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1 | AN ACT in relation to public employee benefits.
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2 | Be it enacted by the People of the State of Illinois, | ||||||||||||||||||||||||||
3 | represented in the General Assembly:
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4 | Section 5. The Illinois Pension Code is amended by changing | ||||||||||||||||||||||||||
5 | Section 3-110 as follows:
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6 | (40 ILCS 5/3-110) (from Ch. 108 1/2, par. 3-110)
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7 | Sec. 3-110. Creditable service.
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8 | (a) "Creditable service" is the time served by a police | ||||||||||||||||||||||||||
9 | officer as a member
of a regularly constituted police force of | ||||||||||||||||||||||||||
10 | a municipality. In computing
creditable service furloughs | ||||||||||||||||||||||||||
11 | without pay exceeding 30 days shall not be
counted, but all | ||||||||||||||||||||||||||
12 | leaves of absence for illness or accident, regardless of
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13 | length, and all periods of disability retirement for which a | ||||||||||||||||||||||||||
14 | police officer has
received no disability pension payments | ||||||||||||||||||||||||||
15 | under this Article shall be counted.
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16 | (a-5) Up to 3 years of time during which the police officer | ||||||||||||||||||||||||||
17 | receives
a disability pension under Section 3-114.1, 3-114.2, | ||||||||||||||||||||||||||
18 | 3-114.3, or 3-114.6
shall be counted as creditable service, | ||||||||||||||||||||||||||
19 | provided that
(i) the police officer returns to active service | ||||||||||||||||||||||||||
20 | after the disability for a
period at least equal to the period | ||||||||||||||||||||||||||
21 | for which credit is to be established and
(ii) the police | ||||||||||||||||||||||||||
22 | officer makes contributions to the fund based on the rates
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23 | specified in Section 3-125.1 and the salary upon which the |
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1 | disability pension
is based. These contributions may be paid at | ||||||
2 | any time prior to the
commencement of a retirement pension. The | ||||||
3 | police officer may, but need not,
elect to have the | ||||||
4 | contributions deducted from the disability pension or to
pay | ||||||
5 | them in installments on a schedule approved by the board. If | ||||||
6 | not
deducted from the disability pension, the contributions | ||||||
7 | shall include
interest at the rate of 6% per year, compounded | ||||||
8 | annually, from the date
for which service credit is being | ||||||
9 | established to the date of payment. If
contributions are paid | ||||||
10 | under this subsection (a-5) in excess of those
needed to | ||||||
11 | establish the credit, the excess shall be refunded. This
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12 | subsection (a-5) applies to persons receiving a disability | ||||||
13 | pension under
Section 3-114.1, 3-114.2, 3-114.3, or 3-114.6 on | ||||||
14 | the effective date of this
amendatory Act of the 91st General | ||||||
15 | Assembly, as well as persons who begin to
receive such a | ||||||
16 | disability pension after that date.
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17 | (b) Creditable service includes all periods of service in | ||||||
18 | the military,
naval or air forces of the United States entered | ||||||
19 | upon while an active police
officer of a municipality, provided | ||||||
20 | that upon applying for a permanent pension,
and in accordance | ||||||
21 | with the rules of the board, the police officer pays into the
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22 | fund the amount the officer would have contributed if he or she | ||||||
23 | had been a
regular contributor during such period, to the | ||||||
24 | extent that the municipality
which the police officer served | ||||||
25 | has not made such contributions in the
officer's behalf. The | ||||||
26 | total amount of such creditable service shall not
exceed 5 |
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1 | years, except that any police officer who on July 1, 1973 had | ||||||
2 | more
than 5 years of such creditable service shall receive the | ||||||
3 | total amount thereof.
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4 | (b-1) In addition to any creditable service established | ||||||
5 | under subsection
(b), creditable service must be granted for up | ||||||
6 | to 24 months of service in the
armed forces of the United | ||||||
7 | States that was not immediately preceded by
employment as a | ||||||
8 | police officer, except that the Board may opt not to grant the | ||||||
9 | creditable service under this subsection (b-1) by resolution of | ||||||
10 | a majority of its members. In order to receive creditable | ||||||
11 | service for
military service under this subsection (b-1), a | ||||||
12 | police officer must (1) apply
to the Fund in writing and | ||||||
13 | provide evidence of the military service that is
satisfactory | ||||||
14 | to the Board and (2) make contributions to the Fund equal to | ||||||
15 | (i)
the employee contributions that would have been required | ||||||
16 | had the service been
rendered as a member, plus (ii) an amount | ||||||
17 | determined by the board to be equal
to the employer's normal | ||||||
18 | cost of the benefits accrued for that military
service, plus | ||||||
19 | (iii) interest on items (i) and (ii) from the date of first
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20 | membership in the Fund to the date of payment. If payment is | ||||||
21 | made during
the 6-month period that begins 3 months after the | ||||||
22 | effective date of this
amendatory Act of the 95th General | ||||||
23 | Assembly, the required interest shall be at
the rate of 2.5% | ||||||
24 | per year, compounded annually; otherwise, the required
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25 | interest shall be calculated at the rate of 6% per year, | ||||||
26 | compounded annually.
