was
6    immediately prior to such employment an employee of the
7    Chicago Area Transportation Study or the Northeastern
8    Illinois Planning Commission, such employee's service at
9    the Chicago Area Transportation Study or the Northeastern
10    Illinois Planning Commission and contributions to the
11    State Employees' Retirement System of Illinois established
12    under Article 14 and the Illinois Municipal Retirement Fund
13    shall count towards the satisfaction of such requirements.
14        xxix. United Counties Council (formerly the Urban
15    Counties Council), but only if the Council has a ruling
16    from the United States Internal Revenue Service that it is
17    a governmental entity.
18        xxx. The Will County Governmental League, but only if
19    the League has a ruling from the United States Internal
20    Revenue Service that it is a governmental entity and only
21    with respect to service on or before the effective date of
22    this amendatory Act of the 99th General Assembly.
23    (c) The governing boards of special education joint
24agreements created under Section 10-22.31 of the School Code
25without designation of an administrative district shall be
26included within and be subject to this Article as participating

 

 

HB2455- 30 -LRB099 03798 SXM 23811 b

1instrumentalities when the joint agreement becomes effective.
2However, the governing board of any such special education
3joint agreement in effect before September 5, 1975 shall not be
4subject to this Article unless the joint agreement is modified
5by the school districts to provide that the governing board is
6subject to this Article, except as otherwise provided by this
7Section.
8    The governing board of the Special Education District of
9Lake County shall become subject to this Article as a
10participating instrumentality on July 1, 1997. Notwithstanding
11subdivision (a)1 of Section 7-139, on the effective date of
12participation, employees of the governing board of the Special
13Education District of Lake County shall receive creditable
14service for their prior service with that employer, up to a
15maximum of 5 years, without any employee contribution.
16Employees may establish creditable service for the remainder of
17their prior service with that employer, if any, by applying in
18writing and paying an employee contribution in an amount
19determined by the Fund, based on the employee contribution
20rates in effect at the time of application for the creditable
21service and the employee's salary rate on the effective date of
22participation for that employer, plus interest at the effective
23rate from the date of the prior service to the date of payment.
24Application for this creditable service must be made before
25July 1, 1998; the payment may be made at any time while the
26employee is still in service. The employer may elect to make

 

 

HB2455- 31 -LRB099 03798 SXM 23811 b

1the required contribution on behalf of the employee.
2    The governing board of a special education joint agreement
3created under Section 10-22.31 of the School Code for which an
4administrative district has been designated, if there are
5employees of the cooperative educational entity who are not
6employees of the administrative district, may elect to
7participate in the Fund and be included within this Article as
8a participating instrumentality, subject to such application
9procedures and rules as the Board may prescribe.
10    The Boards of Control of cooperative or joint educational
11programs or projects created and administered under Section
123-15.14 of the School Code, whether or not the Boards act as
13their own administrative district, shall be included within and
14be subject to this Article as participating instrumentalities
15when the agreement establishing the cooperative or joint
16educational program or project becomes effective.
17    The governing board of a special education joint agreement
18entered into after June 30, 1984 and prior to September 17,
191985 which provides for representation on the governing board
20by less than all the participating districts shall be included
21within and subject to this Article as a participating
22instrumentality. Such participation shall be effective as of
23the date the joint agreement becomes effective.
24    The governing boards of educational service centers
25established under Section 2-3.62 of the School Code shall be
26included within and subject to this Article as participating

 

 

HB2455- 32 -LRB099 03798 SXM 23811 b

1instrumentalities. The governing boards of vocational
2education cooperative agreements created under the
3Intergovernmental Cooperation Act and approved by the State
4Board of Education shall be included within and be subject to
5this Article as participating instrumentalities. If any such
6governing boards or boards of control are unable to pay the
7required employer contributions to the fund, then the school
8districts served by such boards shall make payment of required
9contributions as provided in Section 7-172. The payments shall
10be allocated among the several school districts in proportion
11to the number of students in average daily attendance for the
12last full school year for each district in relation to the
13total number of students in average attendance for such period
14for all districts served. If such educational service centers,
15vocational education cooperatives or cooperative or joint
16educational programs or projects created and administered
17under Section 3-15.14 of the School Code are dissolved, the
18assets and obligations shall be distributed among the districts
19in the same proportions unless otherwise provided.
20    The governing board of Paris Cooperative High School shall
21be included within and be subject to this Article as a
22participating instrumentality on July 14, 2010 (the effective
23date of Public Act 96-1046) this amendatory Act of the 96th
24General Assembly. If the governing board of Paris Cooperative
25High School is unable to pay the required employer
26contributions to the fund, then the school districts served

 

 

