Full Text of SB0552 96th General Assembly
SB0552sam001 96TH GENERAL ASSEMBLY
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Sen. James A. DeLeo
Filed: 5/12/2009
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| AMENDMENT TO SENATE BILL 552
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| AMENDMENT NO. ______. Amend Senate Bill 552 by replacing | 3 |
| everything after the enacting clause with the following:
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| "Section 5. The Illinois Pension Code is amended by | 5 |
| changing Sections 3-110 and 5-212 and by adding Section 5-214.3 | 6 |
| as follows:
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| (40 ILCS 5/3-110) (from Ch. 108 1/2, par. 3-110)
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| Sec. 3-110. Creditable service.
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| (a) "Creditable service" is the time served by a police | 10 |
| officer as a member
of a regularly constituted police force of | 11 |
| a municipality. In computing
creditable service furloughs | 12 |
| without pay exceeding 30 days shall not be
counted, but all | 13 |
| leaves of absence for illness or accident, regardless of
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| length, and all periods of disability retirement for which a | 15 |
| police officer has
received no disability pension payments | 16 |
| under this Article shall be counted.
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| (a-5) Up to 3 years of time during which the police officer | 2 |
| receives
a disability pension under Section 3-114.1, 3-114.2, | 3 |
| 3-114.3, or 3-114.6
shall be counted as creditable service, | 4 |
| provided that
(i) the police officer returns to active service | 5 |
| after the disability for a
period at least equal to the period | 6 |
| for which credit is to be established and
(ii) the police | 7 |
| officer makes contributions to the fund based on the rates
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| specified in Section 3-125.1 and the salary upon which the | 9 |
| disability pension
is based. These contributions may be paid at | 10 |
| any time prior to the
commencement of a retirement pension. The | 11 |
| police officer may, but need not,
elect to have the | 12 |
| contributions deducted from the disability pension or to
pay | 13 |
| them in installments on a schedule approved by the board. If | 14 |
| not
deducted from the disability pension, the contributions | 15 |
| shall include
interest at the rate of 6% per year, compounded | 16 |
| annually, from the date
for which service credit is being | 17 |
| established to the date of payment. If
contributions are paid | 18 |
| under this subsection (a-5) in excess of those
needed to | 19 |
| establish the credit, the excess shall be refunded. This
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| subsection (a-5) applies to persons receiving a disability | 21 |
| pension under
Section 3-114.1, 3-114.2, 3-114.3, or 3-114.6 on | 22 |
| the effective date of this
amendatory Act of the 91st General | 23 |
| Assembly, as well as persons who begin to
receive such a | 24 |
| disability pension after that date.
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| (b) Creditable service includes all periods of service in | 26 |
| the military,
naval or air forces of the United States entered |
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| upon while an active police
officer of a municipality, provided | 2 |
| that upon applying for a permanent pension,
and in accordance | 3 |
| with the rules of the board, the police officer pays into the
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| fund the amount the officer would have contributed if he or she | 5 |
| had been a
regular contributor during such period, to the | 6 |
| extent that the municipality
which the police officer served | 7 |
| has not made such contributions in the
officer's behalf. The | 8 |
| total amount of such creditable service shall not
exceed 5 | 9 |
| years, except that any police officer who on July 1, 1973 had | 10 |
| more
than 5 years of such creditable service shall receive the | 11 |
| total amount thereof.
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| (b-5) Creditable service includes all periods of service in | 13 |
| the military, naval, or air forces of the United States entered | 14 |
| upon before beginning service as an active police officer of a | 15 |
| municipality, provided that, in accordance with the rules of | 16 |
| the board, the police officer pays into the fund the amount the | 17 |
| police officer would have contributed if he or she had been a | 18 |
| regular contributor during such period, plus an amount | 19 |
| determined by the Board to be equal to the municipality's | 20 |
| normal cost of the benefit, plus interest at the actuarially | 21 |
| assumed rate calculated from the date the employee last became | 22 |
| a police officer under this Article. The total amount of such | 23 |
| creditable service shall not exceed 2 years. | 24 |
| (c) Creditable service also includes service rendered by a | 25 |
| police
officer while on leave of absence from a police | 26 |
| department to serve as an
executive of an organization whose |
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| membership consists of members of a
police department, subject | 2 |
| to the following conditions: (i) the police
officer is a | 3 |
| participant of a fund established under this Article with at
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| least 10 years of service as a police officer; (ii) the police | 5 |
| officer
received no credit for such service under any other | 6 |
| retirement system,
pension fund, or annuity and benefit fund | 7 |
| included in this Code; (iii)
pursuant to the rules of the board | 8 |
| the police officer pays to the fund the
amount he or she would | 9 |
| have contributed had the officer been an active
member of the | 10 |
| police department; and (iv) the organization pays a
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| contribution equal to the municipality's normal cost for that
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| period of service.
