93RD GENERAL ASSEMBLY
State of Illinois
2003 and 2004
HB6896


 
Introduced 02/09/04, by Naomi D. Jakobsson
 
SYNOPSIS AS INTRODUCED:
 		














40 ILCS 5/15-113.3
  from Ch. 108 1/2, par. 15-113.3







    Amends the State Universities Article of the Illinois Pension Code. Provides that the 5 years of credit for military service that a person may establish does not need to follow a period of employment with an employer under the State Universities Article or the State Employees Article (now all but 2 years must immediately  follow a period of employment with an employer under the State Universities Article or the State Employees Article). Provides that a person who establishes credit for military service that does not immediately follow employment with an employer under the  State Universities Article or the State Employees Article is not required to pay interest on required contributions. Effective immediately.
















LRB093 16089 LRD 41715 b

















FISCAL NOTE ACT MAY APPLY


PENSION IMPACT NOTE ACT MAY APPLY
















 


 


A BILL FOR









 











HB6896

LRB093 16089 LRD 41715 b






1
    AN ACT concerning 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 changing 
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Section 15-113.3 as follows:
 



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    (40 ILCS 5/15-113.3)  (from Ch. 108 1/2, par. 15-113.3)



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    Sec. 15-113.3. Service for periods of military service. 
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"Service for
periods of military service":  Those periods, not 
9
exceeding 5 years, during
which a person served in the armed 
10
forces of the United States, of which
all but 2 years must have 
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immediately followed a period of employment
with an employer 
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under this System or the State Employees' Retirement
System of 
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Illinois; provided that the person received a discharge other

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than dishonorable and again became an employee under this 
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System within one
year after discharge.  However, for the up to 
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2 years of military service
not immediately following 
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employment, the applicant must make contributions
to the System 
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equal to (1) 8% of the employee's basic compensation on the 
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last date as a
participating employee prior to such military 
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service, or on the first date as
a participating employee after 
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such military service, whichever is greater,
plus (2) an amount 
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determined by the board to be equal to the employer's normal

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cost of the benefits accrued for such military service, plus 
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(3) interest on
items (1) and (2) at the effective rate from 
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the later of the date of first
membership in the System or the 
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date of conclusion of military service to the
date of payment.  
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The change in the required contribution for purchased
military 
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credit made by this amendatory Act of the 93rd General Assembly

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1993 does not entitle any person
to a refund of contributions 
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already paid.  The contributions paid under this
Section are not 
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normal contributions as defined in Section 15-114 or additional

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contributions as defined in Section 15-115.

 


 






HB6896
- 2 -
LRB093 16089 LRD 41715 b




1
    The changes to this Section made by this amendatory Act of 
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1991 shall
apply not only to persons who on or after its 
3
effective date are in service
under the System, but also to 
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persons whose employment terminated prior to
that date, whether 
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or not the person is an annuitant on that date.  In the
case of 
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an annuitant who applies for credit allowable under this 
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Section
for a period of military service that did not 
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immediately follow
employment, and who has made the required 
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contributions for such credit,
the annuity shall be 
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recalculated to include the additional service credit,
with the 
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increase taking effect on the date the System received written

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notification of the annuitant's intent to purchase the credit, 
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if
payment of all the required contributions is made within 60 
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days of such
notice, or else on the first annuity payment date 
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following the date of
payment of the required contributions.  In 
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calculating the automatic annual
increase for an annuity that 
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has been recalculated under this Section, the
increase 
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attributable to the additional service allowable under this

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amendatory Act of 1991 shall be included in the calculation of 
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automatic
annual increases accruing after the effective date of 
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the recalculation.

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(Source: P.A. 93-347, eff. 7-24-03.)

 

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    Section 99. Effective date. This Act takes effect upon 
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becoming law.