SB2078 Engrossed LRB095 19245 AMC 45876 b

1     AN ACT concerning public employee benefits.
 
2     Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
 
4     Section 5. The Illinois Pension Code is amended by changing
5 Sections 3-110 and 7-139 as follows:
 
6     (40 ILCS 5/3-110)  (from Ch. 108 1/2, par. 3-110)
7     Sec. 3-110. Creditable service.
8     (a) "Creditable service" is the time served by a police
9 officer as a member of a regularly constituted police force of
10 a municipality. In computing creditable service furloughs
11 without pay exceeding 30 days shall not be counted, but all
12 leaves of absence for illness or accident, regardless of
13 length, and all periods of disability retirement for which a
14 police officer has received no disability pension payments
15 under this Article shall be counted.
16     (a-5) Up to 3 years of time during which the police officer
17 receives a disability pension under Section 3-114.1, 3-114.2,
18 3-114.3, or 3-114.6 shall be counted as creditable service,
19 provided that (i) the police officer returns to active service
20 after the disability for a period at least equal to the period
21 for which credit is to be established and (ii) the police
22 officer makes contributions to the fund based on the rates
23 specified in Section 3-125.1 and the salary upon which the

 

 

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

 

 

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1 years, except that any police officer who on July 1, 1973 had
2 more than 5 years of such creditable service shall receive the
3 total amount thereof.
4     (c) Creditable service also includes service rendered by a
5 police officer while on leave of absence from a police
6 department to serve as an executive of an organization whose
7 membership consists of members of a police department, subject
8 to the following conditions: (i) the police officer is a
9 participant of a fund established under this Article with at
10 least 10 years of service as a police officer; (ii) the police
11 officer received no credit for such service under any other
12 retirement system, pension fund, or annuity and benefit fund
13 included in this Code; (iii) pursuant to the rules of the board
14 the police officer pays to the fund the amount he or she would
15 have contributed had the officer been an active member of the
16 police department; and (iv) the organization pays a
17 contribution equal to the municipality's normal cost for that
18 period of service.
19         (d)(1) Creditable service also includes periods of
20     service originally established in another police pension
21     fund under this Article or in the Fund established under
22     Article 7 of this Code for which (i) the contributions have
23     been transferred under Section 3-110.7 or Section 7-139.9
24     and (ii) any additional contribution required under
25     paragraph (2) of this subsection has been paid in full in
26     accordance with the requirements of this subsection (d).

 

 

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1         (2) If the board of the pension fund to which
2     creditable service and related contributions are
3     transferred under Section 3-110.7 or 7-139.9 determines
4     that the amount transferred is less than the true cost to
5     the pension fund of allowing that creditable service to be
6     established, then in order to establish that creditable
7     service the police officer must pay to the pension fund,
8     within the payment period specified in paragraph (3) of
9     this subsection, an additional contribution equal to the
10     difference, as determined by the board in accordance with
11     the rules and procedures adopted under paragraph (6) of
12     this subsection.
13         (3) Except as provided in paragraph (4), the additional
14     contribution must be paid to the board (i) within 5 years
15     from the date of the transfer of contributions under
16     Section 3-110.7 or 7-139.9 and (ii) before the police
17     officer terminates service with the fund. The additional
18     contribution may be paid in a lump sum or in accordance
19     with a schedule of installment payments authorized by the
20     board.
21         (4) If the police officer dies in service before
22     payment in full has been made and before the expiration of
23     the 5-year payment period, the surviving spouse of the
24     officer may elect to pay the unpaid amount on the officer's
25     behalf within 6 months after the date of death, in which
26     case the creditable service shall be granted as though the

 

 

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1     deceased police officer had paid the remaining balance on
2     the day before the date of death.
3         (5) If the additional contribution is not paid in full
4     within the required time, the creditable service shall not
5     be granted and the police officer (or the officer's
6     surviving spouse or estate) shall be entitled to receive a
7     refund of (i) any partial payment of the additional
8     contribution that has been made by the police officer and
9     (ii) those portions of the amounts transferred under
10     subdivision (a)(1) of Section 3-110.7 or subdivisions
11     (a)(1) and (a)(3) of Section 7-139.9 that represent
12     employee contributions paid by the police officer (but not
13     the accumulated interest on those contributions) and
14     interest paid by the police officer to the prior pension
15     fund in order to reinstate service terminated by acceptance
16     of a refund.
17         At the time of paying a refund under this item (5), the
18     pension fund shall also repay to the pension fund from
19     which the contributions were transferred under Section
20     3-110.7 or 7-139.9 the amount originally transferred under
21     subdivision (a)(2) of that Section, plus interest at the
22     rate of 6% per year, compounded annually, from the date of
23     the original transfer to the date of repayment. Amounts
24     repaid to the Article 7 fund under this provision shall be
25     credited to the appropriate municipality.
26         Transferred credit that is not granted due to failure