HB2455- 33 -LRB099 03798 SXM 23811 b

1shall make payment of required contributions as provided in
2Section 7-172. The payments shall be allocated among the
3several school districts in proportion to the number of
4students in average daily attendance for the last full school
5year for each district in relation to the total number of
6students in average attendance for such period for all
7districts served. If Paris Cooperative High School is
8dissolved, then the assets and obligations shall be distributed
9among the districts in the same proportions unless otherwise
10provided.
11    The Philip J. Rock Center and School shall be included
12within and be subject to this Article as a participating
13instrumentality on July 26, 2012 (the effective date of Public
14Act 97-854) this amendatory Act of the 97th General Assembly.
15The Philip J. Rock Center and School shall certify to the Fund
16the dates of service of all employees within 90 days of July
1726, 2012 (the effective date of Public Act 97-854) this
18amendatory Act of the 97th General Assembly. The Fund shall
19transfer to the IMRF account of the Philip J. Rock Center and
20School all creditable service and all employer contributions
21made on behalf of the employees for service at the Philip J.
22Rock Center and School that were reported and paid to IMRF by
23another employer prior to this date. If the Philip J. Rock
24Center and School is unable to pay the required employer
25contributions to the Fund, then the amount due will be paid by
26all employers as defined in item (2) of paragraph (a) of

 

 

HB2455- 34 -LRB099 03798 SXM 23811 b

1subsection (A) of this Section. The payments shall be allocated
2among these employers in proportion to the number of students
3in average daily attendance for the last full school year for
4each district in relation to the total number of students in
5average attendance for such period for all districts. If the
6Philip J. Rock Center and School is dissolved, then its IMRF
7assets and obligations shall be distributed in the same
8proportions unless otherwise provided.
9    Financial Oversight Panels established under Article 1H of
10the School Code shall be included within and be subject to this
11Article as a participating instrumentality on August 16, 2011
12(the effective date of Public Act 97-429) this amendatory Act
13of the 97th General Assembly. If the Financial Oversight Panel
14is unable to pay the required employer contributions to the
15fund, then the school districts served shall make payment of
16required contributions as provided in Section 7-172. If the
17Financial Oversight Panel is dissolved, then the assets and
18obligations shall be distributed to the district served.
19    (d) The governing boards of special recreation joint
20agreements created under Section 8-10b of the Park District
21Code, operating without designation of an administrative
22district or an administrative municipality appointed to
23administer the program operating under the authority of such
24joint agreement shall be included within and be subject to this
25Article as participating instrumentalities when the joint
26agreement becomes effective. However, the governing board of

 

 

HB2455- 35 -LRB099 03798 SXM 23811 b

1any such special recreation joint agreement in effect before
2January 1, 1980 shall not be subject to this Article unless the
3joint agreement is modified, by the districts and
4municipalities which are parties to the agreement, to provide
5that the governing board is subject to this Article.
6    If the Board returns any employer and employee
7contributions to any employer which erroneously submitted such
8contributions on behalf of a special recreation joint
9agreement, the Board shall include interest computed from the
10end of each year to the date of payment, not compounded, at the
11rate of 7% per annum.
12    (e) Each multi-township assessment district, the board of
13trustees of which has adopted this Article by ordinance prior
14to April 1, 1982, shall be a participating instrumentality
15included within and subject to this Article effective December
161, 1981. The contributions required under Section 7-172 shall
17be included in the budget prepared under and allocated in
18accordance with Section 2-30 of the Property Tax Code.
19    (f) The Illinois Medical District Commission created under
20the Illinois Medical District Act may be included within and
21subject to this Article as a participating instrumentality,
22notwithstanding that the location of the District is entirely
23within the City of Chicago. To become a participating
24instrumentality, the Commission must apply to the Board in the
25manner set forth in paragraph (a) of this subsection (B). If
26the Board approves the application, under the criteria and

 

 

HB2455- 36 -LRB099 03798 SXM 23811 b

1procedures set forth in paragraph (a) and any other applicable
2rules, criteria, and procedures of the Board, participation by
3the Commission shall commence on the effective date specified
4by the Board.
 
5(C) Prospective participants.
6     Beginning January 1, 1992, each prospective participating
7municipality or participating instrumentality shall pay to the
8Fund the cost, as determined by the Board, of a study prepared
9by the Fund or its actuary, detailing the prospective costs of
10participation in the Fund to be expected by the municipality or
11instrumentality.
12(Source: P.A. 96-211, eff. 8-10-09; 96-551, eff. 8-17-09;
1396-1000, eff. 7-2-10; 96-1046, eff. 7-14-10; 97-429, eff.
148-16-11; 97-854, eff. 7-26-12.)
 
