Full Text of HB0373 094th General Assembly
HB0373enr 94TH GENERAL ASSEMBLY
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| AN ACT concerning public employee benefits.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 5. The Illinois Pension Code is amended by changing | 5 |
| Sections 3-110 and 7-139 and adding Sections 3-110.8 and | 6 |
| 7-139.11 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 | 18 |
| receives
a disability pension under Section 3-114.1, 3-114.2, | 19 |
| 3-114.3, or 3-114.6
shall be counted as creditable service, | 20 |
| provided that
(i) the police officer returns to active service | 21 |
| after the disability for a
period at least equal to the period | 22 |
| for which credit is to be established and
(ii) the police | 23 |
| 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 | 25 |
| disability pension
is based. These contributions may be paid at | 26 |
| any time prior to the
commencement of a retirement pension. The | 27 |
| police officer may, but need not,
elect to have the | 28 |
| contributions deducted from the disability pension or to
pay | 29 |
| them in installments on a schedule approved by the board. If | 30 |
| not
deducted from the disability pension, the contributions | 31 |
| shall include
interest at the rate of 6% per year, compounded | 32 |
| annually, from the date
for which service credit is being |
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| established to the date of payment. If
contributions are paid | 2 |
| under this subsection (a-5) in excess of those
needed to | 3 |
| establish the credit, the excess shall be refunded. This
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| subsection (a-5) applies to persons receiving a disability | 5 |
| pension under
Section 3-114.1, 3-114.2, 3-114.3, or 3-114.6 on | 6 |
| the effective date of this
amendatory Act of the 91st General | 7 |
| Assembly, as well as persons who begin to
receive such a | 8 |
| disability pension after that date.
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| (b) Creditable service includes all periods of service in | 10 |
| the military,
naval or air forces of the United States entered | 11 |
| upon while an active police
officer of a municipality, provided | 12 |
| that upon applying for a permanent pension,
and in accordance | 13 |
| 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 | 15 |
| had been a
regular contributor during such period, to the | 16 |
| extent that the municipality
which the police officer served | 17 |
| has not made such contributions in the
officer's behalf. The | 18 |
| total amount of such creditable service shall not
exceed 5 | 19 |
| years, except that any police officer who on July 1, 1973 had | 20 |
| more
than 5 years of such creditable service shall receive the | 21 |
| total amount thereof.
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| (c) Creditable service also includes service rendered by a | 23 |
| police
officer while on leave of absence from a police | 24 |
| department to serve as an
executive of an organization whose | 25 |
| membership consists of members of a
police department, subject | 26 |
| to the following conditions: (i) the police
officer is a | 27 |
| 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 | 29 |
| officer
received no credit for such service under any other | 30 |
| retirement system,
pension fund, or annuity and benefit fund | 31 |
| included in this Code; (iii)
pursuant to the rules of the board | 32 |
| the police officer pays to the fund the
amount he or she would | 33 |
| have contributed had the officer been an active
member of the | 34 |
| 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 | 2 |
| service originally
established in another police pension | 3 |
| fund under this Article or in the Fund
established under | 4 |
| 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 | 6 |
| and (ii) any
additional contribution required under | 7 |
| paragraph (2) of this subsection has
been paid in full in | 8 |
| accordance with the requirements of this subsection (d).
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| (2) If the board of the pension fund to which | 10 |
| creditable service and
related
contributions are | 11 |
| transferred under Section 3-110.7 or 7-139.9 determines | 12 |
| that
the amount transferred is less than the true cost to | 13 |
| the pension fund of
allowing that creditable service to be | 14 |
| established, then in order to establish
that creditable | 15 |
| service the police officer must pay to the pension fund, | 16 |
| within
the payment period specified in paragraph (3) of | 17 |
| this subsection, an additional
contribution equal to the | 18 |
| difference, as determined by the board in accordance
with | 19 |
| the rules and procedures adopted under paragraph (6) of | 20 |
| 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 | 23 |
| from the date of the
transfer of contributions under | 24 |
| Section 3-110.7 or 7-139.9 and (ii) before the
police | 25 |
| officer terminates service with the fund. The additional | 26 |
| contribution
may be paid in a lump sum or in accordance | 27 |
| with a schedule of installment
payments authorized by the | 28 |
| board.
