093_HB2987

 
                                     LRB093 07344 LRD 07506 b

 1        AN ACT in relation to public employee benefits.

 2        Be it enacted by the People of  the  State  of  Illinois,
 3    represented in the General Assembly:

 4        Section  5.   The  Illinois  Pension  Code  is amended by
 5    changing Section 2-110 as follows:

 6        (40 ILCS 5/2-110) (from Ch. 108 1/2, par. 2-110)
 7        Sec. 2-110.  Service.
 8        (A)  "Service" means the period beginning on the day when
 9    a person first became a member, and ending on the date  under
10    consideration,   excluding   all   intervening   periods   of
11    nonmembership following resignation or expiration of any term
12    of office.
13        (B)  "Service" includes:
14             (a)  Military  service  during  war  by a person who
15        entered such service while  a  member,  whether  rendered
16        before  or  after  the  expiration of any term of office;
17        plus up to 2 years of military service that need not have
18        immediately followed service as a member,  and  need  not
19        have been served during wartime, provided that the member
20        makes contributions to the System for such service (1) at
21        the  rates  provided  in  Section  2-126  based  upon the
22        member's rate of compensation  on  the  last  date  as  a
23        participant  prior  to  such  military service, or on the
24        first date as a participant after such military  service,
25        whichever  is  greater, plus (2) if payment is made on or
26        after July 1, 2004 May 1, 1993, an amount  determined  by
27        the  Board  to  be equal to the employer's normal cost of
28        the benefits accrued for such military service, plus  (3)
29        interest  at  the  effective  rate from the date of first
30        membership in the System to the date of payment.
31             The amendment to this  subdivision  (B)(a)  made  by
 
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 1        this  amendatory  Act  of 1993 shall apply to persons who
 2        are  active  contributors  to  the  System  on  or  after
 3        November  30,  1992.   A  person  who   was   an   active
 4        contributor  to the System on November 30, 1992 but is no
 5        longer  an  active  contributor  may  apply  to  purchase
 6        military credit under this subdivision (B)(a)  within  60
 7        days  after  the effective date of this amendatory Act of
 8        1993; if  the  person  is  an  annuitant,  the  resulting
 9        increase  in  annuity  shall begin to accrue on the first
10        day of  the  month  following  the  month  in  which  the
11        required  payment  is received by the System.  The change
12        in  the  required  contribution  for  purchased  military
13        credit made by this amendatory Act of  the  93rd  General
14        Assembly 1993 shall not entitle any person to a refund of
15        contributions already paid.
16             (b)  Service  as  a judge of a court  of this State,
17        but credit for such service is subject to  the  following
18        conditions:  (1) such person shall have been a member for
19        at least 4  years  and  contributed  to  the  system  for
20        service  as  a  judge  subsequent to July 8, 1947, at the
21        rates herein provided, including interest at 2% per annum
22        to the date of payment based  on  the  salary  in  effect
23        during  such  service; (2) the member was not an eligible
24        member of nor entitled to credit for such service in  any
25        other  retirement system in the State maintained in whole
26        or in part by public contributions; and (3)  the  last  4
27        years  of  service  prior  to  retirement  on annuity was
28        rendered while a member.
29             (c)  Service  as  a  participating  employee   under
30        Articles 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16,
31        17  or  18 of the Illinois Pension Code.  Credit for such
32        service may be established by a member and, if  permitted
33        by   the  credit  transfer  Section  of  the  appropriate
34        Article, by a former member who is not yet an  annuitant,
 
