State of Illinois
90th General Assembly
Legislation

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[ Introduced ][ Engrossed ][ House Amendment 001 ]
[ Senate Amendment 001 ][ Senate Amendment 002 ]

90_HB0593enr

      40 ILCS 5/3-109           from Ch. 108 1/2, par. 3-109
      40 ILCS 5/3-109.1         from Ch. 108 1/2, par. 3-109.1
      40 ILCS 5/3-110           from Ch. 108 1/2, par. 3-110
      40 ILCS 5/3-110.7 new
      40 ILCS 5/3-111           from Ch. 108 1/2, par. 3-111
      40 ILCS 5/7-109           from Ch. 108 1/2, par. 7-109
      40 ILCS 5/7-139.9 new
      30 ILCS 805/8.21 new
          Amends the Illinois Pension Code to allow active  members
      to  transfer  credits between downstate police pension funds.
      Requires payment of any  resulting  additional  cost  to  the
      fund.   Allows  a person with less than 8 years of creditable
      service to receive a retirement pension from a police pension
      fund, if the person has at least 8 years of credit in another
      police pension fund and is receiving  a  retirement  pension.
      Allows reinstatement of service terminated by refund.  Allows
      chiefs  who  have  elected  to participate in IMRF to rescind
      that election until January 1, 1999 and to  transfer  certain
      credits  back  to  the police pension fund.  Amends the State
      Mandates Act to require implementation without reimbursement.
      Effective immediately.
                                                     LRB9001461EGfg
HB0593 Enrolled                                LRB9001461EGfg
 1        AN ACT to amend the Illinois  Pension  Code  by  changing
 2    Sections 3-109, 3-109.1, 3-110, 3-111, 7-109, and 9-179.3 and
 3    adding  Sections  3-110.7  and 7-139.9 and to amend the State
 4    Mandates Act.
 5        Be it enacted by the People of  the  State  of  Illinois,
 6    represented in the General Assembly:
 7        Section  5.  The  Illinois  Pension  Code  is  amended by
 8    changing Sections 3-109, 3-109.1, 3-110,  3-111,  7-109,  and
 9    9-179.3 and adding Sections 3-110.7 and 7-139.9 as follows:
10        (40 ILCS 5/3-109) (from Ch. 108 1/2, par. 3-109)
11        Sec. 3-109.  Persons excluded.
12        (a)  The  following  persons  shall  not  be  eligible to
13    participate in a fund created under this Article:
14             (1)  part-time  police  officers,   special   police
15        officers,  night  watchmen,  temporary employees, traffic
16        guards or so-called auxiliary police  officers  specially
17        appointed  to aid or direct traffic at or near schools or
18        public functions, or to aid in civil  defense,  municipal
19        parking   lot   attendants,   clerks  or  other  civilian
20        employees of a police  department  who  perform  clerical
21        duties exclusively;
22             (2)   any  police  officer  who  fails  to  pay  the
23        contributions required under  Section  3-125.1,  computed
24        (i)  for  funds established prior to August 5, 1963, from
25        the date the municipality established  the  fund  or  the
26        date  of  a police officer's first appointment (including
27        an appointment on probation),   whichever  is  later,  or
28        (ii) for funds established after August 5, 1963, from the
29        date,   as  determined  from  the  statistics  or  census
30        provided  in  Section  3-103,  the  municipality   became
31        subject   to   this  Article  by  attaining  the  minimum
HB0593 Enrolled            -2-                 LRB9001461EGfg
 1        population or by referendum, or  the  date  of  a  police
 2        officer's  first appointment (including an appointment on
 3        probation), whichever is later, and continuing during his
 4        or her entire service as a police officer; and
 5             (3) any person who has elected under Section 3-109.1
 6        to participate in the Illinois Municipal Retirement  Fund
 7        rather  than  in  a  fund established under this Article,
 8        without regard to whether  the  person  continues  to  be
 9        employed  as chief of police or is employed in some other
10        rank or capacity within the police department, unless the
11        person has lawfully rescinded that election.