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| (4) If the police officer dies in service before | 30 |
| payment in full has been
made and before the expiration of | 31 |
| the 5-year payment period, the surviving
spouse of the | 32 |
| 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 | 34 |
| case the creditable
service shall be granted as though the | 35 |
| deceased police officer had paid the
remaining balance on | 36 |
| the day before the date of death.
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| (5) If the additional contribution is not paid in full | 2 |
| within the
required time, the creditable service shall not | 3 |
| be granted and the
police officer (or the officer's | 4 |
| surviving spouse or estate) shall be entitled
to receive a | 5 |
| refund of (i) any partial payment of the additional | 6 |
| contribution
that has been made by the police officer and | 7 |
| (ii) those portions of the amounts
transferred under | 8 |
| subdivision (a)(1) of Section 3-110.7 or subdivisions | 9 |
| (a)(1)
and (a)(3) of Section 7-139.9 that represent | 10 |
| employee contributions paid by the
police officer (but not | 11 |
| the accumulated interest on those contributions) and
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| interest paid by the police officer to the prior pension | 13 |
| fund in order to
reinstate service terminated by acceptance | 14 |
| of a refund.
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| At the time of paying a refund under this item (5), the | 16 |
| pension fund
shall also repay to the pension fund from | 17 |
| which the contributions were
transferred under Section | 18 |
| 3-110.7 or 7-139.9 the amount originally transferred
under | 19 |
| subdivision (a)(2) of that Section, plus interest at the | 20 |
| rate of 6% per
year, compounded annually, from the date of | 21 |
| the original transfer to the date
of repayment. Amounts | 22 |
| repaid to the Article 7 fund under this provision shall
be | 23 |
| credited to the appropriate municipality.
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| Transferred credit that is not granted due to failure | 25 |
| to pay the additional
contribution within the required time | 26 |
| is lost; it may not be transferred to
another pension fund | 27 |
| and may not be reinstated in the pension fund from which
it | 28 |
| was transferred.
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| (6) The Public Employee Pension Fund Division of the | 30 |
| Department of
Insurance
shall establish by rule the manner | 31 |
| of making the calculation required under
paragraph (2) of | 32 |
| this subsection, taking into account the appropriate | 33 |
| actuarial
assumptions; the police officer's service, age, | 34 |
| and salary history; the level
of funding of the pension | 35 |
| fund to which the credits are being transferred; and
any | 36 |
| other factors that the Division determines to be relevant. |
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| The rules may
require that all calculations made under | 2 |
| paragraph (2) be reported to the
Division by the board | 3 |
| performing the calculation, together with documentation
of | 4 |
| the creditable service to be transferred, the amounts of | 5 |
| contributions and
interest to be transferred, the manner in | 6 |
| which the calculation was performed,
the numbers relied | 7 |
| upon in making the calculation, the results of the
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| calculation, and any other information the Division may | 9 |
| deem useful.
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| (e)(1) Creditable service also includes periods of | 11 |
| service originally
established in the Fund
established | 12 |
| under Article 7 of this Code for which the contributions | 13 |
| have
been transferred under Section 7-139.11.
