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1 | AN ACT concerning public employee benefits.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Illinois Pension Code is amended by changing | |||||||||||||||||||||||||
5 | Sections 3-110 and 7-139 and adding Sections 3-110.8 and | |||||||||||||||||||||||||
6 | 7-139.11 as follows:
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7 | (40 ILCS 5/3-110) (from Ch. 108 1/2, par. 3-110)
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8 | Sec. 3-110. Creditable service.
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9 | (a) "Creditable service" is the time served by a police | |||||||||||||||||||||||||
10 | officer as a member
of a regularly constituted police force of | |||||||||||||||||||||||||
11 | 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 | (a-5) Up to 3 years of time during which the police officer | |||||||||||||||||||||||||
18 | receives
a disability pension under Section 3-114.1, 3-114.2, | |||||||||||||||||||||||||
19 | 3-114.3, or 3-114.6
shall be counted as creditable service, | |||||||||||||||||||||||||
20 | provided that
(i) the police officer returns to active service | |||||||||||||||||||||||||
21 | after the disability for a
period at least equal to the period | |||||||||||||||||||||||||
22 | for which credit is to be established and
(ii) the police | |||||||||||||||||||||||||
23 | officer makes contributions to the fund based on the rates
| |||||||||||||||||||||||||
24 | specified in Section 3-125.1 and the salary upon which the | |||||||||||||||||||||||||
25 | disability pension
is based. These contributions may be paid at | |||||||||||||||||||||||||
26 | any time prior to the
commencement of a retirement pension. The | |||||||||||||||||||||||||
27 | police officer may, but need not,
elect to have the | |||||||||||||||||||||||||
28 | contributions deducted from the disability pension or to
pay | |||||||||||||||||||||||||
29 | them in installments on a schedule approved by the board. If | |||||||||||||||||||||||||
30 | not
deducted from the disability pension, the contributions | |||||||||||||||||||||||||
31 | shall include
interest at the rate of 6% per year, compounded | |||||||||||||||||||||||||
32 | annually, from the date
for which service credit is being |
| |||||||
| |||||||
1 | established to the date of payment. If
contributions are paid | ||||||
2 | under this subsection (a-5) in excess of those
needed to | ||||||
3 | establish the credit, the excess shall be refunded. This
| ||||||
4 | subsection (a-5) applies to persons receiving a disability | ||||||
5 | pension under
Section 3-114.1, 3-114.2, 3-114.3, or 3-114.6 on | ||||||
6 | the effective date of this
amendatory Act of the 91st General | ||||||
7 | Assembly, as well as persons who begin to
receive such a | ||||||
8 | disability pension after that date.
| ||||||
9 | (b) Creditable service includes all periods of service in | ||||||
10 | the military,
naval or air forces of the United States entered | ||||||
11 | upon while an active police
officer of a municipality, provided | ||||||
12 | that upon applying for a permanent pension,
and in accordance | ||||||
13 | with the rules of the board, the police officer pays into the
| ||||||
14 | fund the amount the officer would have contributed if he or she | ||||||
15 | had been a
regular contributor during such period, to the | ||||||
16 | extent that the municipality
which the police officer served | ||||||
17 | has not made such contributions in the
officer's behalf. The | ||||||
18 | total amount of such creditable service shall not
exceed 5 | ||||||
19 | years, except that any police officer who on July 1, 1973 had | ||||||
20 | more
than 5 years of such creditable service shall receive the | ||||||
21 | total amount thereof.
| ||||||
22 | (c) Creditable service also includes service rendered by a | ||||||
23 | police
officer while on leave of absence from a police | ||||||
24 | department to serve as an
executive of an organization whose | ||||||
25 | membership consists of members of a
police department, subject | ||||||
26 | to the following conditions: (i) the police
officer is a | ||||||
27 | participant of a fund established under this Article with at
| ||||||
28 | least 10 years of service as a police officer; (ii) the police | ||||||
29 | officer
received no credit for such service under any other | ||||||
30 | retirement system,
pension fund, or annuity and benefit fund | ||||||
31 | included in this Code; (iii)
pursuant to the rules of the board | ||||||
32 | the police officer pays to the fund the
amount he or she would | ||||||
33 | have contributed had the officer been an active
member of the | ||||||
34 | police department; and (iv) the organization pays a
| ||||||
35 | contribution equal to the municipality's normal cost for that
| ||||||
36 | period of service.
|
| |||||||
| |||||||
1 | (d)(1) Creditable service also includes periods of | ||||||
2 | service originally
established in another police pension | ||||||
3 | fund under this Article or in the Fund
established under | ||||||
4 | Article 7 of this Code for which (i) the contributions have
| ||||||
5 | been transferred under Section 3-110.7 or Section 7-139.9 | ||||||
6 | and (ii) any
additional contribution required under | ||||||
7 | paragraph (2) of this subsection has
been paid in full in | ||||||
8 | accordance with the requirements of this subsection (d).