12        (b)  A police officer who is  reappointed  shall,  before
13    being  declared  eligible to participate in the pension fund,
14    repay to the fund as required by  Section  3-124  any  refund
15    received thereunder.
16        (c)  Any  person  otherwise  qualified to participate who
17    was  excluded  from  participation  by  reason  of  the   age
18    restriction  removed  by  Public  Act  79-1165  may  elect to
19    participate by making a  written  application  to  the  Board
20    before  January  1,  1990.   Persons  so electing shall begin
21    participation on the first day of  the  month  following  the
22    date   of  application.   Such  persons  may  also  elect  to
23    establish creditable service for periods of employment  as  a
24    police  officer  during  which  they  did  not participate by
25    paying into the police pension fund, before January 1,  1990,
26    the  amount  that  the  person  would  have  contributed  had
27    deductions from salary been made for such purpose at the time
28    such  service was rendered, together with interest thereon at
29    6% per annum from the time such service  was  rendered  until
30    the date the payment is made.
31        (d)  A  person otherwise qualified to participate who was
32    excluded  from  participation  by  reason  of   the   fitness
33    requirement  removed by this amendatory Act of 1995 may elect
34    to participate by making a written application to  the  Board
HB0593 Enrolled            -3-                 LRB9001461EGfg
 1    before  July  1,  1996.   Persons  so  electing  shall  begin
 2    participation  on  the  first  day of the month following the
 3    month in which the application  is  received  by  the  Board.
 4    These  persons may also elect to establish creditable service
 5    for periods of employment as a police  officer  during  which
 6    they  did  not  participate by paying into the police pension
 7    fund, before January 1, 1997,  the  amount  that  the  person
 8    would  have  contributed had deductions from salary been made
 9    for this purpose  at  the  time  the  service  was  rendered,
10    together  with  interest  thereon at 6% per annum, compounded
11    annually, from the time the service was  rendered  until  the
12    date of payment.
13    (Source: P.A. 89-52, eff. 6-30-95.)
14        (40 ILCS 5/3-109.1) (from Ch. 108 1/2, par. 3-109.1)
15        Sec. 3-109.1. Chief of police.
16        (a)  Beginning   January  1,  1990,  any  person  who  is
17    employed  as  the  chief  of  police  of   a   "participating
18    municipality"  as  defined in Section 7-106 of this Code, may
19    elect to participate in  the  Illinois  Municipal  Retirement
20    Fund  rather  than  in  a  fund created under this Article 3.
21    Except as provided in  subsection  (b),  this  Such  election
22    shall  be irrevocable, and shall be filed in writing with the
23    Board of the Illinois Municipal Retirement Fund.
24        (b)  Until January 1, 1999, a chief  of  police  who  has
25    elected under this Section to participate in IMRF rather than
26    a  fund  created under this Article may elect to rescind that
27    election and transfer his or her participation to the  police
28    pension  fund established under this Article by the employing
29    municipality.  The chief must notify the boards  of  trustees
30    of  both  funds  in writing of his or her decision to rescind
31    the election and transfer participation.   A chief of  police
32    who  transfers  participation under this subsection (b) shall
33    not be deemed ineligible to participate in the police pension
HB0593 Enrolled            -4-                 LRB9001461EGfg
 1    fund by reason of having failed to apply within  the  3-month
 2    period specified in Section 3-106.
 3    (Source: P.A. 86-273.)
 4        (40 ILCS 5/3-110) (from Ch. 108 1/2, par. 3-110)
 5        Sec. 3-110.  Creditable service.
 6        (a)  "Creditable  service" is the time served by a police
 7    officer as a member of a regularly constituted  police  force
 8    of  a municipality. In computing creditable service furloughs
 9    without pay exceeding 30 days shall not be counted,  but  all
10    leaves  of  absence  for  illness  or accident, regardless of
11    length, and all periods of disability retirement for which  a
12    police  officer  has  received no disability pension payments
13    under this Article shall be counted.
