State of Illinois
90th General Assembly
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90_HB0576

      40 ILCS 5/14-104          from Ch. 108 1/2, par. 14-104
          Amends the State Employee Article of the Pension Code  to
      allow  purchase  of  certain  military  service  credits at a
      reduced cost. Effective immediately.
                                                     LRB9002892EGfg
                                               LRB9002892EGfg
 1        AN ACT to amend the Illinois  Pension  Code  by  changing
 2    Section 14-104.
 3        Be  it  enacted  by  the People of the State of Illinois,
 4    represented in the General Assembly:
 5        Section 5.  The  Illinois  Pension  Code  is  amended  by
 6    changing Section 14-104 as follows:
 7        (40 ILCS 5/14-104) (from Ch. 108 1/2, par. 14-104)
 8        Sec. 14-104.  Service for which contributions  permitted.
 9    Contributions  provided  for  in this Section shall cover the
10    period of service  granted,  and  be  based  upon  employee's
11    compensation  and  contribution rate in effect on the date he
12    last became a member of the System;  provided  that  for  all
13    employment  prior  to  January  1, 1969 the contribution rate
14    shall be that in effect for a noncovered employee on the date
15    he  last  became  a  member  of  the  System.   Contributions
16    permitted under this Section shall include  regular  interest
17    from  the date an employee last became a member of the System
18    to date of payment.
19        These  contributions  must  be  paid   in   full   before
20    retirement either in a lump sum or in installment payments in
21    accordance with such rules as may be adopted by the board.
22        (a)  Any  member  may  make  contributions as required in
23    this Section for any period of  service,  subsequent  to  the
24    date of establishment, but prior to the date of membership.
25        (b)  Any  employee  who had been previously excluded from
26    membership because of age at entry  and  subsequently  became
27    eligible  may elect to make contributions as required in this
28    Section for  the  period  of  service  during  which  he  was
29    ineligible.
30        (c)  An  employee  of  the  Department  of Insurance who,
31    after January 1, 1944 but  prior  to  becoming  eligible  for
                            -2-                LRB9002892EGfg
 1    membership, received salary from funds of insurance companies
 2    in  the  process of rehabilitation, liquidation, conservation
 3    or dissolution, may elect to make contributions  as  required
 4    in this Section for such service.
 5        (d)  Any  employee who rendered service in a State office
 6    to which he was elected, or rendered service in the  elective
 7    office  of  Clerk of the Appellate Court prior to the date he
 8    became a member, may make contributions for such  service  as
 9    required   in   this  Section.   Any  member  who  served  by
10    appointment of the Governor under  the  Civil  Administrative
11    Code  of  Illinois and did not participate in this System may
12    make contributions as  required  in  this  Section  for  such
13    service.
14        (e)  Any  person employed by the United States government
15    or any instrumentality or agency thereof from January 1, 1942
16    through November 15, 1946 as the result of  a  transfer  from
17    State  service  by  executive  order  of the President of the
18    United States shall  be  entitled  to  prior  service  credit
19    covering the period from January 1, 1942 through December 31,
20    1943  as  provided  for  in  this  Article  and to membership
21    service credit  for the period from January 1,  1944  through
22    November  15,  1946  by  making the contributions required in
23    this Section.  A person so employed on January  1,  1944  but
24    whose  employment began after January 1, 1942 may qualify for
25    prior service and membership service credit  under  the  same
26    conditions.
27        (f)  An  employee of the Department of Labor of the State
28    of  Illinois  who  performed  services  for  and  under   the
29    supervision  of  that Department prior to January 1, 1944 but
30    who was compensated for those services  directly  by  federal
31    funds  and not by a warrant of the Auditor of Public Accounts
32    paid by the State Treasurer may  establish  credit  for  such
33    employment  by  making  the  contributions  required  in this
34    Section. An employee of the Department of Agriculture of  the
                            -3-                LRB9002892EGfg
 1    State  of  Illinois, who performed services for and under the
 2    supervision of that Department prior to June 1, 1963, but was
 3    compensated for those services directly by federal funds  and
 4    not  paid by a warrant of the Auditor of Public Accounts paid
 5    by the State Treasurer, and who did  not  contribute  to  any
 6    other public employee retirement system for such service, may
 7    establish   credit   for   such   employment  by  making  the
 8    contributions required in this Section.
 9        (g)  Any employee who executed  a  waiver  of  membership
10    within  60  days  prior  to  January 1, 1944 may, at any time
11    while in the service of a department, file with the  board  a
12    rescission  of  such  waiver.   Upon making the contributions
13    required by this Section,  the member shall  be  granted  the
14    creditable  service  that  would  have  been  received if the
15    waiver had not been executed.
16        (h)  Until May 1, 1990, an employee who was employed on a
17    full-time basis by a  regional  planning  commission  for  at
18    least 5 continuous years may establish creditable service for
19    such  employment  by  making the contributions required under
20    this  Section,  provided  that  any  credits  earned  by  the
21    employee  in  the  commission's  retirement  plan  have  been
22    terminated.
23        (i)  Any  person  who  rendered  full  time   contractual
24    services to the General Assembly as a member of a legislative
25    staff  may establish service credit for up to 8 years of such
26    services by making  the  contributions  required  under  this
27    Section, provided that application therefor is made not later
28    than July 1, 1991.
29        (j)  By paying the contributions otherwise required under
30    this  Section,  plus  an amount determined by the Board to be
31    equal to the employer's  normal  cost  of  the  benefit  plus
32    interest,  an  employee  may  establish  service credit for a
33    period of up to 2 years spent in active military service  for
34    which  he  does  not qualify for credit under Section 14-105,
                            -4-                LRB9002892EGfg
 1    provided that (1) he was  not  dishonorably  discharged  from
 2    such  military  service, and (2) the amount of service credit
 3    established by a member under this subsection (j), when added
 4    to the amount of  military  service  credit  granted  to  the
 5    member  under  subsection  (b)  of  Section 14-105, shall not
 6    exceed 5 years.  However, an  employee  establishing  service
 7    credit  under this subsection (j) need not pay the employer's
 8    normal cost of the benefit plus interest and need not pay the
 9    interest on the employee contribution that is required  under
10    the  first  paragraph  of this Section if the contribution is
11    paid to the System on or after the  effective  date  of  this
12    amendatory  Act  of 1997 and before July 1, 1998.  The change
13    in this subsection made by this amendatory Act of  1997  does
14    not  entitle  any  person  to  a  refund  of contributions or
15    interest already paid to establish service credit under  this
16    subsection.
17        (k)  An employee who was employed on a full-time basis by
18    the   Illinois   State's   Attorneys   Association  Statewide
19    Appellate Assistance Service LEAA-ILEC grant project prior to
20    the time that project became the State's Attorneys  Appellate
21    Service  Commission,  now the Office of the State's Attorneys
22    Appellate Prosecutor, an  agency  of  State  government,  may
23    establish  creditable  service  for  not  more than 60 months
24    service for such employment by making contributions  required
25    under this Section.
26    (Source: P.A. 86-273; 86-1488; 87-794; 87-895; 87-1265.)
27        Section  99.  Effective date.  This Act takes effect upon
28    becoming law.

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