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90_SB1482
40 ILCS 5/3-110 from Ch. 108 1/2, par. 3-110
30 ILCS 805/8.22 new
Amends the Downstate Police Article of the Pension Code
to allow purchase of service credit for up to 2 years of
military service not immediately preceded by employment.
Amends the State Mandates Act to require implementation
without reimbursement. Effective immediately.
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LRB9011456EGfg
1 AN ACT to amend the Illinois Pension Code by changing
2 Section 3-110 and to amend the State Mandates Act.
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 3-110 as follows:
7 (40 ILCS 5/3-110) (from Ch. 108 1/2, par. 3-110)
8 Sec. 3-110. Creditable service.
9 (a) "Creditable service" is the time served by a police
10 officer as a member of a regularly constituted police force
11 of 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
14 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.
17 (b) Creditable service includes all periods of service
18 in the military, naval or air forces of the United States
19 entered upon while an active police officer of a
20 municipality, provided that upon applying for a permanent
21 pension, and in accordance with the rules of the board, the
22 police officer pays into the fund the amount the officer
23 would have contributed if he or she had been a regular
24 contributor during such period, to the extent that the
25 municipality which the police officer served has not made
26 such contributions in the officer's behalf. The total amount
27 of such creditable service shall not exceed 5 years, except
28 that any police officer who on July 1, 1973 had more than 5
29 years of such creditable service shall receive the total
30 amount thereof.
31 (b-1) In addition to any creditable service established
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1 under subsection (b), creditable service may be granted for
2 up to 24 months of service in the armed forces of the United
3 States that was not immediately preceded by employment as a
4 police officer. In order to receive creditable service for
5 military service under this subsection (b-1), a police
6 officer must (1) apply to the Fund in writing and provide
7 evidence of the military service that is satisfactory to the
8 Board and (2) make contributions to the Fund equal to (i) the
9 employee contributions that would have been required had the
10 service been rendered as a member, plus (ii) an amount
11 determined by the board to be equal to the employer's normal
12 cost of the benefits accrued for that military service, plus
13 (iii) interest on items (i) and (ii) from the date of first
14 membership in the Fund to the date of payment. If payment is
15 made during the 6-month period that begins 3 months after the
16 effective date of this amendatory Act of 1998, the required
17 interest shall be at the rate of 2.5% per year, compounded
18 annually; otherwise, the required interest shall be
19 calculated at the rate of 6% per year, compounded annually.
20 (c) Creditable service also includes service rendered by
21 a police officer while on leave of absence from a police
22 department to serve as an executive of an organization whose
23 membership consists of members of a police department,
24 subject to the following conditions: (i) the police officer
25 is a participant of a fund established under this Article
26 with at least 10 years of service as a police officer; (ii)
27 the police officer received no credit for such service under
28 any other retirement system, pension fund, or annuity and
29 benefit fund included in this Code; (iii) pursuant to the
30 rules of the board the police officer pays to the fund the
31 amount he or she would have contributed had the officer been
32 an active member of the police department; and (iv) the
33 organization pays a contribution equal to the municipality's
34 normal cost for that period of service.
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1 (d)(1) Creditable service also includes periods of
2 service originally established in another police pension fund
3 under this Article or in the Fund established under Article 7
4 of this Code for which (i) the contributions have been
5 transferred under Section 3-110.7 or Section 7-139.9 and (ii)
6 any additional contribution required under paragraph (2) of
7 this subsection has been paid in full in accordance with the
8 requirements of this subsection (d).
9 (2) If the board of the pension fund to which creditable
10 service and related contributions are transferred under
11 Section 3-110.7 or 7-139.9 determines that the amount
12 transferred is less than the true cost to the pension fund of
13 allowing that creditable service to be established, then in
14 order to establish that creditable service the police officer
15 must pay to the pension fund, within the payment period
16 specified in paragraph (3) of this subsection, an additional
17 contribution equal to the difference, as determined by the
18 board in accordance with the rules and procedures adopted
19 under paragraph (6) of this subsection.
20 (3) Except as provided in paragraph (4), the additional
21 contribution must be paid to the board (i) within 5 years
22 from the date of the transfer of contributions under Section
23 3-110.7 or 7-139.9 and (ii) before the police officer
24 terminates service with the fund. The additional
25 contribution may be paid in a lump sum or in accordance with
26 a schedule of installment payments authorized by the board.
27 (4) If the police officer dies in service before payment
28 in full has been made and before the expiration of the 5-year
29 payment period, the surviving spouse of the officer may elect
30 to pay the unpaid amount on the officer's behalf within 6
31 months after the date of death, in which case the creditable
32 service shall be granted as though the deceased police
33 officer had paid the remaining balance on the day before the
34 date of death.
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1 (5) If the additional contribution is not paid in full
2 within the required time, the creditable service shall not be
3 granted and the police officer (or the officer's surviving
4 spouse or estate) shall be entitled to receive a refund of
5 (i) any partial payment of the additional contribution that
6 has been made by the police officer and (ii) those portions
7 of the amounts transferred under subdivision (a)(1) of
8 Section 3-110.7 or subdivisions (a)(1) and (a)(3) of Section
9 7-139.9 that represent employee contributions paid by the
10 police officer (but not the accumulated interest on those
11 contributions) and interest paid by the police officer to the
12 prior pension fund in order to reinstate service terminated
13 by acceptance of a refund.
14 Transferred credit that is not granted due to failure to
15 pay the additional contribution within the required time is
16 lost; it may not be transferred to another pension fund and
17 may not be reinstated in the pension fund from which it was
18 transferred.
19 (6) The Public Employee Pension Fund Division of the
20 Department of Insurance shall establish by rule the manner of
21 making the calculation required under paragraph (2) of this
22 subsection, taking into account the appropriate actuarial
23 assumptions; the police officer's service, age, and salary
24 history; the level of funding of the pension fund to which
25 the credits are being transferred; and any other factors that
26 the Division determines to be relevant. The rules may
27 require that all calculations made under paragraph (2) be
28 reported to the Division by the board performing the
29 calculation, together with documentation of the creditable
30 service to be transferred, the amounts of contributions and
31 interest to be transferred, the manner in which the
32 calculation was performed, the numbers relied upon in making
33 the calculation, the results of the calculation, and any
34 other information the Division may deem useful.
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1 (Source: P.A. 89-52, eff. 6-30-95; 90-460, eff. 8-17-97.)
2 Section 90. The State Mandates Act is amended by adding
3 Section 8.22 as follows:
4 (30 ILCS 805/8.22 new)
5 Sec. 8.22. Exempt mandate. Notwithstanding Sections 6
6 and 8 of this Act, no reimbursement by the State is required
7 for the implementation of any mandate created by this
8 amendatory Act of 1998.
9 Section 99. Effective date. This Act takes effect upon
10 becoming law.