 

 

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1     to pay the additional contribution within the required time
2     is lost; it may not be transferred to another pension fund
3     and may not be reinstated in the pension fund from which it
4     was transferred.
5         (6) The Public Employee Pension Fund Division of the
6     Department of Insurance shall establish by rule the manner
7     of making the calculation required under paragraph (2) of
8     this subsection, taking into account the appropriate
9     actuarial assumptions; the police officer's service, age,
10     and salary history; the level of funding of the pension
11     fund to which the credits are being transferred; and any
12     other factors that the Division determines to be relevant.
13     The rules may require that all calculations made under
14     paragraph (2) be reported to the Division by the board
15     performing the calculation, together with documentation of
16     the creditable service to be transferred, the amounts of
17     contributions and interest to be transferred, the manner in
18     which the calculation was performed, the numbers relied
19     upon in making the calculation, the results of the
20     calculation, and any other information the Division may
21     deem useful.
22         (e)(1) Creditable service also includes periods of
23     service originally established in the Fund established
24     under Article 7 of this Code for which the contributions
25     have been transferred under Section 7-139.11.
26         (2) If the board of the pension fund to which

 

 

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1     creditable service and related contributions are
2     transferred under Section 7-139.11 determines that the
3     amount transferred is less than the true cost to the
4     pension fund of allowing that creditable service to be
5     established, then the amount of creditable service the
6     police officer may establish under this subsection (e)
7     shall be reduced by an amount equal to the difference, as
8     determined by the board in accordance with the rules and
9     procedures adopted under paragraph (3) of this subsection.
10         (3) The Public Pension Division of the Department of
11     Financial and Professional Regulation shall establish by
12     rule the manner of making the calculation required under
13     paragraph (2) of this subsection, taking into account the
14     appropriate actuarial assumptions; the police officer's
15     service, age, and salary history; the level of funding of
16     the pension fund to which the credits are being
17     transferred; and any other factors that the Division
18     determines to be relevant. The rules may require that all
19     calculations made under paragraph (2) be reported to the
20     Division by the board performing the calculation, together
21     with documentation of the creditable service to be
22     transferred, the amounts of contributions and interest to
23     be transferred, the manner in which the calculation was
24     performed, the numbers relied upon in making the
25     calculation, the results of the calculation, and any other
26     information the Division may deem useful.

 

 

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1         (4) Until January 1, 2010, a police officer who
2     transferred service from the Fund established under
3     Article 7 of this Code under the provisions of Public Act
4     94-356 may establish additional credit, but only for the
5     amount of the service credit reduction in that transfer, as
6     calculated under paragraph (3) of this subsection (e). This
7     credit may be established upon payment by the police
8     officer of an amount to be determined by the board, equal
9     to (1) the amount that would have been contributed as
10     employee and employer contributions had all of the service
11     been as an employee under this Article, plus interest
12     thereon at the rate of 6% per year, compounded annually
13     from the date of service to the date of transfer, less (2)
14     the total amount transferred from the Article 7 Fund, plus
15     (3) interest on the difference at the rate of 6% per year,
16     compounded annually, from the date of the transfer to the
17     date of payment. The additional service credit is allowed
18     under this amendatory Act of the 95th General Assembly
19     notwithstanding the provisions of Article 7 terminating
20     all transferred credits on the date of transfer.
21 (Source: P.A. 94-356, eff. 7-29-05.)
 