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| (d)(1) Creditable service also includes periods of | 14 |
| service originally
established in another police pension | 15 |
| fund under this Article or in the Fund
established under | 16 |
| Article 7 of this Code for which (i) the contributions have
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| been transferred under Section 3-110.7 or Section 7-139.9 | 18 |
| and (ii) any
additional contribution required under | 19 |
| paragraph (2) of this subsection has
been paid in full in | 20 |
| accordance with the requirements of this subsection (d).
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| (2) If the board of the pension fund to which | 22 |
| creditable service and
related
contributions are | 23 |
| transferred under Section 3-110.7 or 7-139.9 determines | 24 |
| that
the amount transferred is less than the true cost to | 25 |
| the pension fund of
allowing that creditable service to be | 26 |
| established, then in order to establish
that creditable |
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| service the police officer must pay to the pension fund, | 2 |
| within
the payment period specified in paragraph (3) of | 3 |
| this subsection, an additional
contribution equal to the | 4 |
| difference, as determined by the board in accordance
with | 5 |
| the rules and procedures adopted under paragraph (6) of | 6 |
| this subsection.
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| (3) Except as provided in paragraph (4), the additional
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| contribution must be paid to the board (i) within 5 years | 9 |
| from the date of the
transfer of contributions under | 10 |
| Section 3-110.7 or 7-139.9 and (ii) before the
police | 11 |
| officer terminates service with the fund. The additional | 12 |
| contribution
may be paid in a lump sum or in accordance | 13 |
| with a schedule of installment
payments authorized by the | 14 |
| board.
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| (4) If the police officer dies in service before | 16 |
| payment in full has been
made and before the expiration of | 17 |
| the 5-year payment period, the surviving
spouse of the | 18 |
| officer may elect to pay the unpaid amount on the officer's
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| behalf within 6 months after the date of death, in which | 20 |
| case the creditable
service shall be granted as though the | 21 |
| deceased police officer had paid the
remaining balance on | 22 |
| the day before the date of death.
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| (5) If the additional contribution is not paid in full | 24 |
| within the
required time, the creditable service shall not | 25 |
| be granted and the
police officer (or the officer's | 26 |
| surviving spouse or estate) shall be entitled
to receive a |
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| refund of (i) any partial payment of the additional | 2 |
| contribution
that has been made by the police officer and | 3 |
| (ii) those portions of the amounts
transferred under | 4 |
| subdivision (a)(1) of Section 3-110.7 or subdivisions | 5 |
| (a)(1)
and (a)(3) of Section 7-139.9 that represent | 6 |
| employee contributions paid by the
police officer (but not | 7 |
| the accumulated interest on those contributions) and
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| interest paid by the police officer to the prior pension | 9 |
| fund in order to
reinstate service terminated by acceptance | 10 |
| of a refund.
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| 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.
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| 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.
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| (6) The Public Employee Pension Fund Division of the | 26 |
| Department of
Insurance
shall establish by rule the manner |
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| 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
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| calculation, and any other information the Division may | 15 |
| deem useful.
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| (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.
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| (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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| 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.
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| (3) The Public Pension Division of the Department of
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| Financial and Professional Regulation
shall establish by | 6 |
| rule the manner of making the calculation required under
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| 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
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| 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.
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| (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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| 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. 94-356, eff. 7-29-05; 95-812, eff. 8-13-08.)
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| (40 ILCS 5/5-212) (from Ch. 108 1/2, par. 5-212)
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| Sec. 5-212. Computation of service. In computing the | 18 |
| service rendered by a policeman prior to the
effective date, | 19 |
| the following periods shall be counted, in addition to
all | 20 |
| periods during where he performed the duties of his position, | 21 |
| as
periods of service for annuity purposes only: all periods of | 22 |
| (a)
vacation; (b) leave of absence with whole or part pay; (c) | 23 |
| leave of
absence without pay on account of disability; and (d) | 24 |
| leave of absence
during which the policeman was engaged in the | 25 |
| military or naval service
of the United States of America. |
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| Service credit shall not be allowed for
a policeman in receipt | 2 |
| of a pension on account of disability from any
pension fund | 3 |
| superseded by this fund.
