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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 7-139, 7-175, and 7-175.1 and by adding Section | ||||||
6 | 7-111.5 as follows: | ||||||
7 | (40 ILCS 5/7-111.5 new) | ||||||
8 | Sec. 7-111.5. "Omitted service": The period of service | ||||||
9 | with a participating municipality or participating | ||||||
10 | instrumentality during which an employee was required to | ||||||
11 | participate in the Fund, but was not actually enrolled.
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12 | (40 ILCS 5/7-139) (from Ch. 108 1/2, par. 7-139)
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13 | (Text of Section before amendment by P.A. 98-599 )
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14 | Sec. 7-139. Credits and creditable service to employees.
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15 | (a) Each participating employee shall be granted credits | ||||||
16 | and creditable
service, for purposes of determining the amount | ||||||
17 | of any annuity or benefit
to which he or a beneficiary is | ||||||
18 | entitled, as follows:
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19 | 1. For prior service: Each participating employee who | ||||||
20 | is an employee
of a participating municipality or | ||||||
21 | participating instrumentality on the
effective date shall | ||||||
22 | be granted creditable service, but no credits under
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1 | paragraph 2 of this subsection (a), for periods of prior | ||||||
2 | service for which
credit has not been received under any | ||||||
3 | other pension fund or retirement system
established under | ||||||
4 | this Code, as follows:
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5 | If the effective date of participation for the | ||||||
6 | participating municipality
or participating | ||||||
7 | instrumentality is on or before January 1, 1998, creditable
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8 | service shall be granted for the entire period of prior | ||||||
9 | service with that
employer without any employee | ||||||
10 | contribution.
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11 | If the effective date of participation for the | ||||||
12 | participating municipality
or participating | ||||||
13 | instrumentality is after January 1, 1998, creditable
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14 | service shall be granted for the last 20% of the period of | ||||||
15 | prior service with
that employer, but no more than 5 years, | ||||||
16 | without any employee contribution. A
participating | ||||||
17 | employee may establish creditable service for the | ||||||
18 | remainder of
the period of prior service with that employer | ||||||
19 | by making an application in
writing, accompanied by payment | ||||||
20 | of an employee contribution in an
amount determined by the | ||||||
21 | Fund, based on the employee contribution rates in
effect at | ||||||
22 | the time of application for the creditable service and the | ||||||
23 | employee's
salary rate on the effective date of | ||||||
24 | participation for that employer, plus
interest at the | ||||||
25 | effective rate from the date of the prior service to the | ||||||
26 | date
of payment. Application for this creditable service |
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1 | may be made at any time
while the employee is still in | ||||||
2 | service.
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3 | A municipality that (i) has at least 35 employees; (ii) | ||||||
4 | is located in a county with at least 2,000,000 inhabitants; | ||||||
5 | and (iii) maintains an independent defined benefit pension | ||||||
6 | plan for the benefit of its eligible employees may restrict | ||||||
7 | creditable service in whole or in part for periods of prior | ||||||
8 | service with the employer if the governing body of the | ||||||
9 | municipality adopts an irrevocable resolution to restrict | ||||||
10 | that creditable service and files the resolution with the | ||||||
11 | board before the municipality's effective date of | ||||||
12 | participation.
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13 | Any person who has withdrawn from the service of a | ||||||
14 | participating
municipality
or participating | ||||||
15 | instrumentality prior to the effective date, who reenters
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16 | the service of the same municipality or participating | ||||||
17 | instrumentality after
the effective date and becomes a | ||||||
18 | participating employee is entitled to
creditable service | ||||||
19 | for prior service as otherwise provided in this
subdivision | ||||||
20 | (a)(1) only if he or she renders 2 years of service as a
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21 | participating employee after the effective date. | ||||||
22 | Application
for such service must be made while in a | ||||||
23 | participating status.
The salary rate to be used in the | ||||||
24 | calculation of the required employee
contribution, if any, | ||||||
25 | shall be the employee's salary rate at the time of first
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26 | reentering service with the employer after the employer's |
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1 | effective date of
participation.
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2 | 2. For current service, each participating employee | ||||||
3 | shall be
credited with:
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4 | a. Additional credits of amounts equal to each | ||||||
5 | payment of additional
contributions received from him | ||||||
6 | under Section 7-173, as of the
date the corresponding | ||||||
7 | payment of earnings is payable to him.
| ||||||
8 | b. Normal credits of amounts equal to each payment | ||||||
9 | of normal
contributions received from him, as of the | ||||||
10 | date the corresponding payment of
earnings is payable | ||||||
11 | to him, and normal contributions made for the purpose | ||||||
12 | of
establishing out-of-state service credits as | ||||||
13 | permitted under the conditions set
forth in paragraph 6 | ||||||
14 | of this subsection (a).
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15 | c. Municipality credits in an amount equal to 1.4 | ||||||
16 | times the normal
credits, except those established by | ||||||
17 | out-of-state service credits, as of
the date of | ||||||
18 | computation of any benefit if these credits would | ||||||
19 | increase
the benefit.
| ||||||
20 | d. Survivor credits equal to each payment of | ||||||
21 | survivor contributions
received from the participating | ||||||
22 | employee as of the date the
corresponding payment of | ||||||
23 | earnings is payable, and survivor contributions made
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24 | for the purpose of establishing out-of-state service | ||||||
25 | credits.
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26 | 3. For periods of temporary and total and permanent |
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1 | disability
benefits, each employee receiving disability | ||||||
2 | benefits shall be granted
creditable service for the period | ||||||
3 | during which disability benefits are
payable. Normal and | ||||||
4 | survivor credits, based upon the rate of earnings
applied | ||||||
5 | for disability benefits, shall also be granted if such | ||||||
6 | credits
would result in a higher benefit to any such | ||||||
7 | employee or his
beneficiary.
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8 | 4. For authorized leave of absence without pay: A | ||||||
9 | participating
employee shall be granted credits and | ||||||
10 | creditable service for periods of
authorized leave of | ||||||
11 | absence without pay under the following
conditions:
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12 | a. An application for credits and creditable | ||||||
13 | service is submitted to the
board while the employee is | ||||||
14 | in a status of
active employment.
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15 | b. Not more than 12 complete months of creditable | ||||||
16 | service
for authorized leave of absence without pay | ||||||
17 | shall be counted for purposes of
determining any | ||||||
18 | benefits payable under this Article.
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19 | c. Credits and creditable service shall be granted | ||||||
20 | for leave of
absence only if such leave is approved by | ||||||
21 | the governing body of the
municipality, including | ||||||
22 | approval of the estimated cost thereof to the
| ||||||
23 | municipality as determined by the fund, and employee | ||||||
24 | contributions, plus
interest at the effective rate | ||||||
25 | applicable for each year from the end of
the period of | ||||||
26 | leave to date of payment, have been paid to the fund in
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1 | accordance with Section 7-173. The contributions shall | ||||||
2 | be computed upon the
assumption earnings continued | ||||||
3 | during the period of leave at the rate in
effect when | ||||||
4 | the leave began.
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5 | d. Benefits under the provisions of Sections | ||||||
6 | 7-141, 7-146, 7-150
and 7-163 shall become payable to | ||||||
7 | employees on authorized leave of
absence, or their | ||||||
8 | designated beneficiary, only if such leave of absence
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9 | is creditable hereunder, and if the employee has at | ||||||
10 | least one year of
creditable service other than the | ||||||
11 | service granted for leave of absence.