22     (40 ILCS 5/7-139)  (from Ch. 108 1/2, par. 7-139)
23     Sec. 7-139. Credits and creditable service to employees.
24     (a) Each participating employee shall be granted credits
25 and creditable service, for purposes of determining the amount

 

 

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1 of any annuity or benefit to which he or a beneficiary is
2 entitled, as follows:
3         1. For prior service: Each participating employee who
4     is an employee of a participating municipality or
5     participating instrumentality on the effective date shall
6     be granted creditable service, but no credits under
7     paragraph 2 of this subsection (a), for periods of prior
8     service for which credit has not been received under any
9     other pension fund or retirement system established under
10     this Code, as follows:
11         If the effective date of participation for the
12     participating municipality or participating
13     instrumentality is on or before January 1, 1998, creditable
14     service shall be granted for the entire period of prior
15     service with that employer without any employee
16     contribution.
17         If the effective date of participation for the
18     participating municipality or participating
19     instrumentality is after January 1, 1998, creditable
20     service shall be granted for the last 20% of the period of
21     prior service with that employer, but no more than 5 years,
22     without any employee contribution. A participating
23     employee may establish creditable service for the
24     remainder of the period of prior service with that employer
25     by making an application in writing, accompanied by payment
26     of an employee contribution in an amount determined by the

 

 

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1     Fund, based on the employee contribution rates in effect at
2     the time of application for the creditable service and the
3     employee's salary rate on the effective date of
4     participation for that employer, plus interest at the
5     effective rate from the date of the prior service to the
6     date of payment. Application for this creditable service
7     may be made at any time while the employee is still in
8     service.
9         A municipality that (i) has at least 35 employees; (ii)
10     is located in a county with at least 2,000,000 inhabitants;
11     and (iii) maintains an independent defined benefit pension
12     plan for the benefit of its eligible employees may restrict
13     creditable service in whole or in part for periods of prior
14     service with the employer if the governing body of the
15     municipality adopts an irrevocable resolution to restrict
16     that creditable service and files the resolution with the
17     board before the municipality's effective date of
18     participation.
19         Any person who has withdrawn from the service of a
20     participating municipality or participating
21     instrumentality prior to the effective date, who reenters
22     the service of the same municipality or participating
23     instrumentality after the effective date and becomes a
24     participating employee is entitled to creditable service
25     for prior service as otherwise provided in this subdivision
26     (a)(1) only if he or she renders 2 years of service as a

 

 

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1     participating employee after the effective date.
2     Application for such service must be made while in a
3     participating status. The salary rate to be used in the
4     calculation of the required employee contribution, if any,
5     shall be the employee's salary rate at the time of first
6     reentering service with the employer after the employer's
7     effective date of participation.
8         2. For current service, each participating employee
9     shall be credited with:
10             a. Additional credits of amounts equal to each
11         payment of additional contributions received from him
12         under Section 7-173, as of the date the corresponding
13         payment of earnings is payable to him.
14             b. Normal credits of amounts equal to each payment
15         of normal contributions received from him, as of the
16         date the corresponding payment of earnings is payable
17         to him, and normal contributions made for the purpose
18         of establishing out-of-state service credits as
19         permitted under the conditions set forth in paragraph 6
20         of this subsection (a).
21             c. Municipality credits in an amount equal to 1.4
22         times the normal credits, except those established by
23         out-of-state service credits, as of the date of
24         computation of any benefit if these credits would
25         increase the benefit.
26             d. Survivor credits equal to each payment of

 

 

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1         survivor contributions received from the participating
2         employee as of the date the corresponding payment of
3         earnings is payable, and survivor contributions made
4         for the purpose of establishing out-of-state service
5         credits.
6         3. For periods of temporary and total and permanent
7     disability benefits, each employee receiving disability
8     benefits shall be granted creditable service for the period
9     during which disability benefits are payable. Normal and
10     survivor credits, based upon the rate of earnings applied
11     for disability benefits, shall also be granted if such
12     credits would result in a higher benefit to any such
13     employee or his beneficiary.
14         4. For authorized leave of absence without pay: A
15     participating employee shall be granted credits and
16     creditable service for periods of authorized leave of
17     absence without pay under the following conditions:
18             a. An application for credits and creditable
19         service is submitted to the board while the employee is
20         in a status of active employment, and within 2 years
21         after termination of the leave of absence period for
22         which credits and creditable service are sought.
23             b. Not more than 12 complete months of creditable
24         service for authorized leave of absence without pay
25         shall be counted for purposes of determining any
26         benefits payable under this Article.