15    (40 ILCS 5/8-226)  (from Ch. 108 1/2, par. 8-226)
16    Sec. 8-226. Computation of service. In computing the term
17of service of an employee prior to the effective date, the
18entire period beginning on the date he was first appointed and
19ending on the day before the effective date, except any
20intervening period during which he was separated by withdrawal
21from service, shall be counted for all purposes of this
22Article, except that for any employee who was not in service on
23the day before the effective date, service rendered prior to
24such date shall not be considered for the purposes of Section

 

 

HB2455- 37 -LRB099 03798 SXM 23811 b

18-138.
2    For a person employed by an employer for whom this Article
3was in effect prior to January 1, 1950, from whose salary
4deductions are first made under this Article after December 31,
51949, any period of service rendered prior to the effective
6date, unless he was in service on the day before the effective
7date, shall not be counted as service.
8    The time a person was an employee of any territory annexed
9to the city prior to the effective date shall be counted as a
10period of service.
11    In computing the term of service of any employee subsequent
12to the day before the effective date, the following periods
13shall be counted as periods of service for age and service,
14widow's and child's annuity purposes:
15        (a) The time during which he performed the duties of
16    his position;
17        (b) Vacations, leaves of absence with whole or part
18    pay, and leaves of absence without pay not longer than 90
19    days;
20        (c) Leaves of absence without pay that begin before
21    January 5, 2012 (the effective date of Public Act 97-651)
22    this amendatory Act of the 97th General Assembly and during
23    which a participant is employed full-time by a local labor
24    organization that represents municipal employees, provided
25    that (1) the participant continues to make employee
26    contributions to the Fund as though he were an active

 

 

HB2455- 38 -LRB099 03798 SXM 23811 b

1    employee, based on the regular salary rate received by the
2    participant for his municipal employment immediately prior
3    to such leave of absence (and in the case of such
4    employment prior to December 9, 1987, pays to the Fund an
5    amount equal to the employee contributions for such
6    employment plus regular interest thereon as calculated by
7    the board), and based on his current salary with such labor
8    organization after the effective date of this amendatory
9    Act of 1991, (2) after January 1, 1989 the participant, or
10    the labor organization on the participant's behalf, makes
11    contributions to the Fund as though it were the employer,
12    in the same amount and same manner as specified under this
13    Article, based on the regular salary rate received by the
14    participant for his municipal employment immediately prior
15    to such leave of absence, and based on his current salary
16    with such labor organization after the effective date of
17    this amendatory Act of 1991, and (3) the participant does
18    not receive credit in any pension plan established by the
19    local labor organization based on his employment by the
20    organization, and (4) the employee and employer
21    contributions for the service are received by the Fund
22    before the effective date of this amendatory Act of the
23    99th General Assembly;
24        (d) Any period of disability for which he received (i)
25    a disability benefit under this Article, or (ii) a
26    temporary total disability benefit under the Workers'

 

 

HB2455- 39 -LRB099 03798 SXM 23811 b

1    Compensation Act if the disability results from a condition
2    commonly termed heart attack or stroke or any other
3    condition falling within the broad field of coronary
4    involvement or heart disease, or (iii) whole or part pay;
5        (e) Any period for which contributions and service
6    credit have been transferred to this Fund under subsection
7    (d) of Section 9-121.1 or subsection (d) of Section
8    12-127.1 of this Code.
9    For a person employed by an employer in which the 1921 Act
10was in effect prior to January 1, 1950, from whose salary
11deductions are first made under the 1921 Act or this Article
12after December 31, 1949, any period of service rendered
13subsequent to the effective date and prior to the date he
14became an employee and contributor, shall not be counted as a
15period of service under this Article, except such period for
16which he made payment as provided in Section 8-230 of this
17Article, in which case such period shall be counted as a period
18of service for all annuity purposes hereunder.
19    In computing the term of service of an employee subsequent
20to the day before the effective date for ordinary disability
21benefit purposes, all periods described in the preceding
22paragraph, except any such period for which he receives
23ordinary disability benefit, shall be counted as periods of
24service; provided, that for any person employed by an employer
25in which this Article was in effect prior to January 1, 1950,
26from whose salary deductions are first made under this Article

 

 

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1after December 31, 1949, any period of service rendered
2subsequent to the effective date and prior to the date he
3became an employee and contributor, shall not be counted as a
4period of service for ordinary disability benefit purposes,
5unless the person made payment for the period as provided in
6Section 8-230 of this Article, in which case the period shall
7be counted as a period of service for ordinary disability
8purposes for periods of disability on or after the effective
9date of this amendatory Act of 1997.
10    Overtime or extra service shall not be included in
11computing any term of service. Not more than 1 year of service
12shall be allowed for service rendered during any calendar year.
13    For the purposes of this Section, the phrase "any pension
14plan established by the local labor organization" means any
15pension plan in which a participant may receive credit as a
16result of his or her membership in the local labor
17organization, including, but not limited to, the local labor
18organization itself and its affiliates at the local,
19intrastate, State, multi-state, national, or international
20level. The definition of this phrase is a declaration of
21existing law and shall not be construed as a new enactment.
22(Source: P.A. 97-651, eff. 1-5-12.)
 