| ||||||
9 | (2) If the board of the pension fund to which | ||||||
10 | creditable service and
related
contributions are | ||||||
11 | transferred under Section 3-110.7 or 7-139.9 determines | ||||||
12 | that
the amount transferred is less than the true cost to | ||||||
13 | the pension fund of
allowing that creditable service to be | ||||||
14 | established, then in order to establish
that creditable | ||||||
15 | service the police officer must pay to the pension fund, | ||||||
16 | within
the payment period specified in paragraph (3) of | ||||||
17 | this subsection, an additional
contribution equal to the | ||||||
18 | difference, as determined by the board in accordance
with | ||||||
19 | the rules and procedures adopted under paragraph (6) of | ||||||
20 | this subsection.
| ||||||
21 | (3) Except as provided in paragraph (4), the additional
| ||||||
22 | contribution must be paid to the board (i) within 5 years | ||||||
23 | from the date of the
transfer of contributions under | ||||||
24 | Section 3-110.7 or 7-139.9 and (ii) before the
police | ||||||
25 | officer terminates service with the fund. The additional | ||||||
26 | contribution
may be paid in a lump sum or in accordance | ||||||
27 | with a schedule of installment
payments authorized by the | ||||||
28 | board.
| ||||||
29 | (4) If the police officer dies in service before | ||||||
30 | payment in full has been
made and before the expiration of | ||||||
31 | the 5-year payment period, the surviving
spouse of the | ||||||
32 | officer may elect to pay the unpaid amount on the officer's
| ||||||
33 | behalf within 6 months after the date of death, in which | ||||||
34 | case the creditable
service shall be granted as though the | ||||||
35 | deceased police officer had paid the
remaining balance on | ||||||
36 | the day before the date of death.
|
| |||||||
| |||||||
1 | (5) If the additional contribution is not paid in full | ||||||
2 | within the
required time, the creditable service shall not | ||||||
3 | be granted and the
police officer (or the officer's | ||||||
4 | surviving spouse or estate) shall be entitled
to receive a | ||||||
5 | refund of (i) any partial payment of the additional | ||||||
6 | contribution
that has been made by the police officer and | ||||||
7 | (ii) those portions of the amounts
transferred under | ||||||
8 | subdivision (a)(1) of Section 3-110.7 or subdivisions | ||||||
9 | (a)(1)
and (a)(3) of Section 7-139.9 that represent | ||||||
10 | employee contributions paid by the
police officer (but not | ||||||
11 | the accumulated interest on those contributions) and
| ||||||
12 | interest paid by the police officer to the prior pension | ||||||
13 | fund in order to
reinstate service terminated by acceptance | ||||||
14 | of a refund.
| ||||||
15 | At the time of paying a refund under this item (5), the | ||||||
16 | pension fund
shall also repay to the pension fund from | ||||||
17 | which the contributions were
transferred under Section | ||||||
18 | 3-110.7 or 7-139.9 the amount originally transferred
under | ||||||
19 | subdivision (a)(2) of that Section, plus interest at the | ||||||
20 | rate of 6% per
year, compounded annually, from the date of | ||||||
21 | the original transfer to the date
of repayment. Amounts | ||||||
22 | repaid to the Article 7 fund under this provision shall
be | ||||||
23 | credited to the appropriate municipality.
| ||||||
24 | Transferred credit that is not granted due to failure | ||||||
25 | to pay the additional
contribution within the required time | ||||||
26 | is lost; it may not be transferred to
another pension fund | ||||||
27 | and may not be reinstated in the pension fund from which
it | ||||||
28 | was transferred.
| ||||||
29 | (6) The Public Employee Pension Fund Division of the | ||||||
30 | Department of
Insurance
shall establish by rule the manner | ||||||
31 | of making the calculation required under
paragraph (2) of | ||||||
32 | this subsection, taking into account the appropriate | ||||||
33 | actuarial
assumptions; the police officer's service, age, | ||||||
34 | and salary history; the level
of funding of the pension | ||||||
35 | fund to which the credits are being transferred; and
any | ||||||
36 | other factors that the Division determines to be relevant. |
| |||||||
| |||||||
1 | The rules may
require that all calculations made under | ||||||
2 | paragraph (2) be reported to the
Division by the board | ||||||
3 | performing the calculation, together with documentation
of | ||||||
4 | the creditable service to be transferred, the amounts of | ||||||
5 | contributions and
interest to be transferred, the manner in | ||||||
6 | which the calculation was performed,
the numbers relied | ||||||
7 | upon in making the calculation, the results of the
| ||||||
8 | calculation, and any other information the Division may | ||||||
9 | deem useful.
