HB1565 EnrolledLRB096 05112 AMC 15178 b

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
5Section 14-104 as follows:
 
6    (40 ILCS 5/14-104)  (from Ch. 108 1/2, par. 14-104)
7    Sec. 14-104. Service for which contributions permitted.
8Contributions provided for in this Section shall cover the
9period of service granted. Except as otherwise provided in this
10Section, the contributions shall be based upon the employee's
11compensation and contribution rate in effect on the date he
12last became a member of the System; provided that for all
13employment prior to January 1, 1969 the contribution rate shall
14be that in effect for a noncovered employee on the date he last
15became a member of the System. Except as otherwise provided in
16this Section, contributions permitted under this Section shall
17include regular interest from the date an employee last became
18a member of the System to the date of payment.
19    These contributions must be paid in full before retirement
20either in a lump sum or in installment payments in accordance
21with such rules as may be adopted by the board.
22    (a) Any member may make contributions as required in this
23Section for any period of service, subsequent to the date of

 

 

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1establishment, but prior to the date of membership.
2    (b) Any employee who had been previously excluded from
3membership because of age at entry and subsequently became
4eligible may elect to make contributions as required in this
5Section for the period of service during which he was
6ineligible.
7    (c) An employee of the Department of Insurance who, after
8January 1, 1944 but prior to becoming eligible for membership,
9received salary from funds of insurance companies in the
10process of rehabilitation, liquidation, conservation or
11dissolution, may elect to make contributions as required in
12this Section for such service.
13    (d) Any employee who rendered service in a State office to
14which he was elected, or rendered service in the elective
15office of Clerk of the Appellate Court prior to the date he
16became a member, may make contributions for such service as
17required in this Section. Any member who served by appointment
18of the Governor under the Civil Administrative Code of Illinois
19and did not participate in this System may make contributions
20as required in this Section for such service.
21    (e) Any person employed by the United States government or
22any instrumentality or agency thereof from January 1, 1942
23through November 15, 1946 as the result of a transfer from
24State service by executive order of the President of the United
25States shall be entitled to prior service credit covering the
26period from January 1, 1942 through December 31, 1943 as

 

 

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1provided for in this Article and to membership service credit
2for the period from January 1, 1944 through November 15, 1946
3by making the contributions required in this Section. A person
4so employed on January 1, 1944 but whose employment began after
5January 1, 1942 may qualify for prior service and membership
6service credit under the same conditions.
7    (f) An employee of the Department of Labor of the State of
8Illinois who performed services for and under the supervision
9of that Department prior to January 1, 1944 but who was
10compensated for those services directly by federal funds and
11not by a warrant of the Auditor of Public Accounts paid by the
12State Treasurer may establish credit for such employment by
13making the contributions required in this Section. An employee
14of the Department of Agriculture of the State of Illinois, who
15performed services for and under the supervision of that
16Department prior to June 1, 1963, but was compensated for those
17services directly by federal funds and not paid by a warrant of
18the Auditor of Public Accounts paid by the State Treasurer, and
19who did not contribute to any other public employee retirement
20system for such service, may establish credit for such
21employment by making the contributions required in this
22Section.
23    (g) Any employee who executed a waiver of membership within
2460 days prior to January 1, 1944 may, at any time while in the
25service of a department, file with the board a rescission of
26such waiver. Upon making the contributions required by this

 

 

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1Section, the member shall be granted the creditable service
2that would have been received if the waiver had not been
3executed.
4    (h) Until May 1, 1990, an employee who was employed on a
5full-time basis by a regional planning commission for at least
65 continuous years may establish creditable service for such
7employment by making the contributions required under this
8Section, provided that any credits earned by the employee in
9the commission's retirement plan have been terminated.
10    (i) Any person who rendered full time contractual services
11to the General Assembly as a member of a legislative staff may
12establish service credit for up to 8 years of such services by
13making the contributions required under this Section, provided
14that application therefor is made not later than July 1, 1991.
15    (j) By paying the contributions otherwise required under
16this Section, plus an amount determined by the Board to be
17equal to the employer's normal cost of the benefit plus
18interest, but with all of the interest calculated from the date
19the employee last became a member of the System or November 19,
201991, whichever is later, to the date of payment, an employee
21may establish service credit for a period of up to 4 years
22spent in active military service for which he does not qualify
23for credit under Section 14-105, provided that (1) he was not
24dishonorably discharged from such military service, and (2) the
25amount of service credit established by a member under this
26subsection (j), when added to the amount of military service

 

 