 

 

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1             c. Credits and creditable service shall be granted
2         for leave of absence only if such leave is approved by
3         the governing body of the municipality, including
4         approval of the estimated cost thereof to the
5         municipality as determined by the fund, and employee
6         contributions, plus interest at the effective rate
7         applicable for each year from the end of the period of
8         leave to date of payment, have been paid to the fund in
9         accordance with Section 7-173. The contributions shall
10         be computed upon the assumption earnings continued
11         during the period of leave at the rate in effect when
12         the leave began.
13             d. Benefits under the provisions of Sections
14         7-141, 7-146, 7-150 and 7-163 shall become payable to
15         employees on authorized leave of absence, or their
16         designated beneficiary, only if such leave of absence
17         is creditable hereunder, and if the employee has at
18         least one year of creditable service other than the
19         service granted for leave of absence. Any employee
20         contributions due may be deducted from any benefits
21         payable.
22             e. No credits or creditable service shall be
23         allowed for leave of absence without pay during any
24         period of prior service.
25         5. For military service: The governing body of a
26     municipality or participating instrumentality may elect to

 

 

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1     allow creditable service to participating employees who
2     leave their employment to serve in the armed forces of the
3     United States for all periods of such service, provided
4     that the person returns to active employment within 90 days
5     after completion of full time active duty, but no
6     creditable service shall be allowed such person for any
7     period that can be used in the computation of a pension or
8     any other pay or benefit, other than pay for active duty,
9     for service in any branch of the armed forces of the United
10     States. If necessary to the computation of any benefit, the
11     board shall establish municipality credits for
12     participating employees under this paragraph on the
13     assumption that the employee received earnings at the rate
14     received at the time he left the employment to enter the
15     armed forces. A participating employee in the armed forces
16     shall not be considered an employee during such period of
17     service and no additional death and no disability benefits
18     are payable for death or disability during such period.
19         Any participating employee who left his employment
20     with a municipality or participating instrumentality to
21     serve in the armed forces of the United States and who
22     again became a participating employee within 90 days after
23     completion of full time active duty by entering the service
24     of a different municipality or participating
25     instrumentality, which has elected to allow creditable
26     service for periods of military service under the preceding

 

 

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1     paragraph, shall also be allowed creditable service for his
2     period of military service on the same terms that would
3     apply if he had been employed, before entering military
4     service, by the municipality or instrumentality which
5     employed him after he left the military service and the
6     employer costs arising in relation to such grant of
7     creditable service shall be charged to and paid by that
8     municipality or instrumentality.
9         Notwithstanding the foregoing, any participating
10     employee shall be entitled to creditable service as
11     required by any federal law relating to re-employment
12     rights of persons who served in the United States Armed
13     Services. Such creditable service shall be granted upon
14     payment by the member of an amount equal to the employee
15     contributions which would have been required had the
16     employee continued in service at the same rate of earnings
17     during the military leave period, plus interest at the
18     effective rate.
19         5.1. In addition to any creditable service established
20     under paragraph 5 of this subsection (a), creditable
21     service may be granted for up to 48 months of service in
22     the armed forces of the United States.
23         In order to receive creditable service for military
24     service under this paragraph 5.1, a participating employee
25     must (1) apply to the Fund in writing and provide evidence
26     of the military service that is satisfactory to the Board;

 

 

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1     (2) obtain the written approval of the current employer;
2     and (3) make contributions to the Fund equal to (i) the
3     employee contributions that would have been required had
4     the service been rendered as a member, plus (ii) an amount
5     determined by the board to be equal to the employer's
6     normal cost of the benefits accrued for that military
7     service, plus (iii) interest on items (i) and (ii) from the
8     date of first membership in the Fund to the date of
9     payment. The required interest shall be calculated at the
10     regular interest rate.
11         The changes made to this paragraph 5.1 by Public Acts
12     95-483 and 95-486 this amendatory Act of the 95th General
13     Assembly apply only to participating employees in service
14     on or after August 28, 2007 (the effective date of those
15     Public Acts) its effective date.
16         6. For out-of-state service: Creditable service shall
17     be granted for service rendered to an out-of-state local
18     governmental body under the following conditions: The
19     employee had participated and has irrevocably forfeited
20     all rights to benefits in the out-of-state public employees
21     pension system; the governing body of his participating
22     municipality or instrumentality authorizes the employee to
23     establish such service; the employee has 2 years current
24     service with this municipality or participating
25     instrumentality; the employee makes a payment of
26     contributions, which shall be computed at 8% (normal) plus

 

 

