Full Text of SB2211 102nd General Assembly
SB2211 102ND GENERAL ASSEMBLY |
| | 102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022 SB2211 Introduced 2/26/2021, by Sen. Jason Plummer SYNOPSIS AS INTRODUCED: |
| 40 ILCS 5/7-139 | from Ch. 108 1/2, par. 7-139 |
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Amends the Illinois Municipal Retirement Fund (IMRF) Article of the Illinois Pension Code. Provides that a current or former elected or appointed official of a participating municipality who first becomes a participating employee on or after the effective date of the amendatory Act may establish credit for no more than 30 days of service as an official of that municipality under a provision concerning retroactive service. Effective immediately.
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| | FISCAL NOTE ACT MAY APPLY | | PENSION IMPACT NOTE ACT MAY APPLY |
| | A BILL FOR |
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| | | SB2211 | | LRB102 11538 RPS 16872 b |
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| 1 | | AN ACT concerning public employee benefits.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Illinois Pension Code is amended by | 5 | | changing Section 7-139 as follows:
| 6 | | (40 ILCS 5/7-139) (from Ch. 108 1/2, par. 7-139)
| 7 | | Sec. 7-139. Credits and creditable service to employees.
| 8 | | (a) Each participating employee shall be granted credits | 9 | | and creditable
service, for purposes of determining the amount | 10 | | of any annuity or benefit
to which he or a beneficiary is | 11 | | entitled, as follows:
| 12 | | 1. For prior service: Each participating employee who | 13 | | is an employee
of a participating municipality or | 14 | | participating instrumentality on the
effective date shall | 15 | | be granted creditable service, but no credits under
| 16 | | paragraph 2 of this subsection (a), for periods of prior | 17 | | service for which
credit has not been received under any | 18 | | other pension fund or retirement system
established under | 19 | | this Code, as follows:
| 20 | | If the effective date of participation for the | 21 | | participating municipality
or participating | 22 | | instrumentality is on or before January 1, 1998, | 23 | | creditable
service shall be granted for the entire period |
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| 1 | | of prior service with that
employer without any employee | 2 | | contribution.
| 3 | | If the effective date of participation for the | 4 | | participating municipality
or participating | 5 | | instrumentality is after January 1, 1998, creditable
| 6 | | service shall be granted for the last 20% of the period of | 7 | | prior service with
that employer, but no more than 5 | 8 | | years, without any employee contribution. A
participating | 9 | | employee may establish creditable service for the | 10 | | remainder of
the period of prior service with that | 11 | | employer by making an application in
writing, accompanied | 12 | | by payment of an employee contribution in an
amount | 13 | | determined by the Fund, based on the employee contribution | 14 | | rates in
effect at the time of application for the | 15 | | creditable service and the employee's
salary rate on the | 16 | | effective date of participation for that employer, plus
| 17 | | interest at the effective rate from the date of the prior | 18 | | service to the date
of payment. Application for this | 19 | | creditable service may be made at any time
while the | 20 | | employee is still in service.
| 21 | | A municipality that (i) has at least 35 employees; | 22 | | (ii) is located in a county with at least 2,000,000 | 23 | | inhabitants; and (iii) maintains an independent defined | 24 | | benefit pension plan for the benefit of its eligible | 25 | | employees may restrict creditable service in whole or in | 26 | | part for periods of prior service with the employer if the |
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| 1 | | governing body of the municipality adopts an irrevocable | 2 | | resolution to restrict that creditable service and files | 3 | | the resolution with the board before the municipality's | 4 | | effective date of participation.
| 5 | | Any person who has withdrawn from the service of a | 6 | | participating
municipality
or participating | 7 | | instrumentality prior to the effective date, who reenters
| 8 | | the service of the same municipality or participating | 9 | | instrumentality after
the effective date and becomes a | 10 | | participating employee is entitled to
creditable service | 11 | | for prior service as otherwise provided in this
| 12 | | subdivision (a)(1) only if he or she renders 2 years of | 13 | | service as a
participating employee after the effective | 14 | | date. Application
for such service must be made while in a | 15 | | participating status.
