Full Text of HB0306 96th General Assembly
HB0306sam002 96TH GENERAL ASSEMBLY | Sen. Mike Jacobs Filed: 11/18/2010
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| 1 | | AMENDMENT TO HOUSE BILL 306
| 2 | | AMENDMENT NO. ______. Amend House Bill 306 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The Illinois Pension Code is amended by | 5 | | changing Section 3-110 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 |
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| 1 | | receives
a disability pension under Section 3-114.1, 3-114.2, | 2 | | 3-114.3, or 3-114.6
shall be counted as creditable service, | 3 | | provided that
(i) the police officer returns to active service | 4 | | after the disability for a
period at least equal to the period | 5 | | for which credit is to be established and
(ii) the police | 6 | | officer makes contributions to the fund based on the rates
| 7 | | specified in Section 3-125.1 and the salary upon which the | 8 | | disability pension
is based. These contributions may be paid at | 9 | | any time prior to the
commencement of a retirement pension. The | 10 | | police officer may, but need not,
elect to have the | 11 | | contributions deducted from the disability pension or to
pay | 12 | | them in installments on a schedule approved by the board. If | 13 | | not
deducted from the disability pension, the contributions | 14 | | shall include
interest at the rate of 6% per year, compounded | 15 | | annually, from the date
for which service credit is being | 16 | | established to the date of payment. If
contributions are paid | 17 | | under this subsection (a-5) in excess of those
needed to | 18 | | establish the credit, the excess shall be refunded. This
| 19 | | subsection (a-5) applies to persons receiving a disability | 20 | | pension under
Section 3-114.1, 3-114.2, 3-114.3, or 3-114.6 on | 21 | | the effective date of this
amendatory Act of the 91st General | 22 | | Assembly, as well as persons who begin to
receive such a | 23 | | disability pension after that date.
| 24 | | (b) Creditable service includes all periods of service in | 25 | | the military,
naval or air forces of the United States entered | 26 | | upon while an active police
officer of a municipality, provided |
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| 1 | | that upon applying for a permanent pension,
and in accordance | 2 | | with the rules of the board, the police officer pays into the
| 3 | | fund the amount the officer would have contributed if he or she | 4 | | had been a
regular contributor during such period, to the | 5 | | extent that the municipality
which the police officer served | 6 | | has not made such contributions in the
officer's behalf. The | 7 | | total amount of such creditable service shall not
exceed 5 | 8 | | years, except that any police officer who on July 1, 1973 had | 9 | | more
than 5 years of such creditable service shall receive the | 10 | | total amount thereof.
| 11 | | (b-5) Creditable service includes up to 24 months all | 12 | | periods of service in the military, naval, or air forces of the | 13 | | United States entered upon before beginning service as an | 14 | | active police officer of a municipality, provided that, in | 15 | | accordance with the rules of the board, the police officer | 16 | | applies to the pension fund in writing and pays into the fund | 17 | | the employee contributions that would have been required had | 18 | | the service been rendered as a member of the fund on the date | 19 | | of membership in the fund amount the police officer would have | 20 | | contributed if he or she had been a regular contributor during | 21 | | such period , plus an amount determined by the Board to be equal | 22 | | to the municipality's normal cost of the benefit, plus interest | 23 | | on those amounts at the actuarially assumed rate , compounded | 24 | | annually, calculated from the date of membership in the fund to | 25 | | the date of payment the employee last became a police officer | 26 | | under this Article . The total amount of such creditable service |
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| 1 | | shall not exceed 2 years. The changes made to this subsection | 2 | | (b-5) by this amendatory Act of the 96th General Assembly apply | 3 | | only to participating employees while in service on or after | 4 | | July 23, 2010. | 5 | | (c) Creditable service also includes service rendered by a | 6 | | police
officer while on leave of absence from a police | 7 | | department to serve as an
executive of an organization whose | 8 | | membership consists of members of a
police department, subject | 9 | | to the following conditions: (i) the police
officer is a | 10 | | participant of a fund established under this Article with at
| 11 | | least 10 years of service as a police officer; (ii) the police | 12 | | officer
received no credit for such service under any other | 13 | | retirement system,
pension fund, or annuity and benefit fund | 14 | | included in this Code; (iii)
pursuant to the rules of the board | 15 | | the police officer pays to the fund the
amount he or she would | 16 | | have contributed had the officer been an active
member of the | 17 | | police department; and (iv) the organization pays a
| 18 | | contribution equal to the municipality's normal cost for that
| 19 | | period of service.