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 1        and is subject to the following conditions:  (1) that the
 2        credits  accrued  under the above mentioned Articles have
 3        been transferred to this system; and (2) that the  member
 4        has contributed to this system an amount equal to (i) the
 5        contribution  rate in effect for participants at the date
 6        of membership in this system  multiplied  by  the  salary
 7        then  in  effect  for members of the General Assembly for
 8        each  year  of  service  for  which   credit   is   being
 9        transferred,  plus  (ii)  the State's share of the normal
10        cost of benefits under this system expressed as a percent
11        of payroll, as determined by the system's actuary  as  of
12        the  date of the participant's membership in this system,
13        multiplied by the salary then in effect  for  members  of
14        the  General Assembly, for each year of service for which
15        credit is being transferred, plus (iii) interest on items
16        (i) and (ii) above at 6% per annum  compounded  annually,
17        from the date of membership to the date of payment by the
18        participant,  less  (iv)  the  amount transferred to this
19        system on behalf of the participant on account of service
20        rendered while a participant under  the  above  mentioned
21        Articles.
22             (d)  Service,  before October 1, 1975, as an officer
23        elected by the people of Illinois, for  which  creditable
24        service  is  required  to  be  transferred from the State
25        Employees' Retirement  System  to  this  system  by  this
26        amendatory Act of 1975.
27             (e)  Service rendered prior to January 1, 1964, as a
28        justice  of  the peace or police magistrate or as a civil
29        referee in the Municipal Court of Chicago, but credit for
30        such service may not be granted until the member has paid
31        to the system an amount equal  to  (1)  the  contribution
32        rate  for  participants at the date of membership in this
33        system multiplied  by  the  salary  then  in  effect  for
34        members  of the General Assembly for each year of service
 
                            -4-      LRB093 07344 LRD 07506 b
 1        for which credit  is  being  transferred,  plus  (2)  the
 2        State's  share  of the normal cost of benefits under this
 3        system expressed as a percent of payroll,  as  determined
 4        by   the   system's   actuary  as  of  the  date  of  the
 5        participant's  membership in this system,  multiplied  by
 6        the  salary  then  in  effect  for members of the General
 7        Assembly, for each year of service for  which  credit  is
 8        allowed,  plus,  (3)  interest on (1) and (2) above at 6%
 9        per annum compounded annually from the date of membership
10        to the  date  of  payment  by  the  member.   However,  a
11        participant  may  not receive more than 6 years of credit
12        for such service nor may any member receive credit  under
13        this  paragraph  for  service  for  which credit has been
14        granted in any other public pension  fund  or  retirement
15        system in the State.
16             (f)  Service  before January 16, 1981, as an officer
17        elected by the people of Illinois, for  which  creditable
18        service   is   transferred   from  the  State  Employees'
19        Retirement System to this system.
20        (C)  Service during any fraction  of  a  month  shall  be
21    considered as a month of service.
22          Service  includes  the total period of time for which a
23    participant is elected as a member or officer, even though he
24    or  she  does  not  complete  the  term  because  of   death,
25    resignation, judicial decision, or operation of law, provided
26    that  the  contributions required under this Article for such
27    entire period of office have been made by or on behalf of the
28    participant. In  the  case  of  a  participant  appointed  or
29    elected  to fill a vacancy, service includes the total period
30    from January 1 of the  year  in  which  his  or  her  service
31    commences to the end of the term in which the vacancy occurs,
32    provided   the   participant  contributes  in  the  year   of
33    appointment an amount equal to the contributions  that  would
34    have  been  required  had the participant received salary for
 
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 1    the entire year.  The  foregoing  provisions  relating  to  a
 2    participant  appointed or elected to fill a vacancy shall not
 3    apply  if  the  participant  was  a  member  of   the   other
 4    legislative chamber at the time of appointment or election.
 5        (D)  Notwithstanding   the   other   provisions  of  this
 6    Section, if application  to  transfer  or  establish  service
 7    credit  under  paragraph (c) or (e) of subsection (B) of this
 8    Section is made between January 1, 1992 and February 1, 1993,
 9    the contribution required for such credit shall be an  amount
10    equal to (1) the contribution rate in effect for participants
11    at  the  date  of membership in this system multiplied by the
12    salary then in effect for members of the General Assembly for
13    each year of service for which credit is being granted,  plus
14    (2)  interest  thereon  at  6% per annum compounded annually,
15    from the date of membership to the date  of  payment  by  the
16    member,  less  (3)  any  amount transferred to this system on
17    behalf of the member on account of such service credit.
18    (Source: P.A. 86-27; 86-1028; 87-794; 87-1265.)

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