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90_SB0665sam005
LRB9000602EGfgam05
1 AMENDMENT TO SENATE BILL 665
2 AMENDMENT NO. . Amend Senate Bill 665, AS AMENDED,
3 by inserting immediately below the enacting clause the
4 following:
5 "Section 3. The State Mandates Act is amended by adding
6 Section 8.21 as follows:
7 (30 ILCS 805/8.21 new)
8 Sec. 8.21. Exempt mandate. Notwithstanding Sections 6
9 and 8 of this Act, no reimbursement by the State is required
10 for the implementation of any mandate created by this
11 amendatory Act of 1997.
12 Section 4. The Illinois Pension Code is amended by
13 changing Section 7-139 as follows:
14 (40 ILCS 5/7-139) (from Ch. 108 1/2, par. 7-139)
15 Sec. 7-139. Credits and creditable service to employees.
16 (a) Each participating employee shall be granted credits
17 and creditable service, for purposes of determining the
18 amount of any annuity or benefit to which he or a beneficiary
19 is entitled, as follows:
20 1. For prior service: Each participating employee who is
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1 an employee of a participating municipality or participating
2 instrumentality on the effective date shall be granted
3 creditable service, but no credits under paragraph 2 of this
4 subsection (a), for his entire period of prior service.
5 Any person who has withdrawn from the service of a
6 participating municipality or participating instrumentality
7 prior to the effective date, who reenters service of the same
8 municipality or participating instrumentality after the
9 effective date and becomes a participating employee is
10 entitled to creditable service for prior service if he
11 renders 2 years of service as a participating employee after
12 the effective date provided application for such service is
13 made while in a participating status.
14 2. For current service, each participating employee
15 shall be credited with:
16 a. Additional credits of amounts equal to each
17 payment of additional contributions received from him
18 under Section 7-173, as of the date the corresponding
19 payment of earnings is payable to him.
20 b. Normal credits of amounts equal to each payment
21 of normal contributions received from him, as of the date
22 the corresponding payment of earnings is payable to him,
23 and normal contributions made for the purpose of
24 establishing out-of-state service credits as permitted
25 under the conditions set forth in paragraph 6 of this
26 subsection (a).
27 c. Municipality credits in an amount equal to 1.4
28 times the normal credits, except those established by
29 out-of-state service credits, as of the date of
30 computation of any benefit if these credits would
31 increase the benefit.
32 d. Survivor credits equal to each payment of
33 survivor contributions received from the participating
34 employee as of the date the corresponding payment of
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1 earnings is payable, and survivor contributions made for
2 the purpose of establishing out-of-state service 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 for
8 disability benefits, shall also be granted if such credits
9 would result in a higher benefit to any such employee or his
10 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 absence
14 without pay under the following conditions:
15 a. An application for credits and creditable
16 service shall be submitted to the board while the
17 employee is in a status of active employment, and within
18 2 years after termination of the leave of absence period
19 for which credits and creditable service are sought.
20 b. Not more than 12 complete months of creditable
21 service for authorized leave of absence without pay shall
22 be counted for purposes of determining any benefits
23 payable under this Article.
24 c. Credits and creditable service shall be granted
25 for leave of absence only if such leave is approved by
26 the governing body of the municipality, including
27 approval of the estimated cost thereof to the
28 municipality as determined by the fund, and employee
29 contributions, plus interest at the effective rate
30 applicable for each year from the end of the period of
31 leave to date of payment, have been paid to the fund in
32 accordance with Section 7-173. The contributions shall be
33 computed upon the assumption earnings continued during
34 the period of leave at the rate in effect when the leave
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1 began.
2 d. Benefits under the provisions of Sections 7-141,
3 7-146, 7-150 and 7-163 shall become payable to employees
4 on authorized leave of absence, or their designated
5 beneficiary, only if such leave of absence is creditable
6 hereunder, and if the employee has at least one year of
7 creditable service other than the service granted for
8 leave of absence. Any employee contributions due may be
9 deducted from any benefits payable.
10 e. No credits or creditable service shall be
11 allowed for leave of absence without pay during any
12 period of prior service.