Any employee | ||||||
12 | contributions due may be deducted from any benefits
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13 | payable.
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14 | e. No credits or creditable service shall be | ||||||
15 | allowed for leave of
absence without pay during any | ||||||
16 | period of prior service.
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17 | 5. For military service: The governing body of a | ||||||
18 | municipality or
participating instrumentality may elect to | ||||||
19 | allow creditable service to
participating employees who | ||||||
20 | leave their employment to serve in the armed
forces of the | ||||||
21 | United States for all periods of such service, provided
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22 | that the person returns to active employment within 90 days | ||||||
23 | after
completion
of full time active duty, but no | ||||||
24 | creditable service shall be allowed such
person for any | ||||||
25 | period that can be used in the computation of a pension
or | ||||||
26 | any other pay or benefit, other than pay for active duty, |
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1 | for service
in any branch of the armed forces of the United | ||||||
2 | States. If necessary to
the computation of any benefit, the | ||||||
3 | board shall establish municipality
credits for | ||||||
4 | participating employees under this paragraph on the
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5 | assumption that the employee received earnings at the rate | ||||||
6 | received at
the time he left the employment to enter the | ||||||
7 | armed forces. A
participating employee in the armed forces | ||||||
8 | shall not be considered an
employee during such period of | ||||||
9 | service and no additional death and no
disability benefits | ||||||
10 | are payable for death or disability during such period.
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11 | Any participating employee who left his employment | ||||||
12 | with a
municipality or participating instrumentality to | ||||||
13 | serve in the armed
forces of the United States and who | ||||||
14 | again became a participating
employee within 90 days after | ||||||
15 | completion of full time active duty by
entering the service | ||||||
16 | of a different municipality or participating
| ||||||
17 | instrumentality, which has elected to allow creditable | ||||||
18 | service for
periods of military service under the preceding | ||||||
19 | paragraph, shall also be
allowed creditable service for his | ||||||
20 | period of military service on the
same terms that would | ||||||
21 | apply if he had been employed, before entering
military | ||||||
22 | service, by the municipality or instrumentality which | ||||||
23 | employed
him after he left the military service and the | ||||||
24 | employer costs arising in
relation to such grant of | ||||||
25 | creditable service shall be charged to and
paid by that | ||||||
26 | municipality or instrumentality.
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1 | Notwithstanding the foregoing, any participating | ||||||
2 | employee
shall be entitled to creditable service as | ||||||
3 | required by any federal law
relating to re-employment | ||||||
4 | rights of persons who served in the United States
Armed | ||||||
5 | Services. Such creditable service shall be granted upon | ||||||
6 | payment by
the member of an amount equal to the employee | ||||||
7 | contributions which would
have been required had the | ||||||
8 | employee continued in service at the same
rate of earnings | ||||||
9 | during the military leave period, plus interest at
the | ||||||
10 | effective rate.
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11 | 5.1. In addition to any creditable service established | ||||||
12 | under
paragraph 5 of this subsection (a), creditable | ||||||
13 | service may be granted for
up to 48 months of service in | ||||||
14 | the armed forces of the United States.
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15 | In order to receive creditable service for military | ||||||
16 | service under this
paragraph 5.1, a participating employee | ||||||
17 | must (1) apply to the Fund
in writing and provide evidence | ||||||
18 | of the military service that is satisfactory
to the Board; | ||||||
19 | (2) obtain the written approval of the current employer; | ||||||
20 | and (3)
make contributions to the Fund equal to (i)
the | ||||||
21 | employee contributions that would have been required had | ||||||
22 | the service been
rendered as a member, plus (ii) an amount | ||||||
23 | determined by the board to be equal
to the employer's | ||||||
24 | normal cost of the benefits accrued for that military
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25 | service, plus (iii) interest on items (i) and (ii) from the | ||||||
26 | date of first
membership in the Fund to the date of |
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1 | payment. The required interest shall be
calculated at the | ||||||
2 | regular interest rate.
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3 | The changes made to this paragraph 5.1 by Public Acts | ||||||
4 | 95-483 and 95-486
apply only to participating employees in | ||||||
5 | service on or after August 28, 2007 (the effective date of | ||||||
6 | those Public Acts).
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7 | 6. For out-of-state service: Creditable service shall | ||||||
8 | be granted for
service rendered to an out-of-state local | ||||||
9 | governmental body under the
following conditions: The | ||||||
10 | employee had participated and has irrevocably
forfeited | ||||||
11 | all rights to benefits in the out-of-state public employees
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12 | pension system; the governing body of his participating | ||||||
13 | municipality or
instrumentality authorizes the employee to | ||||||
14 | establish such service; the
employee has 2 years current | ||||||
15 | service with this municipality or
participating | ||||||
16 | instrumentality; the employee makes a payment of
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17 | contributions, which shall be computed at 8% (normal) plus | ||||||
18 | 2% (survivor)
times length of service purchased times the | ||||||
19 | average rate of earnings for the
first 2
years of service | ||||||
20 | with the municipality or participating
instrumentality | ||||||
21 | whose governing body authorizes the service established
| ||||||
22 | plus interest at the effective rate on the date such | ||||||
23 | credits are
established, payable from the date the employee | ||||||
24 | completes the required 2
years of current service to date | ||||||
25 | of payment. In no case shall more than
120 months of | ||||||
26 | creditable service be granted under this provision.
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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.
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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 |
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1 | service after January 1,
1979. Creditable service under | ||||||
2 | this paragraph
shall be granted upon payment of the | ||||||
3 | employee contributions
which would have been required had | ||||||
4 | he participated, with interest at the
effective rate for | ||||||
5 | each year from the end of the period of service
established | ||||||
6 | to date of payment.
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7 | 8. For accumulated unused sick leave: A participating | ||||||
8 | employee who is
applying for a retirement annuity shall be | ||||||
9 | entitled to creditable service
for that portion of the | ||||||
10 | employee's accumulated unused sick leave
for which payment | ||||||
11 | is not received, as follows:
| ||||||
12 | a. Sick leave days shall be limited to those | ||||||
13 | accumulated under a sick
leave plan established by a | ||||||
14 | participating municipality or participating
| ||||||
15 | instrumentality which is available to all employees or | ||||||
16 | a class of employees.
| ||||||
17 | b. Except as provided in item b-1, only sick leave | ||||||
18 | days accumulated with a participating municipality or
| ||||||
19 | participating instrumentality with which the employee | ||||||
20 | was in service within
60 days of the effective date of | ||||||
21 | his retirement annuity shall be credited;
If the | ||||||
22 | employee was in service with more than one employer | ||||||
23 | during this
period only the sick leave days with the | ||||||
24 | employer with which the employee
has the greatest | ||||||
25 | number of unpaid sick leave days shall be considered.
| ||||||
26 | b-1. If the employee was in the service of more |
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| |||||||
1 | than one employer as defined in item (2) of paragraph | ||||||
2 | (a) of subsection (A) of Section 7-132, then the sick | ||||||
3 | leave days from all such employers shall be credited, | ||||||
4 | as long as the creditable service attributed to those | ||||||
5 | sick leave days does not exceed the limitation in item | ||||||
6 | f of this paragraph 8. In calculating the creditable | ||||||
7 | service under this item b-1, the sick leave days from | ||||||
8 | the last employer shall be considered first, then the | ||||||
9 | remaining sick leave days shall be considered until | ||||||
10 | there are no more days or the maximum creditable sick | ||||||
11 | leave threshold under item f of this paragraph 8 has | ||||||
12 | been reached.