14        (b)  Creditable service includes all periods  of  service
15    in  the  military,  naval  or air forces of the United States
16    entered  upon  while  an   active   police   officer   of   a
17    municipality,  provided  that  upon  applying for a permanent
18    pension, and in accordance with the rules of the  board,  the
19    police  officer  pays  into  the  fund the amount the officer
20    would have contributed if  he  or  she  had  been  a  regular
21    contributor  during  such  period,  to  the  extent  that the
22    municipality which the police officer  served  has  not  made
23    such contributions in the officer's behalf.  The total amount
24    of  such  creditable service shall not exceed 5 years, except
25    that any police officer who on July 1, 1973 had more  than  5
26    years  of  such  creditable  service  shall receive the total
27    amount thereof.
28        (c)  Creditable service also includes service rendered by
29    a police officer while on leave  of  absence  from  a  police
30    department  to serve as an executive of an organization whose
31    membership  consists  of  members  of  a  police  department,
32    subject to the following conditions:  (i) the police  officer
33    is  a  participant  of  a fund established under this Article
HB0593 Enrolled            -5-                 LRB9001461EGfg
 1    with at least 10 years of service as a police  officer;  (ii)
 2    the  police officer received no credit for such service under
 3    any other retirement system, pension  fund,  or  annuity  and
 4    benefit  fund  included  in  this Code; (iii) pursuant to the
 5    rules of the board the police officer pays to  the  fund  the
 6    amount  he or she would have contributed had the officer been
 7    an active member of  the  police  department;  and  (iv)  the
 8    organization  pays a contribution equal to the municipality's
 9    normal cost for that period of service.
10        (d)(1)  Creditable  service  also  includes  periods   of
11    service originally established in another police pension fund
12    under this Article or in the Fund established under Article 7
13    of  this  Code  for  which  (i)  the  contributions have been
14    transferred under Section 3-110.7 or Section 7-139.9 and (ii)
15    any additional contribution required under paragraph  (2)  of
16    this  subsection has been paid in full in accordance with the
17    requirements of this subsection (d).
18        (2)  If the board of the pension fund to which creditable
19    service  and  related  contributions  are  transferred  under
20    Section  3-110.7  or  7-139.9  determines  that  the   amount
21    transferred is less than the true cost to the pension fund of
22    allowing  that  creditable service to be established, then in
23    order to establish that creditable service the police officer
24    must pay to the  pension  fund,  within  the  payment  period
25    specified  in paragraph (3) of this subsection, an additional
26    contribution equal to the difference, as  determined  by  the
27    board  in  accordance  with  the rules and procedures adopted
28    under paragraph (6) of this subsection.
29        (3)  Except as provided in paragraph (4), the  additional
30    contribution  must  be  paid  to the board (i) within 5 years
31    from the date of the transfer of contributions under  Section
32    3-110.7  or  7-139.9  and  (ii)  before  the  police  officer
33    terminates   service   with   the   fund.    The   additional
34    contribution  may be paid in a lump sum or in accordance with
HB0593 Enrolled            -6-                 LRB9001461EGfg
 1    a schedule of installment payments authorized by the board.
 2        (4)  If the police officer dies in service before payment
 3    in full has been made and before the expiration of the 5-year
 4    payment period, the surviving spouse of the officer may elect
 5    to pay the unpaid amount on the  officer's  behalf  within  6
 6    months  after the date of death, in which case the creditable
 7    service shall  be  granted  as  though  the  deceased  police
 8    officer  had paid the remaining balance on the day before the
 9    date of death.