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| (2) If the board of the pension fund to which | 15 |
| creditable service and
related
contributions are | 16 |
| transferred under Section 7-139.11 determines that
the | 17 |
| amount transferred is less than the true cost to the | 18 |
| pension fund of
allowing that creditable service to be | 19 |
| established, then the amount of creditable service the | 20 |
| police officer may establish under this subsection (e) | 21 |
| shall be reduced by an amount equal to the difference, as | 22 |
| determined by the board in accordance
with the rules and | 23 |
| 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 | 26 |
| rule the manner of making the calculation required under
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| paragraph (2) of this subsection, taking into account the | 28 |
| appropriate actuarial
assumptions; the police officer's | 29 |
| service, age, and salary history; the level
of funding of | 30 |
| the pension fund to which the credits are being | 31 |
| transferred; and
any other factors that the Division | 32 |
| determines to be relevant. The rules may
require that all | 33 |
| calculations made under paragraph (2) be reported to the
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| Division by the board performing the calculation, together | 35 |
| with documentation
of the creditable service to be | 36 |
| transferred, the amounts of contributions and
interest to |
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| be transferred, the manner in which the calculation was | 2 |
| performed,
the numbers relied upon in making the | 3 |
| calculation, the results of the
calculation, and any other | 4 |
| information the Division may deem useful.
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| (Source: P.A. 90-460, eff. 8-17-97; 91-887, eff. 7-6-00; | 6 |
| 91-939, eff.
2-1-01.)
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| (40 ILCS 5/3-110.8 new)
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| Sec. 3-110.8. Transfer to IMRF. | 9 |
| (a) Until January 1, 2006, any active member of the | 10 |
| Illinois Municipal Retirement Fund who
has less than 8 years of | 11 |
| creditable service in a police pension fund under this Article, | 12 |
| may apply for transfer of his creditable service accumulated
in | 13 |
| that fund to the Illinois Municipal
Retirement Fund. The | 14 |
| creditable service shall be transferred upon payment by
the | 15 |
| police pension fund to the Illinois Municipal Retirement Fund | 16 |
| of an amount
equal to: | 17 |
| (1) the amounts accumulated to the credit of the | 18 |
| applicant on the books
of the fund on the date of transfer; | 19 |
| and
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| (2) employer contributions in an amount equal to the | 21 |
| amount determined
under subparagraph (1); and
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| (3) any interest paid by the applicant in order to | 23 |
| reinstate service.
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| Participation in this Fund shall terminate on the date of | 25 |
| transfer.
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| (b) Until January 1, 2006, any member under subsection (a) | 27 |
| may reinstate service which was
terminated by receipt of a | 28 |
| refund, by payment to the police pension fund of the
amount of | 29 |
| the refund with interest thereon at the rate of 6% per year,
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| compounded annually, from the date of refund to the date of | 31 |
| payment.
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| (40 ILCS 5/7-139) (from Ch. 108 1/2, par. 7-139)
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| Sec. 7-139. Credits and creditable service to employees.
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| (a) Each participating employee shall be granted credits |
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| and creditable
service, for purposes of determining the amount | 2 |
| of any annuity or benefit
to which he or a beneficiary is | 3 |
| entitled, as follows:
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| 1. For prior service: Each participating employee who | 5 |
| is an employee
of a participating municipality or | 6 |
| participating instrumentality on the
effective date shall | 7 |
| be granted creditable service, but no credits under
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| paragraph 2 of this subsection (a), for periods of prior | 9 |
| service for which
credit has not been received under any | 10 |
| other pension fund or retirement system
established under | 11 |
| this Code, as follows:
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| If the effective date of participation for the | 13 |
| participating municipality
or participating | 14 |
| instrumentality is on or before January 1, 1998, creditable
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| service shall be granted for the entire period of prior | 16 |
| service with that
employer without any employee | 17 |
| contribution.
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| If the effective date of participation for the | 19 |
| participating municipality
or participating | 20 |
| instrumentality is after January 1, 1998, creditable
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| service shall be granted for the last 20% of the period of | 22 |
| prior service with
that employer, but no more than 5 years, | 23 |
| without any employee contribution. A
participating | 24 |
| employee may establish creditable service for the | 25 |
| remainder of
the period of prior service with that employer | 26 |
| by making an application in
writing, accompanied by payment | 27 |
| of an employee contribution in an
amount determined by the | 28 |
| Fund, based on the employee contribution rates in
effect at | 29 |
| the time of application for the creditable service and the | 30 |
| employee's
salary rate on the effective date of | 31 |
| participation for that employer, plus
interest at the | 32 |
| effective rate from the date of the prior service to the | 33 |
| date
of payment. Application for this creditable service | 34 |
| may be made at any time
while the employee is still in | 35 |
| service.
