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SB0552 Engrossed |
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LRB096 06605 AMC 16689 b |
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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 |
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| Sections 3-110 and 5-212 and by adding Section 5-214.3 as |
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| 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 |
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| officer as a member
of a regularly constituted police force of |
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| a municipality. In computing
creditable service furloughs |
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| without pay exceeding 30 days shall not be
counted, but all |
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| leaves of absence for illness or accident, regardless of
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| length, and all periods of disability retirement for which a |
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| police officer has
received no disability pension payments |
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| under this Article shall be counted.
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| (a-5) Up to 3 years of time during which the police officer |
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| receives
a disability pension under Section 3-114.1, 3-114.2, |
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| 3-114.3, or 3-114.6
shall be counted as creditable service, |
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| provided that
(i) the police officer returns to active service |
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| after the disability for a
period at least equal to the period |
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| for which credit is to be established and
(ii) the police |
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| 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 |
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| disability pension
is based. These contributions may be paid at |
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| any time prior to the
commencement of a retirement pension. The |
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| police officer may, but need not,
elect to have the |
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| contributions deducted from the disability pension or to
pay |
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| them in installments on a schedule approved by the board. If |
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| not
deducted from the disability pension, the contributions |
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| shall include
interest at the rate of 6% per year, compounded |
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| annually, from the date
for which service credit is being |
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| established to the date of payment. If
contributions are paid |
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| under this subsection (a-5) in excess of those
needed to |
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| establish the credit, the excess shall be refunded. This
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| subsection (a-5) applies to persons receiving a disability |
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| pension under
Section 3-114.1, 3-114.2, 3-114.3, or 3-114.6 on |
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| the effective date of this
amendatory Act of the 91st General |
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| Assembly, as well as persons who begin to
receive such a |
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| disability pension after that date.
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| (b) Creditable service includes all periods of service in |
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| the military,
naval or air forces of the United States entered |
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| upon while an active police
officer of a municipality, provided |
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| that upon applying for a permanent pension,
and in accordance |
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| 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 |
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| had been a
regular contributor during such period, to the |
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| extent that the municipality
which the police officer served |
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| has not made such contributions in the
officer's behalf. The |
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| total amount of such creditable service shall not
exceed 5 |
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| years, except that any police officer who on July 1, 1973 had |
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| more
than 5 years of such creditable service shall receive the |
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| total amount thereof.
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| (b-5) Creditable service includes all periods of service in |
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| the military, naval, or air forces of the United States entered |
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| upon before beginning service as an active police officer of a |
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| municipality, provided that, in accordance with the rules of |
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| the board, the police officer pays into the fund the amount the |
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| police officer would have contributed if he or she had been a |
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| regular contributor during such period, plus an amount |
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| determined by the Board to be equal to the municipality's |
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| normal cost of the benefit, plus interest at the actuarially |
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| assumed rate calculated from the date the employee last became |
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| a police officer under this Article. The total amount of such |
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| creditable service shall not exceed 2 years. |
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| (c) Creditable service also includes service rendered by a |
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| police
officer while on leave of absence from a police |
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| department to serve as an
executive of an organization whose |
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| membership consists of members of a
police department, subject |
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| to the following conditions: (i) the police
officer is a |
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| 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 |
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| officer
received no credit for such service under any other |
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| retirement system,
pension fund, or annuity and benefit fund |
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| included in this Code; (iii)
pursuant to the rules of the board |
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| the police officer pays to the fund the
amount he or she would |
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| have contributed had the officer been an active
member of the |
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| 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 |
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| service originally
established in another police pension |
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| fund under this Article or in the Fund
established under |
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| 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 |
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| and (ii) any
additional contribution required under |
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| paragraph (2) of this subsection has
been paid in full in |
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| accordance with the requirements of this subsection (d).
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| (2) If the board of the pension fund to which |
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| creditable service and
related
contributions are |
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| transferred under Section 3-110.7 or 7-139.9 determines |
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| that
the amount transferred is less than the true cost to |
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| the pension fund of
allowing that creditable service to be |
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| established, then in order to establish
that creditable |
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| service the police officer must pay to the pension fund, |
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| within
the payment period specified in paragraph (3) of |
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| this subsection, an additional
contribution equal to the |
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| difference, as determined by the board in accordance
with |
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| the rules and procedures adopted under paragraph (6) of |
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| 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 |
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| from the date of the
transfer of contributions under |
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| Section 3-110.7 or 7-139.9 and (ii) before the
police |
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| officer terminates service with the fund. The additional |
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| contribution
may be paid in a lump sum or in accordance |
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| with a schedule of installment
payments authorized by the |
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| board.
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| (4) If the police officer dies in service before |
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| payment in full has been
made and before the expiration of |
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| the 5-year payment period, the surviving
spouse of the |
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| 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 |
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| case the creditable
service shall be granted as though the |
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| deceased police officer had paid the
remaining balance on |
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| the day before the date of death.