10        (5)  If the additional contribution is not paid  in  full
11    within the required time, the creditable service shall not be
12    granted  and  the  police officer (or the officer's surviving
13    spouse or estate) shall be entitled to receive  a  refund  of
14    (i)  any  partial payment of the additional contribution that
15    has been made by the police officer and (ii)  those  portions
16    of  the  amounts  transferred  under  subdivision  (a)(1)  of
17    Section  3-110.7 or subdivisions (a)(1) and (a)(3) of Section
18    7-139.9 that represent employee  contributions  paid  by  the
19    police  officer  (but  not  the accumulated interest on those
20    contributions) and interest paid by the police officer to the
21    prior pension fund in order to reinstate  service  terminated
22    by acceptance of a refund.
23        Transferred  credit that is not granted due to failure to
24    pay the additional contribution within the required  time  is
25    lost;  it  may not be transferred to another pension fund and
26    may not be reinstated in the pension fund from which  it  was
27    transferred.
28        (6)  The  Public  Employee  Pension  Fund Division of the
29    Department of Insurance shall establish by rule the manner of
30    making the calculation required under paragraph (2)  of  this
31    subsection,  taking  into  account  the appropriate actuarial
32    assumptions; the police officer's service,  age,  and  salary
33    history;  the  level  of funding of the pension fund to which
34    the credits are being transferred; and any other factors that
HB0593 Enrolled            -7-                 LRB9001461EGfg
 1    the Division  determines  to  be  relevant.   The  rules  may
 2    require  that  all  calculations  made under paragraph (2) be
 3    reported  to  the  Division  by  the  board  performing   the
 4    calculation,  together  with  documentation of the creditable
 5    service to be transferred, the amounts of  contributions  and
 6    interest   to   be  transferred,  the  manner  in  which  the
 7    calculation was performed, the numbers relied upon in  making
 8    the  calculation,  the  results  of  the calculation, and any
 9    other information the Division may deem useful.
10    (Source: P.A. 89-52, eff. 6-30-95.)
11        (40 ILCS 5/3-110.7 new)
12        Sec. 3-110.7. Transfer between Article 3 funds.
13        (a)  An active member of a pension fund established under
14    this Article may apply for transfer to that fund  of  his  or
15    her  creditable service and related contributions accumulated
16    in any other  police  pension  fund  established  under  this
17    Article,  except  that  a  police  officer  may  not transfer
18    creditable service under this Section  from  a  pension  fund
19    unless  (i)  the police officer actively served in the police
20    department under that fund for at least  2  years,  (ii)  the
21    police officer actively served in the police department under
22    that fund for less than 2 years but was laid off or otherwise
23    involuntarily terminated for a reason other than the fault of
24    the  officer,  or (iii) the police officer was not in service
25    in the police department under that  fund  on  or  after  the
26    effective   date   of   this   Section.  Upon  receiving  the
27    application, that other pension fund shall  transfer  to  the
28    pension fund in which the applicant currently participates an
29    amount equal to:
30             (1)  the  amounts  actually  contributed  by  or  on
31        behalf   of   the  applicant  to  the  fund  as  employee
32        contributions  (including  any  interest  paid   by   the
33        applicant  in  order to reinstate service), plus interest
HB0593 Enrolled            -8-                 LRB9001461EGfg
 1        on those amounts at the rate of 6% per  year,  compounded
 2        annually,  from  the  date of contribution to the date of
 3        transfer; plus
 4             (2)  an amount representing employer  contributions,
 5        equal  to  the  total amount determined under subdivision
 6        (1).
 7    Participation in that other pension fund shall  terminate  on
 8    the date of transfer.
 9        (b)  An active member of a pension fund established under
10    this  Article may reinstate service in any other pension fund
11    established under this Article that was terminated by receipt
12    of a refund, by paying to that other pension fund the  amount
13    of  the  refund  plus  interest thereon at the rate of 6% per
14    year, compounded annually, from the date  of  refund  to  the
15    date of payment.