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| A municipality that (i) has at least 35 employees; (ii) |
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| is located in a county with at least 2,000,000 inhabitants; | 2 |
| and (iii) maintains an independent defined benefit pension | 3 |
| plan for the benefit of its eligible employees may restrict | 4 |
| creditable service in whole or in part for periods of prior | 5 |
| service with the employer if the governing body of the | 6 |
| municipality adopts an irrevocable resolution to restrict | 7 |
| that creditable service and files the resolution with the | 8 |
| board before the municipality's effective date of | 9 |
| participation.
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| Any person who has withdrawn from the service of a | 11 |
| participating
municipality
or participating | 12 |
| instrumentality prior to the effective date, who reenters
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| the service of the same municipality or participating | 14 |
| instrumentality after
the effective date and becomes a | 15 |
| participating employee is entitled to
creditable service | 16 |
| for prior service as otherwise provided in this
subdivision | 17 |
| (a)(1) only if he or she renders 2 years of service as a
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| participating employee after the effective date. | 19 |
| Application
for such service must be made while in a | 20 |
| participating status.
The salary rate to be used in the | 21 |
| calculation of the required employee
contribution, if any, | 22 |
| shall be the employee's salary rate at the time of first
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| reentering service with the employer after the employer's | 24 |
| effective date of
participation.
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| 2. For current service, each participating employee | 26 |
| shall be
credited with:
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| a. Additional credits of amounts equal to each | 28 |
| payment of additional
contributions received from him | 29 |
| under Section 7-173, as of the
date the corresponding | 30 |
| payment of earnings is payable to him.
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| b. Normal credits of amounts equal to each payment | 32 |
| of normal
contributions received from him, as of the | 33 |
| date the corresponding payment of
earnings is payable | 34 |
| to him, and normal contributions made for the purpose | 35 |
| of
establishing out-of-state service credits as | 36 |
| permitted under the conditions set
forth in paragraph 6 |
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| of this subsection (a).
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| c. Municipality credits in an amount equal to 1.4 | 3 |
| times the normal
credits, except those established by | 4 |
| out-of-state service credits, as of
the date of | 5 |
| computation of any benefit if these credits would | 6 |
| increase
the benefit.
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| d. Survivor credits equal to each payment of | 8 |
| survivor contributions
received from the participating | 9 |
| employee as of the date the
corresponding payment of | 10 |
| earnings is payable, and survivor contributions made
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| for the purpose of establishing out-of-state service | 12 |
| credits.
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| 3. For periods of temporary and total and permanent | 14 |
| disability
benefits, each employee receiving disability | 15 |
| benefits shall be granted
creditable service for the period | 16 |
| during which disability benefits are
payable. Normal and | 17 |
| survivor credits, based upon the rate of earnings
applied | 18 |
| for disability benefits, shall also be granted if such | 19 |
| credits
would result in a higher benefit to any such | 20 |
| employee or his
beneficiary.
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| 4. For authorized leave of absence without pay: A | 22 |
| participating
employee shall be granted credits and | 23 |
| creditable service for periods of
authorized leave of | 24 |
| absence without pay under the following
conditions:
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| a. An application for credits and creditable | 26 |
| service is submitted to the
board while the employee is | 27 |
| in a status of
active employment, and within 2 years | 28 |
| after termination of the
leave of absence period for | 29 |
| which credits and creditable service are
sought.
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| b. Not more than 12 complete months of creditable | 31 |
| service
for authorized leave of absence without pay | 32 |
| shall be counted for purposes of
determining any | 33 |
| benefits payable under this Article.