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13 | c. The creditable service granted shall be | ||||||
14 | considered solely for the
purpose of computing the | ||||||
15 | amount of the retirement annuity and shall not be
used | ||||||
16 | to establish any minimum service period required by any | ||||||
17 | provision of the
Illinois Pension Code, the effective | ||||||
18 | date of the retirement annuity, or the
final rate of | ||||||
19 | earnings.
| ||||||
20 | d. The creditable service shall be at the rate of | ||||||
21 | 1/20 of a month for
each full sick day, provided that | ||||||
22 | no more than 12 months may be credited
under this | ||||||
23 | subdivision 8.
| ||||||
24 | e. Employee contributions shall not be required | ||||||
25 | for creditable service
under this subdivision 8.
| ||||||
26 | f. Each participating municipality and |
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| |||||||
1 | participating instrumentality
with which an employee | ||||||
2 | has service within 60 days of the effective date of
his | ||||||
3 | retirement annuity shall certify to the board the | ||||||
4 | number of accumulated
unpaid sick leave days credited | ||||||
5 | to the employee at the time of termination
of service.
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6 | 9. For service transferred from another system: | ||||||
7 | Credits and
creditable service shall be granted for service | ||||||
8 | under Article 4, 5, 8, 14,
or 16 of this Act, to any active | ||||||
9 | member of this Fund, and to any
inactive member who has | ||||||
10 | been a county sheriff, upon
transfer of such credits | ||||||
11 | pursuant to Section 4-108.3, 5-235,
8-226.7,
14-105.6, or | ||||||
12 | 16-131.4, and payment by the member of the amount by
which | ||||||
13 | (1) the employer and employee contributions that would have | ||||||
14 | been required
if he had participated in this Fund as a | ||||||
15 | sheriff's law enforcement employee
during the period for | ||||||
16 | which credit is
being transferred, plus interest thereon at | ||||||
17 | the effective rate for each
year, compounded annually, from | ||||||
18 | the date of termination of the service for
which credit is | ||||||
19 | being transferred to the date of payment, exceeds (2) the
| ||||||
20 | amount actually transferred to the Fund.
Such transferred | ||||||
21 | service shall be deemed to be service as a sheriff's law
| ||||||
22 | enforcement employee for the purposes of Section 7-142.1.
| ||||||
23 | 10. (Blank). For service transferred from an Article 3 | ||||||
24 | system under Section 3-110.8: Credits and
creditable | ||||||
25 | service shall be granted for service under Article 3 of | ||||||
26 | this Act as provided in Section 3-110.8, to any active |
| |||||||
| |||||||
1 | member of this Fund upon
transfer of such credits pursuant | ||||||
2 | to Section 3-110.8. If the amount by
which (1) the employer | ||||||
3 | and employee contributions that would have been required
if | ||||||
4 | he had participated in this Fund during the period for | ||||||
5 | which credit is
being transferred, plus interest thereon at | ||||||
6 | the effective rate for each
year, compounded annually, from | ||||||
7 | the date of termination of the service for
which credit is | ||||||
8 | being transferred to the date of payment, exceeds (2) the
| ||||||
9 | amount actually transferred to the Fund, then the amount of | ||||||
10 | creditable service established under this paragraph 10 | ||||||
11 | shall be reduced by a corresponding amount in accordance | ||||||
12 | with the rules and procedures established under this | ||||||
13 | paragraph 10.
| ||||||
14 | The board shall establish by rule the manner of making | ||||||
15 | the calculation required under
this paragraph 10, taking | ||||||
16 | into account the appropriate actuarial
assumptions; the | ||||||
17 | member's service, age, and salary history; the level
of | ||||||
18 | funding of the employer; and
any other factors that the | ||||||
19 | board determines to be relevant.
| ||||||
20 | Until January 1, 2010, members who transferred service | ||||||
21 | from an Article 3 system under the provisions of Public Act | ||||||
22 | 94-356 may establish additional credit in this Fund, but | ||||||
23 | only up to the amount of the service credit reduction in | ||||||
24 | that transfer, as calculated under the actuarial | ||||||
25 | assumptions. This credit may be established upon payment by | ||||||
26 | the member of an amount to be determined by the board, |
| |||||||
| |||||||
1 | equal to (1) the amount that would have been contributed as | ||||||
2 | employee and employer contributions had all the service | ||||||
3 | been as an employee under this Article, plus interest | ||||||
4 | thereon compounded annually from the date of service to the | ||||||
5 | date of transfer, less (2) the total amount transferred | ||||||
6 | from the Article 3 system, plus (3) interest on the | ||||||
7 | difference at the effective rate for each year, compounded | ||||||
8 | annually, from the date of the transfer to the date of | ||||||
9 | payment. The additional service credit is allowed under | ||||||
10 | this amendatory Act of the 95th General Assembly | ||||||
11 | notwithstanding the provisions of Article 3 terminating | ||||||
12 | all transferred credits on the date of transfer. | ||||||
13 | 11. For service transferred from an Article 3 system | ||||||
14 | under Section 3-110.3: Credits and creditable service | ||||||
15 | shall be granted for service under Article 3 of this Act as | ||||||
16 | provided in Section 3-110.3, to any active member of this | ||||||
17 | Fund, upon transfer of such credits pursuant to Section | ||||||
18 | 3-110.3. If the board determines that the amount | ||||||
19 | transferred is less than the true cost to the Fund of | ||||||
20 | allowing that creditable service to be established, then in | ||||||
21 | order to establish that creditable service, the member must | ||||||
22 | pay to the Fund an additional contribution equal to the | ||||||
23 | difference, as determined by the board in accordance with | ||||||
24 | the rules and procedures adopted under this paragraph. If | ||||||
25 | the member does not make the full additional payment as | ||||||
26 | required by this paragraph prior to termination of his |
| |||||||
| |||||||
1 | participation with that employer, then his or her | ||||||
2 | creditable service shall be reduced by an amount equal to | ||||||
3 | the difference between the amount transferred under | ||||||
4 | Section 3-110.3, including any payments made by the member | ||||||
5 | under this paragraph prior to termination, and the true | ||||||
6 | cost to the Fund of allowing that creditable service to be | ||||||
7 | established, as determined by the board in accordance with | ||||||
8 | the rules and procedures adopted under this paragraph. | ||||||
9 | The board shall establish by rule the manner of making | ||||||
10 | the calculation required under this paragraph 11, taking | ||||||
11 | into account the appropriate actuarial assumptions; the | ||||||
12 | member's service, age, and salary history, and any other | ||||||
13 | factors that the board determines to be relevant. | ||||||
14 | 12. For omitted service: Any employee who was employed | ||||||
15 | by a participating employer in a position that required | ||||||
16 | participation, but who was not enrolled in the Fund, may | ||||||
17 | establish such credits under the following conditions: | ||||||
18 | a. Application for such credits is received by the | ||||||
19 | Board while the employee is an active participant of | ||||||
20 | the Fund or a reciprocal retirement system. | ||||||
21 | b. Eligibility for participation and earnings are | ||||||
22 | verified by the Authorized Agent of the participating | ||||||
23 | employer for which the service was rendered. | ||||||
24 | Creditable service under this paragraph shall be | ||||||
25 | granted upon payment of the employee contributions that | ||||||
26 | would have been required had he participated, which shall |
| |||||||
| |||||||
1 | be calculated by the Fund using the member contribution | ||||||
2 | rate in effect during the period that the service was | ||||||
3 | rendered. | ||||||
4 | (b) Creditable service - amount:
| ||||||
5 | 1. One month of creditable service
shall be allowed for | ||||||
6 | each month for which a participating employee made
| ||||||
7 | contributions as required under Section 7-173, or for which | ||||||
8 | creditable
service is otherwise granted hereunder. Not | ||||||
9 | more than 1 month of
service shall be credited and counted | ||||||
10 | for 1 calendar month, and not more
than 1 year of service | ||||||
11 | shall be credited and counted for any calendar
year. A | ||||||
12 | calendar month means a nominal month beginning on the first | ||||||
13 | day
thereof, and a calendar year means a year beginning | ||||||
14 | January 1 and ending
December 31.
