Rep. Dan Brady

Filed: 4/2/2014

 

 


 

 


 
09800HB5914ham001LRB098 17311 EFG 57267 a

1
AMENDMENT TO HOUSE BILL 5914

2    AMENDMENT NO. ______. Amend House Bill 5914 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Illinois Pension Code is amended by
5changing Section 7-139 as follows:
 
6    (40 ILCS 5/7-139)  (from Ch. 108 1/2, par. 7-139)
7    (Text of Section before amendment by P.A. 98-599)
8    Sec. 7-139. Credits and creditable service to employees.
9    (a) Each participating employee shall be granted credits
10and creditable service, for purposes of determining the amount
11of any annuity or benefit to which he or a beneficiary is
12entitled, as follows:
13        1. For prior service: Each participating employee who
14    is an employee of a participating municipality or
15    participating instrumentality on the effective date shall
16    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:
5        If the effective date of participation for the
6    participating municipality or participating
7    instrumentality is on or before January 1, 1998, creditable
8    service shall be granted for the entire period of prior
9    service with that employer without any employee
10    contribution.
11        If the effective date of participation for the
12    participating municipality or participating
13    instrumentality is after January 1, 1998, creditable
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.
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.
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
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
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
26    reentering service with the employer after the employer's

 

 

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1    effective date of participation.
2        2. For current service, each participating employee
3    shall be credited with:
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).
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
24        for the purpose of establishing out-of-state service
25        credits.
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.
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:
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.
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.
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.
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
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
13        payable.
14            e. No credits or creditable service shall be
15        allowed for leave of absence without pay during any
16        period of prior service.
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
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
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.
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.
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.
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
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.
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).
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
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
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.
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.
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.
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.
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. For service transferred from an Article 3 system
24    under Section 3-110.8: Credits and creditable service
25    shall be granted for service under Article 3 of this Act as
26    provided in Section 3-110.8, to any active member of this

 

 

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1    Fund upon transfer of such credits pursuant to Section
2    3-110.8. If the amount by which (1) the employer and
3    employee contributions that would have been required if he
4    had participated in this Fund during the period for which
5    credit is being transferred, plus interest thereon at the
6    effective rate for each year, compounded annually, from the
7    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,

 

 

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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

 

 

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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    (b) Creditable service - amount:
15        1. One month of creditable service shall be allowed for
16    each month for which a participating employee made
17    contributions as required under Section 7-173, or for which
18    creditable service is otherwise granted hereunder. Not
19    more than 1 month of service shall be credited and counted
20    for 1 calendar month, and not more than 1 year of service
21    shall be credited and counted for any calendar year. A
22    calendar month means a nominal month beginning on the first
23    day thereof, and a calendar year means a year beginning
24    January 1 and ending December 31.
25        2. A seasonal employee shall be given 12 months of
26    creditable service if he renders the number of months of

 

 

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1    service normally required by the position in a 12-month
2    period and he remains in service for the entire 12-month
3    period. Otherwise a fractional year of service in the
4    number of months of service rendered shall be credited.
5        3. An intermittent employee shall be given creditable
6    service for only those months in which a contribution is
7    made under Section 7-173.
8    (c) No application for correction of credits or creditable
9service shall be considered unless the board receives an
10application for correction while (1) the applicant is a
11participating employee and in active employment with a
12participating municipality or instrumentality, or (2) while
13the applicant is actively participating in a pension fund or
14retirement system which is a participating system under the
15Retirement Systems Reciprocal Act. A participating employee or
16other applicant shall not be entitled to credits or creditable
17service unless the required employee contributions are made in
18a lump sum or in installments made in accordance with board
19rule.
20    (d) Upon the granting of a retirement, surviving spouse or
21child annuity, a death benefit or a separation benefit, on
22account of any employee, all individual accumulated credits
23shall thereupon terminate. Upon the withdrawal of additional
24contributions, the credits applicable thereto shall thereupon
25terminate. Terminated credits shall not be applied to increase
26the benefits any remaining employee would otherwise receive

 

 

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1under this Article.
2(Source: P.A. 97-415, eff. 8-16-11; 98-439, eff. 8-16-13.)
 