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1     2% (survivor) times length of service purchased times the
2     average rate of earnings for the first 2 years of service
3     with the municipality or participating instrumentality
4     whose governing body authorizes the service established
5     plus interest at the effective rate on the date such
6     credits are established, payable from the date the employee
7     completes the required 2 years of current service to date
8     of payment. In no case shall more than 120 months of
9     creditable service be granted under this provision.
10         7. For retroactive service: Any employee who could have
11     but did not elect to become a participating employee, or
12     who should have been a participant in the Municipal Public
13     Utilities Annuity and Benefit Fund before that fund was
14     superseded, may receive creditable service for the period
15     of service not to exceed 50 months; however, a current or
16     former elected or appointed official of a participating
17     municipality may establish credit under this paragraph 7
18     for more than 50 months of service as an official of that
19     municipality, if the excess over 50 months is approved by
20     resolution of the governing body of the affected
21     municipality filed with the Fund before January 1, 2002.
22         Any employee who is a participating employee on or
23     after September 24, 1981 and who was excluded from
24     participation by the age restrictions removed by Public Act
25     82-596 may receive creditable service for the period, on or
26     after January 1, 1979, excluded by the age restriction and,

 

 

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1     in addition, if the governing body of the participating
2     municipality or participating instrumentality elects to
3     allow creditable service for all employees excluded by the
4     age restriction prior to January 1, 1979, for service
5     during the period prior to that date excluded by the age
6     restriction. Any employee who was excluded from
7     participation by the age restriction removed by Public Act
8     82-596 and who is not a participating employee on or after
9     September 24, 1981 may receive creditable service for
10     service after January 1, 1979. Creditable service under
11     this paragraph shall be granted upon payment of the
12     employee contributions which would have been required had
13     he participated, with interest at the effective rate for
14     each year from the end of the period of service established
15     to date of payment.
16         8. For accumulated unused sick leave: A participating
17     employee who is applying for a retirement annuity shall be
18     entitled to creditable service for that portion of the
19     employee's accumulated unused sick leave for which payment
20     is not received, as follows:
21             a. Sick leave days shall be limited to those
22         accumulated under a sick leave plan established by a
23         participating municipality or participating
24         instrumentality which is available to all employees or
25         a class of employees.
26             b. Only sick leave days accumulated with a

 

 

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1         participating municipality or participating
2         instrumentality with which the employee was in service
3         within 60 days of the effective date of his retirement
4         annuity shall be credited; If the employee was in
5         service with more than one employer during this period
6         only the sick leave days with the employer with which
7         the employee has the greatest number of unpaid sick
8         leave days shall be considered.
9             c. The creditable service granted shall be
10         considered solely for the purpose of computing the
11         amount of the retirement annuity and shall not be used
12         to establish any minimum service period required by any
13         provision of the Illinois Pension Code, the effective
14         date of the retirement annuity, or the final rate of
15         earnings.
16             d. The creditable service shall be at the rate of
17         1/20 of a month for each full sick day, provided that
18         no more than 12 months may be credited under this
19         subdivision 8.
20             e. Employee contributions shall not be required
21         for creditable service under this subdivision 8.
22             f. Each participating municipality and
23         participating instrumentality with which an employee
24         has service within 60 days of the effective date of his
25         retirement annuity shall certify to the board the
26         number of accumulated unpaid sick leave days credited

 

 

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1         to the employee at the time of termination of service.
2         9. For service transferred from another system:
3     Credits and creditable service shall be granted for service
4     under Article 3, 4, 5, 8, 14, or 16 of this Act, to any
5     active member of this Fund, and to any inactive member who
6     has been a county sheriff, upon transfer of such credits
7     pursuant to Section 3-110.3, 4-108.3, 5-235, 8-226.7,
8     14-105.6, or 16-131.4, and payment by the member of the
9     amount by which (1) the employer and employee contributions
10     that would have been required if he had participated in
11     this Fund as a sheriff's law enforcement employee during
12     the period for which credit is being transferred, plus
13     interest thereon at the effective rate for each year,
14     compounded annually, from the date of termination of the
15     service for which credit is being transferred to the date
16     of payment, exceeds (2) the amount actually transferred to
17     the Fund. Such transferred service shall be deemed to be
18     service as a sheriff's law enforcement employee for the
19     purposes of Section 7-142.1.
20         10. For service transferred from an Article 3 system
21     under Section 3-110.8: Credits and creditable service
22     shall be granted for service under Article 3 of this Act as
23     provided in Section 3-110.8, to any active member of this
24     Fund upon transfer of such credits pursuant to Section
25     3-110.8. If the amount by which (1) the employer and
26     employee contributions that would have been required if he