23    (40 ILCS 5/11-215)  (from Ch. 108 1/2, par. 11-215)
24    Sec. 11-215. Computation of service.
25    (a) In computing the term of service of an employee prior

 

 

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1to the effective date, the entire period beginning on the date
2he was first appointed and ending on the day before the
3effective date, except any intervening period during which he
4was separated by withdrawal from service, shall be counted for
5all purposes of this Article. Only the first year of each
6period of lay-off or leave of absence without pay, continuing
7or extending for a period in excess of one year, shall be
8counted as such service.
9    (b) For a person employed by an employer for whom this
10Article was in effect prior to August 1, 1949, from whose
11salary deductions are first made under this Article after July
1231, 1949, any period of service rendered prior to the effective
13date, unless he was in service on the day before the effective
14date, shall not be counted as service.
15    (c) In computing the term of service of an employee
16subsequent to the day before the effective date, the following
17periods of time shall be counted as periods of service for
18annuity purposes:
19        (1) the time during which he performed the duties of
20    his position;
21        (2) leaves of absence with whole or part pay, and
22    leaves of absence without pay not longer than 90 days;
23        (3) leaves of absence without pay that begin before
24    January 5, 2012 (the effective date of Public Act 97-651)
25    this amendatory Act of the 97th General Assembly and during
26    which a participant is employed full-time by a local labor

 

 

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1    organization that represents municipal employees, provided
2    that (A) the participant continues to make employee
3    contributions to the Fund as though he were an active
4    employee, based on the regular salary rate received by the
5    participant for his municipal employment immediately prior
6    to such leave of absence (and in the case of such
7    employment prior to December 9, 1987, pays to the Fund an
8    amount equal to the employee contributions for such
9    employment plus regular interest thereon as calculated by
10    the board), and based on his current salary with such labor
11    organization after the effective date of this amendatory
12    Act of 1991, (B) after January 1, 1989 the participant, or
13    the labor organization on the participant's behalf, makes
14    contributions to the Fund as though it were the employer,
15    in the same amount and same manner as specified under this
16    Article, based on the regular salary rate received by the
17    participant for his municipal employment immediately prior
18    to such leave of absence, and based on his current salary
19    with such labor organization after the effective date of
20    this amendatory Act of 1991, and (C) the participant does
21    not receive credit in any pension plan established by the
22    local labor organization based on his employment by the
23    organization, and (D) the employee and employer
24    contributions for the service are received by the Fund
25    before the effective date of this amendatory Act of the
26    99th General Assembly;

 

 

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1        (4) any period of disability for which he received (i)
2    a disability benefit under this Article, or (ii) a
3    temporary total disability benefit under the Workers'
4    Compensation Act if the disability results from a condition
5    commonly termed heart attack or stroke or any other
6    condition falling within the broad field of coronary
7    involvement or heart disease, or (iii) whole or part pay.
8    (d) For a person employed by an employer, or the retirement
9board, in which "The 1935 Act" was in effect prior to August 1,
101949, from whose salary deductions are first made under "The
111935 Act" or this Article after July 31, 1949, any period of
12service rendered subsequent to the effective date and prior to
13August 1, 1949, shall not be counted as a period of service
14under this Article, except such period for which he made
15payment, as provided in Section 11-221 of this Article, in
16which case such period shall be counted as a period of service
17for all annuity purposes hereunder.
18    (e) In computing the term of service of an employee
19subsequent to the day before the effective date for ordinary
20disability benefit purposes, the following periods of time
21shall be counted as periods of service:
22        (1) any period during which he performed the duties of
23    his position;
24        (2) leaves of absence with whole or part pay;
25        (3) any period of disability for which he received (i)
26    a duty disability benefit under this Article, or (ii) a

 

 

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1    temporary total disability benefit under the Workers'
2    Compensation Act if the disability results from a condition
3    commonly termed heart attack or stroke or any other
4    condition falling within the broad field of coronary
5    involvement or heart disease, or (iii) whole or part pay.
6    However, any period of service rendered by an employee
7contributor prior to the date he became a contributor to the
8fund shall not be counted as a period of service for ordinary
9disability purposes, unless the person made payment for the
10period as provided in Section 11-221 of this Article, in which
11case the period shall be counted as a period of service for
12ordinary disability purposes for periods of disability on or
13after the effective date of this amendatory Act of 1997.
14    Overtime or extra service shall not be included in
15computing any term of service. Not more than 1 year of service
16shall be allowed for service rendered during any calendar year.
17    For the purposes of this Section, the phrase "any pension
18plan established by the local labor organization" means any
19pension plan in which a participant may receive credit as a
20result of his or her membership in the local labor
21organization, including, but not limited to, the local labor
22organization itself and its affiliates at the local,
23intrastate, State, multi-state, national, or international
24level. The definition of this phrase is a declaration of
25existing law and shall not be construed as a new enactment.
26(Source: P.A. 97-651, eff. 1-5-12.)
 