3    (Text of Section after amendment by P.A. 98-599)
4    Sec. 7-139. Credits and creditable service to employees.
5    (a) Each participating employee shall be granted credits
6and creditable service, for purposes of determining the amount
7of any annuity or benefit to which he or a beneficiary is
8entitled, as follows:
9        1. For prior service: Each participating employee who
10    is an employee of a participating municipality or
11    participating instrumentality on the effective date shall
12    be granted creditable service, but no credits under
13    paragraph 2 of this subsection (a), for periods of prior
14    service for which credit has not been received under any
15    other pension fund or retirement system established under
16    this Code, as follows:
17        If the effective date of participation for the
18    participating municipality or participating
19    instrumentality is on or before January 1, 1998, creditable
20    service shall be granted for the entire period of prior
21    service with that employer without any employee
22    contribution.
23        If the effective date of participation for the
24    participating municipality or participating
25    instrumentality is after January 1, 1998 and before the

 

 

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1    effective date of this amendatory Act of the 98th General
2    Assembly, creditable service shall be granted for the last
3    20% of the period of prior service with that employer, but
4    no more than 5 years, without any employee contribution. A
5    participating employee may establish creditable service
6    for the remainder of the period of prior service with that
7    employer by making employee contributions as provided in
8    this paragraph 1.
9        If the effective date of participation for the
10    participating municipality or participating
11    instrumentality is on or after the effective date of this
12    amendatory Act of the 98th General Assembly, then that
13    employer shall determine (i) the portion or amount, if any,
14    of prior service with that employer for which creditable
15    service will be granted without payment of employee
16    contributions, and (ii) the portion or amount, if any, of
17    prior service with that employer for which creditable
18    service will be granted only upon payment of employee
19    contributions as provided in this paragraph 1. This
20    determination shall be subject to the standards and
21    procedures adopted by the Board under this paragraph and
22    shall be made through an irrevocable resolution adopted by
23    the governing body of the participating municipality or
24    participating instrumentality, which must be filed with
25    the Board before the effective date of participation. The
26    determination shall apply the same standard to all

 

 

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1    employees of the employer and may not provide different
2    standards for different classes of employee.
3        To the extent authorized under this paragraph 1, a
4    participating employee may establish creditable service
5    for a period of prior service for which employee
6    contributions are required by making an application in
7    writing, accompanied by payment of an employee
8    contribution in an amount determined by the Fund, based on
9    the employee contribution rates in effect at the time of
10    application for the creditable service and the employee's
11    salary rate on the effective date of participation for that
12    employer, plus interest at the effective rate from the date
13    of the prior service to the date of payment. Application
14    for this creditable service may be made at any time while
15    the employee is still in service.
16        A municipality that (i) has at least 35 employees; (ii)
17    is located in a county with at least 2,000,000 inhabitants;
18    and (iii) maintains an independent defined benefit pension
19    plan for the benefit of its eligible employees may restrict
20    creditable service in whole or in part for periods of prior
21    service with the employer if the governing body of the
22    municipality adopts an irrevocable resolution to restrict
23    that creditable service and files the resolution with the
24    board before the municipality's effective date of
25    participation.
26        Any person who has withdrawn from the service of a

 

 

09800HB5914ham001- 21 -LRB098 17311 EFG 57267 a

1    participating municipality or participating
2    instrumentality prior to the effective date, who reenters
3    the service of the same municipality or participating
4    instrumentality after the effective date and becomes a
5    participating employee is entitled to creditable service
6    for prior service as otherwise provided in this subdivision
7    (a)(1) only if he or she renders 2 years of service as a
8    participating employee after the effective date.
9    Application for such service must be made while in a
10    participating status. The salary rate to be used in the
11    calculation of the required employee contribution, if any,
12    shall be the employee's salary rate at the time of first
13    reentering service with the employer after the employer's
14    effective date of participation.
15        2. For current service, each participating employee
16    shall be credited with:
17            a. Additional credits of amounts equal to each
18        payment of additional contributions received from him
19        under Section 7-173, as of the date the corresponding
20        payment of earnings is payable to him.
21            b. Normal credits of amounts equal to each payment
22        of normal contributions received from him, as of the
23        date the corresponding payment of earnings is payable
24        to him, and normal contributions made for the purpose
25        of establishing out-of-state service credits as
26        permitted under the conditions set forth in paragraph 6

 

 