The salary rate to be used in the | 16 | | calculation of the required employee
contribution, if any, | 17 | | shall be the employee's salary rate at the time of first
| 18 | | reentering service with the employer after the employer's | 19 | | effective date of
participation.
| 20 | | 2. For current service, each participating employee | 21 | | shall be
credited with:
| 22 | | a. Additional credits of amounts equal to each | 23 | | payment of additional
contributions received from him | 24 | | under Section 7-173, as of the
date the corresponding | 25 | | payment of earnings is payable to him.
| 26 | | b. Normal credits of amounts equal to each payment |
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| 1 | | of normal
contributions received from him, as of the | 2 | | date the corresponding payment of
earnings is payable | 3 | | to him, and normal contributions made for the purpose | 4 | | of
establishing out-of-state service credits as | 5 | | permitted under the conditions set
forth in paragraph | 6 | | 6 of this subsection (a).
| 7 | | c. Municipality credits in an amount equal to 1.4 | 8 | | times the normal
credits, except those established by | 9 | | out-of-state service credits, as of
the date of | 10 | | computation of any benefit if these credits would | 11 | | increase
the benefit.
| 12 | | d. Survivor credits equal to each payment of | 13 | | survivor contributions
received from the participating | 14 | | employee as of the date the
corresponding payment of | 15 | | earnings is payable, and survivor contributions made
| 16 | | for the purpose of establishing out-of-state service | 17 | | credits.
| 18 | | 3. For periods of temporary and total and permanent | 19 | | disability
benefits, each employee receiving disability | 20 | | benefits shall be granted
creditable service for the | 21 | | period during which disability benefits are
payable. | 22 | | Normal and survivor credits, based upon the rate of | 23 | | earnings
applied for disability benefits, shall also be | 24 | | granted if such credits
would result in a higher benefit | 25 | | to any such employee or his
beneficiary.
| 26 | | 4. For authorized leave of absence without pay: A |
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| 1 | | participating
employee shall be granted credits and | 2 | | creditable service for periods of
authorized leave of | 3 | | absence without pay under the following
conditions:
| 4 | | a. An application for credits and creditable | 5 | | service is submitted to the
board while the employee | 6 | | is in a status of
active employment.
| 7 | | b. Not more than 12 complete months of creditable | 8 | | service
for authorized leave of absence without pay | 9 | | shall be counted for purposes of
determining any | 10 | | benefits payable under this Article.
| 11 | | c. Credits and creditable service shall be granted | 12 | | for leave of
absence only if such leave is approved by | 13 | | the governing body of the
municipality, including | 14 | | approval of the estimated cost thereof to the
| 15 | | municipality as determined by the fund, and employee | 16 | | contributions, plus
interest at the effective rate | 17 | | applicable for each year from the end of
the period of | 18 | | leave to date of payment, have been paid to the fund in
| 19 | | accordance with Section 7-173. The contributions shall | 20 | | be computed upon the
assumption earnings continued | 21 | | during the period of leave at the rate in
effect when | 22 | | the leave began.
| 23 | | d. Benefits under the provisions of Sections | 24 | | 7-141, 7-146, 7-150
and 7-163 shall become payable to | 25 | | employees on authorized leave of
absence, or their | 26 | | designated beneficiary, only if such leave of absence
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| 1 | | is creditable hereunder, and if the employee has at | 2 | | least one year of
creditable service other than the | 3 | | service granted for leave of absence.
