(b) An eligible person may establish up to 5 years of creditable service
under this Article, in increments of one month, by making the contributions
specified in subsection (c). In addition, for each month of creditable
service established under this Section, a person's age at retirement shall
be deemed to be one month older than it actually is.
The creditable service established under this Section shall be deemed
eligible creditable service as defined in Section 14-110, and may be used
for all purposes under this Article and the Retirement Systems Reciprocal
Act, except for the computation of final average compensation under Section
14-103.12, or the determination of compensation under this or any other
Article of this Code.
The age enhancement established under this Section may be used for all
purposes under this Article (including calculation of a proportionate
annuity payable by this System under the Retirement Systems Reciprocal
Act), except for purposes of the level income option in Section 14-112, the
reversionary annuity under Section 14-113, and the required distributions
under Section 14-121.1. However, age enhancement established under this
Section shall not be used in determining benefits payable under other
Articles of this Code under the Retirement Systems Reciprocal Act.
(c) For all creditable service established under this Section, a person
must pay to the System an employee contribution to be determined by the
System, based on the member's final rate of compensation and one-half of
the total retirement contribution rate in effect for the member under
subdivision (a)(3) of Section 14-133 on the date of withdrawal.
If the member receives a lump sum payment for accumulated vacation, sick
leave and personal leave upon withdrawal from service, and the net amount
of that lump sum payment is at least as great as the amount of the
contribution required under this Section, the entire contribution (or so
much of it as does not exceed the contribution limitations of Section 415
of the Internal Revenue Code of 1986) must be paid by the employee before
the retirement annuity may become payable. If there is no such lump sum
payment, or if it is less than the contribution required under this
Section, the member may either pay the entire contribution before the
retirement annuity becomes payable, or may instead make an initial payment
before the retirement annuity becomes payable, equal to the net amount of
the lump sum payment for accumulated vacation, sick leave and personal
leave (or so much of it as does not exceed the contribution limitations of
Section 415 of the Internal Revenue Code of 1986), and have the remaining
amount due deducted from the retirement annuity in 24 equal monthly
installments beginning in the month in which the retirement annuity takes
effect.
However, if the net amount of the lump sum payment for accumulated
vacation, sick leave and personal leave equals or exceeds the contribution
required under this Section, but the required contribution exceeds an
applicable contribution limitation contained in Section 415 of the Internal
Revenue Code of 1986, then the amount of the contribution in excess of the
Section 415 limitation shall instead be paid by the annuitant in January of
1994. If this additional amount is not paid as required, the retirement
annuity shall be suspended until the required contribution is received.
(d) Notwithstanding Section 14-111, an annuitant who has received any
age enhancement or creditable service under this Section and who reenters
service under this Article other than as a temporary employee shall thereby
forfeit such age enhancement and creditable service, and become entitled to
a refund of the contributions made pursuant to this Section.
(e) The Board shall determine the unfunded accrued liability
created by the granting of early retirement benefits to State policemen
under this Section, and shall certify the amount of that liability to the
Department of State Police, the State Comptroller, the State Treasurer, and
the
Bureau of the Budget
(now Governor's Office of Management and Budget)
by June 1, 1993, or as soon thereafter as is
practical. In addition to any other payments to the System required under
this Code, the Department of State Police shall pay to the System the
amount of that unfunded accrued liability, out of funds appropriated to the
Department for that purpose, over a period of 7 years at the rate of 14.3%
of the certified amount per year, plus interest on the unpaid balance at
the actuarial rate as calculated and certified annually by the Board.
Beginning in State fiscal year 1996, the liability created under this
subsection (e) shall be included in the calculation of the required State
contribution under Section 14-131 and no additional payments need be made under
this subsection.
(Source: P.A. 94-793, eff. 5-19-06.)
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