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| In computing the service rendered by a policeman on or | 5 |
| after the
effective date, the following periods shall be | 6 |
| counted, in addition to
all periods during which he performed | 7 |
| the duties of his position, as
periods of service for annuity | 8 |
| purposes only: all periods of (a)
vacation; (b) leave of | 9 |
| absence with whole or part pay; (c) leave of
absence during | 10 |
| which the policeman was engaged in the military or naval
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| service of the United States of America; (d) time that the | 12 |
| policeman was
engaged in the military or naval service of the | 13 |
| United States of
America, during which he was passed over on | 14 |
| any eligible list posted
from an entrance examination, due to | 15 |
| the fact that he was in such
military or naval service at the | 16 |
| time he was called for appointment to
the Police Department, to | 17 |
| be computed from the date he was passed over
on any eligible | 18 |
| list and would have been first sworn in as a policeman
had he | 19 |
| not been engaged in the military or naval service of the United
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| States of America, until the date of his discharge from such | 21 |
| military or
naval service; provided that such policeman shall | 22 |
| pay into this Fund the
same amount that would have been | 23 |
| deducted from his salary had he been a
policeman during the | 24 |
| aforementioned portion of such military or naval
service; (e) | 25 |
| disability for which the policeman receives any disability
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| benefit; (f) disability for which the policeman receives whole |
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| or
part pay; and (g) service for which credits and creditable | 2 |
| service have
been transferred to this Fund under Section | 3 |
| 9-121.1, 14-105.1 or 15-134.3
of this Code ; and (h) periods of | 4 |
| service in the military, naval, or air forces of the United | 5 |
| States entered upon before beginning service as an active | 6 |
| policeman of a municipality as provided in Section 5-214.3 .
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| In computing service on or after the effective date for | 8 |
| ordinary
disability benefit, all periods described in the | 9 |
| preceding paragraph,
except any such period for which a | 10 |
| policeman receives ordinary
disability benefit, shall be | 11 |
| counted as periods of service.
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| In computing service for any of the purposes of this | 13 |
| Article, no
credit shall be given for any period during which a | 14 |
| policeman was not
rendering active service because of his | 15 |
| discharge from the service,
unless proceedings to test the | 16 |
| legality of the discharge are filed in a
court of competent | 17 |
| jurisdiction within one year from the date of
discharge and a | 18 |
| final judgment is entered therein declaring the
discharge | 19 |
| illegal.
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| No overtime or extra service shall be included in computing | 21 |
| service
of a policeman and not more than one year or a | 22 |
| fractional part thereof
of service shall be allowed for service | 23 |
| rendered during any calendar
year.
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| In computing service for any of the purposes of this | 25 |
| Article, credit
shall be given for any periods during which a
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| policeman who is a member of the General Assembly is on leave |
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| of absence or is
otherwise authorized to be absent from duty to | 2 |
| enable him or her to perform
legislative duties, | 3 |
| notwithstanding any reduction in salary for such periods
and | 4 |
| notwithstanding that the contributions paid by the policeman | 5 |
| were based on
a reduced salary rather than the full amount of | 6 |
| salary attached to his or her
career service rank.
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| (Source: P.A. 92-52, eff. 7-12-01.)
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| (40 ILCS 5/5-214.3 new)
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| Sec. 5-214.3. Credit for military service. A policeman may | 10 |
| establish creditable service under this Article for all periods | 11 |
| of service in the military, naval, or air forces of the United | 12 |
| States entered upon before beginning service as an active | 13 |
| policeman of a municipality, provided that the policeman pays | 14 |
| into the fund the amount the policeman would have contributed | 15 |
| if he or she had been a regular contributor during such period, | 16 |
| plus an amount determined by the Board to be equal to the | 17 |
| municipality's normal cost of the benefit, plus interest at the | 18 |
| actuarially assumed rate calculated from the date the employee | 19 |
| last became a policeman under this Article. The total amount of | 20 |
| such creditable service shall not exceed 2 years.
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| Section 90. The State Mandates Act is amended by adding | 22 |
| Section 8.33 as follows: | 23 |
| (30 ILCS 805/8.33 new) |
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| Sec. 8.33. Exempt mandate. Notwithstanding Sections 6 and 8 | 2 |
| of this Act, no reimbursement by the State is required for the | 3 |
| implementation of any mandate created by this amendatory Act of | 4 |
| the 96th General Assembly.
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| Section 99. Effective date. This Act takes effect upon | 6 |
| becoming law.".
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