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1 | (c) Creditable service also includes service rendered by a | ||||||
2 | police
officer while on leave of absence from a police | ||||||
3 | department to serve as an
executive of an organization whose | ||||||
4 | membership consists of members of a
police department, subject | ||||||
5 | to the following conditions: (i) the police
officer is a | ||||||
6 | participant of a fund established under this Article with at
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7 | least 10 years of service as a police officer; (ii) the police | ||||||
8 | officer
received no credit for such service under any other | ||||||
9 | retirement system,
pension fund, or annuity and benefit fund | ||||||
10 | included in this Code; (iii)
pursuant to the rules of the board | ||||||
11 | the police officer pays to the fund the
amount he or she would | ||||||
12 | have contributed had the officer been an active
member of the | ||||||
13 | police department; and (iv) the organization pays a
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14 | contribution equal to the municipality's normal cost for that
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15 | period of service.
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16 | (d)(1) Creditable service also includes periods of | ||||||
17 | service originally
established in another police pension | ||||||
18 | fund under this Article or in the Fund
established under | ||||||
19 | Article 7 of this Code for which (i) the contributions have
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20 | been transferred under Section 3-110.7 or Section 7-139.9 | ||||||
21 | and (ii) any
additional contribution required under | ||||||
22 | paragraph (2) of this subsection has
been paid in full in | ||||||
23 | accordance with the requirements of this subsection (d).
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24 | (2) If the board of the pension fund to which | ||||||
25 | creditable service and
related
contributions are | ||||||
26 | transferred under Section 3-110.7 or 7-139.9 determines |
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1 | that
the amount transferred is less than the true cost to | ||||||
2 | the pension fund of
allowing that creditable service to be | ||||||
3 | established, then in order to establish
that creditable | ||||||
4 | service the police officer must pay to the pension fund, | ||||||
5 | within
the payment period specified in paragraph (3) of | ||||||
6 | this subsection, an additional
contribution equal to the | ||||||
7 | difference, as determined by the board in accordance
with | ||||||
8 | the rules and procedures adopted under paragraph (6) of | ||||||
9 | this subsection.
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10 | (3) Except as provided in paragraph (4), the additional
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11 | contribution must be paid to the board (i) within 5 years | ||||||
12 | from the date of the
transfer of contributions under | ||||||
13 | Section 3-110.7 or 7-139.9 and (ii) before the
police | ||||||
14 | officer terminates service with the fund. The additional | ||||||
15 | contribution
may be paid in a lump sum or in accordance | ||||||
16 | with a schedule of installment
payments authorized by the | ||||||
17 | board.
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18 | (4) If the police officer dies in service before | ||||||
19 | payment in full has been
made and before the expiration of | ||||||
20 | the 5-year payment period, the surviving
spouse of the | ||||||
21 | officer may elect to pay the unpaid amount on the officer's
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22 | behalf within 6 months after the date of death, in which | ||||||
23 | case the creditable
service shall be granted as though the | ||||||
24 | deceased police officer had paid the
remaining balance on | ||||||
25 | the day before the date of death.
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26 | (5) If the additional contribution is not paid in full |
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1 | within the
required time, the creditable service shall not | ||||||
2 | be granted and the
police officer (or the officer's | ||||||
3 | surviving spouse or estate) shall be entitled
to receive a | ||||||
4 | refund of (i) any partial payment of the additional | ||||||
5 | contribution
that has been made by the police officer and | ||||||
6 | (ii) those portions of the amounts
transferred under | ||||||
7 | subdivision (a)(1) of Section 3-110.7 or subdivisions | ||||||
8 | (a)(1)
and (a)(3) of Section 7-139.9 that represent | ||||||
9 | employee contributions paid by the
police officer (but not | ||||||
10 | the accumulated interest on those contributions) and
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11 | interest paid by the police officer to the prior pension | ||||||
12 | fund in order to
reinstate service terminated by acceptance | ||||||
13 | of a refund.