 

 

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1     had participated in this Fund during the period for which
2     credit is being transferred, plus interest thereon at the
3     effective rate for each year, compounded annually, from the
4     date of termination of the service for which credit is
5     being transferred to the date of payment, exceeds (2) the
6     amount actually transferred to the Fund, then the amount of
7     creditable service established under this paragraph 10
8     shall be reduced by a corresponding amount in accordance
9     with the rules and procedures established under this
10     paragraph 10.
11         The board shall establish by rule the manner of making
12     the calculation required under this paragraph 10, taking
13     into account the appropriate actuarial assumptions; the
14     member's service, age, and salary history; the level of
15     funding of the employer; and any other factors that the
16     board determines to be relevant.
17         Until January 1, 2010, members who transferred service
18     from an Article 3 system under the provisions of Public Act
19     94-356 may establish additional credit in this Fund, but
20     only up to the amount of the service credit reduction in
21     that transfer, as calculated under the actuarial
22     assumptions. This credit may be established upon payment by
23     the member of an amount to be determined by the board,
24     equal to (1) the amount that would have been contributed as
25     employee and employer contributions had all the service
26     been as an employee under this Article, plus interest

 

 

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1     thereon compounded annually from the date of service to the
2     date of transfer, less (2) the total amount transferred
3     from the Article 3 system, plus (3) interest on the
4     difference at the effective rate for each year, compounded
5     annually, from the date of the transfer to the date of
6     payment. The additional service credit is allowed under
7     this amendatory Act of the 95th General Assembly
8     notwithstanding the provisions of Article 3 terminating
9     all transferred credits on the date of transfer.
10     (b) Creditable service - amount:
11         1. One month of creditable service shall be allowed for
12     each month for which a participating employee made
13     contributions as required under Section 7-173, or for which
14     creditable service is otherwise granted hereunder. Not
15     more than 1 month of service shall be credited and counted
16     for 1 calendar month, and not more than 1 year of service
17     shall be credited and counted for any calendar year. A
18     calendar month means a nominal month beginning on the first
19     day thereof, and a calendar year means a year beginning
20     January 1 and ending December 31.
21         2. A seasonal employee shall be given 12 months of
22     creditable service if he renders the number of months of
23     service normally required by the position in a 12-month
24     period and he remains in service for the entire 12-month
25     period. Otherwise a fractional year of service in the
26     number of months of service rendered shall be credited.

 

 

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1         3. An intermittent employee shall be given creditable
2     service for only those months in which a contribution is
3     made under Section 7-173.
4     (c) No application for correction of credits or creditable
5 service shall be considered unless the board receives an
6 application for correction while (1) the applicant is a
7 participating employee and in active employment with a
8 participating municipality or instrumentality, or (2) while
9 the applicant is actively participating in a pension fund or
10 retirement system which is a participating system under the
11 Retirement Systems Reciprocal Act. A participating employee or
12 other applicant shall not be entitled to credits or creditable
13 service unless the required employee contributions are made in
14 a lump sum or in installments made in accordance with board
15 rule.
16     (d) Upon the granting of a retirement, surviving spouse or
17 child annuity, a death benefit or a separation benefit, on
18 account of any employee, all individual accumulated credits
19 shall thereupon terminate. Upon the withdrawal of additional
20 contributions, the credits applicable thereto shall thereupon
21 terminate. Terminated credits shall not be applied to increase
22 the benefits any remaining employee would otherwise receive
23 under this Article.
24 (Source: P.A. 95-483, eff. 8-28-07; 95-486, eff. 8-28-07;
25 95-504, eff. 8-28-07; revised 11-9-07.)
 

 

 

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1     Section 90. The State Mandates Act is amended by adding
2 Section 8.32 as follows:
 
3     (30 ILCS 805/8.32 new)
4     Sec. 8.32. Exempt mandate. Notwithstanding Sections 6 and 8
5 of this Act, no reimbursement by the State is required for the
6 implementation of any mandate created by this amendatory Act of
7 the 95th General Assembly.
 
8     Section 99. Effective date. This Act takes effect upon
9 becoming law.