| ||||||
10 | (e)(1) Creditable service also includes periods of | ||||||
11 | service originally
established in the Fund
established | ||||||
12 | under Article 7 of this Code for which the contributions | ||||||
13 | have
been transferred under Section 7-139.11.
| ||||||
14 | (2) If the board of the pension fund to which | ||||||
15 | creditable service and
related
contributions are | ||||||
16 | transferred under Section 7-139.11 determines that
the | ||||||
17 | amount transferred is less than the true cost to the | ||||||
18 | pension fund of
allowing that creditable service to be | ||||||
19 | established, then the amount of creditable service the | ||||||
20 | police officer may establish under this subsection (e) | ||||||
21 | shall be reduced by an amount equal to the difference, as | ||||||
22 | determined by the board in accordance
with the rules and | ||||||
23 | procedures adopted under paragraph (3) of this subsection.
| ||||||
24 | (3) The Public Pension Division of the Department of
| ||||||
25 | Insurance
shall establish by rule the manner of making the | ||||||
26 | calculation required under
paragraph (2) of this | ||||||
27 | subsection, taking into account the appropriate actuarial
| ||||||
28 | assumptions; the police officer's service, age, and salary | ||||||
29 | history; the level
of funding of the pension fund to which | ||||||
30 | the credits are being transferred; and
any other factors | ||||||
31 | that the Division determines to be relevant. The rules may
| ||||||
32 | require that all calculations made under paragraph (2) be | ||||||
33 | reported to the
Division by the board performing the | ||||||
34 | calculation, together with documentation
of the creditable | ||||||
35 | service to be transferred, the amounts of contributions and
| ||||||
36 | interest to be transferred, the manner in which the |
| |||||||
| |||||||
1 | calculation was performed,
the numbers relied upon in | ||||||
2 | making the calculation, the results of the
calculation, and | ||||||
3 | any other information the Division may deem useful.
| ||||||
4 | (Source: P.A. 90-460, eff. 8-17-97; 91-887, eff. 7-6-00; | ||||||
5 | 91-939, eff.
2-1-01.)
| ||||||
6 | (40 ILCS 5/3-110.8 new)
| ||||||
7 | Sec. 3-110.8. Transfer to IMRF. | ||||||
8 | (a) Until January 1, 2006, any active member of the | ||||||
9 | Illinois Municipal Retirement Fund who
has less than 8 years of | ||||||
10 | creditable service in a police pension fund under this Article, | ||||||
11 | may apply for transfer of his creditable service accumulated
in | ||||||
12 | that fund to the Illinois Municipal
Retirement Fund. The | ||||||
13 | creditable service shall be transferred upon payment by
the | ||||||
14 | police pension fund to the Illinois Municipal Retirement Fund | ||||||
15 | of an amount
equal to: | ||||||
16 | (1) the amounts accumulated to the credit of the | ||||||
17 | applicant on the books
of the fund on the date of transfer; | ||||||
18 | and
| ||||||
19 | (2) employer contributions in an amount equal to the | ||||||
20 | amount determined
under subparagraph (1); and
| ||||||
21 | (3) any interest paid by the applicant in order to | ||||||
22 | reinstate service.
| ||||||
23 | Participation in this Fund shall terminate on the date of | ||||||
24 | transfer.
| ||||||
25 | (b) Until January 1, 2006, any member under subsection (a) | ||||||
26 | may reinstate service which was
terminated by receipt of a | ||||||
27 | refund, by payment to the police pension fund of the
amount of | ||||||
28 | the refund with interest thereon at the rate of 6% per year,
| ||||||
29 | compounded annually, from the date of refund to the date of | ||||||
30 | payment.
| ||||||
31 | (40 ILCS 5/7-139) (from Ch. 108 1/2, par. 7-139)
| ||||||
32 | Sec. 7-139. Credits and creditable service to employees.
| ||||||
33 | (a) Each participating employee shall be granted credits | ||||||
34 | and creditable
service, for purposes of determining the amount |
| |||||||
| |||||||
1 | of any annuity or benefit
to which he or a beneficiary is | ||||||
2 | entitled, as follows:
| ||||||
3 | 1. For prior service: Each participating employee who | ||||||
4 | is an employee
of a participating municipality or | ||||||
5 | participating instrumentality on the
effective date shall | ||||||
6 | be granted creditable service, but no credits under
| ||||||
7 | paragraph 2 of this subsection (a), for periods of prior | ||||||
8 | service for which
credit has not been received under any | ||||||
9 | other pension fund or retirement system
established under | ||||||
10 | this Code, as follows:
| ||||||
11 | If the effective date of participation for the | ||||||
12 | participating municipality
or participating | ||||||
13 | instrumentality is on or before January 1, 1998, creditable
| ||||||
14 | service shall be granted for the entire period of prior | ||||||
15 | service with that
employer without any employee | ||||||
16 | contribution.