| ||||||
15 | 2. A seasonal employee shall be given 12 months of | ||||||
16 | creditable
service if he renders the number of months of | ||||||
17 | service normally required
by the position in a 12-month | ||||||
18 | period and he remains in service for the
entire 12-month | ||||||
19 | period. Otherwise a fractional year of service in the
| ||||||
20 | number of months of service rendered shall be credited.
| ||||||
21 | 3. An intermittent employee shall be given creditable | ||||||
22 | service for
only those months in which a contribution is | ||||||
23 | made under Section 7-173.
| ||||||
24 | (c) No application for correction of credits or creditable | ||||||
25 | service shall
be considered unless the board receives an | ||||||
26 | application for correction while
(1) the applicant is a |
| |||||||
| |||||||
1 | participating employee and in active employment
with a | ||||||
2 | participating municipality or instrumentality, or (2) while | ||||||
3 | the
applicant is actively participating in a pension fund or | ||||||
4 | retirement
system which is a participating system under the | ||||||
5 | Retirement Systems
Reciprocal Act. A participating employee or | ||||||
6 | other applicant shall not be
entitled to credits or creditable | ||||||
7 | service unless the required employee
contributions are made in | ||||||
8 | a lump sum or in installments made in accordance
with board | ||||||
9 | rule.
| ||||||
10 | (d) Upon the granting of a retirement, surviving spouse or | ||||||
11 | child
annuity, a death benefit or a separation benefit, on | ||||||
12 | account of any
employee, all individual accumulated credits | ||||||
13 | shall thereupon terminate.
Upon the withdrawal of additional | ||||||
14 | contributions, the credits applicable
thereto shall thereupon | ||||||
15 | terminate. Terminated credits shall not be applied
to increase | ||||||
16 | the benefits any remaining employee would otherwise receive | ||||||
17 | under
this Article.
| ||||||
18 | (Source: P.A. 97-415, eff. 8-16-11; 98-439, eff. 8-16-13.)
| ||||||
19 | (Text of Section after amendment by P.A. 98-599 )
| ||||||
20 | Sec. 7-139. Credits and creditable service to employees.
| ||||||
21 | (a) Each participating employee shall be granted credits | ||||||
22 | and creditable
service, for purposes of determining the amount | ||||||
23 | of any annuity or benefit
to which he or a beneficiary is | ||||||
24 | entitled, as follows:
| ||||||
25 | 1. For prior service: Each participating employee who |
| |||||||
| |||||||
1 | is an employee
of a participating municipality or | ||||||
2 | participating instrumentality on the
effective date shall | ||||||
3 | be granted creditable service, but no credits under
| ||||||
4 | paragraph 2 of this subsection (a), for periods of prior | ||||||
5 | service for which
credit has not been received under any | ||||||
6 | other pension fund or retirement system
established under | ||||||
7 | this Code, as follows:
| ||||||
8 | If the effective date of participation for the | ||||||
9 | participating municipality
or participating | ||||||
10 | instrumentality is on or before January 1, 1998, creditable
| ||||||
11 | service shall be granted for the entire period of prior | ||||||
12 | service with that
employer without any employee | ||||||
13 | contribution.
| ||||||
14 | If the effective date of participation for the | ||||||
15 | participating municipality
or participating | ||||||
16 | instrumentality is after January 1, 1998, creditable
| ||||||
17 | service shall be granted for the last 20% of the period of | ||||||
18 | prior service with
that employer, but no more than 5 years, | ||||||
19 | without any employee contribution. A
participating | ||||||
20 | employee may establish creditable service for the | ||||||
21 | remainder of
the period of prior service with that employer | ||||||
22 | by making an application in
writing, accompanied by payment | ||||||
23 | of an employee contribution in an
amount determined by the | ||||||
24 | Fund, based on the employee contribution rates in
effect at | ||||||
25 | the time of application for the creditable service and the | ||||||
26 | employee's
salary rate on the effective date of |
| |||||||
| |||||||
1 | participation for that employer, plus
interest at the | ||||||
2 | effective rate from the date of the prior service to the | ||||||
3 | date
of payment. Application for this creditable service | ||||||
4 | may be made at any time
while the employee is still in | ||||||
5 | service.
| ||||||
6 | A municipality that (i) has at least 35 employees; (ii) | ||||||
7 | is located in a county with at least 2,000,000 inhabitants; | ||||||
8 | and (iii) maintains an independent defined benefit pension | ||||||
9 | plan for the benefit of its eligible employees may restrict | ||||||
10 | creditable service in whole or in part for periods of prior | ||||||
11 | service with the employer if the governing body of the | ||||||
12 | municipality adopts an irrevocable resolution to restrict | ||||||
13 | that creditable service and files the resolution with the | ||||||
14 | board before the municipality's effective date of | ||||||
15 | participation.
| ||||||
16 | Any person who has withdrawn from the service of a | ||||||
17 | participating
municipality
or participating | ||||||
18 | instrumentality prior to the effective date, who reenters
| ||||||
19 | the service of the same municipality or participating | ||||||
20 | instrumentality after
the effective date and becomes a | ||||||
21 | participating employee is entitled to
creditable service | ||||||
22 | for prior service as otherwise provided in this
subdivision | ||||||
23 | (a)(1) only if he or she renders 2 years of service as a
| ||||||
24 | participating employee after the effective date. | ||||||
25 | Application
for such service must be made while in a | ||||||
26 | participating status.
The salary rate to be used in the |
| |||||||
| |||||||
1 | calculation of the required employee
contribution, if any, | ||||||
2 | shall be the employee's salary rate at the time of first
| ||||||
3 | reentering service with the employer after the employer's | ||||||
4 | effective date of
participation.
| ||||||
5 | 2. For current service, each participating employee | ||||||
6 | shall be
credited with:
| ||||||
7 | a. Additional credits of amounts equal to each | ||||||
8 | payment of additional
contributions received from him | ||||||
9 | under Section 7-173, as of the
date the corresponding | ||||||
10 | payment of earnings is payable to him.
| ||||||
11 | b. Normal credits of amounts equal to each payment | ||||||
12 | of normal
contributions received from him, as of the | ||||||
13 | date the corresponding payment of
earnings is payable | ||||||
14 | to him, and normal contributions made for the purpose | ||||||
15 | of
establishing out-of-state service credits as | ||||||
16 | permitted under the conditions set
forth in paragraph 6 | ||||||
17 | of this subsection (a).
