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90_HB0593
40 ILCS 5/3-109 from Ch. 108 1/2, par. 3-109
40 ILCS 5/3-109.1 from Ch. 108 1/2, par. 3-109.1
40 ILCS 5/3-110 from Ch. 108 1/2, par. 3-110
40 ILCS 5/3-110.7 new
40 ILCS 5/3-111 from Ch. 108 1/2, par. 3-111
40 ILCS 5/7-109 from Ch. 108 1/2, par. 7-109
40 ILCS 5/7-139.9 new
30 ILCS 805/8.21 new
Amends the Illinois Pension Code to allow active members
to transfer credits between downstate police pension funds.
Requires payment of any resulting additional cost to the
fund. Allows a person with less than 8 years of creditable
service to receive a retirement pension from a police pension
fund, if the person has at least 8 years of credit in another
police pension fund and is receiving a retirement pension.
Allows reinstatement of service terminated by refund. Allows
chiefs who have elected to participate in IMRF to rescind
that election until January 1, 1999 and to transfer certain
credits back to the police pension fund. Amends the State
Mandates Act to require implementation without reimbursement.
Effective immediately.
LRB9001461EGfg
LRB9001461EGfg
1 AN ACT to amend the Illinois Pension Code by changing
2 Sections 3-109, 3-109.1, 3-110, 3-111, and 7-109 and adding
3 Sections 3-110.7 and 7-139.9 and to amend the State Mandates
4 Act.
5 Be it enacted by the People of the State of Illinois,
6 represented in the General Assembly:
7 Section 5. The Illinois Pension Code is amended by
8 changing Sections 3-109, 3-109.1, 3-110, 3-111, and 7-109 and
9 adding Sections 3-110.7 and 7-139.9 as follows:
10 (40 ILCS 5/3-109) (from Ch. 108 1/2, par. 3-109)
11 Sec. 3-109. Persons excluded.
12 (a) The following persons shall not be eligible to
13 participate in a fund created under this Article:
14 (1) part-time police officers, special police
15 officers, night watchmen, temporary employees, traffic
16 guards or so-called auxiliary police officers specially
17 appointed to aid or direct traffic at or near schools or
18 public functions, or to aid in civil defense, municipal
19 parking lot attendants, clerks or other civilian
20 employees of a police department who perform clerical
21 duties exclusively;
22 (2) any police officer who fails to pay the
23 contributions required under Section 3-125.1, computed
24 (i) for funds established prior to August 5, 1963, from
25 the date the municipality established the fund or the
26 date of a police officer's first appointment (including
27 an appointment on probation), whichever is later, or
28 (ii) for funds established after August 5, 1963, from the
29 date, as determined from the statistics or census
30 provided in Section 3-103, the municipality became
31 subject to this Article by attaining the minimum
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1 population or by referendum, or the date of a police
2 officer's first appointment (including an appointment on
3 probation), whichever is later, and continuing during his
4 or her entire service as a police officer; and
5 (3) any person who has elected under Section 3-109.1
6 to participate in the Illinois Municipal Retirement Fund
7 rather than in a fund established under this Article,
8 without regard to whether the person continues to be
9 employed as chief of police or is employed in some other
10 rank or capacity within the police department, unless the
11 person has lawfully rescinded that election.
12 (b) A police officer who is reappointed shall, before
13 being declared eligible to participate in the pension fund,
14 repay to the fund as required by Section 3-124 any refund
15 received thereunder.
16 (c) Any person otherwise qualified to participate who
17 was excluded from participation by reason of the age
18 restriction removed by Public Act 79-1165 may elect to
19 participate by making a written application to the Board
20 before January 1, 1990. Persons so electing shall begin
21 participation on the first day of the month following the
22 date of application. Such persons may also elect to
23 establish creditable service for periods of employment as a
24 police officer during which they did not participate by
25 paying into the police pension fund, before January 1, 1990,
26 the amount that the person would have contributed had
27 deductions from salary been made for such purpose at the time
28 such service was rendered, together with interest thereon at
29 6% per annum from the time such service was rendered until
30 the date the payment is made.