16        (40 ILCS 5/3-111) (from Ch. 108 1/2, par. 3-111)
17        Sec. 3-111.  Pension.
18        (a)  A  police  officer  age  50  or more with 20 or more
19    years of creditable service, who is no longer in service as a
20    police officer, shall receive a pension of 1/2 of the  salary
21    attached  to the rank held by the officer on the police force
22    for one year immediately prior to  retirement  or,  beginning
23    July 1, 1987 for persons terminating service on or after that
24    date, the salary attached to the rank held on the last day of
25    service  or  for one year prior to the last day, whichever is
26    greater.  The pension shall be increased by 2% of such salary
27    for each additional year of service over 20 years, up  to  30
28    years,  and  1%  of  such  salary for each additional year of
29    service over 30 years, to a maximum of 75%  of  such  salary.
30    No  pension in effect on or granted after June 30, l973 shall
31    be less than $200 per month.  Beginning  July  1,  1987,  the
32    minimum  retirement  pension  for  a police officer having at
33    least 20 years of creditable service shall be $400 per month,
HB0593 Enrolled            -9-                 LRB9001461EGfg
 1    without regard to whether or not retirement occurred prior to
 2    that date.
 3        (b)  A police officer mandatorily  retired  from  service
 4    due  to  age  by operation of law, having at least 8 but less
 5    than 20 years of creditable service, shall receive a  pension
 6    equal  to 2 1/2% of the salary attached to the rank he or she
 7    held on the police force for one year  immediately  prior  to
 8    retirement or, beginning July 1, 1987 for persons terminating
 9    service  on  or  after  that date, the salary attached to the
10    rank held on the last day of service or for one year prior to
11    the  last  day,  whichever  is  greater,  for  each  year  of
12    creditable service.
13        A police officer who retires or is separated from service
14    having at least 8 years but less than 20 years of  creditable
15    service,  who  is  not  mandatorily  retired  due  to  age by
16    operation of law, and who does not  apply  for  a  refund  of
17    contributions  at  his  or  her  last  separation from police
18    service, shall receive a pension upon attaining age 60  equal
19    to 2.5% of the salary attached to the rank held by the police
20    officer on the police force for one year immediately prior to
21    retirement or, beginning July 1, 1987 for persons terminating
22    service  on  or  after  that date, the salary attached to the
23    rank held on the last day of service or for one year prior to
24    the  last  day,  whichever  is  greater,  for  each  year  of
25    creditable service.
26        (c)  A police officer no longer in  service  who  has  at
27    least  one  but  less than 8 years of creditable service in a
28    police pension  fund  but  meets  the  requirements  of  this
29    subsection  (c)  shall  be eligible to receive a pension from
30    that fund equal to 2.5% of the salary attached  to  the  rank
31    held  on  the  last day of service under that fund or for one
32    year prior to that last day, whichever is greater,  for  each
33    year  of  creditable service in that fund.  The pension shall
34    begin no earlier than upon attainment  of  age  60  (or  upon
HB0593 Enrolled            -10-                LRB9001461EGfg
 1    mandatory retirement from the fund by operation of law due to
 2    age, if that occurs before age 60) and in no event before the
 3    effective date of this amendatory Act of 1997.
 4        In  order  to  be  eligible  for  a  pension  under  this
 5    subsection (c), the police officer must have at least 8 years
 6    of  creditable  service in a second police pension fund under
 7    this Article and be receiving a pension under subsection  (a)
 8    or  (b)  of  this  Section from that second fund.  The police
 9    officer need not be in service on or after the effective date
10    of this amendatory Act of 1997.
11    (Source: P.A. 85-941.)