| ||||||
18 | c. Municipality credits in an amount equal to 1.4 | ||||||
19 | times the normal
credits, except those established by | ||||||
20 | out-of-state service credits, as of
the date of | ||||||
21 | computation of any benefit if these credits would | ||||||
22 | increase
the benefit.
| ||||||
23 | d. Survivor credits equal to each payment of | ||||||
24 | survivor contributions
received from the participating | ||||||
25 | employee as of the date the
corresponding payment of | ||||||
26 | earnings is payable, and survivor contributions made
|
| |||||||
| |||||||
1 | for the purpose of establishing out-of-state service | ||||||
2 | credits.
| ||||||
3 | 3. For periods of temporary and total and permanent | ||||||
4 | disability
benefits, each employee receiving disability | ||||||
5 | benefits shall be granted
creditable service for the period | ||||||
6 | during which disability benefits are
payable. Normal and | ||||||
7 | survivor credits, based upon the rate of earnings
applied | ||||||
8 | for disability benefits, shall also be granted if such | ||||||
9 | credits
would result in a higher benefit to any such | ||||||
10 | employee or his
beneficiary.
| ||||||
11 | 4. For authorized leave of absence without pay: A | ||||||
12 | participating
employee shall be granted credits and | ||||||
13 | creditable service for periods of
authorized leave of | ||||||
14 | absence without pay under the following
conditions:
| ||||||
15 | a. An application for credits and creditable | ||||||
16 | service is submitted to the
board while the employee is | ||||||
17 | in a status of
active employment.
| ||||||
18 | b. Not more than 12 complete months of creditable | ||||||
19 | service
for authorized leave of absence without pay | ||||||
20 | shall be counted for purposes of
determining any | ||||||
21 | benefits payable under this Article.
| ||||||
22 | c. Credits and creditable service shall be granted | ||||||
23 | for leave of
absence only if such leave is approved by | ||||||
24 | the governing body of the
municipality, including | ||||||
25 | approval of the estimated cost thereof to the
| ||||||
26 | municipality as determined by the fund, and employee |
| |||||||
| |||||||
1 | contributions, plus
interest at the effective rate | ||||||
2 | applicable for each year from the end of
the period of | ||||||
3 | leave to date of payment, have been paid to the fund in
| ||||||
4 | accordance with Section 7-173. The contributions shall | ||||||
5 | be computed upon the
assumption earnings continued | ||||||
6 | during the period of leave at the rate in
effect when | ||||||
7 | the leave began.
| ||||||
8 | d. Benefits under the provisions of Sections | ||||||
9 | 7-141, 7-146, 7-150
and 7-163 shall become payable to | ||||||
10 | employees on authorized leave of
absence, or their | ||||||
11 | designated beneficiary, only if such leave of absence
| ||||||
12 | is creditable hereunder, and if the employee has at | ||||||
13 | least one year of
creditable service other than the | ||||||
14 | service granted for leave of absence.
Any employee | ||||||
15 | contributions due may be deducted from any benefits
| ||||||
16 | payable.
| ||||||
17 | e. No credits or creditable service shall be | ||||||
18 | allowed for leave of
absence without pay during any | ||||||
19 | period of prior service.
| ||||||
20 | 5. For military service: The governing body of a | ||||||
21 | municipality or
participating instrumentality may elect to | ||||||
22 | allow creditable service to
participating employees who | ||||||
23 | leave their employment to serve in the armed
forces of the | ||||||
24 | United States for all periods of such service, provided
| ||||||
25 | that the person returns to active employment within 90 days | ||||||
26 | after
completion
of full time active duty, but no |
| |||||||
| |||||||
1 | creditable service shall be allowed such
person for any | ||||||
2 | period that can be used in the computation of a pension
or | ||||||
3 | any other pay or benefit, other than pay for active duty, | ||||||
4 | for service
in any branch of the armed forces of the United | ||||||
5 | States. If necessary to
the computation of any benefit, the | ||||||
6 | board shall establish municipality
credits for | ||||||
7 | participating employees under this paragraph on the
| ||||||
8 | assumption that the employee received earnings at the rate | ||||||
9 | received at
the time he left the employment to enter the | ||||||
10 | armed forces. A
participating employee in the armed forces | ||||||
11 | shall not be considered an
employee during such period of | ||||||
12 | service and no additional death and no
disability benefits | ||||||
13 | are payable for death or disability during such period.
| ||||||
14 | Any participating employee who left his employment | ||||||
15 | with a
municipality or participating instrumentality to | ||||||
16 | serve in the armed
forces of the United States and who | ||||||
17 | again became a participating
employee within 90 days after | ||||||
18 | completion of full time active duty by
entering the service | ||||||
19 | of a different municipality or participating
| ||||||
20 | instrumentality, which has elected to allow creditable | ||||||
21 | service for
periods of military service under the preceding | ||||||
22 | paragraph, shall also be
allowed creditable service for his | ||||||
23 | period of military service on the
same terms that would | ||||||
24 | apply if he had been employed, before entering
military | ||||||
25 | service, by the municipality or instrumentality which | ||||||
26 | employed
him after he left the military service and the |
| |||||||
| |||||||
1 | employer costs arising in
relation to such grant of | ||||||
2 | creditable service shall be charged to and
paid by that | ||||||
3 | municipality or instrumentality.
| ||||||
4 | Notwithstanding the foregoing, any participating | ||||||
5 | employee
shall be entitled to creditable service as | ||||||
6 | required by any federal law
relating to re-employment | ||||||
7 | rights of persons who served in the United States
Armed | ||||||
8 | Services. Such creditable service shall be granted upon | ||||||
9 | payment by
the member of an amount equal to the employee | ||||||
10 | contributions which would
have been required had the | ||||||
11 | employee continued in service at the same
rate of earnings | ||||||
12 | during the military leave period, plus interest at
the | ||||||
13 | effective rate.
| ||||||
14 | 5.1. In addition to any creditable service established | ||||||
15 | under
paragraph 5 of this subsection (a), creditable | ||||||
16 | service may be granted for
up to 48 months of service in | ||||||
17 | the armed forces of the United States.
| ||||||
18 | In order to receive creditable service for military | ||||||
19 | service under this
paragraph 5.1, a participating employee | ||||||
20 | must (1) apply to the Fund
in writing and provide evidence | ||||||
21 | of the military service that is satisfactory
to the Board; | ||||||
22 | (2) obtain the written approval of the current employer; | ||||||
23 | and (3)
make contributions to the Fund equal to (i)
the | ||||||
24 | employee contributions that would have been required had | ||||||
25 | the service been
rendered as a member, plus (ii) an amount | ||||||
26 | determined by the board to be equal
to the employer's |
| |||||||
| |||||||
1 | normal cost of the benefits accrued for that military
| ||||||
2 | service, plus (iii) interest on items (i) and (ii) from the | ||||||
3 | date of first
membership in the Fund to the date of | ||||||
4 | payment. The required interest shall be
calculated at the | ||||||
5 | regular interest rate.
| ||||||
6 | The changes made to this paragraph 5.1 by Public Acts | ||||||
7 | 95-483 and 95-486
apply only to participating employees in | ||||||
8 | service on or after August 28, 2007 (the effective date of | ||||||
9 | those Public Acts).
