97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
SB2928

 

Introduced 2/1/2012, by Sen. Sue Rezin

 

SYNOPSIS AS INTRODUCED:
 
40 ILCS 5/2-110  from Ch. 108 1/2, par. 2-110

    Amends the General Assembly Article of the Illinois Pension Code. Specifies that provisions relating to the calculation of creditable service (i) for a fraction of a month, (ii) for a term of service that is not completed because of death, resignation, judicial decision, or operation of law, or (iii) for a participant appointed or elected to fill a vacancy do not apply to any individual who first becomes a participant on or after the effective date of the amendatory Act.


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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
5Section 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 a
9person first became a member, and ending on the date under
10consideration, excluding all intervening periods of
11nonmembership following resignation or expiration of any term
12of office.
13    (B) "Service" includes:
14        (a) Military service during war by a person who entered
15    such service while a member, whether rendered before or
16    after the expiration of any term of office; plus up to 2
17    years of military service that need not have immediately
18    followed service as a member, and need not have been served
19    during wartime, provided that the member makes
20    contributions to the System for such service (1) at the
21    rates provided in Section 2-126 based upon the member's
22    rate of compensation on the last date as a participant
23    prior to such military service, or on the first date as a

 

 

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1    participant after such military service, whichever is
2    greater, plus (2) if payment is made on or after May 1,
3    1993, an amount determined by the Board to be equal to the
4    employer's normal cost of the benefits accrued for such
5    military service, plus (3) interest at the effective rate
6    from the date of first membership in the System to the date
7    of payment.
8        The amendment to this subdivision (B)(a) made by this
9    amendatory Act of 1993 shall apply to persons who are
10    active contributors to the System on or after November 30,
11    1992. A person who was an active contributor to the System
12    on November 30, 1992 but is no longer an active contributor
13    may apply to purchase military credit under this
14    subdivision (B)(a) within 60 days after the effective date
15    of this amendatory Act of 1993; if the person is an
16    annuitant, the resulting increase in annuity shall begin to
17    accrue on the first day of the month following the month in
18    which the required payment is received by the System. The
19    change in the required contribution for purchased military
20    credit made by this amendatory Act of 1993 shall not
21    entitle any person to a refund of contributions already
22    paid.
23        (b) Service as a judge of a court of this State, but
24    credit for such service is subject to the following
25    conditions: (1) such person shall have been a member for at
26    least 4 years and contributed to the system for service as

 

 

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1    a judge subsequent to July 8, 1947, at the rates herein
2    provided, including interest at 2% per annum to the date of
3    payment based on the salary in effect during such service;
4    (2) the member was not an eligible member of nor entitled
5    to credit for such service in any other retirement system
6    in the State maintained in whole or in part by public
7    contributions; and (3) the last 4 years of service prior to
8    retirement on annuity was rendered while a member.
9        (c) Service as a participating employee under Articles
10    3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17 or 18 of
11    the Illinois Pension Code. Credit for such service may be
12    established by a member and, if permitted by the credit
13    transfer Section of the appropriate Article, by a former
14    member who is not yet an annuitant, and is subject to the
15    following conditions: (1) that the credits accrued under
16    the above mentioned Articles have been transferred to this
17    system; and (2) that the member has contributed to this
18    system an amount equal to (i) the contribution rate in
19    effect for participants at the date of membership in this
20    system multiplied by the salary then in effect for members
21    of the General Assembly for each year of service for which
22    credit is being transferred, plus (ii) the State's share of
23    the normal cost of benefits under this system expressed as
24    a percent of payroll, as determined by the system's actuary
25    as of the date of the participant's membership in this
26    system, multiplied by the salary then in effect for members

 

 

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1    of the General Assembly, for each year of service for which
2    credit is being transferred, plus (iii) interest on items
3    (i) and (ii) above at 6% per annum compounded annually,
4    from the date of membership to the date of payment by the
5    participant, less (iv) the amount transferred to this
6    system on behalf of the participant on account of service
7    rendered while a participant under the above mentioned
8    Articles.
9        (d) Service, before October 1, 1975, as an officer
10    elected by the people of Illinois, for which creditable
11    service is required to be transferred from the State
12    Employees' Retirement System to this system by this
13    amendatory Act of 1975.
14        (e) Service rendered prior to January 1, 1964, as a
15    justice of the peace or police magistrate or as a civil
16    referee in the Municipal Court of Chicago, but credit for
17    such service may not be granted until the member has paid
18    to the system an amount equal to (1) the contribution rate
19    for participants at the date of membership in this system
20    multiplied by the salary then in effect for members of the
21    General Assembly for each year of service for which credit
22    is being transferred, plus (2) the State's share of the
23    normal cost of benefits under this system expressed as a
24    percent of payroll, as determined by the system's actuary
25    as of the date of the participant's membership in this
26    system, multiplied by the salary then in effect for members

 

 

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1    of the General Assembly, for each year of service for which
2    credit is allowed, plus, (3) interest on (1) and (2) above
3    at 6% per annum compounded annually from the date of
4    membership to the date of payment by the member. However, a
5    participant may not receive more than 6 years of credit for
6    such service nor may any member receive credit under this
7    paragraph for service for which credit has been granted in
8    any other public pension fund or retirement system in the
9    State.
10        (f) Service before January 16, 1981, as an officer
11    elected by the people of Illinois, for which creditable
12    service is transferred from the State Employees'
13    Retirement System to this system.
14    (C) Service during any fraction of a month shall be
15considered as a month of service.
16     Service includes the total period of time for which a
17participant is elected as a member or officer, even though he
18or she does not complete the term because of death,
19resignation, judicial decision, or operation of law, provided
20that the contributions required under this Article for such
21entire period of office have been made by or on behalf of the
22participant. In the case of a participant appointed or elected
23to fill a vacancy, service includes the total period from
24January 1 of the year in which his or her service commences to
25the end of the term in which the vacancy occurs, provided the
26participant contributes in the year of appointment an amount

 

 

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1equal to the contributions that would have been required had
2the participant received salary for the entire year. The
3foregoing provisions relating to a participant appointed or
4elected to fill a vacancy shall not apply if the participant
5was a member of the other legislative chamber at the time of
6appointment or election.
7    The provisions of this subdivision (C) do not apply to
8individuals who first become participants on or after the
9effective date of this amendatory Act of the 97th General
10Assembly.
11    (D) Notwithstanding the other provisions of this Section,
12if application to transfer or establish service credit under
13paragraph (c) or (e) of subsection (B) of this Section is made
14between January 1, 1992 and February 1, 1993, the contribution
15required for such credit shall be an amount equal to (1) the
16contribution rate in effect for participants at the date of
17membership in this system multiplied by the salary then in
18effect for members of the General Assembly for each year of
19service for which credit is being granted, plus (2) interest
20thereon at 6% per annum compounded annually, from the date of
21membership to the date of payment by the member, less (3) any
22amount transferred to this system on behalf of the member on
23account of such service credit.
24(Source: P.A. 86-27; 86-1028; 87-794; 87-1265.)