12        (40 ILCS 5/7-109) (from Ch. 108 1/2, par. 7-109)
13        Sec. 7-109. Employee.
14        (1)  "Employee" means any person who:
15             (a)  1.  Receives  earnings  as  payment   for   the
16             performance  of personal services or official duties
17             out of the general fund of a municipality, or out of
18             any  special  fund  or   funds   controlled   by   a
19             municipality, or by an instrumentality thereof, or a
20             participating    instrumentality,    including,   in
21             counties, the fees or earnings  of  any  county  fee
22             office; and
23                  2.  Under the usual common law rules applicable
24             in  determining  the employer-employee relationship,
25             has the status of an employee with  a  municipality,
26             or  any  instrumentality thereof, or a participating
27             instrumentality,    including    aldermen,    county
28             supervisors  and  other  persons  (excepting   those
29             employed  as  independent  contractors) who are paid
30             compensation, fees, allowances  or  other  emolument
31             for  official  duties, and, in counties, the several
32             county fee offices.
33             (b)  Serves as a township treasurer appointed  under
HB0593 Enrolled            -11-                LRB9001461EGfg
 1        the  School Code, as heretofore or hereafter amended, and
 2        who receives for such services  regular  compensation  as
 3        distinguished from per diem compensation, and any regular
 4        employee  in the office of any township treasurer whether
 5        or not his earnings are  paid  from  the  income  of  the
 6        permanent   township   fund  or  from  funds  subject  to
 7        distribution to the several school districts and parts of
 8        school districts as provided in the School Code, or  from
 9        both such sources.
10             (c)  Holds  an  elective  office  in a municipality,
11        instrumentality thereof or participating instrumentality.
12        (2)  "Employee" does not include persons who:
13             (a)  Are eligible for inclusion  under  any  of  the
14        following laws:
15                  1.  "An  Act  in  relation to an Illinois State
16             Teachers' Pension and Retirement Fund", approved May
17             27, 1915, as amended;
18                  2.  Articles 15 and 16 of this Code.
19             However, such persons shall be included as employees
20        to the extent of  earnings  that  are  not  eligible  for
21        inclusion under the foregoing laws for services not of an
22        instructional nature of any kind.
23             However,  any  member  of  the  armed  forces who is
24        employed as a teacher of subjects in the Reserve Officers
25        Training Corps of any school and  who  is  not  certified
26        under  the  law  governing  the certification of teachers
27        shall be included as an employee.
28             (b)  Are designated  by  the  governing  body  of  a
29        municipality  in  which a pension fund is required by law
30        to be established for policemen or firemen, respectively,
31        as performing police or fire  protection  duties,  except
32        that  when  such  persons  are the heads of the police or
33        fire department and  are  not  eligible  to  be  included
34        within  any  such  pension  fund,  they shall be included
HB0593 Enrolled            -12-                LRB9001461EGfg
 1        within this Article; provided, that  such  persons  shall
 2        not  be  excluded to the extent of concurrent service and
 3        earnings not designated  as  being  for  police  or  fire
 4        protection  duties.    However,  (i) any head of a police
 5        department who  was  a  participant  under  this  Article
 6        immediately  before  October  1,  1977 and did not elect,
 7        under Section 3-109 of this  Act,  to  participate  in  a
 8        police  pension fund shall be an "employee", and (ii) any
 9        chief of police who elects to participate  in  this  Fund
10        under Section 3-109.1 of this Code, regardless of whether
11        such  person  continues to be employed as chief of police
12        or is employed in some other rank or capacity within  the
13        police  department,  shall  be  an  employee  under  this
14        Article for so long as such person is employed to perform
15        police duties by a participating municipality and has not
16        lawfully rescinded that election.