31 (d) A person otherwise qualified to participate who was
32 excluded from participation by reason of the fitness
33 requirement removed by this amendatory Act of 1995 may elect
34 to participate by making a written application to the Board
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1 before July 1, 1996. Persons so electing shall begin
2 participation on the first day of the month following the
3 month in which the application is received by the Board.
4 These persons may also elect to establish creditable service
5 for periods of employment as a police officer during which
6 they did not participate by paying into the police pension
7 fund, before January 1, 1997, the amount that the person
8 would have contributed had deductions from salary been made
9 for this purpose at the time the service was rendered,
10 together with interest thereon at 6% per annum, compounded
11 annually, from the time the service was rendered until the
12 date of payment.
13 (Source: P.A. 89-52, eff. 6-30-95.)
14 (40 ILCS 5/3-109.1) (from Ch. 108 1/2, par. 3-109.1)
15 Sec. 3-109.1. Chief of police.
16 (a) Beginning January 1, 1990, any person who is
17 employed as the chief of police of a "participating
18 municipality" as defined in Section 7-106 of this Code, may
19 elect to participate in the Illinois Municipal Retirement
20 Fund rather than in a fund created under this Article 3.
21 Except as provided in subsection (b), this Such election
22 shall be irrevocable, and shall be filed in writing with the
23 Board of the Illinois Municipal Retirement Fund.
24 (b) Until January 1, 1999, a chief of police who has
25 elected under this Section to participate in IMRF rather than
26 a fund created under this Article may elect to rescind that
27 election and transfer his or her participation to the police
28 pension fund established under this Article by the employing
29 municipality. The chief must notify the boards of trustees
30 of both funds in writing of his or her decision to rescind
31 the election and transfer participation. A chief of police
32 who transfers participation under this subsection (b) shall
33 not be deemed ineligible to participate in the police pension
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1 fund by reason of having failed to apply within the 3-month
2 period specified in Section 3-106.
3 (Source: P.A. 86-273.)
4 (40 ILCS 5/3-110) (from Ch. 108 1/2, par. 3-110)
5 Sec. 3-110. Creditable service.
6 (a) "Creditable service" is the time served by a police
7 officer as a member of a regularly constituted police force
8 of a municipality. In computing creditable service furloughs
9 without pay exceeding 30 days shall not be counted, but all
10 leaves of absence for illness or accident, regardless of
11 length, and all periods of disability retirement for which a
12 police officer has received no disability pension payments
13 under this Article shall be counted.
14 (b) Creditable service includes all periods of service
15 in the military, naval or air forces of the United States
16 entered upon while an active police officer of a
17 municipality, provided that upon applying for a permanent
18 pension, and in accordance with the rules of the board, the
19 police officer pays into the fund the amount the officer
20 would have contributed if he or she had been a regular
21 contributor during such period, to the extent that the
22 municipality which the police officer served has not made
23 such contributions in the officer's behalf. The total amount
24 of such creditable service shall not exceed 5 years, except
25 that any police officer who on July 1, 1973 had more than 5
26 years of such creditable service shall receive the total
27 amount thereof.
28 (c) Creditable service also includes service rendered by
29 a police officer while on leave of absence from a police
30 department to serve as an executive of an organization whose
31 membership consists of members of a police department,
32 subject to the following conditions: (i) the police officer
33 is a participant of a fund established under this Article
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1 with at least 10 years of service as a police officer; (ii)
2 the police officer received no credit for such service under
3 any other retirement system, pension fund, or annuity and
4 benefit fund included in this Code; (iii) pursuant to the
5 rules of the board the police officer pays to the fund the
6 amount he or she would have contributed had the officer been
7 an active member of the police department; and (iv) the
8 organization pays a contribution equal to the municipality's
9 normal cost for that period of service.