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| (5) If the additional contribution is not paid in full |
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| within the
required time, the creditable service shall not |
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| be granted and the
police officer (or the officer's |
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| surviving spouse or estate) shall be entitled
to receive a |
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| refund of (i) any partial payment of the additional |
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| contribution
that has been made by the police officer and |
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| (ii) those portions of the amounts
transferred under |
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| subdivision (a)(1) of Section 3-110.7 or subdivisions |
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| (a)(1)
and (a)(3) of Section 7-139.9 that represent |
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| employee contributions paid by the
police officer (but not |
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| the accumulated interest on those contributions) and
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LRB096 06605 AMC 16689 b |
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| interest paid by the police officer to the prior pension |
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| fund in order to
reinstate service terminated by acceptance |
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| of a refund.
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| At the time of paying a refund under this item (5), the |
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| pension fund
shall also repay to the pension fund from |
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| which the contributions were
transferred under Section |
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| 3-110.7 or 7-139.9 the amount originally transferred
under |
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| subdivision (a)(2) of that Section, plus interest at the |
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| rate of 6% per
year, compounded annually, from the date of |
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| the original transfer to the date
of repayment. Amounts |
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| repaid to the Article 7 fund under this provision shall
be |
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| credited to the appropriate municipality.
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| Transferred credit that is not granted due to failure |
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| to pay the additional
contribution within the required time |
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| is lost; it may not be transferred to
another pension fund |
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| and may not be reinstated in the pension fund from which
it |
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| was transferred.
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| (6) The Public Employee Pension Fund Division of the |
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| Department of
Insurance
shall establish by rule the manner |
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| of making the calculation required under
paragraph (2) of |
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| this subsection, taking into account the appropriate |
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| actuarial
assumptions; the police officer's service, age, |
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| and salary history; the level
of funding of the pension |
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| fund to which the credits are being transferred; and
any |
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| other factors that the Division determines to be relevant. |
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| The rules may
require that all calculations made under |
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LRB096 06605 AMC 16689 b |
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| paragraph (2) be reported to the
Division by the board |
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| performing the calculation, together with documentation
of |
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| the creditable service to be transferred, the amounts of |
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| contributions and
interest to be transferred, the manner in |
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| which the calculation was performed,
the numbers relied |
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| upon in making the calculation, the results of the
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| calculation, and any other information the Division may |
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| deem useful.
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| (e)(1) Creditable service also includes periods of |
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| service originally
established in the Fund
established |
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| under Article 7 of this Code for which the contributions |
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| have
been transferred under Section 7-139.11.
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| (2) If the board of the pension fund to which |
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| creditable service and
related
contributions are |
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| transferred under Section 7-139.11 determines that
the |
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| amount transferred is less than the true cost to the |
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| pension fund of
allowing that creditable service to be |
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| established, then the amount of creditable service the |
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| police officer may establish under this subsection (e) |
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| shall be reduced by an amount equal to the difference, as |
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| determined by the board in accordance
with the rules and |
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| 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 |
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| rule the manner of making the calculation required under
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| paragraph (2) of this subsection, taking into account the |
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LRB096 06605 AMC 16689 b |
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| appropriate actuarial
assumptions; the police officer's |
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| service, age, and salary history; the level
of funding of |
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| the pension fund to which the credits are being |
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| transferred; and
any other factors that the Division |
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| determines to be relevant. The rules may
require that all |
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| calculations made under paragraph (2) be reported to the
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| Division by the board performing the calculation, together |
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| with documentation
of the creditable service to be |
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| transferred, the amounts of contributions and
interest to |
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| be transferred, the manner in which the calculation was |
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| performed,
the numbers relied upon in making the |
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| calculation, the results of the
calculation, and any other |
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| information the Division may deem useful.
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| (4) Until January 1, 2010, a police officer who |
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| transferred service from the Fund established under |
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| Article 7 of this Code under the provisions of Public Act |
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| 94-356 may establish additional credit, but only for the |
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| amount of the service credit reduction in that transfer, as |
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| calculated under paragraph (3) of this subsection (e). This |
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| credit may be established upon payment by the police |
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| officer of an amount to be determined by the board, equal |
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| to (1) the amount that would have been contributed as |
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| employee and employer contributions had all of the service |
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| been as an employee under this Article, plus interest |
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| thereon at the rate of 6% per year, compounded annually |
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| from the date of service to the date of transfer, less (2) |
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LRB096 06605 AMC 16689 b |
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| the total amount transferred from the Article 7 Fund, plus |
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| (3) interest on the difference at the rate of 6% per year, |
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| compounded annually, from the date of the transfer to the |
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| date of payment. The additional service credit is allowed |
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| under this amendatory Act of the 95th General Assembly |
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| notwithstanding the provisions of Article 7 terminating |
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| all transferred credits on the date of transfer. |
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| (Source: P.A. 94-356, eff. 7-29-05; 95-812, eff. 8-13-08.)