Any employee | 4 | | contributions due may be deducted from any benefits
| 5 | | payable.
| 6 | | e. No credits or creditable service shall be | 7 | | allowed for leave of
absence without pay during any | 8 | | period of prior service.
| 9 | | 5. For military service: The governing body of a | 10 | | municipality or
participating instrumentality may elect to | 11 | | allow creditable service to
participating employees who | 12 | | leave their employment to serve in the armed
forces of the | 13 | | United States for all periods of such service, provided
| 14 | | that the person returns to active employment within 90 | 15 | | days after
completion
of full time active duty, but no | 16 | | creditable service shall be allowed such
person for any | 17 | | period that can be used in the computation of a pension
or | 18 | | any other pay or benefit, other than pay for active duty, | 19 | | for service
in any branch of the armed forces of the United | 20 | | States. If necessary to
the computation of any benefit, | 21 | | the board shall establish municipality
credits for | 22 | | participating employees under this paragraph on the
| 23 | | assumption that the employee received earnings at the rate | 24 | | received at
the time he left the employment to enter the | 25 | | armed forces. A
participating employee in the armed forces | 26 | | shall not be considered an
employee during such period of |
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| 1 | | service and no additional death and no
disability benefits | 2 | | are payable for death or disability during such period.
| 3 | | Any participating employee who left his employment | 4 | | with a
municipality or participating instrumentality to | 5 | | serve in the armed
forces of the United States and who | 6 | | again became a participating
employee within 90 days after | 7 | | completion of full time active duty by
entering the | 8 | | service of a different municipality or participating
| 9 | | instrumentality, which has elected to allow creditable | 10 | | service for
periods of military service under the | 11 | | preceding paragraph, shall also be
allowed creditable | 12 | | service for his period of military service on the
same | 13 | | terms that would apply if he had been employed, before | 14 | | entering
military service, by the municipality or | 15 | | instrumentality which employed
him after he left the | 16 | | military service and the employer costs arising in
| 17 | | relation to such grant of creditable service shall be | 18 | | charged to and
paid by that municipality or | 19 | | instrumentality.
| 20 | | Notwithstanding the foregoing, any participating | 21 | | employee
shall be entitled to creditable service as | 22 | | required by any federal law
relating to re-employment | 23 | | rights of persons who served in the United States
Armed | 24 | | Services. Such creditable service shall be granted upon | 25 | | payment by
the member of an amount equal to the employee | 26 | | contributions which would
have been required had the |
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| 1 | | employee continued in service at the same
rate of earnings | 2 | | during the military leave period, plus interest at
the | 3 | | effective rate.
| 4 | | 5.1. In addition to any creditable service established | 5 | | under
paragraph 5 of this subsection (a), creditable | 6 | | service may be granted for
up to 48 months of service in | 7 | | the armed forces of the United States.
| 8 | | In order to receive creditable service for military | 9 | | service under this
paragraph 5.1, a participating employee | 10 | | must (1) apply to the Fund
in writing and provide evidence | 11 | | of the military service that is satisfactory
to the Board; | 12 | | (2) obtain the written approval of the current employer; | 13 | | and (3)
make contributions to the Fund equal to (i)
the | 14 | | employee contributions that would have been required had | 15 | | the service been
rendered as a member, plus (ii) an amount | 16 | | determined by the board to be equal
to the employer's | 17 | | normal cost of the benefits accrued for that military
| 18 | | service, plus (iii) interest on items (i) and (ii) from | 19 | | the date of first
membership in the Fund to the date of | 20 | | payment. The required interest shall be
calculated at the | 21 | | regular interest rate.
| 22 | | The changes made to this paragraph 5.1 by Public Acts | 23 | | 95-483 and 95-486
apply only to participating employees in | 24 | | service on or after August 28, 2007 (the effective date of | 25 | | those Public Acts).
| 26 | | 6. For out-of-state service: Creditable service shall |
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| 1 | | be granted for
service rendered to an out-of-state local | 2 | | governmental body under the
following conditions: The | 3 | | employee had participated and has irrevocably
forfeited | 4 | | all rights to benefits in the out-of-state public | 5 | | employees
pension system; the governing body of his | 6 | | participating municipality or
instrumentality authorizes | 7 | | the employee to establish such service; the
employee has 2 | 8 | | years current service with this municipality or
| 9 | | participating instrumentality; the employee makes a | 10 | | payment of
contributions, which shall be computed at 8% | 11 | | (normal) plus 2% (survivor)
times length of service | 12 | | purchased times the average rate of earnings for the
first | 13 | | 2
years of service with the municipality or participating
| 14 | | instrumentality whose governing body authorizes the | 15 | | service established
plus interest at the effective rate on | 16 | | the date such credits are
established, payable from the | 17 | | date the employee completes the required 2
years of | 18 | | current service to date of payment. In no case shall more | 19 | | than
120 months of creditable service be granted under | 20 | | this provision.