| ||||||
10 | 6. For out-of-state service: Creditable service shall | ||||||
11 | be granted for
service rendered to an out-of-state local | ||||||
12 | governmental body under the
following conditions: The | ||||||
13 | employee had participated and has irrevocably
forfeited | ||||||
14 | all rights to benefits in the out-of-state public employees
| ||||||
15 | pension system; the governing body of his participating | ||||||
16 | municipality or
instrumentality authorizes the employee to | ||||||
17 | establish such service; the
employee has 2 years current | ||||||
18 | service with this municipality or
participating | ||||||
19 | instrumentality; the employee makes a payment of
| ||||||
20 | contributions, which shall be computed at 8% (normal) plus | ||||||
21 | 2% (survivor)
times length of service purchased times the | ||||||
22 | average rate of earnings for the
first 2
years of service | ||||||
23 | with the municipality or participating
instrumentality | ||||||
24 | whose governing body authorizes the service established
| ||||||
25 | plus interest at the effective rate on the date such | ||||||
26 | credits are
established, payable from the date the employee |
| |||||||
| |||||||
1 | completes the required 2
years of current service to date | ||||||
2 | of payment. In no case shall more than
120 months of | ||||||
3 | creditable service be granted under this provision.
| ||||||
4 | 7. For retroactive service: Any employee who could have | ||||||
5 | but did not
elect to become a participating employee, or | ||||||
6 | who should have been a
participant in the Municipal Public | ||||||
7 | Utilities Annuity and Benefit Fund
before that fund was | ||||||
8 | superseded, may receive creditable service for the
period | ||||||
9 | of service not to exceed 50 months; however, a current or | ||||||
10 | former
elected or appointed official of a participating | ||||||
11 | municipality may establish credit under this paragraph 7 | ||||||
12 | for more than 50
months of service as an official of that | ||||||
13 | municipality, if the excess over 50 months is approved by | ||||||
14 | resolution of the
governing body of the affected | ||||||
15 | municipality filed with
the Fund before January 1, 2002.
| ||||||
16 | Any employee who is a
participating employee on or | ||||||
17 | after September 24, 1981 and who was
excluded from | ||||||
18 | participation by the age restrictions removed by Public Act
| ||||||
19 | 82-596 may receive creditable service for the period, on or | ||||||
20 | after January
1, 1979, excluded by the age restriction and, | ||||||
21 | in addition, if the governing
body of the participating | ||||||
22 | municipality or participating instrumentality elects
to | ||||||
23 | allow creditable service for all employees excluded by the | ||||||
24 | age restriction
prior to January 1, 1979, for service | ||||||
25 | during the period prior to that date
excluded by the age | ||||||
26 | restriction. Any employee who was excluded from
|
| |||||||
| |||||||
1 | participation by the age restriction removed by Public Act | ||||||
2 | 82-596 and who is
not a participating employee on or after | ||||||
3 | September 24, 1981 may receive
creditable service for | ||||||
4 | service after January 1,
1979. Creditable service under | ||||||
5 | this paragraph
shall be granted upon payment of the | ||||||
6 | employee contributions
which would have been required had | ||||||
7 | he participated, with interest at the
effective rate for | ||||||
8 | each year from the end of the period of service
established | ||||||
9 | to date of payment.
| ||||||
10 | 8. For accumulated unused sick leave: A participating | ||||||
11 | employee who first becomes a participating employee before | ||||||
12 | the effective date of this amendatory Act of the 98th | ||||||
13 | General Assembly and who is
applying for a retirement | ||||||
14 | annuity shall be entitled to creditable service
for that | ||||||
15 | portion of the employee's accumulated unused sick leave
for | ||||||
16 | which payment is not received, as follows:
| ||||||
17 | a. Sick leave days shall be limited to those | ||||||
18 | accumulated under a sick
leave plan established by a | ||||||
19 | participating municipality or participating
| ||||||
20 | instrumentality which is available to all employees or | ||||||
21 | a class of employees.
| ||||||
22 | b. Except as provided in item b-1, only sick leave | ||||||
23 | days accumulated with a participating municipality or
| ||||||
24 | participating instrumentality with which the employee | ||||||
25 | was in service within
60 days of the effective date of | ||||||
26 | his retirement annuity shall be credited;
If the |
| |||||||
| |||||||
1 | employee was in service with more than one employer | ||||||
2 | during this
period only the sick leave days with the | ||||||
3 | employer with which the employee
has the greatest | ||||||
4 | number of unpaid sick leave days shall be considered.
| ||||||
5 | b-1. If the employee was in the service of more | ||||||
6 | than one employer as defined in item (2) of paragraph | ||||||
7 | (a) of subsection (A) of Section 7-132, then the sick | ||||||
8 | leave days from all such employers shall be credited, | ||||||
9 | as long as the creditable service attributed to those | ||||||
10 | sick leave days does not exceed the limitation in item | ||||||
11 | f of this paragraph 8. In calculating the creditable | ||||||
12 | service under this item b-1, the sick leave days from | ||||||
13 | the last employer shall be considered first, then the | ||||||
14 | remaining sick leave days shall be considered until | ||||||
15 | there are no more days or the maximum creditable sick | ||||||
16 | leave threshold under item f of this paragraph 8 has | ||||||
17 | been reached.
| ||||||
18 | c. The creditable service granted shall be | ||||||
19 | considered solely for the
purpose of computing the | ||||||
20 | amount of the retirement annuity and shall not be
used | ||||||
21 | to establish any minimum service period required by any | ||||||
22 | provision of the
Illinois Pension Code, the effective | ||||||
23 | date of the retirement annuity, or the
final rate of | ||||||
24 | earnings.
| ||||||
25 | d. The creditable service shall be at the rate of | ||||||
26 | 1/20 of a month for
each full sick day, provided that |
| |||||||
| |||||||
1 | no more than 12 months may be credited
under this | ||||||
2 | subdivision 8.
| ||||||
3 | e. Employee contributions shall not be required | ||||||
4 | for creditable service
under this subdivision 8.
| ||||||
5 | f. Each participating municipality and | ||||||
6 | participating instrumentality
with which an employee | ||||||
7 | has service within 60 days of the effective date of
his | ||||||
8 | retirement annuity shall certify to the board the | ||||||
9 | number of accumulated
unpaid sick leave days credited | ||||||
10 | to the employee at the time of termination
of service.
| ||||||
11 | 9. For service transferred from another system: | ||||||
12 | Credits and
creditable service shall be granted for service | ||||||
13 | under Article 4, 5, 8, 14,
or 16 of this Act, to any active | ||||||
14 | member of this Fund, and to any
inactive member who has | ||||||
15 | been a county sheriff, upon
transfer of such credits | ||||||
16 | pursuant to Section 4-108.3, 5-235,
8-226.7,
14-105.6, or | ||||||
17 | 16-131.4, and payment by the member of the amount by
which | ||||||
18 | (1) the employer and employee contributions that would have | ||||||
19 | been required
if he had participated in this Fund as a | ||||||
20 | sheriff's law enforcement employee
during the period for | ||||||
21 | which credit is
being transferred, plus interest thereon at | ||||||
22 | the effective rate for each
year, compounded annually, from | ||||||
23 | the date of termination of the service for
which credit is | ||||||
24 | being transferred to the date of payment, exceeds (2) the
| ||||||
25 | amount actually transferred to the Fund.