 

 

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1    (40 ILCS 5/15-107)  (from Ch. 108 1/2, par. 15-107)
2    Sec. 15-107. Employee.
3    (a) "Employee" means any member of the educational,
4administrative, secretarial, clerical, mechanical, labor or
5other staff of an employer whose employment is permanent and
6continuous or who is employed in a position in which services
7are expected to be rendered on a continuous basis for at least
84 months or one academic term, whichever is less, who (A)
9receives payment for personal services on a warrant issued
10pursuant to a payroll voucher certified by an employer and
11drawn by the State Comptroller upon the State Treasurer or by
12an employer upon trust, federal or other funds, or (B) is on a
13leave of absence without pay. Employment which is irregular,
14intermittent or temporary shall not be considered continuous
15for purposes of this paragraph.
16    However, a person is not an "employee" if he or she:
17        (1) is a student enrolled in and regularly attending
18    classes in a college or university which is an employer,
19    and is employed on a temporary basis at less than full
20    time;
21        (2) is currently receiving a retirement annuity or a
22    disability retirement annuity under Section 15-153.2 from
23    this System;
24        (3) is on a military leave of absence;
25        (4) is eligible to participate in the Federal Civil

 

 

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1    Service Retirement System and is currently making
2    contributions to that system based upon earnings paid by an
3    employer;
4        (5) is on leave of absence without pay for more than 60
5    days immediately following termination of disability
6    benefits under this Article;
7        (6) is hired after June 30, 1979 as a public service
8    employment program participant under the Federal
9    Comprehensive Employment and Training Act and receives
10    earnings in whole or in part from funds provided under that
11    Act; or
12        (7) is employed on or after July 1, 1991 to perform
13    services that are excluded by subdivision (a)(7)(f) or
14    (a)(19) of Section 210 of the federal Social Security Act
15    from the definition of employment given in that Section (42
16    U.S.C. 410).
17    (b) Any employer may, by filing a written notice with the
18board, exclude from the definition of "employee" all persons
19employed pursuant to a federally funded contract entered into
20after July 1, 1982 with a federal military department in a
21program providing training in military courses to federal
22military personnel on a military site owned by the United
23States Government, if this exclusion is not prohibited by the
24federally funded contract or federal laws or rules governing
25the administration of the contract.
26    (c) Any person appointed by the Governor under the Civil

 

 

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1Administrative Code of the State is an employee, if he or she
2is a participant in this system on the effective date of the
3appointment.
4    (d) A participant on lay-off status under civil service
5rules is considered an employee for not more than 120 days from
6the date of the lay-off.
7    (e) A participant is considered an employee during (1) the
8first 60 days of disability leave, (2) the period, not to
9exceed one year, in which his or her eligibility for disability
10benefits is being considered by the board or reviewed by the
11courts, and (3) the period he or she receives disability
12benefits under the provisions of Section 15-152, workers'
13compensation or occupational disease benefits, or disability
14income under an insurance contract financed wholly or partially
15by the employer.
16    (f) Absences without pay, other than formal leaves of
17absence, of less than 30 calendar days, are not considered as
18an interruption of a person's status as an employee. If such
19absences during any period of 12 months exceed 30 work days,
20the employee status of the person is considered as interrupted
21as of the 31st work day.
22    (g) A staff member whose employment contract requires
23services during an academic term is to be considered an
24employee during the summer and other vacation periods, unless
25he or she declines an employment contract for the succeeding
26academic term or his or her employment status is otherwise

 

 

HB2455- 48 -LRB099 03798 SXM 23811 b

1terminated, and he or she receives no earnings during these
2periods.
3    (h) An individual who was a participating employee employed
4in the fire department of the University of Illinois's
5Champaign-Urbana campus immediately prior to the elimination
6of that fire department and who immediately after the
7elimination of that fire department became employed by the fire
8department of the City of Urbana or the City of Champaign shall
9continue to be considered as an employee for purposes of this
10Article for so long as the individual remains employed as a
11firefighter by the City of Urbana or the City of Champaign. The
12individual shall cease to be considered an employee under this
13subsection (h) upon the first termination of the individual's
14employment as a firefighter by the City of Urbana or the City
15of Champaign.
16    (i) An individual who is employed on a full-time basis as
17an officer or employee of a statewide teacher organization that
18serves System participants or an officer of a national teacher
19organization that serves System participants may participate
20in the System and shall be deemed an employee, provided that
21(1) the individual has previously earned creditable service
22under this Article, (2) the individual files with the System an
23irrevocable election to become a participant before January 5,
242012 (the effective date of Public Act 97-651) this amendatory
25Act of the 97th General Assembly, (3) the individual does not
26receive credit for that employment under any other Article of

 

 