| 21 | | 7. For retroactive service: Any employee who could | 22 | | have but did not
elect to become a participating employee, | 23 | | or who should have been a
participant in the Municipal | 24 | | Public Utilities Annuity and Benefit Fund
before that fund | 25 | | was superseded, may receive creditable service for the
| 26 | | period of service not to exceed 50 months; however, a |
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| 1 | | current or former
elected or appointed official of a | 2 | | participating municipality may establish credit under this | 3 | | paragraph 7 for more than 50
months of service as an | 4 | | official of that municipality, if the excess over 50 | 5 | | months is approved by resolution of the
governing body of | 6 | | the affected municipality filed with
the Fund before | 7 | | January 1, 2002.
| 8 | | A current or former elected or appointed official of a | 9 | | participating municipality who first becomes a | 10 | | participating employee under this Article on or after the | 11 | | effective date of this amendatory Act of the 102nd General | 12 | | Assembly may establish credit under this paragraph 7 for | 13 | | no more than 30 days of service as an official of that | 14 | | municipality. | 15 | | Any employee who is a
participating employee on or | 16 | | after September 24, 1981 and who was
excluded from | 17 | | participation by the age restrictions removed by Public | 18 | | Act
82-596 may receive creditable service for the period, | 19 | | on or after January
1, 1979, excluded by the age | 20 | | restriction and, in addition, if the governing
body of the | 21 | | participating municipality or participating | 22 | | instrumentality elects
to allow creditable service for all | 23 | | employees excluded by the age restriction
prior to January | 24 | | 1, 1979, for service during the period prior to that date
| 25 | | excluded by the age restriction. Any employee who was | 26 | | excluded from
participation by the age restriction removed |
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| 1 | | by Public Act 82-596 and who is
not a participating | 2 | | employee on or after September 24, 1981 may receive
| 3 | | creditable service for service after January 1,
1979. | 4 | | Creditable service under this paragraph
shall be granted | 5 | | upon payment of the employee contributions
which would | 6 | | have been required had he participated, with interest at | 7 | | the
effective rate for each year from the end of the period | 8 | | of service
established to date of payment.
| 9 | | 8. For accumulated unused sick leave: A participating | 10 | | employee who is
applying for a retirement annuity shall be | 11 | | entitled to creditable service
for that portion of the | 12 | | employee's accumulated unused sick leave
for which payment | 13 | | is not received, as follows:
| 14 | | a. Sick leave days shall be limited to those | 15 | | accumulated under a sick
leave plan established by a | 16 | | participating municipality or participating
| 17 | | instrumentality which is available to all employees or | 18 | | a class of employees.
| 19 | | b. Except as provided in item b-1, only sick leave | 20 | | days accumulated with a participating municipality or
| 21 | | participating instrumentality with which the employee | 22 | | was in service within
60 days of the effective date of | 23 | | his retirement annuity shall be credited;
If the | 24 | | employee was in service with more than one employer | 25 | | during this
period only the sick leave days with the | 26 | | employer with which the employee
has the greatest |
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| 1 | | number of unpaid sick leave days shall be considered.