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| (40 ILCS 5/5-212) (from Ch. 108 1/2, par. 5-212)
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| Sec. 5-212. Computation of service. In computing the |
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| service rendered by a policeman prior to the
effective date, |
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| the following periods shall be counted, in addition to
all |
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| periods during where he performed the duties of his position, |
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| as
periods of service for annuity purposes only: all periods of |
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| (a)
vacation; (b) leave of absence with whole or part pay; (c) |
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| leave of
absence without pay on account of disability; and (d) |
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| leave of absence
during which the policeman was engaged in the |
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| military or naval service
of the United States of America. |
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| Service credit shall not be allowed for
a policeman in receipt |
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| of a pension on account of disability from any
pension fund |
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| superseded by this fund.
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| In computing the service rendered by a policeman on or |
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| after the
effective date, the following periods shall be |
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| counted, in addition to
all periods during which he performed |
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| the duties of his position, as
periods of service for annuity |
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| purposes only: all periods of (a)
vacation; (b) leave of |
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| absence with whole or part pay; (c) leave of
absence during |
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| which the policeman was engaged in the military or naval
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| service of the United States of America; (d) time that the |
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| policeman was
engaged in the military or naval service of the |
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| United States of
America, during which he was passed over on |
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| any eligible list posted
from an entrance examination, due to |
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| the fact that he was in such
military or naval service at the |
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| time he was called for appointment to
the Police Department, to |
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| be computed from the date he was passed over
on any eligible |
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| list and would have been first sworn in as a policeman
had he |
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| not been engaged in the military or naval service of the United
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| States of America, until the date of his discharge from such |
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| military or
naval service; provided that such policeman shall |
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| pay into this Fund the
same amount that would have been |
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| deducted from his salary had he been a
policeman during the |
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| aforementioned portion of such military or naval
service; (e) |
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| disability for which the policeman receives any disability
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| benefit; (f) disability for which the policeman receives whole |
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| or
part pay; and (g) service for which credits and creditable |
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| service have
been transferred to this Fund under Section |
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| 9-121.1, 14-105.1 or 15-134.3
of this Code ; and (h) periods of |
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| service in the military, naval, or air forces of the United |
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| States entered upon before beginning service as an active |
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| policeman of a municipality as provided in Section 5-214.3 .
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| In computing service on or after the effective date for |
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LRB096 06605 AMC 16689 b |
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| ordinary
disability benefit, all periods described in the |
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| preceding paragraph,
except any such period for which a |
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| policeman receives ordinary
disability benefit, shall be |
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| counted as periods of service.
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| In computing service for any of the purposes of this |
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| Article, no
credit shall be given for any period during which a |
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| policeman was not
rendering active service because of his |
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| discharge from the service,
unless proceedings to test the |
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| legality of the discharge are filed in a
court of competent |
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| jurisdiction within one year from the date of
discharge and a |
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| final judgment is entered therein declaring the
discharge |
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| illegal.
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| No overtime or extra service shall be included in computing |
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| service
of a policeman and not more than one year or a |
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| fractional part thereof
of service shall be allowed for service |
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| rendered during any calendar
year.
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| In computing service for any of the purposes of this |
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| Article, credit
shall be given for any periods during which a
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| policeman who is a member of the General Assembly is on leave |
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| of absence or is
otherwise authorized to be absent from duty to |
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| enable him or her to perform
legislative duties, |
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| notwithstanding any reduction in salary for such periods
and |
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| notwithstanding that the contributions paid by the policeman |
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| were based on
a reduced salary rather than the full amount of |
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| salary attached to his or her
career service rank.
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| (Source: P.A. 92-52, eff. 7-12-01.)
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| (40 ILCS 5/5-214.3 new)
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| Sec. 5-214.3. Credit for military service. A policeman may |
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| establish creditable service under this Article for all periods |
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| of service in the military, naval, or air forces of the United |
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| States entered upon before beginning service as an active |
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| policeman of a municipality, provided that the policeman pays |
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| into the fund the amount the policeman would have contributed |
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| if he or she had been a regular contributor during such period, |
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| plus an amount determined by the Board to be equal to the |
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| municipality's normal cost of the benefit, plus interest at the |
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| actuarially assumed rate calculated from the date the employee |
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| last became a policeman under this Article. The total amount of |
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| such creditable service shall not exceed 2 years.
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| Section 90. The State Mandates Act is amended by adding |
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| Section 8.33 as follows: |
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| (30 ILCS 805/8.33 new) |
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| Sec. 8.33. Exempt mandate. Notwithstanding Sections 6 and 8 |
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| of this Act, no reimbursement by the State is required for the |
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| implementation of any mandate created by this amendatory Act of |
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| the 96th General Assembly.
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| Section 99. Effective date. This Act takes effect upon |
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| becoming law.
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