17        (3)  All  persons,  including, without limitation, public
18    defenders and probation officers, who receive  earnings  from
19    general  or  special  funds  of  a  county for performance of
20    personal services or official duties within  the  territorial
21    limits  of  the  county,  are employees of the county (unless
22    excluded by subsection (2) of this  Section)  notwithstanding
23    that  they  may  be  appointed  by  and  are  subject  to the
24    direction of a person or persons other than a county board or
25    a  county  officer.   It  is  hereby  established   that   an
26    employer-employee  relationship  under  the  usual common law
27    rules exists between such employees  and  the  county  paying
28    their  salaries  by reason of the fact that the county boards
29    fix  their  rates  of  compensation,  appropriate  funds  for
30    payment of their earnings and otherwise exercise control over
31    them.  This finding and this amendatory Act  shall  apply  to
32    all  such employees from the date of appointment whether such
33    date is  prior  to  or  after  the  effective  date  of  this
34    amendatory  Act  and  is  intended  to  clarify  existing law
HB0593 Enrolled            -13-                LRB9001461EGfg
 1    pertaining to their status as participating employees in  the
 2    Fund.
 3    (Source: P.A. 86-273; 86-820; 86-1028.)
 4        (40 ILCS 5/7-139.9 new)
 5        Sec. 7-139.9. Transfer to Article 3 pension fund.
 6        (a)  Until  January  1,  1999,  a person who has lawfully
 7    rescinded an election  to  participate  in  this  Fund  under
 8    Section  3-109.1  and  has  become an active participant in a
 9    police pension fund established under Article 3 of this  Code
10    may  apply  for transfer to that Article 3 fund of his or her
11    creditable  service  accumulated  under  this   Article   for
12    municipal  law  enforcement  service.   At  the  time  of the
13    transfer the Fund shall pay to the  police  pension  fund  an
14    amount equal to:
15             (1)  the  amounts  accumulated  to the credit of the
16        applicant  for   municipal   law   enforcement   service,
17        including interest; and
18             (2)  the municipality credits based on that service,
19        including interest; and
20             (3)  any  interest paid by the applicant in order to
21        reinstate that service.
22    Participation in this Fund with respect  to  the  transferred
23    credits shall terminate on the date of transfer.
24        For   the   purposes  of  this  Section,  "municipal  law
25    enforcement service" means service with the police department
26    of a  participating  municipality  for  which  the  applicant
27    established creditable service under this Article as a result
28    of an election under Section 3-109.1 of this Code.
29        (b)  An active member of a pension fund established under
30    Article   3   of   this  Code  may  reinstate  municipal  law
31    enforcement service under this Article that was terminated by
32    receipt of a refund, by paying to the Fund the amount of  the
33    refund  plus  interest  thereon  at  the rate of 6% per year,
HB0593 Enrolled            -14-                LRB9001461EGfg
 1    compounded annually, from the date of refund to the  date  of
 2    payment.
 3        (c)  A chief of police who participates in this Fund as a
 4    result  of an election under Section 3-109.1 may rescind that
 5    election and transfer his or her participation from this Fund
 6    to a police pension fund established under Article 3 of  this
 7    Code  in  which  he  or  she  is  eligible to participate, as
 8    provided in Section 3-109.1(b).  A transfer of  participation
 9    under   this   subsection   (c)  and  Section  3-109.1(b)  is
10    irrevocable.
11        (40 ILCS 5/9-179.3) (from Ch. 108 1/2, par. 9-179.3)
12        Sec. 9-179.3.  Optional plan of additional  benefits  and
13    contributions.
14        (a)  While  this  plan  is  in  effect,  an  employee may
15    establish additional optional credit for additional  optional
16    benefits   by  electing  in  writing  at  any  time  to  make
17    additional  optional   contributions.    The   employee   may
18    discontinue  making  the additional optional contributions at
19    any time by notifying the fund in writing.
20        (b)  Additional optional contributions for the additional
21    optional benefits shall be as follows:
22             (1)  For service after the  option  is  elected,  an
23        additional   contribution   of  3%  of  salary  shall  be
24        contributed to the fund on the same basis and  under  the
25        same  conditions as contributions required under Sections
26        9-170 and 9-176.