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| c. Credits and creditable service shall be granted | 35 |
| for leave of
absence only if such leave is approved by | 36 |
| the governing body of the
municipality, including |
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| approval of the estimated cost thereof to the
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| municipality as determined by the fund, and employee | 3 |
| contributions, plus
interest at the effective rate | 4 |
| applicable for each year from the end of
the period of | 5 |
| leave to date of payment, have been paid to the fund in
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| accordance with Section 7-173. The contributions shall | 7 |
| be computed upon the
assumption earnings continued | 8 |
| during the period of leave at the rate in
effect when | 9 |
| the leave began.
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| d. Benefits under the provisions of Sections | 11 |
| 7-141, 7-146, 7-150
and 7-163 shall become payable to | 12 |
| employees on authorized leave of
absence, or their | 13 |
| designated beneficiary, only if such leave of absence
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| is creditable hereunder, and if the employee has at | 15 |
| least one year of
creditable service other than the | 16 |
| service granted for leave of absence.
Any employee | 17 |
| contributions due may be deducted from any benefits
| 18 |
| payable.
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| e. No credits or creditable service shall be | 20 |
| allowed for leave of
absence without pay during any | 21 |
| period of prior service.
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| 5. For military service: The governing body of a | 23 |
| municipality or
participating instrumentality may elect to | 24 |
| allow creditable service to
participating employees who | 25 |
| leave their employment to serve in the armed
forces of the | 26 |
| United States for all periods of such service, provided
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| that the person returns to active employment within 90 days | 28 |
| after
completion
of full time active duty, but no | 29 |
| creditable service shall be allowed such
person for any | 30 |
| period that can be used in the computation of a pension
or | 31 |
| any other pay or benefit, other than pay for active duty, | 32 |
| for service
in any branch of the armed forces of the United | 33 |
| States. If necessary to
the computation of any benefit, the | 34 |
| board shall establish municipality
credits for | 35 |
| participating employees under this paragraph on the
| 36 |
| assumption that the employee received earnings at the rate |
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| received at
the time he left the employment to enter the | 2 |
| armed forces. A
participating employee in the armed forces | 3 |
| shall not be considered an
employee during such period of | 4 |
| service and no additional death and no
disability benefits | 5 |
| are payable for death or disability during such period.
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| Any participating employee who left his employment | 7 |
| with a
municipality or participating instrumentality to | 8 |
| serve in the armed
forces of the United States and who | 9 |
| again became a participating
employee within 90 days after | 10 |
| completion of full time active duty by
entering the service | 11 |
| of a different municipality or participating
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| instrumentality, which has elected to allow creditable | 13 |
| service for
periods of military service under the preceding | 14 |
| paragraph, shall also be
allowed creditable service for his | 15 |
| period of military service on the
same terms that would | 16 |
| apply if he had been employed, before entering
military | 17 |
| service, by the municipality or instrumentality which | 18 |
| employed
him after he left the military service and the | 19 |
| employer costs arising in
relation to such grant of | 20 |
| creditable service shall be charged to and
paid by that | 21 |
| municipality or instrumentality.
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| Notwithstanding the foregoing, any participating | 23 |
| employee
shall be entitled to creditable service as | 24 |
| required by any federal law
relating to re-employment | 25 |
| rights of persons who served in the United States
Armed | 26 |
| Services. Such creditable service shall be granted upon | 27 |
| payment by
the member of an amount equal to the employee | 28 |
| contributions which would
have been required had the | 29 |
| employee continued in service at the same
rate of earnings | 30 |
| during the military leave period, plus interest at
the | 31 |
| effective rate.
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| 5.1. In addition to any creditable service established | 33 |
| under
paragraph 5 of this subsection (a), creditable | 34 |
| service may be granted for
up to 24 months of service in | 35 |
| the armed forces of the United States.