| ||||||
17 | If the effective date of participation for the | ||||||
18 | participating municipality
or participating | ||||||
19 | instrumentality is after January 1, 1998, creditable
| ||||||
20 | service shall be granted for the last 20% of the period of | ||||||
21 | prior service with
that employer, but no more than 5 years, | ||||||
22 | without any employee contribution. A
participating | ||||||
23 | employee may establish creditable service for the | ||||||
24 | remainder of
the period of prior service with that employer | ||||||
25 | by making an application in
writing, accompanied by payment | ||||||
26 | of an employee contribution in an
amount determined by the | ||||||
27 | Fund, based on the employee contribution rates in
effect at | ||||||
28 | the time of application for the creditable service and the | ||||||
29 | employee's
salary rate on the effective date of | ||||||
30 | participation for that employer, plus
interest at the | ||||||
31 | effective rate from the date of the prior service to the | ||||||
32 | date
of payment. Application for this creditable service | ||||||
33 | may be made at any time
while the employee is still in | ||||||
34 | service.
| ||||||
35 | A municipality that (i) has at least 35 employees; (ii) | ||||||
36 | is located in a county with at least 2,000,000 inhabitants; |
| |||||||
| |||||||
1 | and (iii) maintains an independent defined benefit pension | ||||||
2 | plan for the benefit of its eligible employees may restrict | ||||||
3 | creditable service in whole or in part for periods of prior | ||||||
4 | service with the employer if the governing body of the | ||||||
5 | municipality adopts an irrevocable resolution to restrict | ||||||
6 | that creditable service and files the resolution with the | ||||||
7 | board before the municipality's effective date of | ||||||
8 | participation.
| ||||||
9 | Any person who has withdrawn from the service of a | ||||||
10 | participating
municipality
or participating | ||||||
11 | instrumentality prior to the effective date, who reenters
| ||||||
12 | the service of the same municipality or participating | ||||||
13 | instrumentality after
the effective date and becomes a | ||||||
14 | participating employee is entitled to
creditable service | ||||||
15 | for prior service as otherwise provided in this
subdivision | ||||||
16 | (a)(1) only if he or she renders 2 years of service as a
| ||||||
17 | participating employee after the effective date. | ||||||
18 | Application
for such service must be made while in a | ||||||
19 | participating status.
The salary rate to be used in the | ||||||
20 | calculation of the required employee
contribution, if any, | ||||||
21 | shall be the employee's salary rate at the time of first
| ||||||
22 | reentering service with the employer after the employer's | ||||||
23 | effective date of
participation.
| ||||||
24 | 2. For current service, each participating employee | ||||||
25 | shall be
credited with:
| ||||||
26 | a. Additional credits of amounts equal to each | ||||||
27 | payment of additional
contributions received from him | ||||||
28 | under Section 7-173, as of the
date the corresponding | ||||||
29 | payment of earnings is payable to him.
| ||||||
30 | b. Normal credits of amounts equal to each payment | ||||||
31 | of normal
contributions received from him, as of the | ||||||
32 | date the corresponding payment of
earnings is payable | ||||||
33 | to him, and normal contributions made for the purpose | ||||||
34 | of
establishing out-of-state service credits as | ||||||
35 | permitted under the conditions set
forth in paragraph 6 | ||||||
36 | of this subsection (a).
|
| |||||||
| |||||||
1 | c. Municipality credits in an amount equal to 1.4 | ||||||
2 | times the normal
credits, except those established by | ||||||
3 | out-of-state service credits, as of
the date of | ||||||
4 | computation of any benefit if these credits would | ||||||
5 | increase
the benefit.
| ||||||
6 | d. Survivor credits equal to each payment of | ||||||
7 | survivor contributions
received from the participating | ||||||
8 | employee as of the date the
corresponding payment of | ||||||
9 | earnings is payable, and survivor contributions made
| ||||||
10 | for the purpose of establishing out-of-state service | ||||||
11 | credits.
| ||||||
12 | 3. For periods of temporary and total and permanent | ||||||
13 | disability
benefits, each employee receiving disability | ||||||
14 | benefits shall be granted
creditable service for the period | ||||||
15 | during which disability benefits are
payable. Normal and | ||||||
16 | survivor credits, based upon the rate of earnings
applied | ||||||
17 | for disability benefits, shall also be granted if such | ||||||
18 | credits
would result in a higher benefit to any such | ||||||
19 | employee or his
beneficiary.