10 (d) Creditable service also includes periods of service
11 originally established in another police pension fund under
12 this Article or in the Fund established under Article 7 of
13 this Code for which the contributions have been transferred
14 under Section 3-110.7 or Section 7-139.9. If the board of
15 the pension fund to which the creditable service and related
16 contributions are transferred determines that the amount
17 transferred is less than the true cost to the pension fund of
18 allowing that creditable service to be established, then the
19 police officer must pay to the pension fund within 5 years of
20 the transfer date the amount of the difference, as determined
21 by the board. The methodology for this calculation shall be
22 established by rule by the Public Employee Pension Fund
23 Division of the Department of Insurance, based on the
24 applicant's starting salary under the new pension fund, the
25 level of funding in that pension fund, the number of years of
26 creditable service, and any other relevant factors.
27 (Source: P.A. 89-52, eff. 6-30-95.)
28 (40 ILCS 5/3-110.7 new)
29 Sec. 3-110.7. Transfer between Article 3 funds.
30 (a) An active member of a pension fund established under
31 this Article may apply for transfer to that fund of his or
32 her creditable service and related contributions accumulated
33 in any other police pension fund established under this
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1 Article. Upon receiving the application, that other pension
2 fund shall transfer to the pension fund in which the
3 applicant currently participates an amount equal to:
4 (1) the amounts actually contributed by or on
5 behalf of the applicant to the fund as employee
6 contributions (including any interest paid by the
7 applicant in order to reinstate service), plus interest
8 on those amounts at the rate of 6% per year, compounded
9 annually, from the date of contribution to the date of
10 transfer; plus
11 (2) an amount representing employer contributions,
12 equal to the total amount determined under subdivision
13 (1).
14 Participation in that other pension fund shall terminate on
15 the date of transfer.
16 (b) An active member of a pension fund established under
17 this Article may reinstate service in any other pension fund
18 established under this Article that was terminated by receipt
19 of a refund, by paying to that other pension fund the amount
20 of the refund plus interest thereon at the rate of 6% per
21 year, compounded annually, from the date of refund to the
22 date of payment.
23 (40 ILCS 5/3-111) (from Ch. 108 1/2, par. 3-111)
24 Sec. 3-111. Pension.
25 (a) A police officer age 50 or more with 20 or more
26 years of creditable service, who is no longer in service as a
27 police officer, shall receive a pension of 1/2 of the salary
28 attached to the rank held by the officer on the police force
29 for one year immediately prior to retirement or, beginning
30 July 1, 1987 for persons terminating service on or after that
31 date, the salary attached to the rank held on the last day of
32 service or for one year prior to the last day, whichever is
33 greater. The pension shall be increased by 2% of such salary
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1 for each additional year of service over 20 years, up to 30
2 years, and 1% of such salary for each additional year of
3 service over 30 years, to a maximum of 75% of such salary.
4 No pension in effect on or granted after June 30, l973 shall
5 be less than $200 per month. Beginning July 1, 1987, the
6 minimum retirement pension for a police officer having at
7 least 20 years of creditable service shall be $400 per month,
8 without regard to whether or not retirement occurred prior to
9 that date.
10 (b) A police officer mandatorily retired from service
11 due to age by operation of law, having at least 8 but less
12 than 20 years of creditable service, shall receive a pension
13 equal to 2 1/2% of the salary attached to the rank he or she
14 held on the police force for one year immediately prior to
15 retirement or, beginning July 1, 1987 for persons terminating
16 service on or after that date, the salary attached to the
17 rank held on the last day of service or for one year prior to
18 the last day, whichever is greater, for each year of
19 creditable service.