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| In order to receive creditable service for military |
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| service under this
paragraph 5.1, a participating employee | 2 |
| must (1) apply to the Fund
in writing and provide evidence | 3 |
| of the military service that is satisfactory
to the Board; | 4 |
| (2) obtain the written approval of the current employer; | 5 |
| and (3)
make contributions to the Fund equal to (i)
the | 6 |
| employee contributions that would have been required had | 7 |
| the service been
rendered as a member, plus (ii) an amount | 8 |
| determined by the board to be equal
to the employer's | 9 |
| normal cost of the benefits accrued for that military
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| service, plus (iii) interest on items (i) and (ii) from the | 11 |
| date of first
membership in the Fund to the date of | 12 |
| payment. If payment is made during
the 6-month period that | 13 |
| begins 3 months after the effective date of this
amendatory | 14 |
| Act of 1997, the required interest shall be at the rate of | 15 |
| 2.5%
per year, compounded annually; otherwise, the | 16 |
| required interest shall be
calculated at the regular | 17 |
| interest rate.
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| 6. For out-of-state service: Creditable service shall | 19 |
| be granted for
service rendered to an out-of-state local | 20 |
| governmental body under the
following conditions: The | 21 |
| employee had participated and has irrevocably
forfeited | 22 |
| all rights to benefits in the out-of-state public employees
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| pension system; the governing body of his participating | 24 |
| municipality or
instrumentality authorizes the employee to | 25 |
| establish such service; the
employee has 2 years current | 26 |
| service with this municipality or
participating | 27 |
| instrumentality; the employee makes a payment of
| 28 |
| contributions, which shall be computed at 8% (normal) plus | 29 |
| 2% (survivor)
times length of service purchased times the | 30 |
| average rate of earnings for the
first 2
years of service | 31 |
| with the municipality or participating
instrumentality | 32 |
| whose governing body authorizes the service established
| 33 |
| plus interest at the effective rate on the date such | 34 |
| credits are
established, payable from the date the employee | 35 |
| completes the required 2
years of current service to date | 36 |
| of payment. In no case shall more than
120 months of |
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| creditable service be granted under this provision.
| 2 |
| 7. For retroactive service: Any employee who could have | 3 |
| but did not
elect to become a participating employee, or | 4 |
| who should have been a
participant in the Municipal Public | 5 |
| Utilities Annuity and Benefit Fund
before that fund was | 6 |
| superseded, may receive creditable service for the
period | 7 |
| of service not to exceed 50 months; however, a current or | 8 |
| former
elected or appointed official of a participating | 9 |
| municipality may establish credit under this paragraph 7 | 10 |
| for more than 50
months of service as an official of that | 11 |
| municipality, if the excess over 50 months is approved by | 12 |
| resolution of the
governing body of the affected | 13 |
| municipality filed with
the Fund before January 1, 2002.
| 14 |
| Any employee who is a
participating employee on or | 15 |
| after September 24, 1981 and who was
excluded from | 16 |
| participation by the age restrictions removed by Public Act
| 17 |
| 82-596 may receive creditable service for the period, on or | 18 |
| after January
1, 1979, excluded by the age restriction and, | 19 |
| in addition, if the governing
body of the participating | 20 |
| municipality or participating instrumentality elects
to | 21 |
| allow creditable service for all employees excluded by the | 22 |
| age restriction
prior to January 1, 1979, for service | 23 |
| during the period prior to that date
excluded by the age | 24 |
| restriction. Any employee who was excluded from
| 25 |
| participation by the age restriction removed by Public Act | 26 |
| 82-596 and who is
not a participating employee on or after | 27 |
| September 24, 1981 may receive
creditable service for | 28 |
| service after January 1,
1979. Creditable service under | 29 |
| this paragraph
shall be granted upon payment of the | 30 |
| employee contributions
which would have been required had | 31 |
| he participated, with interest at the
effective rate for | 32 |
| each year from the end of the period of service
established | 33 |
| to date of payment.
| 34 |
| 8. For accumulated unused sick leave: A participating | 35 |
| employee who is
applying for a retirement annuity shall be | 36 |
| entitled to creditable service
for that portion of the |
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| employee's accumulated unused sick leave
for which payment | 2 |
| is not received, as follows:
| 3 |
| a. Sick leave days shall be limited to those | 4 |
| accumulated under a sick
leave plan established by a | 5 |
| participating municipality or participating
| 6 |
| instrumentality which is available to all employees or | 7 |
| a class of employees.