| ||||||
20 | 4. For authorized leave of absence without pay: A | ||||||
21 | participating
employee shall be granted credits and | ||||||
22 | creditable service for periods of
authorized leave of | ||||||
23 | absence without pay under the following
conditions:
| ||||||
24 | a. An application for credits and creditable | ||||||
25 | service is submitted to the
board while the employee is | ||||||
26 | in a status of
active employment, and within 2 years | ||||||
27 | after termination of the
leave of absence period for | ||||||
28 | which credits and creditable service are
sought.
| ||||||
29 | b. Not more than 12 complete months of creditable | ||||||
30 | service
for authorized leave of absence without pay | ||||||
31 | shall be counted for purposes of
determining any | ||||||
32 | benefits payable under this Article.
| ||||||
33 | c. Credits and creditable service shall be granted | ||||||
34 | for leave of
absence only if such leave is approved by | ||||||
35 | the governing body of the
municipality, including | ||||||
36 | approval of the estimated cost thereof to the
|
| |||||||
| |||||||
1 | municipality as determined by the fund, and employee | ||||||
2 | contributions, plus
interest at the effective rate | ||||||
3 | applicable for each year from the end of
the period of | ||||||
4 | leave to date of payment, have been paid to the fund in
| ||||||
5 | accordance with Section 7-173. The contributions shall | ||||||
6 | be computed upon the
assumption earnings continued | ||||||
7 | during the period of leave at the rate in
effect when | ||||||
8 | the leave began.
| ||||||
9 | d. Benefits under the provisions of Sections | ||||||
10 | 7-141, 7-146, 7-150
and 7-163 shall become payable to | ||||||
11 | employees on authorized leave of
absence, or their | ||||||
12 | designated beneficiary, only if such leave of absence
| ||||||
13 | is creditable hereunder, and if the employee has at | ||||||
14 | least one year of
creditable service other than the | ||||||
15 | service granted for leave of absence.
Any employee | ||||||
16 | contributions due may be deducted from any benefits
| ||||||
17 | payable.
| ||||||
18 | e. No credits or creditable service shall be | ||||||
19 | allowed for leave of
absence without pay during any | ||||||
20 | period of prior service.
| ||||||
21 | 5. For military service: The governing body of a | ||||||
22 | municipality or
participating instrumentality may elect to | ||||||
23 | allow creditable service to
participating employees who | ||||||
24 | leave their employment to serve in the armed
forces of the | ||||||
25 | United States for all periods of such service, provided
| ||||||
26 | that the person returns to active employment within 90 days | ||||||
27 | after
completion
of full time active duty, but no | ||||||
28 | creditable service shall be allowed such
person for any | ||||||
29 | period that can be used in the computation of a pension
or | ||||||
30 | any other pay or benefit, other than pay for active duty, | ||||||
31 | for service
in any branch of the armed forces of the United | ||||||
32 | States. If necessary to
the computation of any benefit, the | ||||||
33 | board shall establish municipality
credits for | ||||||
34 | participating employees under this paragraph on the
| ||||||
35 | assumption that the employee received earnings at the rate | ||||||
36 | received at
the time he left the employment to enter the |
| |||||||
| |||||||
1 | armed forces. A
participating employee in the armed forces | ||||||
2 | shall not be considered an
employee during such period of | ||||||
3 | service and no additional death and no
disability benefits | ||||||
4 | are payable for death or disability during such period.
| ||||||
5 | Any participating employee who left his employment | ||||||
6 | with a
municipality or participating instrumentality to | ||||||
7 | serve in the armed
forces of the United States and who | ||||||
8 | again became a participating
employee within 90 days after | ||||||
9 | completion of full time active duty by
entering the service | ||||||
10 | of a different municipality or participating
| ||||||
11 | instrumentality, which has elected to allow creditable | ||||||
12 | service for
periods of military service under the preceding | ||||||
13 | paragraph, shall also be
allowed creditable service for his | ||||||
14 | period of military service on the
same terms that would | ||||||
15 | apply if he had been employed, before entering
military | ||||||
16 | service, by the municipality or instrumentality which | ||||||
17 | employed
him after he left the military service and the | ||||||
18 | employer costs arising in
relation to such grant of | ||||||
19 | creditable service shall be charged to and
paid by that | ||||||
20 | municipality or instrumentality.
| ||||||
21 | Notwithstanding the foregoing, any participating | ||||||
22 | employee
shall be entitled to creditable service as | ||||||
23 | required by any federal law
relating to re-employment | ||||||
24 | rights of persons who served in the United States
Armed | ||||||
25 | Services. Such creditable service shall be granted upon | ||||||
26 | payment by
the member of an amount equal to the employee | ||||||
27 | contributions which would
have been required had the | ||||||
28 | employee continued in service at the same
rate of earnings | ||||||
29 | during the military leave period, plus interest at
the | ||||||
30 | effective rate.
