HB5696 EngrossedLRB098 17307 RPM 52401 b

1    AN ACT concerning public employee benefits.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Pension Code is amended by changing
5Sections 7-139, 7-175, and 7-175.1 and by adding Section
67-111.5 as follows:
 
7    (40 ILCS 5/7-111.5 new)
8    Sec. 7-111.5. "Omitted service": The period of service
9with a participating municipality or participating
10instrumentality during which an employee was required to
11participate in the Fund, but was not actually enrolled.
 
12    (40 ILCS 5/7-139)  (from Ch. 108 1/2, par. 7-139)
13    (Text of Section before amendment by P.A. 98-599)
14    Sec. 7-139. Credits and creditable service to employees.
15    (a) Each participating employee shall be granted credits
16and creditable service, for purposes of determining the amount
17of any annuity or benefit to which he or a beneficiary is
18entitled, as follows:
19        1. For prior service: Each participating employee who
20    is an employee of a participating municipality or
21    participating instrumentality on the effective date shall
22    be granted creditable service, but no credits under

 

 

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1    paragraph 2 of this subsection (a), for periods of prior
2    service for which credit has not been received under any
3    other pension fund or retirement system established under
4    this Code, as follows:
5        If the effective date of participation for the
6    participating municipality or participating
7    instrumentality is on or before January 1, 1998, creditable
8    service shall be granted for the entire period of prior
9    service with that employer without any employee
10    contribution.
11        If the effective date of participation for the
12    participating municipality or participating
13    instrumentality is after January 1, 1998, creditable
14    service shall be granted for the last 20% of the period of
15    prior service with that employer, but no more than 5 years,
16    without any employee contribution. A participating
17    employee may establish creditable service for the
18    remainder of the period of prior service with that employer
19    by making an application in writing, accompanied by payment
20    of an employee contribution in an amount determined by the
21    Fund, based on the employee contribution rates in effect at
22    the time of application for the creditable service and the
23    employee's salary rate on the effective date of
24    participation for that employer, plus interest at the
25    effective rate from the date of the prior service to the
26    date of payment. Application for this creditable service

 

 

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1    may be made at any time while the employee is still in
2    service.
3        A municipality that (i) has at least 35 employees; (ii)
4    is located in a county with at least 2,000,000 inhabitants;
5    and (iii) maintains an independent defined benefit pension
6    plan for the benefit of its eligible employees may restrict
7    creditable service in whole or in part for periods of prior
8    service with the employer if the governing body of the
9    municipality adopts an irrevocable resolution to restrict
10    that creditable service and files the resolution with the
11    board before the municipality's effective date of
12    participation.
13        Any person who has withdrawn from the service of a
14    participating municipality or participating
15    instrumentality prior to the effective date, who reenters
16    the service of the same municipality or participating
17    instrumentality after the effective date and becomes a
18    participating employee is entitled to creditable service
19    for prior service as otherwise provided in this subdivision
20    (a)(1) only if he or she renders 2 years of service as a
21    participating employee after the effective date.
22    Application for such service must be made while in a
23    participating status. The salary rate to be used in the
24    calculation of the required employee contribution, if any,
25    shall be the employee's salary rate at the time of first
26    reentering service with the employer after the employer's

 

 

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1    effective date of participation.
2        2. For current service, each participating employee
3    shall be credited with:
4            a. Additional credits of amounts equal to each
5        payment of additional contributions received from him
6        under Section 7-173, as of the date the corresponding
7        payment of earnings is payable to him.
8            b. Normal credits of amounts equal to each payment
9        of normal contributions received from him, as of the
10        date the corresponding payment of earnings is payable
11        to him, and normal contributions made for the purpose
12        of establishing out-of-state service credits as
13        permitted under the conditions set forth in paragraph 6
14        of this subsection (a).
15            c. Municipality credits in an amount equal to 1.4
16        times the normal credits, except those established by
17        out-of-state service credits, as of the date of
18        computation of any benefit if these credits would
19        increase the benefit.
20            d. Survivor credits equal to each payment of
21        survivor contributions received from the participating
22        employee as of the date the corresponding payment of
23        earnings is payable, and survivor contributions made
24        for the purpose of establishing out-of-state service
25        credits.
26        3. For periods of temporary and total and permanent

 

 