| 20 | | (d)(1) Creditable service also includes periods of | 21 | | service originally
established in another police pension | 22 | | fund under this Article or in the Fund
established under | 23 | | Article 7 of this Code for which (i) the contributions have
| 24 | | been transferred under Section 3-110.7 or Section 7-139.9 | 25 | | and (ii) any
additional contribution required under | 26 | | paragraph (2) of this subsection has
been paid in full in |
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| 1 | | accordance with the requirements of this subsection (d).
| 2 | | (2) If the board of the pension fund to which | 3 | | creditable service and
related
contributions are | 4 | | transferred under Section 7-139.9 determines that
the | 5 | | amount transferred is less than the true cost to the | 6 | | pension fund of
allowing that creditable service to be | 7 | | established, then in order to establish
that creditable | 8 | | service the police officer must pay to the pension fund, | 9 | | within
the payment period specified in paragraph (3) of | 10 | | this subsection, an additional
contribution equal to the | 11 | | difference, as determined by the board in accordance
with | 12 | | the rules and procedures adopted under paragraph (6) of | 13 | | this subsection. If the board of the pension fund to which | 14 | | creditable service and
related
contributions are | 15 | | transferred under Section 3-110.7 determines that
the | 16 | | amount transferred is less than the true cost to the | 17 | | pension fund of
allowing that creditable service to be | 18 | | established, then the police officer may elect (A) to | 19 | | establish
that creditable service by paying to the pension | 20 | | fund, within
the payment period specified in paragraph (3) | 21 | | of this subsection (d), an additional
contribution equal to | 22 | | the difference, as determined by the board in accordance
| 23 | | with the rules and procedures adopted under paragraph (6) | 24 | | of this subsection (d) or (B) to have his or her creditable | 25 | | service reduced by an amount equal to the difference | 26 | | between the amount transferred under Section 3-110.7 and |
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| 1 | | the true cost to the pension fund of allowing that | 2 | | creditable service to be established, as determined by the | 3 | | board in accordance with the rules and procedures adopted | 4 | | under paragraph (6) of this subsection (d).
| 5 | | (3) Except as provided in paragraph (4), the additional
| 6 | | contribution that is required or elected under paragraph | 7 | | (2) of this subsection (d) must be paid to the board (i) | 8 | | within 5 years from the date of the
transfer of | 9 | | contributions under Section 3-110.7 or 7-139.9 and (ii) | 10 | | before the
police officer terminates service with the fund. | 11 | | The additional contribution
may be paid in a lump sum or in | 12 | | accordance with a schedule of installment
payments | 13 | | authorized by the board.
| 14 | | (4) If the police officer dies in service before | 15 | | payment in full has been
made and before the expiration of | 16 | | the 5-year payment period, the surviving
spouse of the | 17 | | officer may elect to pay the unpaid amount on the officer's
| 18 | | behalf within 6 months after the date of death, in which | 19 | | case the creditable
service shall be granted as though the | 20 | | deceased police officer had paid the
remaining balance on | 21 | | the day before the date of death.
| 22 | | (5) If the additional contribution that is required or | 23 | | elected under paragraph (2) of this subsection (d) is not | 24 | | paid in full within the
required time, the creditable | 25 | | service shall not be granted and the
police officer (or the | 26 | | officer's surviving spouse or estate) shall be entitled
to |
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| 1 | | receive a refund of (i) any partial payment of the | 2 | | additional contribution
that has been made by the police | 3 | | officer and (ii) those portions of the amounts
transferred | 4 | | under subdivision (a)(1) of Section 3-110.7 or | 5 | | subdivisions (a)(1)
and (a)(3) of Section 7-139.9 that | 6 | | represent employee contributions paid by the
police | 7 | | officer (but not the accumulated interest on those | 8 | | contributions) and
interest paid by the police officer to | 9 | | the prior pension fund in order to
reinstate service | 10 | | terminated by acceptance of a refund.
| 11 | | At the time of paying a refund under this item (5), the | 12 | | pension fund
shall also repay to the pension fund from | 13 | | which the contributions were
transferred under Section | 14 | | 3-110.7 or 7-139.9 the amount originally transferred
under | 15 | | subdivision (a)(2) of that Section, plus interest at the | 16 | | rate of 6% per
year, compounded annually, from the date of | 17 | | the original transfer to the date
of repayment. Amounts | 18 | | repaid to the Article 7 fund under this provision shall
be | 19 | | credited to the appropriate municipality.
