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| [ Introduced ] | [ House Amendment 001 ] |
92_HB2698eng HB2698 Engrossed LRB9202376EGcs 1 AN ACT in relation to public employee benefits. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. The Illinois Pension Code is amended by 5 changing Section 2-110 as follows: 6 (40 ILCS 5/2-110) (from Ch. 108 1/2, par. 2-110) 7 Sec. 2-110. Service. 8 (A) "Service" means the period beginning on the day when 9 a person first became a member, and ending on the date under 10 consideration, excluding all intervening periods of 11 nonmembership following resignation or expiration of any term 12 of office. 13 (B) "Service" includes: 14 (a) Military service during war by a person who 15 entered such service while a member, whether rendered 16 before or after the expiration of any term of office; 17 plus up to 2 years of military service that need not have 18 immediately followed service as a member, and need not 19 have been served during wartime, provided that the member 20 (or former member who has not yet begun to receive a 21 retirement annuity) makes contributions to the System for 22 such service (1) at the rates provided in Section 2-126 23 based upon the member's rate of compensation on the last 24 date as a participant prior to such military service, or 25 on the first date as a participant after such military 26 service, whichever is greater, plus (2) if payment is 27 made on or after July 1, 2002May 1, 1993, an amount 28 determined by the Board to be equal to the employer's 29 normal cost of the benefits accrued for such military 30 service, plus (3) interest at the effective rate from the 31 date of first membership in the System to the date of HB2698 Engrossed -2- LRB9202376EGcs 1 payment. 2 A former member who has not yet begun to receive a 3 retirement annuity may establish military service credit 4 as provided in this subdivision (a). 5 The amendments to this subdivision (B)(a) made by 6 this amendatory Act of the 92nd General Assembly apply to 7 active participants in the System and to former members 8 who have not yet begun to receive a retirement annuity. 9 The change in the required contribution made by this 10 amendatory Act does not entitle any person to a refund of 11 contributions already paid. 12The amendment to this subdivision (B)(a) made by13this amendatory Act of 1993 shall apply to persons who14are active contributors to the System on or after15November 30, 1992. A person who was an active16contributor to the System on November 30, 1992 but is no17longer an active contributor may apply to purchase18military credit under this subdivision (B)(a) within 6019days after the effective date of this amendatory Act of201993; if the person is an annuitant, the resulting21increase in annuity shall begin to accrue on the first22day of the month following the month in which the23required payment is received by the System. The change24in the required contribution for purchased military25credit made by this amendatory Act of 1993 shall not26entitle any person to a refund of contributions already27paid.28 (b) Service as a judge of a court of this State, 29 but credit for such service is subject to the following 30 conditions: (1) such person shall have been a member for 31 at least 4 years and contributed to the system for 32 service as a judge subsequent to July 8, 1947, at the 33 rates herein provided, including interest at 2% per annum 34 to the date of payment based on the salary in effect HB2698 Engrossed -3- LRB9202376EGcs 1 during such service; (2) the member was not an eligible 2 member of nor entitled to credit for such service in any 3 other retirement system in the State maintained in whole 4 or in part by public contributions; and (3) the last 4 5 years of service prior to retirement on annuity was 6 rendered while a member. 7 (c) Service as a participating employee under 8 Articles 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 9 17 or 18 of the Illinois Pension Code. Credit for such 10 service may be established by a member and, if permitted 11 by the credit transfer Section of the appropriate 12 Article, by a former member who is not yet an annuitant, 13 and is subject to the following conditions: (1) that the 14 credits accrued under the above mentioned Articles have 15 been transferred to this system; and (2) that the member 16 has contributed to this system an amount equal to (i) the 17 contribution rate in effect for participants at the date 18 of membership in this system multiplied by the salary 19 then in effect for members of the General Assembly for 20 each year of service for which credit is being 21 transferred, plus (ii) the State's share of the normal 22 cost of benefits under this system expressed as a percent 23 of payroll, as determined by the system's actuary as of 24 the date of the participant's membership in this system, 25 multiplied by the salary then in effect for members of 26 the General Assembly, for each year of service for which 27 credit is being transferred, plus (iii) interest on items 28 (i) and (ii) above at 6% per annum compounded annually, 29 from the date of membership to the date of payment by the 30 participant, less (iv) the amount transferred to this 31 system on behalf of the participant on account of service 32 rendered while a participant under the above mentioned 33 Articles. 34 (d) Service, before October 1, 1975, as an officer HB2698 Engrossed -4- LRB9202376EGcs 1 elected by the people of Illinois, for which creditable 2 service is required to be transferred from the State 3 Employees' Retirement System to this system by this 4 amendatory Act of 1975. 5 (e) Service rendered prior to January 1, 1964, as a 6 justice of the peace or police magistrate or as a civil 7 referee in the Municipal Court of Chicago, but credit for 8 such service may not be granted until the member has paid 9 to the system an amount equal to (1) the contribution 10 rate for participants at the date of membership in this 11 system multiplied by the salary then in effect for 12 members of the General Assembly for each year of service 13 for which credit is being transferred, plus (2) the 14 State's share of the normal cost of benefits under this 15 system expressed as a percent of payroll, as determined 16 by the system's actuary as of the date of the 17 participant's membership in this system, multiplied by 18 the salary then in effect for members of the General 19 Assembly, for each year of service for which credit is 20 allowed, plus, (3) interest on (1) and (2) above at 6% 21 per annum compounded annually from the date of membership 22 to the date of payment by the member. However, a 23 participant may not receive more than 6 years of credit 24 for such service nor may any member receive credit under 25 this paragraph for service for which credit has been 26 granted in any other public pension fund or retirement 27 system in the State. 28 (f) Service before January 16, 1981, as an officer 29 elected by the people of Illinois, for which creditable 30 service is transferred from the State Employees' 31 Retirement System to this system. 32 (C) Service during any fraction of a month shall be 33 considered as a month of service. 34 Service includes the total period of time for which a HB2698 Engrossed -5- LRB9202376EGcs 1 participant is elected as a member or officer, even though he 2 or she does not complete the term because of death, 3 resignation, judicial decision, or operation of law, provided 4 that the contributions required under this Article for such 5 entire period of office have been made by or on behalf of the 6 participant. In the case of a participant appointed or 7 elected to fill a vacancy, service includes the total period 8 from January 1 of the year in which his or her service 9 commences to the end of the term in which the vacancy occurs, 10 provided the participant contributes in the year of 11 appointment an amount equal to the contributions that would 12 have been required had the participant received salary for 13 the entire year. The foregoing provisions relating to a 14 participant appointed or elected to fill a vacancy shall not 15 apply if the participant was a member of the other 16 legislative chamber at the time of appointment or election. 17 (D) Notwithstanding the other provisions of this 18 Section, if application to transfer or establish service 19 credit under paragraph (c) or (e) of subsection (B) of this 20 Section is made between January 1, 1992 and February 1, 1993, 21 the contribution required for such credit shall be an amount 22 equal to (1) the contribution rate in effect for participants 23 at the date of membership in this system multiplied by the 24 salary then in effect for members of the General Assembly for 25 each year of service for which credit is being granted, plus 26 (2) interest thereon at 6% per annum compounded annually, 27 from the date of membership to the date of payment by the 28 member, less (3) any amount transferred to this system on 29 behalf of the member on account of such service credit. 30 (Source: P.A. 86-27; 86-1028; 87-794; 87-1265.) 31 Section 99. Effective date. This Act takes effect upon 32 becoming law.