09800HB5914ham001- 22 -LRB098 17311 EFG 57267 a

1        of this subsection (a).
2            c. Municipality credits in an amount equal to 1.4
3        times the normal credits, except those established by
4        out-of-state service credits, as of the date of
5        computation of any benefit if these credits would
6        increase the benefit.
7            d. Survivor credits equal to each payment of
8        survivor contributions received from the participating
9        employee as of the date the corresponding payment of
10        earnings is payable, and survivor contributions made
11        for the purpose of establishing out-of-state service
12        credits.
13        3. For periods of temporary and total and permanent
14    disability benefits, each employee receiving disability
15    benefits shall be granted creditable service for the period
16    during which disability benefits are payable. Normal and
17    survivor credits, based upon the rate of earnings applied
18    for disability benefits, shall also be granted if such
19    credits would result in a higher benefit to any such
20    employee or his beneficiary.
21        4. For authorized leave of absence without pay: A
22    participating employee shall be granted credits and
23    creditable service for periods of authorized leave of
24    absence without pay under the following conditions:
25            a. An application for credits and creditable
26        service is submitted to the board while the employee is

 

 

09800HB5914ham001- 23 -LRB098 17311 EFG 57267 a

1        in a status of active employment.
2            b. Not more than 12 complete months of creditable
3        service for authorized leave of absence without pay
4        shall be counted for purposes of determining any
5        benefits payable under this Article.
6            c. Credits and creditable service shall be granted
7        for leave of absence only if such leave is approved by
8        the governing body of the municipality, including
9        approval of the estimated cost thereof to the
10        municipality as determined by the fund, and employee
11        contributions, plus interest at the effective rate
12        applicable for each year from the end of the period of
13        leave to date of payment, have been paid to the fund in
14        accordance with Section 7-173. The contributions shall
15        be computed upon the assumption earnings continued
16        during the period of leave at the rate in effect when
17        the leave began.
18            d. Benefits under the provisions of Sections
19        7-141, 7-146, 7-150 and 7-163 shall become payable to
20        employees on authorized leave of absence, or their
21        designated beneficiary, only if such leave of absence
22        is creditable hereunder, and if the employee has at
23        least one year of creditable service other than the
24        service granted for leave of absence. Any employee
25        contributions due may be deducted from any benefits
26        payable.

 

 

09800HB5914ham001- 24 -LRB098 17311 EFG 57267 a

1            e. No credits or creditable service shall be
2        allowed for leave of absence without pay during any
3        period of prior service.
4        5. For military service: The governing body of a
5    municipality or participating instrumentality may elect to
6    allow creditable service to participating employees who
7    leave their employment to serve in the armed forces of the
8    United States for all periods of such service, provided
9    that the person returns to active employment within 90 days
10    after completion of full time active duty, but no
11    creditable service shall be allowed such person for any
12    period that can be used in the computation of a pension or
13    any other pay or benefit, other than pay for active duty,
14    for service in any branch of the armed forces of the United
15    States. If necessary to the computation of any benefit, the
16    board shall establish municipality credits for
17    participating employees under this paragraph on the
18    assumption that the employee received earnings at the rate
19    received at the time he left the employment to enter the
20    armed forces. A participating employee in the armed forces
21    shall not be considered an employee during such period of
22    service and no additional death and no disability benefits
23    are payable for death or disability during such period.
24        Any participating employee who left his employment
25    with a municipality or participating instrumentality to
26    serve in the armed forces of the United States and who

 

 

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1    again became a participating employee within 90 days after
2    completion of full time active duty by entering the service
3    of a different municipality or participating
4    instrumentality, which has elected to allow creditable
5    service for periods of military service under the preceding
6    paragraph, shall also be allowed creditable service for his
7    period of military service on the same terms that would
8    apply if he had been employed, before entering military
9    service, by the municipality or instrumentality which
10    employed him after he left the military service and the
11    employer costs arising in relation to such grant of
12    creditable service shall be charged to and paid by that
13    municipality or instrumentality.
14        Notwithstanding the foregoing, any participating
15    employee shall be entitled to creditable service as
16    required by any federal law relating to re-employment
17    rights of persons who served in the United States Armed
18    Services. Such creditable service shall be granted upon
19    payment by the member of an amount equal to the employee
20    contributions which would have been required had the
21    employee continued in service at the same rate of earnings
22    during the military leave period, plus interest at the
23    effective rate.
24        5.1. In addition to any creditable service established
25    under paragraph 5 of this subsection (a), creditable
26    service may be granted for up to 48 months of service in