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1credit granted to the member under subsection (b) of Section
214-105, shall not exceed 5 years. The change in the manner of
3calculating interest under this subsection (j) made by this
4amendatory Act of the 92nd General Assembly applies to credit
5purchased by an employee on or after its effective date and
6does not entitle any person to a refund of contributions or
7interest already paid. In compliance with Section 14-152.1 of
8this Act concerning new benefit increases, any new benefit
9increase as a result of the changes to this subsection (j) made
10by Public Act 95-483 is funded through the employee
11contributions provided for in this subsection (j). Any new
12benefit increase as a result of the changes made to this
13subsection (j) by Public Act 95-483 is exempt from the
14provisions of subsection (d) of Section 14-152.1.
15    (k) An employee who was employed on a full-time basis by
16the Illinois State's Attorneys Association Statewide Appellate
17Assistance Service LEAA-ILEC grant project prior to the time
18that project became the State's Attorneys Appellate Service
19Commission, now the Office of the State's Attorneys Appellate
20Prosecutor, an agency of State government, may establish
21creditable service for not more than 60 months service for such
22employment by making contributions required under this
23Section.
24    (l) By paying the contributions otherwise required under
25this Section, plus an amount determined by the Board to be
26equal to the employer's normal cost of the benefit plus

 

 

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1interest, a member may establish service credit for periods of
2less than one year spent on authorized leave of absence from
3service, provided that (1) the period of leave began on or
4after January 1, 1982 and (2) any credit established by the
5member for the period of leave in any other public employee
6retirement system has been terminated. A member may establish
7service credit under this subsection for more than one period
8of authorized leave, and in that case the total period of
9service credit established by the member under this subsection
10may exceed one year. In determining the contributions required
11for establishing service credit under this subsection, the
12interest shall be calculated from the beginning of the leave of
13absence to the date of payment.
14    (l-5) By paying the contributions otherwise required under
15this Section, plus an amount determined by the Board to be
16equal to the employer's normal cost of the benefit plus
17interest, a member may establish service credit for periods of
18up to 2 years spent on authorized leave of absence from
19service, provided that during that leave the member represented
20or was employed as an officer or employee of a statewide labor
21organization that represents members of this System. In
22determining the contributions required for establishing
23service credit under this subsection, the interest shall be
24calculated from the beginning of the leave of absence to the
25date of payment.
26    (m) Any person who rendered contractual services to a

 

 

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1member of the General Assembly as a worker in the member's
2district office may establish creditable service for up to 3
3years of those contractual services by making the contributions
4required under this Section. The System shall determine a
5full-time salary equivalent for the purpose of calculating the
6required contribution. To establish credit under this
7subsection, the applicant must apply to the System by March 1,
81998.
9    (n) Any person who rendered contractual services to a
10member of the General Assembly as a worker providing
11constituent services to persons in the member's district may
12establish creditable service for up to 8 years of those
13contractual services by making the contributions required
14under this Section. The System shall determine a full-time
15salary equivalent for the purpose of calculating the required
16contribution. To establish credit under this subsection, the
17applicant must apply to the System by March 1, 1998.
18    (o) A member who participated in the Illinois Legislative
19Staff Internship Program may establish creditable service for
20up to one year of that participation by making the contribution
21required under this Section. The System shall determine a
22full-time salary equivalent for the purpose of calculating the
23required contribution. Credit may not be established under this
24subsection for any period for which service credit is
25established under any other provision of this Code.
26    (p) By paying the contributions otherwise required under

 

 

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1this Section, plus an amount determined by the Board to be
2equal to the employer's normal cost of the benefit plus
3interest, a member may establish service credit for a period of
4up to 8 years during which he or she was employed by the
5Visually Handicapped Managers of Illinois in a vending program
6operated under a contractual agreement with the Department of
7Rehabilitation Services or its successor agency.
8    This subsection (p) applies without regard to whether the
9person was in service on or after the effective date of this
10amendatory Act of the 94th General Assembly. In the case of a
11person who is receiving a retirement annuity on that effective
12date, the increase, if any, shall begin to accrue on the first
13annuity payment date following receipt by the System of the
14contributions required under this subsection (p).
15    (q) By paying the required contributions under this
16Section, plus an amount determined by the Board to be equal to
17the employer's normal cost of the benefit plus interest, an
18employee who was laid off but returned to any State employment
19may establish creditable service for the period of the layoff,
20provided that (1) the applicant applies for the creditable
21service under this subsection (q) within 6 months after July
2227, 2010 (the effective date of Public Act 96-1320) this
23amendatory Act of the 96th General Assembly, (2) the applicant
24does not receive credit for that period under any other
25provision of this Code, (3) at the time of the layoff, the
26applicant is not in an initial probationary status consistent

 

 