20 A police officer who retires or is separated from service
21 having at least 8 years but less than 20 years of creditable
22 service, who is not mandatorily retired due to age by
23 operation of law, and who does not apply for a refund of
24 contributions at his or her last separation from police
25 service, shall receive a pension upon attaining age 60 equal
26 to 2.5% of the salary attached to the rank held by the police
27 officer on the police force for one year immediately prior to
28 retirement or, beginning July 1, 1987 for persons terminating
29 service on or after that date, the salary attached to the
30 rank held on the last day of service or for one year prior to
31 the last day, whichever is greater, for each year of
32 creditable service.
33 (c) A police officer no longer in service who has at
34 least one but less than 8 years of creditable service in a
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1 police pension fund but meets the requirements of this
2 subsection (c) shall be eligible to receive a pension from
3 that fund equal to 2.5% of the salary attached to the rank
4 held on the last day of service under that fund or for one
5 year prior to that last day, whichever is greater, for each
6 year of creditable service in that fund. The pension shall
7 begin no earlier than upon attainment of age 60 (or upon
8 mandatory retirement from the fund by operation of law due to
9 age, if that occurs before age 60) and in no event before the
10 effective date of this amendatory Act of 1997.
11 In order to be eligible for a pension under this
12 subsection (c), the police officer must have at least 8 years
13 of creditable service in a second police pension fund under
14 this Article and be receiving a pension under subsection (a)
15 or (b) of this Section from that second fund. The police
16 officer need not be in service on or after the effective date
17 of this amendatory Act of 1997.
18 (Source: P.A. 85-941.)
19 (40 ILCS 5/7-109) (from Ch. 108 1/2, par. 7-109)
20 Sec. 7-109. Employee.
21 (1) "Employee" means any person who:
22 (a) 1. Receives earnings as payment for the
23 performance of personal services or official duties
24 out of the general fund of a municipality, or out of
25 any special fund or funds controlled by a
26 municipality, or by an instrumentality thereof, or a
27 participating instrumentality, including, in
28 counties, the fees or earnings of any county fee
29 office; and
30 2. Under the usual common law rules applicable
31 in determining the employer-employee relationship,
32 has the status of an employee with a municipality,
33 or any instrumentality thereof, or a participating
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1 instrumentality, including aldermen, county
2 supervisors and other persons (excepting those
3 employed as independent contractors) who are paid
4 compensation, fees, allowances or other emolument
5 for official duties, and, in counties, the several
6 county fee offices.
7 (b) Serves as a township treasurer appointed under
8 the School Code, as heretofore or hereafter amended, and
9 who receives for such services regular compensation as
10 distinguished from per diem compensation, and any regular
11 employee in the office of any township treasurer whether
12 or not his earnings are paid from the income of the
13 permanent township fund or from funds subject to
14 distribution to the several school districts and parts of
15 school districts as provided in the School Code, or from
16 both such sources.
17 (c) Holds an elective office in a municipality,
18 instrumentality thereof or participating instrumentality.
19 (2) "Employee" does not include persons who:
20 (a) Are eligible for inclusion under any of the
21 following laws:
22 1. "An Act in relation to an Illinois State
23 Teachers' Pension and Retirement Fund", approved May
24 27, 1915, as amended;
25 2. Articles 15 and 16 of this Code.
26 However, such persons shall be included as employees
27 to the extent of earnings that are not eligible for
28 inclusion under the foregoing laws for services not of an
29 instructional nature of any kind.
30 However, any member of the armed forces who is
31 employed as a teacher of subjects in the Reserve Officers
32 Training Corps of any school and who is not certified
33 under the law governing the certification of teachers
34 shall be included as an employee.
