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90_HB1463
40 ILCS 5/14-104 from Ch. 108 1/2, par. 14-104
Amends the State Employee Article of the Pension Code to
allow purchase of certain military service credits without
payment of the associated interest. Effective immediately.
LRB9003426EGfg
LRB9003426EGfg
1 AN ACT to amend the Illinois Pension Code by changing
2 Section 14-104.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Illinois Pension Code is amended by
6 changing Section 14-104 as follows:
7 (40 ILCS 5/14-104) (from Ch. 108 1/2, par. 14-104)
8 Sec. 14-104. Service for which contributions permitted.
9 Contributions provided for in this Section shall cover the
10 period of service granted, and be based upon employee's
11 compensation and contribution rate in effect on the date he
12 last became a member of the System; provided that for all
13 employment prior to January 1, 1969 the contribution rate
14 shall be that in effect for a noncovered employee on the date
15 he last became a member of the System. Except as otherwise
16 specified below, contributions permitted under this Section
17 shall include regular interest from the date an employee last
18 became a member of the System to date of payment.
19 These contributions must be paid in full before
20 retirement either in a lump sum or in installment payments in
21 accordance with such rules as may be adopted by the board.
22 (a) Any member may make contributions as required in
23 this Section for any period of service, subsequent to the
24 date of establishment, but prior to the date of membership.
25 (b) Any employee who had been previously excluded from
26 membership because of age at entry and subsequently became
27 eligible may elect to make contributions as required in this
28 Section for the period of service during which he was
29 ineligible.
30 (c) An employee of the Department of Insurance who,
31 after January 1, 1944 but prior to becoming eligible for
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1 membership, received salary from funds of insurance companies
2 in the process of rehabilitation, liquidation, conservation
3 or dissolution, may elect to make contributions as required
4 in this Section for such service.
5 (d) Any employee who rendered service in a State office
6 to which he was elected, or rendered service in the elective
7 office of Clerk of the Appellate Court prior to the date he
8 became a member, may make contributions for such service as
9 required in this Section. Any member who served by
10 appointment of the Governor under the Civil Administrative
11 Code of Illinois and did not participate in this System may
12 make contributions as required in this Section for such
13 service.
14 (e) Any person employed by the United States government
15 or any instrumentality or agency thereof from January 1, 1942
16 through November 15, 1946 as the result of a transfer from
17 State service by executive order of the President of the
18 United States shall be entitled to prior service credit
19 covering the period from January 1, 1942 through December 31,
20 1943 as provided for in this Article and to membership
21 service credit for the period from January 1, 1944 through
22 November 15, 1946 by making the contributions required in
23 this Section. A person so employed on January 1, 1944 but
24 whose employment began after January 1, 1942 may qualify for
25 prior service and membership service credit under the same
26 conditions.
27 (f) An employee of the Department of Labor of the State
28 of Illinois who performed services for and under the
29 supervision of that Department prior to January 1, 1944 but
30 who was compensated for those services directly by federal
31 funds and not by a warrant of the Auditor of Public Accounts
32 paid by the State Treasurer may establish credit for such
33 employment by making the contributions required in this
34 Section. An employee of the Department of Agriculture of the
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1 State of Illinois, who performed services for and under the
2 supervision of that Department prior to June 1, 1963, but was
3 compensated for those services directly by federal funds and
4 not paid by a warrant of the Auditor of Public Accounts paid
5 by the State Treasurer, and who did not contribute to any
6 other public employee retirement system for such service, may
7 establish credit for such employment by making the
8 contributions required in this Section.
9 (g) Any employee who executed a waiver of membership
10 within 60 days prior to January 1, 1944 may, at any time
11 while in the service of a department, file with the board a
12 rescission of such waiver. Upon making the contributions
13 required by this Section, the member shall be granted the
14 creditable service that would have been received if the
15 waiver had not been executed.
16 (h) Until May 1, 1990, an employee who was employed on a
17 full-time basis by a regional planning commission for at
18 least 5 continuous years may establish creditable service for
19 such employment by making the contributions required under
20 this Section, provided that any credits earned by the
21 employee in the commission's retirement plan have been
22 terminated.
23 (i) Any person who rendered full time contractual
24 services to the General Assembly as a member of a legislative
25 staff may establish service credit for up to 8 years of such
26 services by making the contributions required under this
27 Section, provided that application therefor is made not later
28 than July 1, 1991.
29 (j) By paying the contributions otherwise required under
30 this Section, plus an amount determined by the Board to be
31 equal to the employer's normal cost of the benefit plus
32 interest, an employee may establish service credit for a
33 period of up to 2 years spent in active military service for
34 which he does not qualify for credit under Section 14-105,
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1 provided that (1) he was not dishonorably discharged from
2 such military service, and (2) the amount of service credit
3 established by a member under this subsection (j), when added
4 to the amount of military service credit granted to the
5 member under subsection (b) of Section 14-105, shall not
6 exceed 5 years. However, an employee establishing service
7 credit under this subsection (j) need not pay interest on the
8 employer's normal cost of the benefit and need not pay
9 interest on the employee contribution that is required under
10 the first paragraph of this Section if the contribution is
11 paid to the System on or after the effective date of this
12 amendatory Act of 1997 and before July 1, 1998. The change
13 in this subsection made by this amendatory Act of 1997 does
14 not entitle any person to a refund of interest already paid
15 to establish service credit under this subsection.
16 (k) An employee who was employed on a full-time basis by
17 the Illinois State's Attorneys Association Statewide
18 Appellate Assistance Service LEAA-ILEC grant project prior to
19 the time that project became the State's Attorneys Appellate
20 Service Commission, now the Office of the State's Attorneys
21 Appellate Prosecutor, an agency of State government, may
22 establish creditable service for not more than 60 months
23 service for such employment by making contributions required
24 under this Section.
25 (Source: P.A. 86-273; 86-1488; 87-794; 87-895; 87-1265.)
26 Section 99. Effective date. This Act takes effect upon
27 becoming law.