13 5. For military service: The governing body of a
14 municipality or participating instrumentality may elect to
15 allow creditable service to participating employees who leave
16 their employment to serve in the armed forces of the United
17 States for all periods of such service, provided such person
18 returns to active employment within 90 days after completion
19 of full time active duty but no creditable service shall be
20 allowed such person for any period that can be used in the
21 computation of a pension or any other pay or benefit, other
22 than pay for active duty, for service in any branch of the
23 armed forces of the United States. If necessary to the
24 computation of any benefit, the board shall establish
25 municipality credits for participating employees under this
26 paragraph on the assumption that the employee received
27 earnings at the rate received at the time he left the
28 employment to enter the armed forces. A participating
29 employee in the armed forces shall not be considered an
30 employee during such period of service and no additional
31 death and no disability benefits are payable for death or
32 disability during such period.
33 Any participating employee who left his employment with a
34 municipality or participating instrumentality to serve in the
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1 armed forces of the United States and who again became a
2 participating employee within 90 days after completion of
3 full time active duty by entering the service of a different
4 municipality or participating instrumentality, which has
5 elected to allow creditable service for periods of military
6 service under the preceding paragraph, shall also be allowed
7 creditable service for his period of military service on the
8 same terms that would apply if he had been employed, before
9 entering military service, by the municipality or
10 instrumentality which employed him after he left the military
11 service and the employer costs arising in relation to such
12 grant of creditable service shall be charged to and paid by
13 that municipality or instrumentality.
14 Notwithstanding the foregoing, any participating employee
15 shall be entitled to creditable service as required by any
16 federal law relating to re-employment rights of persons who
17 served in the United States Armed Services. Such creditable
18 service shall be granted upon payment by the member of an
19 amount equal to the employee contributions which would have
20 been required had the employee continued in service at the
21 same rate of earnings during the military leave period, plus
22 interest at the effective rate.
23 6. For out-of-state service: Creditable service shall be
24 granted for service rendered to an out-of-state local
25 governmental body under the following conditions: The
26 employee had participated and has irrevocably forfeited all
27 rights to benefits in the out-of-state public employees
28 pension system; the governing body of his participating
29 municipality or instrumentality authorizes the employee to
30 establish such service; the employee has 2 years current
31 service with this municipality or participating
32 instrumentality; the employee makes a payment of
33 contributions, which shall be computed at 8% (normal) plus 2%
34 (survivor) times length of service purchased times the
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1 average rate of earnings for the first 2 years of service
2 with the municipality or participating instrumentality whose
3 governing body authorizes the service established plus
4 interest at the effective rate on the date such credits are
5 established, payable from the date the employee completes the
6 required 2 years of current service to date of payment. In
7 no case shall more than 120 months of creditable service be
8 granted under this provision.
9 7. For retroactive service: Any employee who could have
10 but did not elect to become a participating employee, or who
11 should have been a participant in the Municipal Public
12 Utilities Annuity and Benefit Fund before that fund was
13 superseded, may receive creditable service for the period of
14 service not to exceed 50 months; however, a current or former
15 county board member may establish credit under this paragraph
16 7 for more than 50 months of service as a member of the
17 county board if the excess over 50 months is approved by
18 resolution of the affected county board filed with the Fund
19 before January 1, 1999.
20 Any employee who is a participating employee on or after
21 September 24, 1981 and who was excluded from participation by
22 the age restrictions removed by Public Act 82-596 may receive
23 creditable service for the period, on or after January 1,
24 1979, excluded by the age restriction and, in addition, if
25 the governing body of the participating municipality or
26 participating instrumentality elects to allow creditable
27 service for all employees excluded by the age restriction
28 prior to January 1, 1979, for service during the period prior
29 to that date excluded by the age restriction. Any employee
30 who was excluded from participation by the age restriction
31 removed by Public Act 82-596 and who is not a participating
32 employee on or after September 24, 1981 may receive
33 creditable service for service after January 1, 1979.
34 Creditable service under this paragraph shall be granted
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1 upon payment of the employee contributions which would have
2 been required had he participated, with interest at the
3 effective rate for each year from the end of the period of
4 service established to date of payment.