| 8 |
| b. Only sick leave days accumulated with a | 9 |
| participating municipality or
participating | 10 |
| instrumentality with which the employee was in service | 11 |
| within
60 days of the effective date of his retirement | 12 |
| annuity shall be credited;
If the employee was in | 13 |
| service with more than one employer during this
period | 14 |
| only the sick leave days with the employer with which | 15 |
| the employee
has the greatest number of unpaid sick | 16 |
| leave days shall be considered.
| 17 |
| c. The creditable service granted shall be | 18 |
| considered solely for the
purpose of computing the | 19 |
| amount of the retirement annuity and shall not be
used | 20 |
| to establish any minimum service period required by any | 21 |
| provision of the
Illinois Pension Code, the effective | 22 |
| date of the retirement annuity, or the
final rate of | 23 |
| earnings.
| 24 |
| d. The creditable service shall be at the rate of | 25 |
| 1/20 of a month for
each full sick day, provided that | 26 |
| no more than 12 months may be credited
under this | 27 |
| subdivision 8.
| 28 |
| e. Employee contributions shall not be required | 29 |
| for creditable service
under this subdivision 8.
| 30 |
| f. Each participating municipality and | 31 |
| participating instrumentality
with which an employee | 32 |
| has service within 60 days of the effective date of
his | 33 |
| retirement annuity shall certify to the board the | 34 |
| number of accumulated
unpaid sick leave days credited | 35 |
| to the employee at the time of termination
of service.
| 36 |
| 9. For service transferred from another system: |
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LRB094 02486 LRD 32487 b |
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| Credits and
creditable service shall be granted for service | 2 |
| under Article 3, 4, 5, 14
or 16 of this Act, to any active | 3 |
| member of this Fund, and to any
inactive member who has | 4 |
| been a county sheriff, upon
transfer of such credits | 5 |
| pursuant to Section 3-110.3, 4-108.3, 5-235,
14-105.6 or | 6 |
| 16-131.4, and payment by the member of the amount by
which | 7 |
| (1) the employer and employee contributions that would have | 8 |
| been required
if he had participated in this Fund as a | 9 |
| sheriff's law enforcement employee
during the period for | 10 |
| which credit is
being transferred, plus interest thereon at | 11 |
| the effective rate for each
year, compounded annually, from | 12 |
| the date of termination of the service for
which credit is | 13 |
| being transferred to the date of payment, exceeds (2) the
| 14 |
| amount actually transferred to the Fund.
Such transferred | 15 |
| service shall be deemed to be service as a sheriff's law
| 16 |
| enforcement employee for the purposes of Section 7-142.1.
| 17 |
| 10. For service transferred from an Article 3 system | 18 |
| under Section 3-110.8: Credits and
creditable service | 19 |
| shall be granted for service under Article 3 of this Act as | 20 |
| provided in Section 3-110.8, to any active member of this | 21 |
| Fund upon
transfer of such credits pursuant to Section | 22 |
| 3-110.8. If the amount by
which (1) the employer and | 23 |
| employee contributions that would have been required
if he | 24 |
| had participated in this Fund during the period for which | 25 |
| credit is
being transferred, plus interest thereon at the | 26 |
| effective rate for each
year, compounded annually, from the | 27 |
| date of termination of the service for
which credit is | 28 |
| being transferred to the date of payment, exceeds (2) the
| 29 |
| amount actually transferred to the Fund, then the amount of | 30 |
| creditable service established under this paragraph 10 | 31 |
| shall be reduced by a corresponding amount in accordance | 32 |
| with the rules and procedures established under this | 33 |
| paragraph 10.
| 34 |
| The board shall establish by rule the manner of making | 35 |
| the calculation required under
this paragraph 10, taking | 36 |
| into account the appropriate actuarial
assumptions; the |
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LRB094 02486 LRD 32487 b |
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| member's service, age, and salary history; the level
of | 2 |
| funding of the employer; and
any other factors that the | 3 |
| board determines to be relevant.