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1with the rules of the Department of Central Management
2Services, and (4) the total amount of creditable service
3established by the applicant under this subsection (q) does not
4exceed 3 years. For service established under this subsection
5(q), the required employee contribution shall be based on the
6rate of compensation earned by the employee on the date of
7returning to employment after the layoff and the contribution
8rate then in effect, and the required interest shall be
9calculated at the actuarially assumed rate from the date of
10returning to employment after the layoff to the date of
11payment. Funding for any new benefit increase, as defined in
12Section 14-152.1 of this Act, that is created under this
13subsection (q) will be provided by the employee contributions
14required under this subsection (q).
15    (r) A member who participated in the University of Illinois
16Government Public Service Internship Program (GPSI) may
17establish creditable service for up to 2 years of that
18participation by making the contribution required under this
19Section, plus an amount determined by the Board to be equal to
20the employer's normal cost of the benefit plus interest. The
21System shall determine a full-time salary equivalent for the
22purpose of calculating the required contribution. Credit may
23not be established under this subsection for any period for
24which service credit is established under any other provision
25of this Code.
26    (s) A member who worked as a nurse under a contractual

 

 

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1agreement for the Department of Public Aid, or its successor
2agency, the Department of Human Services, in the Client
3Assessment Unit and was subsequently determined to be a State
4employee by the United States Internal Revenue Service and the
5Illinois Labor Relations Board may establish creditable
6service for those contractual services by making the
7contributions required under this Section. To establish credit
8under this subsection, the applicant must apply to the System
9by July 1, 2008.
10    The Department of Human Services shall pay an employer
11contribution based upon an amount determined by the Board to be
12equal to the employer's normal cost of the benefit, plus
13interest.
14    In compliance with Section 14-152.1 added by Public Act
1594-4, the cost of the benefits provided by Public Act 95-583
16are offset by the required employee and employer contributions.
17    (t) Any person who rendered contractual services on a
18full-time basis to the Illinois Institute of Natural Resources
19and the Illinois Department of Energy and Natural Resources may
20establish creditable service for up to 4 years of those
21contractual services by making the contributions required
22under this Section, plus an amount determined by the Board to
23be equal to the employer's normal cost of the benefit plus
24interest at the actuarially assumed rate from the first day of
25the service for which credit is being established to the date
26of payment. To establish credit under this subsection (t), the

 

 

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1applicant must apply to the System within 6 months after July
227, 2010 August 28, 2009 (the effective date of Public Act
396-1320 96-775) this amendatory Act of the 96th General
4Assembly.
5    (u) By paying the required contributions under this
6Section, plus an amount determined by the Board to be equal to
7the employer's normal cost of the benefit, plus interest, a
8member may establish creditable service and earnings credit for
9periods of furlough beginning on or after July 1, 2008. To
10receive this credit, the participant must (i) apply in writing
11to the System before December 31, 2011 and (ii) not receive
12compensation for the furlough period. For service established
13under this subsection, the required employee contribution
14shall be based on the rate of compensation earned by the
15employee immediately following the date of the first furlough
16day in the time period specified in this subsection (u), and
17the required interest shall be calculated at the actuarially
18assumed rate from the date of the furlough to the date of
19payment. A member may establish creditable service and earnings
20credit for a period of voluntary or involuntary furlough, not
21exceeding 5 days, beginning on or after July 1, 2008 and ending
22on or before June 30, 2009, that is utilized as a means of
23addressing a State fiscal emergency. To receive this credit,
24the member must apply in writing to the System before July 1,
252012, and make contributions required under this Section, plus
26an amount determined by the Board to be equal to the employer's

 

 

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1normal cost of the benefit, plus interest at the actuarially
2assumed rate.
3    A member may establish creditable service and earnings
4credit for a period of voluntary or involuntary furlough, not
5exceeding 24 days, beginning on or after July 1, 2009 and
6ending on or before June 30, 2011, that is utilized as a means
7of addressing a State fiscal emergency. To receive this credit,
8the member must, before December 31, 2011, (i) apply in writing
9to the System and (ii) make the contributions required under
10this Section, plus an amount determined by the Board to be
11equal to the employer's normal cost of the benefit, plus
12interest at the actuarially assumed rate.
13    (v) Any member who rendered full-time contractual services
14to an Illinois Veterans Home operated by the Department of
15Veterans' Affairs may establish service credit for up to 8
16years of such services by making the contributions required
17under this Section, plus an amount determined by the Board to
18be equal to the employer's normal cost of the benefit, plus
19interest at the actuarially assumed rate. To establish credit
20under this subsection, the applicant must apply to the System
21no later than 6 months after July 27, 2010 2009 (the effective
22date of Public Act 96-1320 96-97) this amendatory Act of the
2396th General Assembly.
24(Source: P.A. 95-483, eff. 8-28-07; 95-583, eff. 8-31-07;
2595-652, eff. 10-11-07; 95-876, eff. 8-21-08; 96-97, eff.
267-27-09; 96-718, eff. 8-25-09; 96-775, eff. 8-28-09; 96-961,

 

 

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1eff. 7-2-10; 96-1000, eff. 7-2-10; 96-1320, eff. 7-27-10;
2revised 9-16-10.)
 
3    Section 99. Effective date. This Act takes effect upon
4becoming law.