HB2455- 49 -LRB099 03798 SXM 23811 b

1this Code, and (4) the individual first became a full-time
2employee of the teacher organization and becomes a participant
3before January 5, 2012 (the effective date of Public Act
497-651), and (5) the employee and employer contribution for the
5service are received by the Fund before the effective date of
6this amendatory Act of the 99th General Assembly this
7amendatory Act of the 97th General Assembly. An employee under
8this subsection (i) is responsible for paying to the System
9both (A) employee contributions based on the actual
10compensation received for service with the teacher
11organization and (B) employer contributions equal to the normal
12costs (as defined in Section 15-155) resulting from that
13service; all or any part of these contributions may be paid on
14the employee's behalf or picked up for tax purposes (if
15authorized under federal law) by the teacher organization.
16    A person who is an employee as defined in this subsection
17(i) may establish service credit for similar employment prior
18to becoming an employee under this subsection by paying to the
19System for that employment the contributions specified in this
20subsection, plus interest at the effective rate from the date
21of service to the date of payment. However, credit shall not be
22granted under this subsection for any such prior employment for
23which the applicant received credit under any other provision
24of this Code, or during which the applicant was on a leave of
25absence under Section 15-113.2.
26    (j) A person employed by the State Board of Higher

 

 

HB2455- 50 -LRB099 03798 SXM 23811 b

1Education in a position with the Illinois Century Network as of
2June 30, 2004 shall be considered to be an employee for so long
3as he or she remains continuously employed after that date by
4the Department of Central Management Services in a position
5with the Illinois Century Network, the Bureau of Communication
6and Computer Services, or, if applicable, any successor bureau
7and meets the requirements of subsection (a).
8    (k) In the case of doubt as to whether any person is an
9employee within the meaning of this Section, the decision of
10the Board shall be final.
11(Source: P.A. 97-651, eff. 1-5-12; 98-599, eff. 6-1-14.)
 
12    (40 ILCS 5/16-106)  (from Ch. 108 1/2, par. 16-106)
13    Sec. 16-106. Teacher. "Teacher": The following
14individuals, provided that, for employment prior to July 1,
151990, they are employed on a full-time basis, or if not
16full-time, on a permanent and continuous basis in a position in
17which services are expected to be rendered for at least one
18school term:
19        (1) Any educational, administrative, professional or
20    other staff employed in the public common schools included
21    within this system in a position requiring certification
22    under the law governing the certification of teachers;
23        (2) Any educational, administrative, professional or
24    other staff employed in any facility of the Department of
25    Children and Family Services or the Department of Human

 

 

HB2455- 51 -LRB099 03798 SXM 23811 b

1    Services, in a position requiring certification under the
2    law governing the certification of teachers, and any person
3    who (i) works in such a position for the Department of
4    Corrections, (ii) was a member of this System on May 31,
5    1987, and (iii) did not elect to become a member of the
6    State Employees' Retirement System pursuant to Section
7    14-108.2 of this Code; except that "teacher" does not
8    include any person who (A) becomes a security employee of
9    the Department of Human Services, as defined in Section
10    14-110, after June 28, 2001 (the effective date of Public
11    Act 92-14), or (B) becomes a member of the State Employees'
12    Retirement System pursuant to Section 14-108.2c of this
13    Code;
14        (3) Any regional superintendent of schools, assistant
15    regional superintendent of schools, State Superintendent
16    of Education; any person employed by the State Board of
17    Education as an executive; any executive of the boards
18    engaged in the service of public common school education in
19    school districts covered under this system of which the
20    State Superintendent of Education is an ex-officio member;
21        (4) Any employee of a school board association
22    operating in compliance with Article 23 of the School Code
23    who is certificated under the law governing the
24    certification of teachers, provided that he or she becomes
25    such an employee before the effective date of this
26    amendatory Act of the 98th General Assembly;

 

 

HB2455- 52 -LRB099 03798 SXM 23811 b

1        (5) Any person employed by the retirement system who:
2            (i) was an employee of and a participant in the
3        system on August 17, 2001 (the effective date of Public
4        Act 92-416), or
5            (ii) becomes an employee of the system on or after
6        August 17, 2001;
7        (6) Any educational, administrative, professional or
8    other staff employed by and under the supervision and
9    control of a regional superintendent of schools, provided
10    such employment position requires the person to be
11    certificated under the law governing the certification of
12    teachers and is in an educational program serving 2 or more
13    districts in accordance with a joint agreement authorized
14    by the School Code or by federal legislation;
15        (7) Any educational, administrative, professional or
16    other staff employed in an educational program serving 2 or
17    more school districts in accordance with a joint agreement
18    authorized by the School Code or by federal legislation and
19    in a position requiring certification under the laws
20    governing the certification of teachers;
21        (8) Any officer or employee of a statewide teacher
22    organization or officer of a national teacher organization
23    who is certified under the law governing certification of
24    teachers, provided: (i) the individual had previously
25    established creditable service under this Article, (ii)
26    the individual files with the system an irrevocable