| ||||||
31 | 5.1. In addition to any creditable service established | ||||||
32 | under
paragraph 5 of this subsection (a), creditable | ||||||
33 | service may be granted for
up to 24 months of service in | ||||||
34 | the armed forces of the United States.
| ||||||
35 | In order to receive creditable service for military | ||||||
36 | service under this
paragraph 5.1, a participating employee |
| |||||||
| |||||||
1 | must (1) apply to the Fund
in writing and provide evidence | ||||||
2 | of the military service that is satisfactory
to the Board; | ||||||
3 | (2) obtain the written approval of the current employer; | ||||||
4 | and (3)
make contributions to the Fund equal to (i)
the | ||||||
5 | employee contributions that would have been required had | ||||||
6 | the service been
rendered as a member, plus (ii) an amount | ||||||
7 | determined by the board to be equal
to the employer's | ||||||
8 | normal cost of the benefits accrued for that military
| ||||||
9 | service, plus (iii) interest on items (i) and (ii) from the | ||||||
10 | date of first
membership in the Fund to the date of | ||||||
11 | payment. If payment is made during
the 6-month period that | ||||||
12 | begins 3 months after the effective date of this
amendatory | ||||||
13 | Act of 1997, the required interest shall be at the rate of | ||||||
14 | 2.5%
per year, compounded annually; otherwise, the | ||||||
15 | required interest shall be
calculated at the regular | ||||||
16 | interest rate.
| ||||||
17 | 6. For out-of-state service: Creditable service shall | ||||||
18 | be granted for
service rendered to an out-of-state local | ||||||
19 | governmental body under the
following conditions: The | ||||||
20 | employee had participated and has irrevocably
forfeited | ||||||
21 | all rights to benefits in the out-of-state public employees
| ||||||
22 | pension system; the governing body of his participating | ||||||
23 | municipality or
instrumentality authorizes the employee to | ||||||
24 | establish such service; the
employee has 2 years current | ||||||
25 | service with this municipality or
participating | ||||||
26 | instrumentality; the employee makes a payment of
| ||||||
27 | contributions, which shall be computed at 8% (normal) plus | ||||||
28 | 2% (survivor)
times length of service purchased times the | ||||||
29 | average rate of earnings for the
first 2
years of service | ||||||
30 | with the municipality or participating
instrumentality | ||||||
31 | whose governing body authorizes the service established
| ||||||
32 | plus interest at the effective rate on the date such | ||||||
33 | credits are
established, payable from the date the employee | ||||||
34 | completes the required 2
years of current service to date | ||||||
35 | of payment. In no case shall more than
120 months of | ||||||
36 | creditable service be granted under this provision.
|
| |||||||
| |||||||
1 | 7. For retroactive service: Any employee who could have | ||||||
2 | but did not
elect to become a participating employee, or | ||||||
3 | who should have been a
participant in the Municipal Public | ||||||
4 | Utilities Annuity and Benefit Fund
before that fund was | ||||||
5 | superseded, may receive creditable service for the
period | ||||||
6 | of service not to exceed 50 months; however, a current or | ||||||
7 | former
elected or appointed official of a participating | ||||||
8 | municipality may establish credit under this paragraph 7 | ||||||
9 | for more than 50
months of service as an official of that | ||||||
10 | municipality, if the excess over 50 months is approved by | ||||||
11 | resolution of the
governing body of the affected | ||||||
12 | municipality filed with
the Fund before January 1, 2002.
| ||||||
13 | Any employee who is a
participating employee on or | ||||||
14 | after September 24, 1981 and who was
excluded from | ||||||
15 | participation by the age restrictions removed by Public Act
| ||||||
16 | 82-596 may receive creditable service for the period, on or | ||||||
17 | after January
1, 1979, excluded by the age restriction and, | ||||||
18 | in addition, if the governing
body of the participating | ||||||
19 | municipality or participating instrumentality elects
to | ||||||
20 | allow creditable service for all employees excluded by the | ||||||
21 | age restriction
prior to January 1, 1979, for service | ||||||
22 | during the period prior to that date
excluded by the age | ||||||
23 | restriction. Any employee who was excluded from
| ||||||
24 | participation by the age restriction removed by Public Act | ||||||
25 | 82-596 and who is
not a participating employee on or after | ||||||
26 | September 24, 1981 may receive
creditable service for | ||||||
27 | service after January 1,
1979. Creditable service under | ||||||
28 | this paragraph
shall be granted upon payment of the | ||||||
29 | employee contributions
which would have been required had | ||||||
30 | he participated, with interest at the
effective rate for | ||||||
31 | each year from the end of the period of service
established | ||||||
32 | to date of payment.