| 4 |
| (b) Creditable service - amount:
| 5 |
| 1. One month of creditable service
shall be allowed for | 6 |
| each month for which a participating employee made
| 7 |
| contributions as required under Section 7-173, or for which | 8 |
| creditable
service is otherwise granted hereunder. Not | 9 |
| more than 1 month of
service shall be credited and counted | 10 |
| for 1 calendar month, and not more
than 1 year of service | 11 |
| shall be credited and counted for any calendar
year. A | 12 |
| calendar month means a nominal month beginning on the first | 13 |
| day
thereof, and a calendar year means a year beginning | 14 |
| January 1 and ending
December 31.
| 15 |
| 2. A seasonal employee shall be given 12 months of | 16 |
| creditable
service if he renders the number of months of | 17 |
| service normally required
by the position in a 12-month | 18 |
| period and he remains in service for the
entire 12-month | 19 |
| period. Otherwise a fractional year of service in the
| 20 |
| number of months of service rendered shall be credited.
| 21 |
| 3. An intermittent employee shall be given creditable | 22 |
| service for
only those months in which a contribution is | 23 |
| made under Section 7-173.
| 24 |
| | 25 |
| (c) No application for correction of credits or creditable | 26 |
| service shall
be considered unless the board receives an | 27 |
| application for correction while
(1) the applicant is a | 28 |
| participating employee and in active employment
with a | 29 |
| participating municipality or instrumentality, or (2) while | 30 |
| the
applicant is actively participating in a pension fund or | 31 |
| retirement
system which is a participating system under the | 32 |
| Retirement Systems
Reciprocal Act. A participating employee or | 33 |
| other applicant shall not be
entitled to credits or creditable | 34 |
| service unless the required employee
contributions are made in | 35 |
| a lump sum or in installments made in accordance
with board | 36 |
| rule.
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LRB094 02486 LRD 32487 b |
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| (d) Upon the granting of a retirement, surviving spouse or | 2 |
| child
annuity, a death benefit or a separation benefit, on | 3 |
| account of any
employee, all individual accumulated credits | 4 |
| shall thereupon terminate.
Upon the withdrawal of additional | 5 |
| contributions, the credits applicable
thereto shall thereupon | 6 |
| terminate. Terminated credits shall not be applied
to increase | 7 |
| the benefits any remaining employee would otherwise receive | 8 |
| under
this Article.
| 9 |
| (Source: P.A. 92-424, eff. 8-17-01; 93-933, eff. 8-13-04.)
| 10 |
| (40 ILCS 5/7-139.11 new)
| 11 |
| Sec. 7-139.11. Transfer to Article 3 pension fund. | 12 |
| (a) Until January 1, 2006, a person who has less than 8 | 13 |
| years of creditable service under this Article and who has | 14 |
| become an active
participant in a police pension fund | 15 |
| established under Article 3 of this Code
may apply for transfer | 16 |
| to that Article 3 fund of his or her creditable service
| 17 |
| accumulated under this Article. At the
time of the transfer the | 18 |
| Fund shall pay to the police pension fund an amount
equal to: | 19 |
| (1) the amounts accumulated to the credit of the | 20 |
| applicant under this Article, including interest; and
| 21 |
| (2) the municipality credits based on that service, | 22 |
| including interest;
and
| 23 |
| (3) any interest paid by the applicant in order to | 24 |
| reinstate that service.
| 25 |
| Participation in this Fund with respect to the transferred | 26 |
| credits shall
terminate on the date of transfer.
| 27 |
| (b) An active member of a pension fund established under | 28 |
| Article 3
of this Code may reinstate creditable service
under | 29 |
| this Article that was terminated by receipt of a refund, by | 30 |
| paying to the
Fund the amount of the refund plus interest | 31 |
| thereon at the rate of 6% per year,
compounded annually, from | 32 |
| the date of refund to the date of payment.
| 33 |
| Section 99. Effective date. This Act takes effect upon | 34 |
| becoming law.
|
|