 

 

09800HB5914ham001- 26 -LRB098 17311 EFG 57267 a

1    the armed forces of the United States.
2        In order to receive creditable service for military
3    service under this paragraph 5.1, a participating employee
4    must (1) apply to the Fund in writing and provide evidence
5    of the military service that is satisfactory to the Board;
6    (2) obtain the written approval of the current employer;
7    and (3) make contributions to the Fund equal to (i) the
8    employee contributions that would have been required had
9    the service been rendered as a member, plus (ii) an amount
10    determined by the board to be equal to the employer's
11    normal cost of the benefits accrued for that military
12    service, plus (iii) interest on items (i) and (ii) from the
13    date of first membership in the Fund to the date of
14    payment. The required interest shall be calculated at the
15    regular interest rate.
16        The changes made to this paragraph 5.1 by Public Acts
17    95-483 and 95-486 apply only to participating employees in
18    service on or after August 28, 2007 (the effective date of
19    those Public Acts).
20        6. For out-of-state service: Creditable service shall
21    be granted for service rendered to an out-of-state local
22    governmental body under the following conditions: The
23    employee had participated and has irrevocably forfeited
24    all rights to benefits in the out-of-state public employees
25    pension system; the governing body of his participating
26    municipality or instrumentality authorizes the employee to

 

 

09800HB5914ham001- 27 -LRB098 17311 EFG 57267 a

1    establish such service; the employee has 2 years current
2    service with this municipality or participating
3    instrumentality; the employee makes a payment of
4    contributions, which shall be computed at 8% (normal) plus
5    2% (survivor) times length of service purchased times the
6    average rate of earnings for the first 2 years of service
7    with the municipality or participating instrumentality
8    whose governing body authorizes the service established
9    plus interest at the effective rate on the date such
10    credits are established, payable from the date the employee
11    completes the required 2 years of current service to date
12    of payment. In no case shall more than 120 months of
13    creditable service be granted under this provision.
14        7. For retroactive service: Any employee who could have
15    but did not elect to become a participating employee, or
16    who should have been a participant in the Municipal Public
17    Utilities Annuity and Benefit Fund before that fund was
18    superseded, may receive creditable service for the period
19    of service not to exceed 50 months; however, a current or
20    former elected or appointed official of a participating
21    municipality may establish credit under this paragraph 7
22    for more than 50 months of service as an official of that
23    municipality, if the excess over 50 months is approved by
24    resolution of the governing body of the affected
25    municipality filed with the Fund before January 1, 2002.
26        Any employee who is a participating employee on or

 

 

09800HB5914ham001- 28 -LRB098 17311 EFG 57267 a

1    after September 24, 1981 and who was excluded from
2    participation by the age restrictions removed by Public Act
3    82-596 may receive creditable service for the period, on or
4    after January 1, 1979, excluded by the age restriction and,
5    in addition, if the governing body of the participating
6    municipality or participating instrumentality elects to
7    allow creditable service for all employees excluded by the
8    age restriction prior to January 1, 1979, for service
9    during the period prior to that date excluded by the age
10    restriction. Any employee who was excluded from
11    participation by the age restriction removed by Public Act
12    82-596 and who is not a participating employee on or after
13    September 24, 1981 may receive creditable service for
14    service after January 1, 1979. Creditable service under
15    this paragraph shall be granted upon payment of the
16    employee contributions which would have been required had
17    he participated, with interest at the effective rate for
18    each year from the end of the period of service established
19    to date of payment.
20        8. For accumulated unused sick leave: A participating
21    employee who first becomes a participating employee before
22    the effective date of this amendatory Act of the 98th
23    General Assembly and who is applying for a retirement
24    annuity shall be entitled to creditable service for that
25    portion of the employee's accumulated unused sick leave for
26    which payment is not received, as follows:

 

 