| ||||||
33 | 8. For accumulated unused sick leave: A participating | ||||||
34 | employee who is
applying for a retirement annuity shall be | ||||||
35 | entitled to creditable service
for that portion of the | ||||||
36 | employee's accumulated unused sick leave
for which payment |
| |||||||
| |||||||
1 | is not received, as follows:
| ||||||
2 | a. Sick leave days shall be limited to those | ||||||
3 | accumulated under a sick
leave plan established by a | ||||||
4 | participating municipality or participating
| ||||||
5 | instrumentality which is available to all employees or | ||||||
6 | a class of employees.
| ||||||
7 | b. Only sick leave days accumulated with a | ||||||
8 | participating municipality or
participating | ||||||
9 | instrumentality with which the employee was in service | ||||||
10 | within
60 days of the effective date of his retirement | ||||||
11 | annuity shall be credited;
If the employee was in | ||||||
12 | service with more than one employer during this
period | ||||||
13 | only the sick leave days with the employer with which | ||||||
14 | the employee
has the greatest number of unpaid sick | ||||||
15 | leave days shall be considered.
| ||||||
16 | c. The creditable service granted shall be | ||||||
17 | considered solely for the
purpose of computing the | ||||||
18 | amount of the retirement annuity and shall not be
used | ||||||
19 | to establish any minimum service period required by any | ||||||
20 | provision of the
Illinois Pension Code, the effective | ||||||
21 | date of the retirement annuity, or the
final rate of | ||||||
22 | earnings.
| ||||||
23 | d. The creditable service shall be at the rate of | ||||||
24 | 1/20 of a month for
each full sick day, provided that | ||||||
25 | no more than 12 months may be credited
under this | ||||||
26 | subdivision 8.
| ||||||
27 | e. Employee contributions shall not be required | ||||||
28 | for creditable service
under this subdivision 8.
| ||||||
29 | f. Each participating municipality and | ||||||
30 | participating instrumentality
with which an employee | ||||||
31 | has service within 60 days of the effective date of
his | ||||||
32 | retirement annuity shall certify to the board the | ||||||
33 | number of accumulated
unpaid sick leave days credited | ||||||
34 | to the employee at the time of termination
of service.
| ||||||
35 | 9. For service transferred from another system: | ||||||
36 | Credits and
creditable service shall be granted for service |
| |||||||
| |||||||
1 | under Article 3, 4, 5, 14
or 16 of this Act, to any active | ||||||
2 | member of this Fund, and to any
inactive member who has | ||||||
3 | been a county sheriff, upon
transfer of such credits | ||||||
4 | pursuant to Section 3-110.3, 4-108.3, 5-235,
14-105.6 or | ||||||
5 | 16-131.4, and payment by the member of the amount by
which | ||||||
6 | (1) the employer and employee contributions that would have | ||||||
7 | been required
if he had participated in this Fund as a | ||||||
8 | sheriff's law enforcement employee
during the period for | ||||||
9 | which credit is
being transferred, plus interest thereon at | ||||||
10 | the effective rate for each
year, compounded annually, from | ||||||
11 | the date of termination of the service for
which credit is | ||||||
12 | being transferred to the date of payment, exceeds (2) the
| ||||||
13 | amount actually transferred to the Fund.
Such transferred | ||||||
14 | service shall be deemed to be service as a sheriff's law
| ||||||
15 | enforcement employee for the purposes of Section 7-142.1.
| ||||||
16 | 10. For service transferred from an Article 3 system | ||||||
17 | under Section 3-110.8: Credits and
creditable service | ||||||
18 | shall be granted for service under Article 3 of this Act as | ||||||
19 | provided in Section 3-110.8, to any active member of this | ||||||
20 | Fund upon
transfer of such credits pursuant to Section | ||||||
21 | 3-110.8. If the amount by
which (1) the employer and | ||||||
22 | employee contributions that would have been required
if he | ||||||
23 | had participated in this Fund during the period for which | ||||||
24 | credit is
being transferred, plus interest thereon at the | ||||||
25 | effective rate for each
year, compounded annually, from the | ||||||
26 | date of termination of the service for
which credit is | ||||||
27 | being transferred to the date of payment, exceeds (2) the
| ||||||
28 | amount actually transferred to the Fund, then the amount of | ||||||
29 | creditable service established under this paragraph 10 | ||||||
30 | shall be reduced by a corresponding amount in accordance | ||||||
31 | with the rules and procedures established under this | ||||||
32 | paragraph 10.