5 8. For accumulated unused sick leave: A participating
6 employee who is applying for a retirement annuity shall be
7 entitled to creditable service for that portion of his
8 accumulated unused sick leave for which payment is not
9 received, as follows:
10 a. Sick leave days shall be limited to those
11 accumulated under a sick leave plan established by a
12 participating municipality or participating
13 instrumentality which is available to all employees or a
14 class of employees.
15 b. Only sick leave days accumulated with a
16 participating municipality or participating
17 instrumentality with which the employee was in service
18 within 60 days of the effective date of his retirement
19 annuity shall be credited; if the employee was in service
20 with more than one employer during this period only the
21 sick leave days with the employer with which the employee
22 has the greatest number of unpaid sick leave days shall
23 be considered.
24 c. The creditable service granted shall be
25 considered solely for the purpose of computing the amount
26 of the retirement annuity and shall not be used to
27 establish any minimum service period required by any
28 provision of the Illinois Pension Code, the effective
29 date of the retirement annuity, or the final rate of
30 earnings.
31 d. The creditable service shall be at the rate of
32 1/20 of a month for each full sick day, provided that no
33 more than 12 months may be credited under this
34 subdivision 8.
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1 e. Employee contributions shall not be required for
2 creditable service under this subdivision 8.
3 f. Each participating municipality and
4 participating instrumentality with which an employee has
5 service within 60 days of the effective date of his
6 retirement annuity shall certify to the board the number
7 of accumulated unpaid sick leave days credited to the
8 employee at the time of termination of service.
9 9. For service transferred from another system: Credits
10 and creditable service shall be granted for service under
11 Article 3, 4, 5, 14 or 16 of this Act, to any active member
12 of this Fund, and to any inactive member who has been a
13 county sheriff, upon transfer of such credits pursuant to
14 Section 3-110.3, 4-108.3, 5-235, 14-105.6 or 16-131.4, and
15 payment by the member of the amount by which (1) the employer
16 and employee contributions that would have been required if
17 he had participated in this Fund as a sheriff's law
18 enforcement employee during the period for which credit is
19 being transferred, plus interest thereon at the effective
20 rate for each year, compounded annually, from the date of
21 termination of the service for which credit is being
22 transferred to the date of payment, exceeds (2) the amount
23 actually transferred to the Fund. Such transferred service
24 shall be deemed to be service as a sheriff's law enforcement
25 employee for the purposes of Section 7-142.1.
26 (b) Creditable service - amount: 1. One month of
27 creditable service shall be allowed for each month for which
28 a participating employee made contributions as required under
29 Section 7-173, or for which creditable service is otherwise
30 granted hereunder. Not more than 1 month of service shall be
31 credited and counted for 1 calendar month, and not more than
32 1 year of service shall be credited and counted for any
33 calendar year. A calendar month means a nominal month
34 beginning on the first day thereof, and a calendar year means
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1 a year beginning January 1 and ending December 31.
2 2. A seasonal employee shall be given 12 months of
3 creditable service if he renders the number of months of
4 service normally required by the position in a 12-month
5 period and he remains in service for the entire 12-month
6 period. Otherwise a fractional year of service in the number
7 of months of service rendered shall be credited.
8 3. An intermittent employee shall be given creditable
9 service for only those months in which a contribution is made
10 under Section 7-173.
11 (c) No application for correction of credits or
12 creditable service shall be considered unless the board
13 receives an application for correction while (1) the
14 applicant is a participating employee and in active
15 employment with a participating municipality or
16 instrumentality, or (2) while the applicant is actively
17 participating in a pension fund or retirement system which is
18 a participating system under the Retirement Systems
19 Reciprocal Act. A participating employee or other applicant
20 shall not be entitled to credits or creditable service unless
21 the required employee contributions are made in a lump sum or
22 in installments made in accordance with board rule.
23 (d) Upon the granting of a retirement, surviving spouse
24 or child annuity, a death benefit or a separation benefit, on
25 account of any employee, all individual accumulated credits
26 shall thereupon terminate. Upon the withdrawal of additional
27 contributions, the credits applicable thereto shall thereupon
28 terminate.
29 (Source: P.A. 86-273; 86-1028; 87-740.)".