09800HB5914ham001- 29 -LRB098 17311 EFG 57267 a

1            a. Sick leave days shall be limited to those
2        accumulated under a sick leave plan established by a
3        participating municipality or participating
4        instrumentality which is available to all employees or
5        a class of employees.
6            b. Except as provided in item b-1, only sick leave
7        days accumulated with a participating municipality or
8        participating instrumentality with which the employee
9        was in service within 60 days of the effective date of
10        his retirement annuity shall be credited; If the
11        employee was in service with more than one employer
12        during this period only the sick leave days with the
13        employer with which the employee has the greatest
14        number of unpaid sick leave days shall be considered.
15            b-1. If the employee was in the service of more
16        than one employer as defined in item (2) of paragraph
17        (a) of subsection (A) of Section 7-132, then the sick
18        leave days from all such employers shall be credited,
19        as long as the creditable service attributed to those
20        sick leave days does not exceed the limitation in item
21        f of this paragraph 8. In calculating the creditable
22        service under this item b-1, the sick leave days from
23        the last employer shall be considered first, then the
24        remaining sick leave days shall be considered until
25        there are no more days or the maximum creditable sick
26        leave threshold under item f of this paragraph 8 has

 

 

09800HB5914ham001- 30 -LRB098 17311 EFG 57267 a

1        been reached.
2            c. The creditable service granted shall be
3        considered solely for the purpose of computing the
4        amount of the retirement annuity and shall not be used
5        to establish any minimum service period required by any
6        provision of the Illinois Pension Code, the effective
7        date of the retirement annuity, or the final rate of
8        earnings.
9            d. The creditable service shall be at the rate of
10        1/20 of a month for each full sick day, provided that
11        no more than 12 months may be credited under this
12        subdivision 8.
13            e. Employee contributions shall not be required
14        for creditable service under this subdivision 8.
15            f. Each participating municipality and
16        participating instrumentality with which an employee
17        has service within 60 days of the effective date of his
18        retirement annuity shall certify to the board the
19        number of accumulated unpaid sick leave days credited
20        to the employee at the time of termination of service.
21        9. For service transferred from another system:
22    Credits and creditable service shall be granted for service
23    under Article 4, 5, 8, 14, or 16 of this Act, to any active
24    member of this Fund, and to any inactive member who has
25    been a county sheriff, upon transfer of such credits
26    pursuant to Section 4-108.3, 5-235, 8-226.7, 14-105.6, or

 

 

09800HB5914ham001- 31 -LRB098 17311 EFG 57267 a

1    16-131.4, and payment by the member of the amount by which
2    (1) the employer and employee contributions that would have
3    been required if he had participated in this Fund as a
4    sheriff's law enforcement employee 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. Such transferred
10    service shall be deemed to be service as a sheriff's law
11    enforcement employee for the purposes of Section 7-142.1.
12        10. For service transferred from an Article 3 system
13    under Section 3-110.8: Credits and creditable service
14    shall be granted for service under Article 3 of this Act as
15    provided in Section 3-110.8, to any active member of this
16    Fund upon transfer of such credits pursuant to Section
17    3-110.8. If the amount by which (1) the employer and
18    employee contributions that would have been required if he
19    had participated in this Fund during the period for which
20    credit is being transferred, plus interest thereon at the
21    effective rate for each year, compounded annually, from the
22    date of termination of the service for which credit is
23    being transferred to the date of payment, exceeds (2) the
24    amount actually transferred to the Fund, then the amount of
25    creditable service established under this paragraph 10
26    shall be reduced by a corresponding amount in accordance

 

 

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1    with the rules and procedures established under this
2    paragraph 10.
3        The board shall establish by rule the manner of making
4    the calculation required under this paragraph 10, taking
5    into account the appropriate actuarial assumptions; the
6    member's service, age, and salary history; the level of
7    funding of the employer; and any other factors that the
8    board determines to be relevant.
9        Until January 1, 2010, members who transferred service
10    from an Article 3 system under the provisions of Public Act
11    94-356 may establish additional credit in this Fund, but
12    only up to the amount of the service credit reduction in
13    that transfer, as calculated under the actuarial
14    assumptions. This credit may be established upon payment by
15    the member of an amount to be determined by the board,
16    equal to (1) the amount that would have been contributed as
17    employee and employer contributions had all the service
18    been as an employee under this Article, plus interest
19    thereon compounded annually from the date of service to the
20    date of transfer, less (2) the total amount transferred
21    from the Article 3 system, plus (3) interest on the
22    difference at the effective rate for each year, compounded
23    annually, from the date of the transfer to the date of
24    payment. The additional service credit is allowed under
25    this amendatory Act of the 95th General Assembly
26    notwithstanding the provisions of Article 3 terminating

