97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB3815

 

Introduced 10/5/2011, by Rep. Karen May

 

SYNOPSIS AS INTRODUCED:
 
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

    Amends the Chicago Municipal and Chicago Laborers Articles of the Illinois Pension Code. Provides, in both affected Articles, that a leave of absence without pay during employment with a local labor organization is not to be included in computing the term of service of a person who first becomes a participant on or after the effective date of the amendatory Act. Effective January 1, 2012.


LRB097 13164 JDS 57670 b

FISCAL NOTE ACT MAY APPLY
PENSION IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB3815LRB097 13164 JDS 57670 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
5Sections 8-226 and 11-215 as follows:
 
6    (40 ILCS 5/8-226)  (from Ch. 108 1/2, par. 8-226)
7    Sec. 8-226. Computation of service. In computing the term
8of service of an employee prior to the effective date, the
9entire period beginning on the date he was first appointed and
10ending on the day before the effective date, except any
11intervening period during which he was separated by withdrawal
12from service, shall be counted for all purposes of this
13Article, except that for any employee who was not in service on
14the day before the effective date, service rendered prior to
15such date shall not be considered for the purposes of Section
168-138.
17    For a person employed by an employer for whom this Article
18was in effect prior to January 1, 1950, from whose salary
19deductions are first made under this Article after December 31,
201949, any period of service rendered prior to the effective
21date, unless he was in service on the day before the effective
22date, shall not be counted as service.
23    The time a person was an employee of any territory annexed

 

 

HB3815- 2 -LRB097 13164 JDS 57670 b

1to the city prior to the effective date shall be counted as a
2period of service.
3    In computing the term of service of any employee subsequent
4to the day before the effective date, the following periods
5shall be counted as periods of service for age and service,
6widow's and child's annuity purposes:
7        (a) The time during which he performed the duties of
8    his position;
9        (b) Vacations, leaves of absence with whole or part
10    pay, and leaves of absence without pay not longer than 90
11    days;
12        (c) Leaves of absence without pay during which a
13    participant is employed full-time by a local labor
14    organization that represents municipal employees, provided
15    that (1) the participant continues to make employee
16    contributions to the Fund as though he were an active
17    employee, based on the regular salary rate received by the
18    participant for his municipal employment immediately prior
19    to such leave of absence (and in the case of such
20    employment prior to December 9, 1987, pays to the Fund an
21    amount equal to the employee contributions for such
22    employment plus regular interest thereon as calculated by
23    the board), and based on his current salary with such labor
24    organization after the effective date of this amendatory
25    Act of 1991, (2) after January 1, 1989 the participant, or
26    the labor organization on the participant's behalf, makes

 

 

HB3815- 3 -LRB097 13164 JDS 57670 b

1    contributions to the Fund as though it were the employer,
2    in the same amount and same manner as specified under this
3    Article, based on the regular salary rate received by the
4    participant for his municipal employment immediately prior
5    to such leave of absence, and based on his current salary
6    with such labor organization after the effective date of
7    this amendatory Act of 1991, and (3) the participant does
8    not receive credit in any pension plan established by the
9    local labor organization based on his employment by the
10    organization, and (4) the participant first became a
11    participant before the effective date of this amendatory
12    Act of the 97th General Assembly;
13        (d) Any period of disability for which he received (i)
14    a disability benefit under this Article, or (ii) a
15    temporary total disability benefit under the Workers'
16    Compensation Act if the disability results from a condition
17    commonly termed heart attack or stroke or any other
18    condition falling within the broad field of coronary
19    involvement or heart disease, or (iii) whole or part pay;
20        (e) Any period for which contributions and service
21    credit have been transferred to this Fund under subsection
22    (d) of Section 9-121.1 or subsection (d) of Section
23    12-127.1 of this Code.
24    For a person employed by an employer in which the 1921 Act
25was in effect prior to January 1, 1950, from whose salary
26deductions are first made under the 1921 Act or this Article

 

 

HB3815- 4 -LRB097 13164 JDS 57670 b

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 under this Article, except such period for
5which he made payment as provided in Section 8-230 of this
6Article, in which case such period shall be counted as a period
7of service for all annuity purposes hereunder.
8    In computing the term of service of an employee subsequent
9to the day before the effective date for ordinary disability
10benefit purposes, all periods described in the preceding
11paragraph, except any such period for which he receives
12ordinary disability benefit, shall be counted as periods of
13service; provided, that for any person employed by an employer
14in which this Article was in effect prior to January 1, 1950,
15from whose salary deductions are first made under this Article
16after December 31, 1949, any period of service rendered
17subsequent to the effective date and prior to the date he
18became an employee and contributor, shall not be counted as a
19period of service for ordinary disability benefit purposes,
20unless the person made payment for the period as provided in
21Section 8-230 of this Article, in which case the period shall
22be counted as a period of service for ordinary disability
23purposes for periods of disability on or after the effective
24date of this amendatory Act of 1997.
25    Overtime or extra service shall not be included in
26computing any term of service. Not more than 1 year of service

 

 

HB3815- 5 -LRB097 13164 JDS 57670 b

1shall be allowed for service rendered during any calendar year.
2(Source: P.A. 90-511, eff. 8-22-97.)
 