| 2 | | b-1. If the employee was in the service of more | 3 | | than one employer as defined in item (2) of paragraph | 4 | | (a) of subsection (A) of Section 7-132, then the sick | 5 | | leave days from all such employers shall be credited, | 6 | | as long as the creditable service attributed to those | 7 | | sick leave days does not exceed the limitation in item | 8 | | d of this paragraph 8. If the employee was in the | 9 | | service of more than one employer described in | 10 | | paragraph (c) of subsection (B) of Section 7-132 on or | 11 | | after the effective date of this amendatory Act of the | 12 | | 101st General Assembly, then the sick leave days from | 13 | | all such employers, except for employers from which | 14 | | the employee terminated service before the effective | 15 | | date of this amendatory Act of the 101st General | 16 | | Assembly, shall be credited, as long as the creditable | 17 | | service attributed to those sick leave days does not | 18 | | exceed the limitation in item d of this paragraph 8. In | 19 | | calculating the creditable service under this item | 20 | | b-1, the sick leave days from the last employer shall | 21 | | be considered first, then the remaining sick leave | 22 | | days shall be considered until there are no more days | 23 | | or the maximum creditable sick leave threshold under | 24 | | item d of this paragraph 8 has been reached. | 25 | | c. The creditable service granted shall be | 26 | | considered solely for the
purpose of computing the |
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| 1 | | amount of the retirement annuity and shall not be
used | 2 | | to establish any minimum service period required by | 3 | | any provision of the
Illinois Pension Code, the | 4 | | effective date of the retirement annuity, or the
final | 5 | | rate of earnings.
| 6 | | d. The creditable service shall be at the rate of | 7 | | 1/20 of a month for
each full sick day, provided that | 8 | | no more than 12 months may be credited
under this | 9 | | subdivision 8.
| 10 | | e. Employee contributions shall not be required | 11 | | for creditable service
under this subdivision 8.
| 12 | | f. Each participating municipality and | 13 | | participating instrumentality
with which an employee | 14 | | has service within 60 days of the effective date of
his | 15 | | retirement annuity shall certify to the board the | 16 | | number of accumulated
unpaid sick leave days credited | 17 | | to the employee at the time of termination
of service.
| 18 | | 9. For service transferred from another system: | 19 | | Credits and
creditable service shall be granted for | 20 | | service under Article 4, 5, 8, 14,
or 16 of this Act, to | 21 | | any active member of this Fund, and to any
inactive member | 22 | | who has been a county sheriff, upon
transfer of such | 23 | | credits pursuant to Section 4-108.3, 5-235,
8-226.7,
| 24 | | 14-105.6, or 16-131.4, and payment by the member of the | 25 | | amount by
which (1) the employer and employee | 26 | | contributions that would have been required
if he had |
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| 1 | | participated in this Fund as a sheriff's law enforcement | 2 | | employee
during the period for which credit is
being | 3 | | transferred, plus interest thereon at the effective rate | 4 | | for each
year, compounded annually, from the date of | 5 | | termination of the service for
which credit is being | 6 | | transferred to the date of payment, exceeds (2) the
amount | 7 | | actually transferred to the Fund.
Such transferred service | 8 | | shall be deemed to be service as a sheriff's law
| 9 | | enforcement employee for the purposes of Section 7-142.1.
| 10 | | 10. (Blank).