 

 

HB2455- 53 -LRB099 03798 SXM 23811 b

1    election to become a member before January 5, 2012 (the
2    effective date of Public Act 97-651) this amendatory Act of
3    the 97th General Assembly, (iii) the individual does not
4    receive credit for such service under any other Article of
5    this Code, and (iv) the individual first became an officer
6    or employee of the teacher organization and becomes a
7    member before January 5, 2012 (the effective date of Public
8    Act 97-651), and (v) the employee and employer contribution
9    for the service are received by the Fund before the
10    effective date of this amendatory Act of the 99th General
11    Assembly this amendatory Act of the 97th General Assembly;
12        (9) Any educational, administrative, professional, or
13    other staff employed in a charter school operating in
14    compliance with the Charter Schools Law who is certificated
15    under the law governing the certification of teachers;
16        (10) Any person employed, on the effective date of this
17    amendatory Act of the 94th General Assembly, by the
18    Macon-Piatt Regional Office of Education in a
19    birth-through-age-three pilot program receiving funds
20    under Section 2-389 of the School Code who is required by
21    the Macon-Piatt Regional Office of Education to hold a
22    teaching certificate, provided that the Macon-Piatt
23    Regional Office of Education makes an election, within 6
24    months after the effective date of this amendatory Act of
25    the 94th General Assembly, to have the person participate
26    in the system. Any service established prior to the

 

 

HB2455- 54 -LRB099 03798 SXM 23811 b

1    effective date of this amendatory Act of the 94th General
2    Assembly for service as an employee of the Macon-Piatt
3    Regional Office of Education in a birth-through-age-three
4    pilot program receiving funds under Section 2-389 of the
5    School Code shall be considered service as a teacher if
6    employee and employer contributions have been received by
7    the system and the system has not refunded those
8    contributions.
9    An annuitant receiving a retirement annuity under this
10Article or under Article 17 of this Code who is employed by a
11board of education or other employer as permitted under Section
1216-118 or 16-150.1 is not a "teacher" for purposes of this
13Article. A person who has received a single-sum retirement
14benefit under Section 16-136.4 of this Article is not a
15"teacher" for purposes of this Article.
16(Source: P.A. 97-651, eff. 1-5-12; 98-463, eff. 8-16-13;
1798-599, eff. 6-1-14.)
 
18    (40 ILCS 5/17-134)  (from Ch. 108 1/2, par. 17-134)
19    Sec. 17-134. Contributions for leaves of absence; military
20service; computing service. In computing service for pension
21purposes the following periods of service shall stand in lieu
22of a like number of years of teaching service upon payment
23therefor in the manner hereinafter provided: (a) time spent on
24a leave of absence granted by the employer; (b) service with
25teacher or labor organizations based upon special leaves of

 

 

HB2455- 55 -LRB099 03798 SXM 23811 b

1absence therefor granted by an Employer; (c) a maximum of 5
2years spent in the military service of the United States, of
3which up to 2 years may have been served outside the pension
4period; (d) unused sick days at termination of service to a
5maximum of 244 days; (e) time lost due to layoff and
6curtailment of the school term from June 6 through June 21,
71976; and (f) time spent after June 30, 1982 as a member of the
8Board of Education, if required to resign from an
9administrative or teaching position in order to qualify as a
10member of the Board of Education.
11        (1) For time spent on or after September 6, 1948 on
12    sabbatical leaves of absence or sick leaves, for which
13    salaries are paid, an Employer shall make payroll
14    deductions at the applicable rates in effect during such
15    periods.
16        (2) For time spent on a leave of absence granted by the
17    employer for which no salaries are paid, teachers desiring
18    credit therefor shall pay the required contributions at the
19    rates in effect during such periods as though they were in
20    teaching service. If an Employer pays salary for vacations
21    which occur during a teacher's sick leave or maternity or
22    paternity leave without salary, vacation pay for which the
23    teacher would have qualified while in active service shall
24    be considered part of the teacher's total salary for
25    pension purposes. No more than 36 months of leave credit
26    may be allowed any person during the entire term of

 

 

HB2455- 56 -LRB099 03798 SXM 23811 b

1    service. Sabbatical leave credit shall be limited to the
2    time the person on leave without salary under an Employer's
3    rules is allowed to engage in an activity for which he
4    receives salary or compensation.
5        (3) For time spent prior to September 6, 1948, on
6    sabbatical leaves of absence or sick leaves for which
7    salaries were paid, teachers desiring service credit
8    therefor shall pay the required contributions at the
9    maximum applicable rates in effect during such periods.
10        (4) For service with teacher or labor organizations
11    authorized by special leaves of absence, for which no
12    payroll deductions are made by an Employer, teachers
13    desiring service credit therefor shall contribute to the
14    Fund upon the basis of the actual salary received from such
15    organizations at the percentage rates in effect during such
16    periods for certified positions with such Employer. To the
17    extent the actual salary exceeds the regular salary, which
18    shall be defined as the salary rate, as calculated by the
19    Board, in effect for the teacher's regular position in
20    teaching service on September 1, 1983 or on the effective
21    date of the leave with the organization, whichever is
22    later, the organization shall pay to the Fund the
23    employer's normal cost as set by the Board on the
24    increment. Notwithstanding any other provision of this
25    subdivision (4), teachers are only eligible for credit for
26    service under this subdivision (4) if the special leave of