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14 | At the time of paying a refund under this item (5), the | ||||||
15 | pension fund
shall also repay to the pension fund from | ||||||
16 | which the contributions were
transferred under Section | ||||||
17 | 3-110.7 or 7-139.9 the amount originally transferred
under | ||||||
18 | subdivision (a)(2) of that Section, plus interest at the | ||||||
19 | rate of 6% per
year, compounded annually, from the date of | ||||||
20 | the original transfer to the date
of repayment. Amounts | ||||||
21 | repaid to the Article 7 fund under this provision shall
be | ||||||
22 | credited to the appropriate municipality.
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23 | Transferred credit that is not granted due to failure | ||||||
24 | to pay the additional
contribution within the required time | ||||||
25 | is lost; it may not be transferred to
another pension fund | ||||||
26 | and may not be reinstated in the pension fund from which
it |
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1 | was transferred.
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2 | (6) The Public Employee Pension Fund Division of the | ||||||
3 | Department of
Insurance
shall establish by rule the manner | ||||||
4 | of making the calculation required under
paragraph (2) of | ||||||
5 | this subsection, taking into account the appropriate | ||||||
6 | actuarial
assumptions; the police officer's service, age, | ||||||
7 | and salary history; the level
of funding of the pension | ||||||
8 | fund to which the credits are being transferred; and
any | ||||||
9 | other factors that the Division determines to be relevant. | ||||||
10 | The rules may
require that all calculations made under | ||||||
11 | paragraph (2) be reported to the
Division by the board | ||||||
12 | performing the calculation, together with documentation
of | ||||||
13 | the creditable service to be transferred, the amounts of | ||||||
14 | contributions and
interest to be transferred, the manner in | ||||||
15 | which the calculation was performed,
the numbers relied | ||||||
16 | upon in making the calculation, the results of the
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17 | calculation, and any other information the Division may | ||||||
18 | deem useful.
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19 | (e)(1) Creditable service also includes periods of | ||||||
20 | service originally
established in the Fund
established | ||||||
21 | under Article 7 of this Code for which the contributions | ||||||
22 | have
been transferred under Section 7-139.11.
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23 | (2) If the board of the pension fund to which | ||||||
24 | creditable service and
related
contributions are | ||||||
25 | transferred under Section 7-139.11 determines that
the | ||||||
26 | amount transferred is less than the true cost to the |
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1 | pension fund of
allowing that creditable service to be | ||||||
2 | established, then the amount of creditable service the | ||||||
3 | police officer may establish under this subsection (e) | ||||||
4 | shall be reduced by an amount equal to the difference, as | ||||||
5 | determined by the board in accordance
with the rules and | ||||||
6 | procedures adopted under paragraph (3) of this subsection.
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7 | (3) The Public Pension Division of the Department of
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8 | Financial and Professional Regulation
shall establish by | ||||||
9 | rule the manner of making the calculation required under
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10 | paragraph (2) of this subsection, taking into account the | ||||||
11 | appropriate actuarial
assumptions; the police officer's | ||||||
12 | service, age, and salary history; the level
of funding of | ||||||
13 | the pension fund to which the credits are being | ||||||
14 | transferred; and
any other factors that the Division | ||||||
15 | determines to be relevant. The rules may
require that all | ||||||
16 | calculations made under paragraph (2) be reported to the
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17 | Division by the board performing the calculation, together | ||||||
18 | with documentation
of the creditable service to be | ||||||
19 | transferred, the amounts of contributions and
interest to | ||||||
20 | be transferred, the manner in which the calculation was | ||||||
21 | performed,
the numbers relied upon in making the | ||||||
22 | calculation, the results of the
calculation, and any other | ||||||
23 | information the Division may deem useful.
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24 | (Source: P.A. 94-356, eff. 7-29-05.)
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25 | Section 90. The State Mandates Act is amended by adding |
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1 | Section 8.31 as follows: | ||||||
2 | (30 ILCS 805/8.31 new) | ||||||
3 | Sec. 8.31. Exempt mandate. Notwithstanding Sections 6 and 8 | ||||||
4 | of this Act, no reimbursement by the State is required for the | ||||||
5 | implementation of any mandate created by this amendatory Act of | ||||||
6 | the 95th General Assembly. | ||||||
7 | Section 99. Effective date. This Act takes effect upon | ||||||
8 | becoming law. |