 

 

09800HB5914ham001- 33 -LRB098 17311 EFG 57267 a

1    all transferred credits on the date of transfer.
2        11. For service transferred from an Article 3 system
3    under Section 3-110.3: Credits and creditable service
4    shall be granted for service under Article 3 of this Act as
5    provided in Section 3-110.3, to any active member of this
6    Fund, upon transfer of such credits pursuant to Section
7    3-110.3. If the board determines that the amount
8    transferred is less than the true cost to the Fund of
9    allowing that creditable service to be established, then in
10    order to establish that creditable service, the member must
11    pay to the Fund an additional contribution equal to the
12    difference, as determined by the board in accordance with
13    the rules and procedures adopted under this paragraph. If
14    the member does not make the full additional payment as
15    required by this paragraph prior to termination of his
16    participation with that employer, then his or her
17    creditable service shall be reduced by an amount equal to
18    the difference between the amount transferred under
19    Section 3-110.3, including any payments made by the member
20    under this paragraph prior to termination, and the true
21    cost to the Fund of allowing that creditable service to be
22    established, as determined by the board in accordance with
23    the rules and procedures adopted under this paragraph.
24        The board shall establish by rule the manner of making
25    the calculation required under this paragraph 11, taking
26    into account the appropriate actuarial assumptions; the

 

 

09800HB5914ham001- 34 -LRB098 17311 EFG 57267 a

1    member's service, age, and salary history, and any other
2    factors that the board determines to be relevant.
3    (b) Creditable service - amount:
4        1. One month of creditable service shall be allowed for
5    each month for which a participating employee made
6    contributions as required under Section 7-173, or for which
7    creditable service is otherwise granted hereunder. Not
8    more than 1 month of service shall be credited and counted
9    for 1 calendar month, and not more than 1 year of service
10    shall be credited and counted for any calendar year. A
11    calendar month means a nominal month beginning on the first
12    day thereof, and a calendar year means a year beginning
13    January 1 and ending December 31.
14        2. A seasonal employee shall be given 12 months of
15    creditable service if he renders the number of months of
16    service normally required by the position in a 12-month
17    period and he remains in service for the entire 12-month
18    period. Otherwise a fractional year of service in the
19    number of months of service rendered shall be credited.
20        3. An intermittent employee shall be given creditable
21    service for only those months in which a contribution is
22    made under Section 7-173.
23    (c) No application for correction of credits or creditable
24service shall be considered unless the board receives an
25application for correction while (1) the applicant is a
26participating employee and in active employment with a

 

 

09800HB5914ham001- 35 -LRB098 17311 EFG 57267 a

1participating municipality or instrumentality, or (2) while
2the applicant is actively participating in a pension fund or
3retirement system which is a participating system under the
4Retirement Systems Reciprocal Act. A participating employee or
5other applicant shall not be entitled to credits or creditable
6service unless the required employee contributions are made in
7a lump sum or in installments made in accordance with board
8rule.
9    (d) Upon the granting of a retirement, surviving spouse or
10child annuity, a death benefit or a separation benefit, on
11account of any employee, all individual accumulated credits
12shall thereupon terminate. Upon the withdrawal of additional
13contributions, the credits applicable thereto shall thereupon
14terminate. Terminated credits shall not be applied to increase
15the benefits any remaining employee would otherwise receive
16under this Article.
17(Source: P.A. 97-415, eff. 8-16-11; 98-439, eff. 8-16-13;
1898-599, eff. 6-1-14.)
 
19    Section 95. No acceleration or delay. Where this Act makes
20changes in a statute that is represented in this Act by text
21that is not yet or no longer in effect (for example, a Section
22represented by multiple versions), the use of that text does
23not accelerate or delay the taking effect of (i) the changes
24made by this Act or (ii) provisions derived from any other
25Public Act.
 

 

 

09800HB5914ham001- 36 -LRB098 17311 EFG 57267 a

1    Section 99. Effective date. This Act takes effect January
21, 2015.".