 

 

HB2455- 57 -LRB099 03798 SXM 23811 b

1    absence begins before January 5, 2012 (the effective date
2    of Public Act 97-651) and if the employee and employer
3    contributions for the service are received by the System
4    before the effective date of this amendatory Act of the
5    99th General Assembly.
6        (5) For time spent in the military service, teachers
7    entitled to and desiring credit therefor shall contribute
8    the amount required for each year of service or fraction
9    thereof at the rates in force (a) at the date of
10    appointment, or (b) on return to teaching service as a
11    regularly certified teacher, as the case may be; provided
12    such rates shall not be less than $450 per year of service.
13    These conditions shall apply unless an Employer elects to
14    and does pay into the Fund the amount which would have been
15    due from such person had he been employed as a teacher
16    during such time. In the case of credit for military
17    service not during the pension period, the teacher must
18    also pay to the Fund an amount determined by the Board to
19    be equal to the employer's normal cost of the benefits
20    accrued from such service, plus interest thereon at 5% per
21    year, compounded annually, from the date of appointment to
22    the date of payment.
23        The changes to this Section made by Public Act 87-795
24    shall apply not only to persons who on or after its
25    effective date are in service under the Fund, but also to
26    persons whose status as a teacher terminated prior to that

 

 

HB2455- 58 -LRB099 03798 SXM 23811 b

1    date, whether or not the person is an annuitant on that
2    date. In the case of an annuitant who applies for credit
3    allowable under this Section for a period of military
4    service that did not immediately follow employment, and who
5    has made the required contributions for such credit, the
6    annuity shall be recalculated to include the additional
7    service credit, with the increase taking effect on the date
8    the Fund received written notification of the annuitant's
9    intent to purchase the credit, if payment of all the
10    required contributions is made within 60 days of such
11    notice, or else on the first annuity payment date following
12    the date of payment of the required contributions. In
13    calculating the automatic annual increase for an annuity
14    that has been recalculated under this Section, the increase
15    attributable to the additional service allowable under
16    this amendatory Act of 1991 shall be included in the
17    calculation of automatic annual increases accruing after
18    the effective date of the recalculation.
19        The total credit for military service shall not exceed
20    5 years, except that any teacher who on July 1, 1963, had
21    validated credit for more than 5 years of military service
22    shall be entitled to the total amount of such credit.
23        (6) For persons who first become teachers before the
24    effective date of this amendatory Act of the 98th General
25    Assembly, a maximum of 244 unused sick days credited to his
26    account by an Employer on the date of termination of

 

 

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1    employment. Members, upon verification of unused sick
2    days, may add this service time to total creditable
3    service.
4        (7) In all cases where time spent on leave is
5    creditable and no payroll deductions therefor are made by
6    an Employer, persons desiring service credit shall make the
7    required contributions directly to the Fund.
8        (8) For time lost without pay due to layoff and
9    curtailment of the school term from June 6 through June 21,
10    1976, as provided in item (e) of the first paragraph of
11    this Section, persons who were contributors on the days
12    immediately preceding such layoff shall receive credit
13    upon paying to the Fund a contribution based on the rates
14    of compensation and employee contributions in effect at the
15    time of such layoff, together with an additional amount
16    equal to 12.2% of the compensation computed for such period
17    of layoff, plus interest on the entire amount at 5% per
18    annum from January 1, 1978 to the date of payment. If such
19    contribution is paid, salary for pension purposes for any
20    year in which such a layoff occurred shall include the
21    compensation recognized for purposes of computing that
22    contribution.
23        (9) For time spent after June 30, 1982, as a
24    nonsalaried member of the Board of Education, if required
25    to resign from an administrative or teaching position in
26    order to qualify as a member of the Board of Education, an

 

 

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1    administrator or teacher desiring credit therefor shall
2    pay the required contributions at the rates and salaries in
3    effect during such periods as though the member were in
4    service.
5    Effective September 1, 1974, the interest charged for
6validation of service described in paragraphs (2) through (5)
7of this Section shall be compounded annually at a rate of 5%
8commencing one year after the termination of the leave or
9return to service.
10(Source: P.A. 97-651, eff. 1-5-12; 98-599, eff. 6-1-14.)
 
11    Section 99. Effective date. This Act takes effect upon
12becoming law.