| 20 | | Transferred credit that is not granted due to failure | 21 | | to pay the additional
contribution within the required time | 22 | | is lost; it may not be transferred to
another pension fund | 23 | | and may not be reinstated in the pension fund from which
it | 24 | | was transferred.
| 25 | | (6) The Public Employee Pension Fund Division of the | 26 | | Department of
Insurance
shall establish by rule the manner |
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| 1 | | of making the calculation required under
paragraph (2) of | 2 | | this subsection, taking into account the appropriate | 3 | | actuarial
assumptions; the police officer's service, age, | 4 | | and salary history; the level
of funding of the pension | 5 | | fund to which the credits are being transferred; and
any | 6 | | other factors that the Division determines to be relevant. | 7 | | The rules may
require that all calculations made under | 8 | | paragraph (2) be reported to the
Division by the board | 9 | | performing the calculation, together with documentation
of | 10 | | the creditable service to be transferred, the amounts of | 11 | | contributions and
interest to be transferred, the manner in | 12 | | which the calculation was performed,
the numbers relied | 13 | | upon in making the calculation, the results of the
| 14 | | calculation, and any other information the Division may | 15 | | deem useful.
| 16 | | (e)(1) Creditable service also includes periods of | 17 | | service originally
established in the Fund
established | 18 | | under Article 7 of this Code for which the contributions | 19 | | have
been transferred under Section 7-139.11.
| 20 | | (2) If the board of the pension fund to which | 21 | | creditable service and
related
contributions are | 22 | | transferred under Section 7-139.11 determines that
the | 23 | | amount transferred is less than the true cost to the | 24 | | pension fund of
allowing that creditable service to be | 25 | | established, then the amount of creditable service the | 26 | | police officer may establish under this subsection (e) |
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| 1 | | shall be reduced by an amount equal to the difference, as | 2 | | determined by the board in accordance
with the rules and | 3 | | procedures adopted under paragraph (3) of this subsection.
| 4 | | (3) The Public Pension Division of the Department of
| 5 | | Financial and Professional Regulation
shall establish by | 6 | | rule the manner of making the calculation required under
| 7 | | paragraph (2) of this subsection, taking into account the | 8 | | appropriate actuarial
assumptions; the police officer's | 9 | | service, age, and salary history; the level
of funding of | 10 | | the pension fund to which the credits are being | 11 | | transferred; and
any other factors that the Division | 12 | | determines to be relevant. The rules may
require that all | 13 | | calculations made under paragraph (2) be reported to the
| 14 | | Division by the board performing the calculation, together | 15 | | with documentation
of the creditable service to be | 16 | | transferred, the amounts of contributions and
interest to | 17 | | be transferred, the manner in which the calculation was | 18 | | performed,
the numbers relied upon in making the | 19 | | calculation, the results of the
calculation, and any other | 20 | | information the Division may deem useful.
| 21 | | (4) Until January 1, 2010, a police officer who | 22 | | transferred service from the Fund established under | 23 | | Article 7 of this Code under the provisions of Public Act | 24 | | 94-356 may establish additional credit, but only for the | 25 | | amount of the service credit reduction in that transfer, as | 26 | | calculated under paragraph (3) of this subsection (e). This |
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| 1 | | credit may be established upon payment by the police | 2 | | officer of an amount to be determined by the board, equal | 3 | | to (1) the amount that would have been contributed as | 4 | | employee and employer contributions had all of the service | 5 | | been as an employee under this Article, plus interest | 6 | | thereon at the rate of 6% per year, compounded annually | 7 | | from the date of service to the date of transfer, less (2) | 8 | | the total amount transferred from the Article 7 Fund, plus | 9 | | (3) interest on the difference at the rate of 6% per year, | 10 | | compounded annually, from the date of the transfer to the | 11 | | date of payment. The additional service credit is allowed | 12 | | under this amendatory Act of the 95th General Assembly | 13 | | notwithstanding the provisions of Article 7 terminating | 14 | | all transferred credits on the date of transfer. | 15 | | (Source: P.A. 95-812, eff. 8-13-08; 96-297, eff. 8-11-09; | 16 | | 96-1260, eff. 7-23-10.)
| 17 | | Section 99. Effective date. This Act takes effect upon | 18 | | becoming law.".
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