| 11 | | 11. For service transferred from an Article 3 system | 12 | | under Section 3-110.3: Credits and creditable service | 13 | | shall be granted for service under Article 3 of this Act as | 14 | | provided in Section 3-110.3, to any active member of this | 15 | | Fund, upon transfer of such credits pursuant to Section | 16 | | 3-110.3. If the board determines that the amount | 17 | | transferred is less than the true cost to the Fund of | 18 | | allowing that creditable service to be established, then | 19 | | in order to establish that creditable service, the member | 20 | | must pay to the Fund an additional contribution equal to | 21 | | the difference, as determined by the board in accordance | 22 | | with the rules and procedures adopted under this | 23 | | paragraph. If the member does not make the full additional | 24 | | payment as required by this paragraph prior to termination | 25 | | of his participation with that employer, then his or her | 26 | | creditable service shall be reduced by an amount equal to |
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| 1 | | the difference between the amount transferred under | 2 | | Section 3-110.3, including any payments made by the member | 3 | | under this paragraph prior to termination, and the true | 4 | | cost to the Fund of allowing that creditable service to be | 5 | | established, as determined by the board in accordance with | 6 | | the rules and procedures adopted under this paragraph. | 7 | | The board shall establish by rule the manner of making | 8 | | the calculation required under this paragraph 11, taking | 9 | | into account the appropriate actuarial assumptions; the | 10 | | member's service, age, and salary history, and any other | 11 | | factors that the board determines to be relevant. | 12 | | 12. For omitted service: Any employee who was employed | 13 | | by a participating employer in a position that required | 14 | | participation, but who was not enrolled in the Fund, may | 15 | | establish such credits under the following conditions: | 16 | | a. Application for such credits is received by the | 17 | | Board while the employee is an active participant of | 18 | | the Fund or a reciprocal retirement system. | 19 | | b. Eligibility for participation and earnings are | 20 | | verified by the Authorized Agent of the participating | 21 | | employer for which the service was rendered. | 22 | | Creditable service under this paragraph shall be | 23 | | granted upon payment of the employee contributions that | 24 | | would have been required had he participated, which shall | 25 | | be calculated by the Fund using the member contribution | 26 | | rate in effect during the period that the service was |
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| 1 | | rendered. | 2 | | (b) Creditable service - amount:
| 3 | | 1. One month of creditable service
shall be allowed | 4 | | for each month for which a participating employee made
| 5 | | contributions as required under Section 7-173, or for | 6 | | which creditable
service is otherwise granted hereunder. | 7 | | Not more than 1 month of
service shall be credited and | 8 | | counted for 1 calendar month, and not more
than 1 year of | 9 | | service shall be credited and counted for any calendar
| 10 | | year. A calendar month means a nominal month beginning on | 11 | | the first day
thereof, and a calendar year means a year | 12 | | beginning January 1 and ending
December 31.
| 13 | | 2. A seasonal employee shall be given 12 months of | 14 | | creditable
service if he renders the number of months of | 15 | | service normally required
by the position in a 12-month | 16 | | period and he remains in service for the
entire 12-month | 17 | | period. Otherwise a fractional year of service in the
| 18 | | number of months of service rendered shall be credited.
| 19 | | 3. An intermittent employee shall be given creditable | 20 | | service for
only those months in which a contribution is | 21 | | made under Section 7-173.
| 22 | | (c) No application for correction of credits or creditable | 23 | | service shall
be considered unless the board receives an | 24 | | application for correction while
(1) the applicant is a | 25 | | participating employee and in active employment
with a | 26 | | participating municipality or instrumentality, or (2) while |
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| 1 | | the
applicant is actively participating in a pension fund or | 2 | | retirement
system which is a participating system under the | 3 | | Retirement Systems
Reciprocal Act. A participating employee or | 4 | | other applicant shall not be
entitled to credits or creditable | 5 | | service unless the required employee
contributions are made in | 6 | | a lump sum or in installments made in accordance
with board | 7 | | rule. Payments made to establish service credit under | 8 | | paragraph 1, 4, 5, 5.1, 6, 7, or 12 of subsection (a) of this | 9 | | Section must be received by the Board while the applicant is an | 10 | | active participant in the Fund or a reciprocal retirement | 11 | | system, except that an applicant may make one payment after | 12 | | termination of active participation in the Fund or a | 13 | | reciprocal retirement system. | 14 | | (d) Upon the granting of a retirement, surviving spouse or | 15 | | child
annuity, a death benefit or a separation benefit, on | 16 | | account of any
employee, all individual accumulated credits | 17 | | shall thereupon terminate.
Upon the withdrawal of additional | 18 | | contributions, the credits applicable
thereto shall thereupon | 19 | | terminate. Terminated credits shall not be applied
to increase | 20 | | the benefits any remaining employee would otherwise receive | 21 | | under
this Article.
| 22 | | (Source: P.A. 100-148, eff. 8-18-17; 101-492, eff. 8-23-19.)
| 23 | | Section 99. Effective date. This Act takes effect upon | 24 | | becoming law.
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