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1    disability benefits, each employee receiving disability
2    benefits shall be granted creditable service for the period
3    during which disability benefits are payable. Normal and
4    survivor credits, based upon the rate of earnings applied
5    for disability benefits, shall also be granted if such
6    credits would result in a higher benefit to any such
7    employee or his beneficiary.
8        4. For authorized leave of absence without pay: A
9    participating employee shall be granted credits and
10    creditable service for periods of authorized leave of
11    absence without pay under the following conditions:
12            a. An application for credits and creditable
13        service is submitted to the board while the employee is
14        in a status of active employment.
15            b. Not more than 12 complete months of creditable
16        service for authorized leave of absence without pay
17        shall be counted for purposes of determining any
18        benefits payable under this Article.
19            c. Credits and creditable service shall be granted
20        for leave of absence only if such leave is approved by
21        the governing body of the municipality, including
22        approval of the estimated cost thereof to the
23        municipality as determined by the fund, and employee
24        contributions, plus interest at the effective rate
25        applicable for each year from the end of the period of
26        leave to date of payment, have been paid to the fund in

 

 

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1        accordance with Section 7-173. The contributions shall
2        be computed upon the assumption earnings continued
3        during the period of leave at the rate in effect when
4        the leave began.
5            d. Benefits under the provisions of Sections
6        7-141, 7-146, 7-150 and 7-163 shall become payable to
7        employees on authorized leave of absence, or their
8        designated beneficiary, only if such leave of absence
9        is creditable hereunder, and if the employee has at
10        least one year of creditable service other than the
11        service granted for leave of absence. Any employee
12        contributions due may be deducted from any benefits
13        payable.
14            e. No credits or creditable service shall be
15        allowed for leave of absence without pay during any
16        period of prior service.
17        5. For military service: The governing body of a
18    municipality or participating instrumentality may elect to
19    allow creditable service to participating employees who
20    leave their employment to serve in the armed forces of the
21    United States for all periods of such service, provided
22    that the person returns to active employment within 90 days
23    after completion of full time active duty, but no
24    creditable service shall be allowed such person for any
25    period that can be used in the computation of a pension or
26    any other pay or benefit, other than pay for active duty,

 

 

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1    for service in any branch of the armed forces of the United
2    States. If necessary to the computation of any benefit, the
3    board shall establish municipality credits for
4    participating employees under this paragraph on the
5    assumption that the employee received earnings at the rate
6    received at the time he left the employment to enter the
7    armed forces. A participating employee in the armed forces
8    shall not be considered an employee during such period of
9    service and no additional death and no disability benefits
10    are payable for death or disability during such period.
11        Any participating employee who left his employment
12    with a municipality or participating instrumentality to
13    serve in the armed forces of the United States and who
14    again became a participating employee within 90 days after
15    completion of full time active duty by entering the service
16    of a different municipality or participating
17    instrumentality, which has elected to allow creditable
18    service for periods of military service under the preceding
19    paragraph, shall also be allowed creditable service for his
20    period of military service on the same terms that would
21    apply if he had been employed, before entering military
22    service, by the municipality or instrumentality which
23    employed him after he left the military service and the
24    employer costs arising in relation to such grant of
25    creditable service shall be charged to and paid by that
26    municipality or instrumentality.

 

 

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1        Notwithstanding the foregoing, any participating
2    employee shall be entitled to creditable service as
3    required by any federal law relating to re-employment
4    rights of persons who served in the United States Armed
5    Services. Such creditable service shall be granted upon
6    payment by the member of an amount equal to the employee
7    contributions which would have been required had the
8    employee continued in service at the same rate of earnings
9    during the military leave period, plus interest at the
10    effective rate.
11        5.1. In addition to any creditable service established
12    under paragraph 5 of this subsection (a), creditable
13    service may be granted for up to 48 months of service in
14    the armed forces of the United States.
15        In order to receive creditable service for military
16    service under this paragraph 5.1, a participating employee
17    must (1) apply to the Fund in writing and provide evidence
18    of the military service that is satisfactory to the Board;
19    (2) obtain the written approval of the current employer;
20    and (3) make contributions to the Fund equal to (i) the
21    employee contributions that would have been required had
22    the service been rendered as a member, plus (ii) an amount
23    determined by the board to be equal to the employer's
24    normal cost of the benefits accrued for that military
25    service, plus (iii) interest on items (i) and (ii) from the
26    date of first membership in the Fund to the date of

 

 

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1    payment. The required interest shall be calculated at the
2    regular interest rate.
3        The changes made to this paragraph 5.1 by Public Acts
4    95-483 and 95-486 apply only to participating employees in
5    service on or after August 28, 2007 (the effective date of
6    those Public Acts).
7        6. For out-of-state service: Creditable service shall
8    be granted for service rendered to an out-of-state local
9    governmental body under the following conditions: The
10    employee had participated and has irrevocably forfeited
11    all rights to benefits in the out-of-state public employees
12    pension system; the governing body of his participating
13    municipality or instrumentality authorizes the employee to
14    establish such service; the employee has 2 years current
15    service with this municipality or participating
16    instrumentality; the employee makes a payment of
17    contributions, which shall be computed at 8% (normal) plus
18    2% (survivor) times length of service purchased times the
19    average rate of earnings for the first 2 years of service
20    with the municipality or participating instrumentality
21    whose governing body authorizes the service established
22    plus interest at the effective rate on the date such
23    credits are established, payable from the date the employee
24    completes the required 2 years of current service to date
25    of payment. In no case shall more than 120 months of
26    creditable service be granted under this provision.

