Full Text of SB2928 97th General Assembly
SB2928 97TH GENERAL ASSEMBLY |
| | 97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012 SB2928 Introduced 2/1/2012, by Sen. Sue Rezin SYNOPSIS AS INTRODUCED: |
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40 ILCS 5/2-110 | from Ch. 108 1/2, par. 2-110 |
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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,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Illinois Pension Code is amended by changing | 5 | | Section 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
| 9 | | person first became a member, and ending on the date under | 10 | | consideration,
excluding all intervening periods of | 11 | | nonmembership following resignation or
expiration of any term | 12 | | of 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 | 15 | | considered as a
month of service.
| 16 | | Service includes the total period of time for which
a | 17 | | participant is elected as a member or officer, even though
he | 18 | | or she does not complete the term because of death, | 19 | | resignation,
judicial decision, or operation of law, provided | 20 | | that the contributions
required under this Article for such | 21 | | entire period of office have been made
by or on behalf of the | 22 | | participant. In the case of a participant appointed
or elected | 23 | | to fill a vacancy, service includes the total period from
| 24 | | January 1 of the year in which his or her service commences to | 25 | | the end of
the term in which the vacancy occurs, provided the | 26 | | participant contributes
in the year of appointment an amount |
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| 1 | | equal to the contributions that would
have been required had | 2 | | the participant received salary for the entire year.
The | 3 | | foregoing provisions relating to a participant appointed or | 4 | | elected to
fill a vacancy shall not apply if the participant | 5 | | was a member of the other
legislative chamber at the time of | 6 | | appointment or election. | 7 | | The provisions of this subdivision (C) do not apply to | 8 | | individuals who first become participants on or after the | 9 | | effective date of this amendatory Act of the 97th General | 10 | | Assembly.
| 11 | | (D) Notwithstanding the other provisions of this Section, | 12 | | if
application to transfer or establish service credit under | 13 | | paragraph (c) or
(e) of subsection (B) of this Section is made | 14 | | between January 1, 1992
and February 1, 1993, the contribution | 15 | | required for such credit shall be an
amount equal to (1) the | 16 | | contribution rate in effect for participants at the
date of | 17 | | membership in this system multiplied by the salary then in | 18 | | effect
for members of the General Assembly for each year of | 19 | | service for which
credit is being granted, plus (2) interest | 20 | | thereon at 6% per annum
compounded annually, from the date of | 21 | | membership to the date of payment by
the member, less (3) any | 22 | | amount transferred to this system on behalf of the
member on | 23 | | account of such service credit.
| 24 | | (Source: P.A. 86-27; 86-1028; 87-794; 87-1265.)
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