Such transferred | ||||||
26 | service shall be deemed to be service as a sheriff's law
|
| |||||||
| |||||||
1 | enforcement employee for the purposes of Section 7-142.1.
| ||||||
2 | 10. (Blank). For service transferred from an Article 3 | ||||||
3 | system under Section 3-110.8: Credits and
creditable | ||||||
4 | service shall be granted for service under Article 3 of | ||||||
5 | this Act as provided in Section 3-110.8, to any active | ||||||
6 | member of this Fund upon
transfer of such credits pursuant | ||||||
7 | to Section 3-110.8. If the amount by
which (1) the employer | ||||||
8 | and employee contributions that would have been required
if | ||||||
9 | he had participated in this Fund during the period for | ||||||
10 | which credit is
being transferred, plus interest thereon at | ||||||
11 | the effective rate for each
year, compounded annually, from | ||||||
12 | the date of termination of the service for
which credit is | ||||||
13 | being transferred to the date of payment, exceeds (2) the
| ||||||
14 | amount actually transferred to the Fund, then the amount of | ||||||
15 | creditable service established under this paragraph 10 | ||||||
16 | shall be reduced by a corresponding amount in accordance | ||||||
17 | with the rules and procedures established under this | ||||||
18 | paragraph 10.
| ||||||
19 | The board shall establish by rule the manner of making | ||||||
20 | the calculation required under
this paragraph 10, taking | ||||||
21 | into account the appropriate actuarial
assumptions; the | ||||||
22 | member's service, age, and salary history; the level
of | ||||||
23 | funding of the employer; and
any other factors that the | ||||||
24 | board determines to be relevant.
| ||||||
25 | Until January 1, 2010, members who transferred service | ||||||
26 | from an Article 3 system under the provisions of Public Act |
| |||||||
| |||||||
1 | 94-356 may establish additional credit in this Fund, but | ||||||
2 | only up to the amount of the service credit reduction in | ||||||
3 | that transfer, as calculated under the actuarial | ||||||
4 | assumptions. This credit may be established upon payment by | ||||||
5 | the member of an amount to be determined by the board, | ||||||
6 | equal to (1) the amount that would have been contributed as | ||||||
7 | employee and employer contributions had all the service | ||||||
8 | been as an employee under this Article, plus interest | ||||||
9 | thereon compounded annually from the date of service to the | ||||||
10 | date of transfer, less (2) the total amount transferred | ||||||
11 | from the Article 3 system, plus (3) interest on the | ||||||
12 | difference at the effective rate for each year, compounded | ||||||
13 | annually, from the date of the transfer to the date of | ||||||
14 | payment. The additional service credit is allowed under | ||||||
15 | this amendatory Act of the 95th General Assembly | ||||||
16 | notwithstanding the provisions of Article 3 terminating | ||||||
17 | all transferred credits on the date of transfer. | ||||||
18 | 11. For service transferred from an Article 3 system | ||||||
19 | under Section 3-110.3: Credits and creditable service | ||||||
20 | shall be granted for service under Article 3 of this Act as | ||||||
21 | provided in Section 3-110.3, to any active member of this | ||||||
22 | Fund, upon transfer of such credits pursuant to Section | ||||||
23 | 3-110.3. If the board determines that the amount | ||||||
24 | transferred is less than the true cost to the Fund of | ||||||
25 | allowing that creditable service to be established, then in | ||||||
26 | order to establish that creditable service, the member must |
| |||||||
| |||||||
1 | pay to the Fund an additional contribution equal to the | ||||||
2 | difference, as determined by the board in accordance with | ||||||
3 | the rules and procedures adopted under this paragraph. If | ||||||
4 | the member does not make the full additional payment as | ||||||
5 | required by this paragraph prior to termination of his | ||||||
6 | participation with that employer, then his or her | ||||||
7 | creditable service shall be reduced by an amount equal to | ||||||
8 | the difference between the amount transferred under | ||||||
9 | Section 3-110.3, including any payments made by the member | ||||||
10 | under this paragraph prior to termination, and the true | ||||||
11 | cost to the Fund of allowing that creditable service to be | ||||||
12 | established, as determined by the board in accordance with | ||||||
13 | the rules and procedures adopted under this paragraph. | ||||||
14 | The board shall establish by rule the manner of making | ||||||
15 | the calculation required under this paragraph 11, taking | ||||||
16 | into account the appropriate actuarial assumptions; the | ||||||
17 | member's service, age, and salary history, and any other | ||||||
18 | factors that the board determines to be relevant. | ||||||
19 | 12. For omitted service: Any employee who was employed | ||||||
20 | by a participating employer in a position that required | ||||||
21 | participation, but who was not enrolled in the Fund, may | ||||||
22 | establish such credits under the following conditions: | ||||||
23 | a. Application for such credits is received by the | ||||||
24 | Board while the employee is an active participant of | ||||||
25 | the Fund or a reciprocal retirement system. | ||||||
26 | b. Eligibility for participation and earnings are |
| |||||||
| |||||||
1 | verified by the Authorized Agent of the participating | ||||||
2 | employer for which the service was rendered. | ||||||
3 | Creditable service under this paragraph shall be | ||||||
4 | granted upon payment of the employee contributions that | ||||||
5 | would have been required had he participated, which shall | ||||||
6 | be calculated by the Fund using the member contribution | ||||||
7 | rate in effect during the period that the service was | ||||||
8 | rendered. | ||||||
9 | (b) Creditable service - amount:
| ||||||
10 | 1. One month of creditable service
shall be allowed for | ||||||
11 | each month for which a participating employee made
| ||||||
12 | contributions as required under Section 7-173, or for which | ||||||
13 | creditable
service is otherwise granted hereunder. Not | ||||||
14 | more than 1 month of
service shall be credited and counted | ||||||
15 | for 1 calendar month, and not more
than 1 year of service | ||||||
16 | shall be credited and counted for any calendar
year. A | ||||||
17 | calendar month means a nominal month beginning on the first | ||||||
18 | day
thereof, and a calendar year means a year beginning | ||||||
19 | January 1 and ending
December 31.
| ||||||
20 | 2. A seasonal employee shall be given 12 months of | ||||||
21 | creditable
service if he renders the number of months of | ||||||
22 | service normally required
by the position in a 12-month | ||||||
23 | period and he remains in service for the
entire 12-month | ||||||
24 | period. Otherwise a fractional year of service in the
| ||||||
25 | number of months of service rendered shall be credited.
| ||||||
26 | 3. An intermittent employee shall be given creditable |
| |||||||
| |||||||
1 | service for
only those months in which a contribution is | ||||||
2 | made under Section 7-173.
| ||||||
3 | (c) No application for correction of credits or creditable | ||||||
4 | service shall
be considered unless the board receives an | ||||||
5 | application for correction while
(1) the applicant is a | ||||||
6 | participating employee and in active employment
with a | ||||||
7 | participating municipality or instrumentality, or (2) while | ||||||
8 | the
applicant is actively participating in a pension fund or | ||||||
9 | retirement
system which is a participating system under the | ||||||
10 | Retirement Systems
Reciprocal Act. A participating employee or | ||||||
11 | other applicant shall not be
entitled to credits or creditable | ||||||
12 | service unless the required employee
contributions are made in | ||||||
13 | a lump sum or in installments made in accordance
with board | ||||||
14 | rule.
| ||||||
15 | (d) Upon the granting of a retirement, surviving spouse or | ||||||
16 | child
annuity, a death benefit or a separation benefit, on | ||||||
17 | account of any
employee, all individual accumulated credits | ||||||
18 | shall thereupon terminate.
