093_HB1362

 
                                     LRB093 07343 LRD 07505 b

 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 Section 2-110 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        (or  former  member  who  has  not yet begun to receive a
21        retirement annuity) makes contributions to the System for
22        such service (1) at the rates provided in  Section  2-126
23        based  upon the member's rate of compensation on the last
24        date as a participant prior to such military service,  or
25        on  the  first  date as a participant after such military
26        service, whichever is greater, plus  (2)  if  payment  is
27        made  on  or  after  July  1, 2004 May 1, 1993, an amount
28        determined by the Board to be  equal  to  the  employer's
29        normal  cost  of  the  benefits accrued for such military
30        service, plus (3) interest at the effective rate from the
31        date of first membership in the System  to  the  date  of
 
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 1        payment.
 2             A  former  member who has not yet begun to receive a
 3        retirement annuity may establish military service  credit
 4        as provided in this subdivision (a).
 5             The  amendments  to  this subdivision (B)(a) made by
 6        this amendatory Act of the 93rd General Assembly apply to
 7        active participants in the System and to  former  members
 8        who  have  not yet begun to receive a retirement annuity.
 9        The change in the  required  contribution  made  by  this
10        amendatory Act does not entitle any person to a refund of
11        contributions already paid.
12             The  amendment  to  this  subdivision (B)(a) made by
13        this amendatory Act of 1993 shall apply  to  persons  who
14        are  active  contributors  to  the  System  on  or  after
15        November   30,   1992.    A  person  who  was  an  active
16        contributor to the System on November 30, 1992 but is  no
17        longer  an  active  contributor  may  apply  to  purchase
18        military  credit  under this subdivision (B)(a) within 60
19        days after the effective date of this amendatory  Act  of
20        1993;  if  the  person  is  an  annuitant,  the resulting
21        increase in annuity shall begin to accrue  on  the  first
22        day  of  the  month  following  the  month  in  which the
23        required payment is received by the System.   The  change
24        in  the  required  contribution  for  purchased  military
25        credit  made  by  this  amendatory  Act of 1993 shall not
26        entitle any person to a refund of  contributions  already
27        paid.
28             (b)  Service  as  a judge of a court  of this State,
29        but credit for such service is subject to  the  following
30        conditions:  (1) such person shall have been a member for
31        at least 4  years  and  contributed  to  the  system  for
32        service  as  a  judge  subsequent to July 8, 1947, at the
33        rates herein provided, including interest at 2% per annum
34        to the date of payment based  on  the  salary  in  effect
 
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 1        during  such  service; (2) the member was not an eligible
 2        member of nor entitled to credit for such service in  any
 3        other  retirement system in the State maintained in whole
 4        or in part by public contributions; and (3)  the  last  4
 5        years  of  service  prior  to  retirement  on annuity was
 6        rendered while a member.
 7             (c)  Service  as  a  participating  employee   under
 8        Articles 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16,
 9        17  or  18 of the Illinois Pension Code.  Credit for such
10        service may be established by a member and, if  permitted
11        by   the  credit  transfer  Section  of  the  appropriate
12        Article, by a former member who is not yet an  annuitant,
13        and is subject to the following conditions:  (1) that the
14        credits  accrued  under the above mentioned Articles have
15        been transferred to this system; and (2) that the  member
16        has contributed to this system an amount equal to (i) the
17        contribution  rate in effect for participants at the date
18        of membership in this system  multiplied  by  the  salary
19        then  in  effect  for members of the General Assembly for
20        each  year  of  service  for  which   credit   is   being
21        transferred,  plus  (ii)  the State's share of the normal
22        cost of benefits under this system expressed as a percent
23        of payroll, as determined by the system's actuary  as  of
24        the  date of the participant's membership in this system,
25        multiplied by the salary then in effect  for  members  of
26        the  General Assembly, for each year of service for which
27        credit is being transferred, plus (iii) interest on items
28        (i) and (ii) above at 6% per annum  compounded  annually,
29        from the date of membership to the date of payment by the
30        participant,  less  (iv)  the  amount transferred to this
31        system on behalf of the participant on account of service
32        rendered while a participant under  the  above  mentioned
33        Articles.
34             (d)  Service,  before October 1, 1975, as an officer
 
                            -4-      LRB093 07343 LRD 07505 b
 1        elected by the people of Illinois, for  which  creditable
 2        service  is  required  to  be  transferred from the State
 3        Employees' Retirement  System  to  this  system  by  this
 4        amendatory Act of 1975.
 5             (e)  Service rendered prior to January 1, 1964, as a
 6        justice  of  the peace or police magistrate or as a civil
 7        referee in the Municipal Court of Chicago, but credit for
 8        such service may not be granted until the member has paid
 9        to the system an amount equal  to  (1)  the  contribution
10        rate  for  participants at the date of membership in this
11        system multiplied  by  the  salary  then  in  effect  for
12        members  of the General Assembly for each year of service
13        for which credit  is  being  transferred,  plus  (2)  the
14        State's  share  of the normal cost of benefits under this
15        system expressed as a percent of payroll,  as  determined
16        by   the   system's   actuary  as  of  the  date  of  the
17        participant's  membership in this system,  multiplied  by
18        the  salary  then  in  effect  for members of the General
19        Assembly, for each year of service for  which  credit  is
20        allowed,  plus,  (3)  interest on (1) and (2) above at 6%
21        per annum compounded annually from the date of membership
22        to the  date  of  payment  by  the  member.   However,  a
23        participant  may  not receive more than 6 years of credit
24        for such service nor may any member receive credit  under
25        this  paragraph  for  service  for  which credit has been
26        granted in any other public pension  fund  or  retirement
27        system in the State.
28             (f)  Service  before January 16, 1981, as an officer
29        elected by the people of Illinois, for  which  creditable
30        service   is   transferred   from  the  State  Employees'
31        Retirement System to this system.
32        (C)  Service during any fraction  of  a  month  shall  be
33    considered as a month of service.
34          Service  includes  the total period of time for which a
 
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 1    participant is elected as a member or officer, even though he
 2    or  she  does  not  complete  the  term  because  of   death,
 3    resignation, judicial decision, or operation of law, provided
 4    that  the  contributions required under this Article for such
 5    entire period of office have been made by or on behalf of the
 6    participant. In  the  case  of  a  participant  appointed  or
 7    elected  to fill a vacancy, service includes the total period
 8    from January 1 of the  year  in  which  his  or  her  service
 9    commences to the end of the term in which the vacancy occurs,
10    provided   the   participant  contributes  in  the  year   of
11    appointment an amount equal to the contributions  that  would
12    have  been  required  had the participant received salary for
13    the entire year.  The  foregoing  provisions  relating  to  a
14    participant  appointed or elected to fill a vacancy shall not
15    apply  if  the  participant  was  a  member  of   the   other
16    legislative chamber at the time of appointment or election.
17        (D)  Notwithstanding   the   other   provisions  of  this
18    Section, if application  to  transfer  or  establish  service
19    credit  under  paragraph (c) or (e) of subsection (B) of this
20    Section is made between January 1, 1992 and February 1, 1993,
21    the contribution required for such credit shall be an  amount
22    equal to (1) the contribution rate in effect for participants
23    at  the  date  of membership in this system multiplied by the
24    salary then in effect for members of the General Assembly for
25    each year of service for which credit is being granted,  plus
26    (2)  interest  thereon  at  6% per annum compounded annually,
27    from the date of membership to the date  of  payment  by  the
28    member,  less  (3)  any  amount transferred to this system on
29    behalf of the member on account of such service credit.
30    (Source: P.A. 86-27; 86-1028; 87-794; 87-1265.)

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