27             (2)  For service before the option  is  elected,  an
28        additional  contribution  of  3%  of  the  salary for the
29        applicable  period  of  service,  plus  interest  at  the
30        effective rate from the date of service to  the  date  of
31        payment.   All  payments for past service must be paid in
32        full before  credit  is  given.  No  additional  optional
33        contributions  may  be made for any period of service for
HB0593 Enrolled            -15-                LRB9001461EGfg
 1        which credit has been previously forfeited by  acceptance
 2        of  a  refund,  unless  the refund is repaid in full with
 3        interest at the effective rate from the date of refund to
 4        the date of repayment.
 5        (c)  Additional optional benefits shall  accrue  for  all
 6    periods    of   eligible   service   for   which   additional
 7    contributions are paid in full.  The additional benefit shall
 8    consist of an additional 1% for  each  year  of  service  for
 9    which  optional  contributions  have  been paid, based on the
10    highest average annual salary for  any  4  consecutive  years
11    within the last 10 years of service immediately preceding the
12    date  of  withdrawal,  to be added to the employee retirement
13    annuity benefits as otherwise computed  under  this  Article.
14    The calculation of these additional benefits shall be subject
15    to  the  same  terms  and  conditions  as  are  used  in  the
16    calculation  of  retirement annuity under Section 9-134.  The
17    additional benefit shall be included in  the  calculation  of
18    the   automatic  annual  increase  in  annuity,  and  in  the
19    calculation of widow's annuity, where applicable.  However no
20    additional benefits will be granted  which  produce  a  total
21    annuity  greater  than the applicable maximum established for
22    that type of annuity in this Article, and additional benefits
23    shall  not  apply  to  any  benefit  computed  under  Section
24    9-128.1.
25        (d)  Refunds of additional optional  contributions  shall
26    be  made  on  the same basis and under the same conditions as
27    provided under Sections 9-164,  9-166  and  9-167.   Interest
28    shall be credited at the effective rate on the same basis and
29    under the same conditions as for other contributions.
30        (e)  Optional  contributions  shall be accounted for in a
31    separate Optional Contribution Reserve.
32        (f)  The tax levy, computed under Section 9-169, shall be
33    based on  employee  contributions  including  the  amount  of
34    optional additional employee contributions.
HB0593 Enrolled            -16-                LRB9001461EGfg
 1        (g)  Service eligible under this Section may include only
 2    service  as  an  employee of the County as defined in Section
 3    9-108, and subject to Sections 9-219 and 9-220.   No  service
 4    granted  under  Section  9-121.1, 9-121.4 or 9-179.2 shall be
 5    eligible for optional service credit.   No  optional  service
 6    credit  may  be  established for any military service, or for
 7    any service under any other Article of this  Code.   Optional
 8    service   credit   may  be  established  for  any  period  of
 9    disability  paid  from  this  fund,  if  the  employee  makes
10    additional  optional  contributions  for  such   periods   of
11    disability.
12        (h)  This  plan  of  optional  benefits and contributions
13    shall not apply to any former county  employee  receiving  an
14    annuity  from  the  fund,  who  re-enters service as a County
15    employee, unless he renders at least 3  years  of  additional
16    service after the date of re-entry.
17        (i)  The   effective   date   of  the  optional  plan  of
18    additional benefits and contributions shall be July 1,  1985,
19    or the date upon which approval is received from the Internal
20    Revenue Service, whichever is later.
21        (j)  This  plan  of additional benefits and contributions
22    shall expire July 1, 2002 1997.  No additional  contributions
23    may  be made after that date, and no additional benefits will
24    accrue after that date.
25    (Source: P.A. 86-1027; 87-794.)
26        Section 90.  The State Mandates Act is amended by  adding
27    Section 8.21 as follows:
28        (30 ILCS 805/8.21 new)
29        Sec.  8.21.  Exempt  mandate.  Notwithstanding Sections 6
30    and 8 of this Act, no reimbursement by the State is  required
31    for  the  implementation  of  any  mandate  created  by  this
32    amendatory Act of 1997.
HB0593 Enrolled            -17-                LRB9001461EGfg
 1        Section  99.  Effective date.  This Act takes effect upon
 2    becoming law.

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