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| [ Introduced ] | [ House Amendment 001 ] |
92_HB1064eng HB1064 Engrossed LRB9206015EGfg 1 AN ACT in relation to public employee benefits. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. The Illinois Pension Code is amended by 5 changing Sections 2-110 and 14-105.1 as follows: 6 (40 ILCS 5/2-110) (from Ch. 108 1/2, par. 2-110) 7 Sec. 2-110. Service. 8 (A) "Service" means the period beginning on the day when 9 a person first became a member, and ending on the date under 10 consideration, excluding all intervening periods of 11 nonmembership following resignation or expiration of any term 12 of office. 13 (B) "Service" includes: 14 (a) Military service during war by a person who 15 entered such service while a member, whether rendered 16 before or after the expiration of any term of office; 17 plus up to 2 years of military service that need not have 18 immediately followed service as a member, and need not 19 have been served during wartime, provided that the member 20 makes contributions to the System for such service (1) at 21 the rates provided in Section 2-126 based upon the 22 member's rate of compensation on the last date as a 23 participant prior to such military service, or on the 24 first date as a participant after such military service, 25 whichever is greater, plus (2) if payment is made on or 26 after May 1, 1993, an amount determined by the Board to 27 be equal to the employer's normal cost of the benefits 28 accrued for such military service, plus (3) interest at 29 the effective rate from the date of first membership in 30 the System to the date of payment. 31 The amendment to this subdivision (B)(a) made by HB1064 Engrossed -2- LRB9206015EGfg 1 this amendatory Act of 1993 shall apply to persons who 2 are active contributors to the System on or after 3 November 30, 1992. A person who was an active 4 contributor to the System on November 30, 1992 but is no 5 longer an active contributor may apply to purchase 6 military credit under this subdivision (B)(a) within 60 7 days after the effective date of this amendatory Act of 8 1993; if the person is an annuitant, the resulting 9 increase in annuity shall begin to accrue on the first 10 day of the month following the month in which the 11 required payment is received by the System. The change 12 in the required contribution for purchased military 13 credit made by this amendatory Act of 1993 shall not 14 entitle any person to a refund of contributions already 15 paid. 16 (b) Service as a judge of a court of this State, 17 but credit for such service is subject to the following 18 conditions: (1) such person shall have been a member for 19 at least 4 years and contributed to the system for 20 service as a judge subsequent to July 8, 1947, at the 21 rates herein provided, including interest at 2% per annum 22 to the date of payment based on the salary in effect 23 during such service; (2) the member was not an eligible 24 member of nor entitled to credit for such service in any 25 other retirement system in the State maintained in whole 26 or in part by public contributions; and (3) the last 4 27 years of service prior to retirement on annuity was 28 rendered while a member. 29 (c) Service as a participating employee under 30 Articles 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 31 17 or 18 of the Illinois Pension Code. Credit for such 32 service may be established by a member and, if permitted 33 by the credit transfer Section of the appropriate 34 Article, by a former member who is not yet an annuitant, HB1064 Engrossed -3- LRB9206015EGfg 1 and is subject to the following conditions: (1) that the 2 credits accrued under the above mentioned Articles have 3 been transferred to this system; and (2) that the member 4 has contributed to this system an amount equal to (i) the 5 contribution rate in effect for participants at the date 6 of membership in this system multiplied by the salary 7 then in effect for members of the General Assembly for 8 each year of service for which credit is being 9 transferred, plus (ii) the State's share of the normal 10 cost of benefits under this system expressed as a percent 11 of payroll, as determined by the system's actuary as of 12 the date of the participant's membership in this system, 13 multiplied by the salary then in effect for members of 14 the General Assembly, for each year of service for which 15 credit is being transferred, plus (iii) interest on items 16 (i) and (ii) above at 6% per annum compounded annually, 17 from the date of membership to the date of payment by the 18 participant, less (iv) the amount transferred to this 19 system on behalf of the participant on account of service 20 rendered while a participant under the above mentioned 21 Articles. 22 (d) Service, before October 1, 1975, as an officer 23 elected by the people of Illinois, for which creditable 24 service is required to be transferred from the State 25 Employees' Retirement System to this system by this 26 amendatory Act of 1975. 27 (e) Service rendered prior to January 1, 1964, as a 28 justice of the peace or police magistrate or as a civil 29 referee in the Municipal Court of Chicago, but credit for 30 such service may not be granted until the member has paid 31 to the system an amount equal to (1) the contribution 32 rate for participants at the date of membership in this 33 system multiplied by the salary then in effect for 34 members of the General Assembly for each year of service HB1064 Engrossed -4- LRB9206015EGfg 1 for which credit is being transferred, plus (2) the 2 State's share of the normal cost of benefits under this 3 system expressed as a percent of payroll, as determined 4 by the system's actuary as of the date of the 5 participant's membership in this system, multiplied by 6 the salary then in effect for members of the General 7 Assembly, for each year of service for which credit is 8 allowed, plus, (3) interest on (1) and (2) above at 6% 9 per annum compounded annually from the date of membership 10 to the date of payment by the member. However, a 11 participant may not receive more than 6 years of credit 12 for such service nor may any member receive credit under 13 this paragraph for service for which credit has been 14 granted in any other public pension fund or retirement 15 system in the State. 