| ||||||
33 | The Public Pension Division of the Department of
| ||||||
34 | Insurance
shall establish by rule the manner of making the | ||||||
35 | calculation required under
this paragraph 10, taking into | ||||||
36 | account the appropriate actuarial
assumptions; the |
| |||||||
| |||||||
1 | member's service, age, and salary history; the level
of | ||||||
2 | funding of the employer; and
any other factors that the | ||||||
3 | Division determines to be relevant. The rules may
require | ||||||
4 | that all calculations made under this paragraph be reported | ||||||
5 | to the
Division by the board, together with documentation
| ||||||
6 | of the creditable service to be transferred, the amounts of | ||||||
7 | contributions and
interest to be transferred, the manner in | ||||||
8 | which the calculation was performed,
the numbers relied | ||||||
9 | upon in making the calculation, the results of the
| ||||||
10 | calculation, and any other information the Division may | ||||||
11 | deem useful.
| ||||||
12 | (b) Creditable service - amount:
| ||||||
13 | 1. One month of creditable service
shall be allowed for | ||||||
14 | each month for which a participating employee made
| ||||||
15 | contributions as required under Section 7-173, or for which | ||||||
16 | creditable
service is otherwise granted hereunder. Not | ||||||
17 | more than 1 month of
service shall be credited and counted | ||||||
18 | for 1 calendar month, and not more
than 1 year of service | ||||||
19 | shall be credited and counted for any calendar
year. A | ||||||
20 | calendar month means a nominal month beginning on the first | ||||||
21 | day
thereof, and a calendar year means a year beginning | ||||||
22 | January 1 and ending
December 31.
| ||||||
23 | 2. A seasonal employee shall be given 12 months of | ||||||
24 | creditable
service if he renders the number of months of | ||||||
25 | service normally required
by the position in a 12-month | ||||||
26 | period and he remains in service for the
entire 12-month | ||||||
27 | period. Otherwise a fractional year of service in the
| ||||||
28 | number of months of service rendered shall be credited.
| ||||||
29 | 3. An intermittent employee shall be given creditable | ||||||
30 | service for
only those months in which a contribution is | ||||||
31 | made under Section 7-173.
| ||||||
32 | |||||||
33 | (c) No application for correction of credits or creditable | ||||||
34 | service shall
be considered unless the board receives an | ||||||
35 | application for correction while
(1) the applicant is a | ||||||
36 | participating employee and in active employment
with a |
| |||||||
| |||||||
1 | participating municipality or instrumentality, or (2) while | ||||||
2 | the
applicant is actively participating in a pension fund or | ||||||
3 | retirement
system which is a participating system under the | ||||||
4 | Retirement Systems
Reciprocal Act. A participating employee or | ||||||
5 | other applicant shall not be
entitled to credits or creditable | ||||||
6 | service unless the required employee
contributions are made in | ||||||
7 | a lump sum or in installments made in accordance
with board | ||||||
8 | rule.
| ||||||
9 | (d) Upon the granting of a retirement, surviving spouse or | ||||||
10 | child
annuity, a death benefit or a separation benefit, on | ||||||
11 | account of any
employee, all individual accumulated credits | ||||||
12 | shall thereupon terminate.
Upon the withdrawal of additional | ||||||
13 | contributions, the credits applicable
thereto shall thereupon | ||||||
14 | terminate. Terminated credits shall not be applied
to increase | ||||||
15 | the benefits any remaining employee would otherwise receive | ||||||
16 | under
this Article.
| ||||||
17 | (Source: P.A. 92-424, eff. 8-17-01; 93-933, eff. 8-13-04.)
| ||||||
18 | (40 ILCS 5/7-139.11 new)
| ||||||
19 | Sec. 7-139.11. Transfer to Article 3 pension fund. | ||||||
20 | (a) Until January 1, 2006, a person who has less than 8 | ||||||
21 | years of creditable service under this Article and who has | ||||||
22 | become an active
participant in a police pension fund | ||||||
23 | established under Article 3 of this Code
may apply for transfer | ||||||
24 | to that Article 3 fund of his or her creditable service
| ||||||
25 | accumulated under this Article. At the
time of the transfer the | ||||||
26 | Fund shall pay to the police pension fund an amount
equal to: | ||||||
27 | (1) the amounts accumulated to the credit of the | ||||||
28 | applicant under this Article, including interest; and
| ||||||
29 | (2) the municipality credits based on that service, | ||||||
30 | including interest;
and
| ||||||
31 | (3) any interest paid by the applicant in order to | ||||||
32 | reinstate that service.
| ||||||
33 | Participation in this Fund with respect to the transferred | ||||||
34 | credits shall
terminate on the date of transfer.
| ||||||
35 | (b) An active member of a pension fund established under |
| |||||||
| |||||||
1 | Article 3
of this Code may reinstate creditable service
under | ||||||
2 | this Article that was terminated by receipt of a refund, by | ||||||
3 | paying to the
Fund the amount of the refund plus interest | ||||||
4 | thereon at the rate of 6% per year,
compounded annually, from | ||||||
5 | the date of refund to the date of payment.
| ||||||
6 | Section 99. Effective date. This Act takes effect upon | ||||||
7 | becoming law.
|