3    (40 ILCS 5/11-215)  (from Ch. 108 1/2, par. 11-215)
4    Sec. 11-215. Computation of service.
5    (a) In computing the term of service of an employee prior
6to the effective date, the entire period beginning on the date
7he was first appointed and ending on the day before the
8effective date, except any intervening period during which he
9was separated by withdrawal from service, shall be counted for
10all purposes of this Article. Only the first year of each
11period of lay-off or leave of absence without pay, continuing
12or extending for a period in excess of one year, shall be
13counted as such service.
14    (b) For a person employed by an employer for whom this
15Article was in effect prior to August 1, 1949, from whose
16salary deductions are first made under this Article after July
1731, 1949, any period of service rendered prior to the effective
18date, unless he was in service on the day before the effective
19date, shall not be counted as service.
20    (c) In computing the term of service of an employee
21subsequent to the day before the effective date, the following
22periods of time shall be counted as periods of service for
23annuity purposes:
24        (1) the time during which he performed the duties of
25    his position;

 

 

HB3815- 6 -LRB097 13164 JDS 57670 b

1        (2) leaves of absence with whole or part pay, and
2    leaves of absence without pay not longer than 90 days;
3        (3) leaves of absence without pay during which a
4    participant is employed full-time by a local labor
5    organization that represents municipal employees, provided
6    that (A) the participant continues to make employee
7    contributions to the Fund as though he were an active
8    employee, based on the regular salary rate received by the
9    participant for his municipal employment immediately prior
10    to such leave of absence (and in the case of such
11    employment prior to December 9, 1987, pays to the Fund an
12    amount equal to the employee contributions for such
13    employment plus regular interest thereon as calculated by
14    the board), and based on his current salary with such labor
15    organization after the effective date of this amendatory
16    Act of 1991, (B) after January 1, 1989 the participant, or
17    the labor organization on the participant's behalf, makes
18    contributions to the Fund as though it were the employer,
19    in the same amount and same manner as specified under this
20    Article, based on the regular salary rate received by the
21    participant for his municipal employment immediately prior
22    to such leave of absence, and based on his current salary
23    with such labor organization after the effective date of
24    this amendatory Act of 1991, and (C) the participant does
25    not receive credit in any pension plan established by the
26    local labor organization based on his employment by the

 

 

HB3815- 7 -LRB097 13164 JDS 57670 b

1    organization, and (D) the participant first became a
2    participant before the effective date of this amendatory
3    Act of the 97th General Assembly;
4        (4) any period of disability for which he received (i)
5    a disability benefit under this Article, or (ii) a
6    temporary total disability benefit under the Workers'
7    Compensation Act if the disability results from a condition
8    commonly termed heart attack or stroke or any other
9    condition falling within the broad field of coronary
10    involvement or heart disease, or (iii) whole or part pay.
11    (d) For a person employed by an employer, or the retirement
12board, in which "The 1935 Act" was in effect prior to August 1,
131949, from whose salary deductions are first made under "The
141935 Act" or this Article after July 31, 1949, any period of
15service rendered subsequent to the effective date and prior to
16August 1, 1949, shall not be counted as a period of service
17under this Article, except such period for which he made
18payment, as provided in Section 11-221 of this Article, in
19which case such period shall be counted as a period of service
20for all annuity purposes hereunder.
21    (e) In computing the term of service of an employee
22subsequent to the day before the effective date for ordinary
23disability benefit purposes, the following periods of time
24shall be counted as periods of service:
25        (1) any period during which he performed the duties of
26    his position;

 

 

HB3815- 8 -LRB097 13164 JDS 57670 b

1        (2) leaves of absence with whole or part pay;
2        (3) any period of disability for which he received (i)
3    a duty disability benefit under this Article, or (ii) a
4    temporary total disability benefit under the Workers'
5    Compensation Act if the disability results from a condition
6    commonly termed heart attack or stroke or any other
7    condition falling within the broad field of coronary
8    involvement or heart disease, or (iii) whole or part pay.
9    However, any period of service rendered by an employee
10contributor prior to the date he became a contributor to the
11fund shall not be counted as a period of service for ordinary
12disability purposes, unless the person made payment for the
13period as provided in Section 11-221 of this Article, in which
14case the period shall be counted as a period of service for
15ordinary disability purposes for periods of disability on or
16after the effective date of this amendatory Act of 1997.
17    Overtime or extra service shall not be included in
18computing any term of service. Not more than 1 year of service
19shall be allowed for service rendered during any calendar year.
20(Source: P.A. 90-511, eff. 8-22-97.)
 
21    Section 99. Effective date. This Act takes effect January
221, 2012.