Upon the withdrawal of additional | ||||||
19 | contributions, the credits applicable
thereto shall thereupon | ||||||
20 | terminate. Terminated credits shall not be applied
to increase | ||||||
21 | the benefits any remaining employee would otherwise receive | ||||||
22 | under
this Article.
| ||||||
23 | (Source: P.A. 97-415, eff. 8-16-11; 98-439, eff. 8-16-13; | ||||||
24 | 98-599, eff. 6-1-14.)
| ||||||
25 | (40 ILCS 5/7-175) (from Ch. 108 1/2, par. 7-175)
|
| |||||||
| |||||||
1 | Sec. 7-175. Board elections.
| ||||||
2 | (a) During the period beginning on August 1 and ending on | ||||||
3 | September 15
of each year the board shall accept nominations of | ||||||
4 | candidates for election
to the trusteeships for terms beginning | ||||||
5 | the next January 1, new
trusteeships or vacancies to be filled | ||||||
6 | by election.
| ||||||
7 | (b) All nominations shall be by petition. Three petitions | ||||||
8 | for an
executive trustee shall be signed by governing bodies of | ||||||
9 | contributing
participating municipalities or | ||||||
10 | instrumentalities.
| ||||||
11 | A petition for an
employee trustee shall be signed by at | ||||||
12 | least 350 participating employees
who were participants during | ||||||
13 | July of the current year and who, if their
employment status | ||||||
14 | remained unchanged, would be eligible to vote for such
| ||||||
15 | candidate at the following election.
| ||||||
16 | A petition for an annuitant trustee shall be signed by at | ||||||
17 | least 100 persons
who were annuitants of the Fund during July | ||||||
18 | of the current year and who, if
their annuitant status remains | ||||||
19 | unchanged, would be eligible to vote for the
candidate at the | ||||||
20 | following election.
| ||||||
21 | (c) A separate ballot shall be used for each class of | ||||||
22 | trustee and the
names of all candidates properly nominated in | ||||||
23 | petitions received by the
board shall be placed in alphabetical | ||||||
24 | order upon the proper ballot. Where
two employee trustees are | ||||||
25 | elected to a full term in the same year, there
shall be one | ||||||
26 | election for the two trusteeships and the two candidates
|
| |||||||
| |||||||
1 | getting the highest number of votes shall be elected.
| ||||||
2 | (d) At any election, each contributing participating | ||||||
3 | municipality and
participating instrumentality and each | ||||||
4 | contributing participating employee
employed by such | ||||||
5 | participating municipality or participating
instrumentality | ||||||
6 | during September of any year, shall be entitled to vote as
| ||||||
7 | follows:
| ||||||
8 | 1. The governing body of each such participating | ||||||
9 | municipality and
participating instrumentality shall have | ||||||
10 | one vote at any election in
which an executive trustee is | ||||||
11 | to be elected, and may cast such vote for any
candidate on | ||||||
12 | the executive trustee ballot.
| ||||||
13 | 2. Each participating employee shall have one vote at | ||||||
14 | any
election in
which an employee trustee is to be elected, | ||||||
15 | and may cast such vote for any
candidate on the employee | ||||||
16 | trustee ballot.
| ||||||
17 | 3. Each annuitant of the Fund shall have one vote at | ||||||
18 | any election in
which an annuitant trustee is to be | ||||||
19 | elected, and may cast that vote for any
candidate on the | ||||||
20 | annuitant trustee ballot.
| ||||||
21 | 4. A vote may be cast for a person not on the ballot by | ||||||
22 | writing in his
or her name.
| ||||||
23 | (e) The election shall be by ballot pursuant to the rules | ||||||
24 | and
regulations established by the board and shall be completed | ||||||
25 | by December 31
of the year. The results shall be entered in the | ||||||
26 | minutes of the meeting of
the board following the tally of |
| |||||||
| |||||||
1 | votes.
| ||||||
2 | (f) In case of a tie vote, the candidate employed by or | ||||||
3 | retired from the
participating municipality or participating | ||||||
4 | instrumentality having the greatest
number of participating | ||||||
5 | employees at the time shall be elected.
| ||||||
6 | (g) Notwithstanding any other provision of this Article, if | ||||||
7 | only one candidate is properly nominated in petitions received | ||||||
8 | by the Board, that candidate shall be deemed the winner. In the | ||||||
9 | case of 2 employee trustees elected to a full term in the same | ||||||
10 | year, if only 2 candidates are properly nominated in petitions | ||||||
11 | received by the Board, those 2 candidates shall both be deemed | ||||||
12 | winners. If a candidate is deemed a winner under this | ||||||
13 | paragraph, no election under this Section or Section 7-175.1 | ||||||
14 | shall be required. | ||||||
15 | (Source: P.A. 89-136, eff. 7-14-95.)
| ||||||
16 | (40 ILCS 5/7-175.1) (from Ch. 108 1/2, par. 7-175.1)
| ||||||
17 | Sec. 7-175.1. Election of employee and annuitant trustees.
| ||||||
18 | (a) The board shall prepare and send ballots and ballot | ||||||
19 | envelopes to the
employees and annuitants eligible to vote as | ||||||
20 | of September of that
year. The ballots shall contain the names | ||||||
21 | of all candidates in alphabetical
order and an appropriate | ||||||
22 | place where a name may be written in on
the ballot.
The ballot | ||||||
23 | envelope shall have on the outside a form of certificate | ||||||
24 | stating
that the person voting the ballot is a participating | ||||||
25 | employee or annuitant
entitled to vote.
|
| |||||||
| |||||||
1 | (b) Employees and annuitants, upon receipt of the ballot, | ||||||
2 | shall vote the
ballot and place it in the ballot envelope, seal | ||||||
3 | the envelope, execute the
certificate thereon and return the | ||||||
4 | ballot to the Fund.
| ||||||
5 | (c) The board shall set a final date for ballot return, and | ||||||
6 | ballots
received prior to that date in a ballot envelope with a
| ||||||
7 | properly executed certificate and properly voted, shall be | ||||||
8 | valid ballots.
| ||||||
9 | (d) The board shall set a day for counting the ballots and
| ||||||
10 | name judges and clerks of election to conduct the count of | ||||||
11 | ballots, and shall
make any rules and regulations necessary for | ||||||
12 | the conduct of the
count.
| ||||||
13 | (e) No election under this Section shall be required if a | ||||||
14 | candidate is deemed the winner under subsection (g) of Section | ||||||
15 | 7-175. | ||||||
16 | (Source: P.A. 89-136, eff. 7-14-95.)
| ||||||
17 | (40 ILCS 5/7-139.7 rep.)
| ||||||
18 | (40 ILCS 5/7-139.9 rep.)
| ||||||
19 | (40 ILCS 5/7-139.11 rep.) | ||||||
20 | (40 ILCS 5/7-139.13 rep.) | ||||||
21 | Section 10. The Illinois Pension Code is amended by | ||||||
22 | repealing Sections 7-139.7, 7-139.9, 7-139.11, and 7-139.13. | ||||||
23 | Section 95. No acceleration or delay. Where this Act makes | ||||||
24 | changes in a statute that is represented in this Act by text |
| |||||||
| |||||||
1 | that is not yet or no longer in effect (for example, a Section | ||||||
2 | represented by multiple versions), the use of that text does | ||||||
3 | not accelerate or delay the taking effect of (i) the changes | ||||||
4 | made by this Act or (ii) provisions derived from any other | ||||||
5 | Public Act.
| ||||||
6 | Section 99. Effective date. This Act takes effect upon | ||||||
7 | becoming law.
|