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1 (b) Are designated by the governing body of a
2 municipality in which a pension fund is required by law
3 to be established for policemen or firemen, respectively,
4 as performing police or fire protection duties, except
5 that when such persons are the heads of the police or
6 fire department and are not eligible to be included
7 within any such pension fund, they shall be included
8 within this Article; provided, that such persons shall
9 not be excluded to the extent of concurrent service and
10 earnings not designated as being for police or fire
11 protection duties. However, (i) any head of a police
12 department who was a participant under this Article
13 immediately before October 1, 1977 and did not elect,
14 under Section 3-109 of this Act, to participate in a
15 police pension fund shall be an "employee", and (ii) any
16 chief of police who elects to participate in this Fund
17 under Section 3-109.1 of this Code, regardless of whether
18 such person continues to be employed as chief of police
19 or is employed in some other rank or capacity within the
20 police department, shall be an employee under this
21 Article for so long as such person is employed to perform
22 police duties by a participating municipality and has not
23 lawfully rescinded that election.
24 (3) All persons, including, without limitation, public
25 defenders and probation officers, who receive earnings from
26 general or special funds of a county for performance of
27 personal services or official duties within the territorial
28 limits of the county, are employees of the county (unless
29 excluded by subsection (2) of this Section) notwithstanding
30 that they may be appointed by and are subject to the
31 direction of a person or persons other than a county board or
32 a county officer. It is hereby established that an
33 employer-employee relationship under the usual common law
34 rules exists between such employees and the county paying
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1 their salaries by reason of the fact that the county boards
2 fix their rates of compensation, appropriate funds for
3 payment of their earnings and otherwise exercise control over
4 them. This finding and this amendatory Act shall apply to
5 all such employees from the date of appointment whether such
6 date is prior to or after the effective date of this
7 amendatory Act and is intended to clarify existing law
8 pertaining to their status as participating employees in the
9 Fund.
10 (Source: P.A. 86-273; 86-820; 86-1028.)
11 (40 ILCS 5/7-139.9 new)
12 Sec. 7-139.9. Transfer to Article 3 pension fund.
13 (a) Until January 1, 1999, a person who has lawfully
14 rescinded an election to participate in this Fund under
15 Section 3-109.1 and has become an active participant in a
16 police pension fund established under Article 3 of this Code
17 may apply for transfer to that Article 3 fund of his or her
18 creditable service accumulated under this Article for
19 municipal law enforcement service. At the time of the
20 transfer the Fund shall pay to the police pension fund an
21 amount equal to:
22 (1) the amounts accumulated to the credit of the
23 applicant for municipal law enforcement service,
24 including interest; and
25 (2) the municipality credits based on that service,
26 including interest; and
27 (3) any interest paid by the applicant in order to
28 reinstate that service.
29 Participation in this Fund with respect to the transferred
30 credits shall terminate on the date of transfer.
31 For the purposes of this Section, "municipal law
32 enforcement service" means service with the police department
33 of a participating municipality for which the applicant
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1 established creditable service under this Article as a result
2 of an election under Section 3-109.1 of this Code.
3 (b) An active member of a pension fund established under
4 Article 3 of this Code may reinstate municipal law
5 enforcement service under this Article that was terminated by
6 receipt of a refund, by paying to the Fund the amount of the
7 refund plus interest thereon at the rate of 6% per year,
8 compounded annually, from the date of refund to the date of
9 payment.
10 (c) A chief of police who participates in this Fund as a
11 result of an election under Section 3-109.1 may rescind that
12 election and transfer his or her participation from this Fund
13 to a police pension fund established under Article 3 of this
14 Code in which he or she is eligible to participate, as
15 provided in Section 3-109.1(b). A transfer of participation
16 under this subsection (c) and Section 3-109.1(b) is
17 irrevocable.
18 Section 90. The State Mandates Act is amended by adding
19 Section 8.21 as follows:
20 (30 ILCS 805/8.21 new)
21 Sec. 8.21. Exempt mandate. Notwithstanding Sections 6
22 and 8 of this Act, no reimbursement by the State is required
23 for the implementation of any mandate created by this
24 amendatory Act of 1997.
25 Section 99. Effective date. This Act takes effect upon
26 becoming law.