Public Act 93-0334

HB2434 Enrolled                      LRB093 06293 EFG 06411 b

    AN ACT in relation to public employee benefits.

    Be it enacted by the People of  the  State  of  Illinois,
represented in the General Assembly:

    Section  5.  The  Illinois  Pension  Code  is  amended by
changing Sections 13-401, 13-402, and 13-403 as follows:

    (40 ILCS 5/13-401) (from Ch. 108 1/2, par. 13-401)
    Sec. 13-401.  Term of service.
    (a)  In computing the  term  of  service,  the  following
periods  of  time  shall be counted as periods of service for
annuity purposes only:
         (1)  the time during  which  the  employee  performs
    services required by the Employer.
         (2)  approved  vacations  or  leaves of absence with
    whole or part pay.
         (3)  any period for which the  employee  receives  a
    disability benefit payable under this Article.
         (4)  leaves  of  absence  for  military  service  as
    provided  in  Section  13-403(a), and military service as
    provided in Section 13-403(b).
    (b)  In computing the term of service  for  the  ordinary
disability  benefit,  the  following periods of time shall be
counted as periods of service:
         (1)  the time during  which  the  employee  performs
    services required by the Employer.
         (2)  approved  vacations  or  leaves of absence with
    whole or part pay.
         (3)  any period for which the  employee  receives  a
    duty disability benefit under this Article.
    (c)  Any  employee  who  first  enters service before the
effective date of this amendatory Act of 1997 may, during any
period of approved leave of absence without pay, continue  to
make  contributions for the retirement and surviving spouse's
annuities for a total period not to exceed  one  year  during
the  employee's  entire  aggregate service with the Employer.
Upon making these contributions, the employee  shall  receive
credit  in  terms of length of service for the retirement and
surviving   spouse's   annuities.    Concurrent    Employer's
contributions shall be provided by the District.
    (d)  An  employee  may  establish  credit  for periods of
approved leave of absence without pay, not to exceed a  total
of  one year during the employee's aggregate service with the
employer.  To establish this credit, the employee must either
continue to remain on approved leave of  absence,  return  to
service  with the employer, or in the case of an employee who
first enters service on or after the effective date  of  this
amendatory  Act  of 1997, return to service with the employer
for at least one calendar year.  The employee must pay to the
Fund the corresponding employee contributions, plus  interest
at the annual rate from time to time determined by the Board,
compounded  annually  from the date of service to the date of
payment.  The corresponding employer contributions  shall  be
provided   by   the   District.   Upon  making  the  required
contributions, the employee shall receive credit in terms  of
length  of  service for the retirement and surviving spouse's
annuity in proportion to the number of pay periods or portion
thereof for which contributions were made relative to 26  pay
periods.
    (e)  Overtime  or  extra service shall not be included in
computing any service.  Not more than  one  year  of  service
credit  shall  be  allowed  for  service  rendered during any
calendar year.
(Source: P.A. 90-12, eff. 6-13-97.)

    (40 ILCS 5/13-402) (from Ch. 108 1/2, par. 13-402)
    Sec. 13-402.  Length of  service.   For  the  purpose  of
computing  the  length of service for the retirement annuity,
surviving  spouse's  annuity,  and   child's   annuity,   and
calculating  the  minimum  service requirement for payment of
military service under  subsection  (b)  of  Section  13-403,
service of 120 days in any one calendar year shall constitute
one  year  of  service  and  service  for any fractional part
thereof shall constitute an equal fractional part of one year
of service unless specifically provided otherwise.   For  all
other  purposes under this Article, including but not limited
to  the   optional   plans   of   additional   benefits   and
contributions  provided  under  Sections 13-304 and 13-314 of
this Article,  26  pay  periods  of  service  during  any  12
consecutive  months  shall  constitute a year of service, and
service rendered for 50% or more of a single pay period shall
constitute service for the full pay period.  Service of  less
than 50% of a single pay period shall not be counted.
(Source: P.A. 90-12, eff. 6-13-97.)

    (40 ILCS 5/13-403) (from Ch. 108 1/2, par. 13-403)
    Sec. 13-403.  Military service.
    (a)  Any employee who, after commencement of service with
the Employer, enlisted, was inducted or was otherwise ordered
to serve in the military forces of the United States pursuant
to any law, shall receive full service credit for the various
purposes  of  this Article as though the employee were in the
active service of the Employer during the period of  military
service provided that:
         (1)  beginning  July  1,  1963,  such service credit
    shall be granted only for military service for which  the
    employee  is  inducted  or  called  into military service
    pursuant to a call of a duly constituted authority  or  a
    law of the United States declaring a national emergency;
         (2)  the  employee  returns  to  the  employ  of the
    Employer within 90 days  after  the  termination  of  the
    national emergency; and
         (3)  the  total  service  credit  for  such military
    service shall not exceed 5 years except that any employee
    who on July 1, 1963 had accrued more than 5 years of such
    credit shall be entitled to the total amount thereof.
    (b)  For a ten-year period following the  effective  date
of  this  amendatory  Act  of  the  93rd  General Assembly, a
contributing employee or  commissioner  meeting  the  minimum
service  requirements  provided  under  this  subsection  may
establish  additional  service credit for a period of up to 2
years of active military service in the United  States  Armed
Forces  for which he or she does not qualify for credit under
subsection  (a),  provided  that  (1)  the  person  was   not
dishonorably  discharged  from  the military service, and (2)
the amount of service credit established by the person  under
this subsection (b), when added to the amount of any military
service  credit  granted  to the person under subsection (a),
shall not exceed 5 years.
    The  minimum  service  requirement  for  a   contributing
employee  is  10  years  of  service  credit  as  provided in
Sections 13-401 and 13-402 of this Article and  exclusive  of
Article   20.    The   minimum   service  requirement  for  a
contributing commissioner is 5 years  of  service  credit  as
provided  in  Sections  13-401 and 13-402 of this Article and
exclusive of Article 20.
    In order to establish military service credit under  this
subsection   (b),   the   applicant  must  submit  a  written
application to the Fund, including the applicant's  discharge
papers  from  military  service,  and  pay  to  the  Fund (i)
employee contributions at the rates provided in this Article,
based upon  the  person's  salary  on  the  last  date  as  a
participating  employee  prior  to the military service or on
the first date as a participating employee after the military
service, whichever is greater, plus (ii) the  current  amount
determined  by the board to be equal to the employer's normal
cost of the benefits accrued for such military service,  plus
(iii) regular interest of 3% compounded annually on items (i)
and   (ii)   from   the  date  of  entry  or  re-entry  as  a
participating employee following the military service to  the
date  of  payment.  Contributions must be paid in full before
the  credit  is  granted.   Credit  established  under   this
subsection may be used for pension purposes only.
    Notwithstanding  any  other  provision of this Section, a
person  may  not  establish  creditable  service  under  this
Section for any period for which the person  receives  credit
under any other public employee retirement system, unless the
credit   under   that   other   retirement  system  has  been
irrevocably relinquished.
(Source: P.A. 87-794.)

    Section 90.  The State Mandates Act is amended by  adding
Section 8.27 as follows:

    (30 ILCS 805/8.27 new)
    Sec.  8.27.  Exempt  mandate.  Notwithstanding Sections 6
and 8 of this Act, no reimbursement by the State is  required
for  the  implementation  of  any  mandate  created  by  this
amendatory Act of the 93rd General Assembly.

    Section  99.  Effective date.  This Act takes effect upon
becoming law.

Effective Date: 07/24/03