16 (f) Service before January 16, 1981, as an officer 17 elected by the people of Illinois, for which creditable 18 service is transferred from the State Employees' 19 Retirement System to this system. 20 (C) Service during any fraction of a month shall be 21 considered as a month of service. 22 Service includes the total period of time for which a 23 participant is elected as a member or officer, even though he 24 or she does not complete the term because of death, 25 resignation, judicial decision, or operation of law, provided 26 that the contributions required under this Article for such 27 entire period of office have been made by or on behalf of the 28 participant. In the case of a participant appointed or 29 elected to fill a vacancy, service includes the total period 30 from January 1 of the year in which his or her service 31 commences to the end of the term in which the vacancy occurs, 32 provided the participant contributes in the year of 33 appointment an amount equal to the contributions that would 34 have been required had the participant received salary for HB1064 Engrossed -5- LRB9206015EGfg 1 the entire year. The foregoing provisions relating to a 2 participant appointed or elected to fill a vacancy shall not 3 apply if the participant was a member of the other 4 legislative chamber at the time of appointment or election. 5 (D) Notwithstanding the other provisions of this 6 Section, if application to transfer or establish service 7 credit under paragraph (c) or (e) of subsection (B) of this 8 Section is made between January 1, 1992 and February 1, 1993, 9 the contribution required for such credit shall be an amount 10 equal to (1) the contribution rate in effect for participants 11 at the date of membership in this system multiplied by the 12 salary then in effect for members of the General Assembly for 13 each year of service for which credit is being granted, plus 14 (2) interest thereon at 6% per annum compounded annually, 15 from the date of membership to the date of payment by the 16 member, less (3) any amount transferred to this system on 17 behalf of the member on account of such service credit. 18 (E) Notwithstanding the other provisions of this 19 Section, if application to transfer service credit from the 20 State Employees' Retirement System under paragraph (c) of 21 subsection (B) of this Section is made between the effective 22 date of this amendatory Act of the 92nd General Assembly and 23 July 1, 2002, the contribution required shall be calculated 24 without the inclusion of any interest under item (iii) of 25 that paragraph (c). 26 (Source: P.A. 86-27; 86-1028; 87-794; 87-1265.) 27 (40 ILCS 5/14-105.1) (from Ch. 108 1/2, par. 14-105.1) 28 Sec. 14-105.1. Transfer to Article 2, 5, and 12 29 retirement systems. 30 (a) Any active (and until February 1, 1993, any former) 31 member of the General Assembly Retirement System may apply 32 for transfer of his or her credits and creditable service 33 accumulated under this System tothe General Assembly SystemHB1064 Engrossed -6- LRB9206015EGfg 1ora Fund established under Article 5 or 12 of this Code. 2 Such credits and creditable service shall be transferred 3 forthwith. Payment by this System tothe General Assembly4Retirement System orthe Fund established under Article 5 or 5 12 shall be made at the same time and shall consist of: 6 (1) the amounts accumulated to the credit of the 7 applicant, including regular interest, on the books of 8 the System on the date of transfer; and 9 (2) employer contributions in an amount equal to 10 the amount of member contributions as determined under 11 subparagraph (1). 12 Participation in this System as to any credits transferred 13 under this Section shall terminate on the date of transfer. 14 (a-5) Any active member of the General Assembly 15 Retirement System may apply for transfer of all or a part of 16 his or her credits and creditable service accumulated under 17 this System to the General Assembly Retirement System. 18 Payment by this System to the General Assembly Retirement 19 System shall be made at the same time and shall consist of: 20 (1) the amounts accumulated to the credit of the 21 applicant for the credits to be transferred, including 22 regular interest, on the books of the System on the date 23 of transfer; and 24 (2) employer contributions in an amount equal to 25 the amount of member contributions as determined under 26 subparagraph (1). 27 Participation in this System as to any credits transferred 28 under this subsection shall terminate on the date of 29 transfer. 30 (b) An active (and until February 1, 1993, a former) 31 member of the General Assembly who has service credits and 32 creditable service under the System may establish additional 33 service credits and creditable service for periods during 34 which he was an elected official and could have elected to HB1064 Engrossed -7- LRB9206015EGfg 1 participate but did not so elect. Service credits and 2 creditable service may be established by payment to the 3 System of an amount equal to the contributions he or she 4 would have made if he or she had elected to participate, plus 5 regular interest to the date of payment. 6 (c) An active (and until February 1, 1993, a former) 7 member of the General Assembly Retirement System may 8 reinstate service and service credits terminated upon receipt 9 of a separation benefit, by payment to the System of the 10 amount of the separation benefit plus regular interest 11 thereon to the date of payment. 12 (Source: P.A. 86-27; 86-273; 86-1028; 86-1488; 87-794.) 13 Section 99. Effective date. This Act takes effect upon 14 becoming law.