 

 

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1        7. For retroactive service: Any employee who could have
2    but did not elect to become a participating employee, or
3    who should have been a participant in the Municipal Public
4    Utilities Annuity and Benefit Fund before that fund was
5    superseded, may receive creditable service for the period
6    of service not to exceed 50 months; however, a current or
7    former elected or appointed official of a participating
8    municipality may establish credit under this paragraph 7
9    for more than 50 months of service as an official of that
10    municipality, if the excess over 50 months is approved by
11    resolution of the governing body of the affected
12    municipality filed with the Fund before January 1, 2002.
13        Any employee who is a participating employee on or
14    after September 24, 1981 and who was excluded from
15    participation by the age restrictions removed by Public Act
16    82-596 may receive creditable service for the period, on or
17    after January 1, 1979, excluded by the age restriction and,
18    in addition, if the governing body of the participating
19    municipality or participating instrumentality elects to
20    allow creditable service for all employees excluded by the
21    age restriction prior to January 1, 1979, for service
22    during the period prior to that date excluded by the age
23    restriction. Any employee who was excluded from
24    participation by the age restriction removed by Public Act
25    82-596 and who is not a participating employee on or after
26    September 24, 1981 may receive creditable service for

 

 

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1    service after January 1, 1979. Creditable service under
2    this paragraph shall be granted upon payment of the
3    employee contributions which would have been required had
4    he participated, with interest at the effective rate for
5    each year from the end of the period of service established
6    to date of payment.
7        8. For accumulated unused sick leave: A participating
8    employee who is applying for a retirement annuity shall be
9    entitled to creditable service for that portion of the
10    employee's accumulated unused sick leave for which payment
11    is not received, as follows:
12            a. Sick leave days shall be limited to those
13        accumulated under a sick leave plan established by a
14        participating municipality or participating
15        instrumentality which is available to all employees or
16        a class of employees.
17            b. Except as provided in item b-1, only sick leave
18        days accumulated with a participating municipality or
19        participating instrumentality with which the employee
20        was in service within 60 days of the effective date of
21        his retirement annuity shall be credited; If the
22        employee was in service with more than one employer
23        during this period only the sick leave days with the
24        employer with which the employee has the greatest
25        number of unpaid sick leave days shall be considered.
26            b-1. If the employee was in the service of more

 

 

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1        than one employer as defined in item (2) of paragraph
2        (a) of subsection (A) of Section 7-132, then the sick
3        leave days from all such employers shall be credited,
4        as long as the creditable service attributed to those
5        sick leave days does not exceed the limitation in item
6        f of this paragraph 8. In calculating the creditable
7        service under this item b-1, the sick leave days from
8        the last employer shall be considered first, then the
9        remaining sick leave days shall be considered until
10        there are no more days or the maximum creditable sick
11        leave threshold under item f of this paragraph 8 has
12        been reached.
13            c. The creditable service granted shall be
14        considered solely for the purpose of computing the
15        amount of the retirement annuity and shall not be used
16        to establish any minimum service period required by any
17        provision of the Illinois Pension Code, the effective
18        date of the retirement annuity, or the final rate of
19        earnings.
20            d. The creditable service shall be at the rate of
21        1/20 of a month for each full sick day, provided that
22        no more than 12 months may be credited under this
23        subdivision 8.
24            e. Employee contributions shall not be required
25        for creditable service under this subdivision 8.
26            f. Each participating municipality and

 

 

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1        participating instrumentality with which an employee
2        has service within 60 days of the effective date of his
3        retirement annuity shall certify to the board the
4        number of accumulated unpaid sick leave days credited
5        to the employee at the time of termination of service.
6        9. For service transferred from another system:
7    Credits and creditable service shall be granted for service
8    under Article 4, 5, 8, 14, or 16 of this Act, to any active
9    member of this Fund, and to any inactive member who has
10    been a county sheriff, upon transfer of such credits
11    pursuant to Section 4-108.3, 5-235, 8-226.7, 14-105.6, or
12    16-131.4, and payment by the member of the amount by which
13    (1) the employer and employee contributions that would have
14    been required if he had participated in this Fund as a
15    sheriff's law enforcement employee during the period for
16    which credit is being transferred, plus interest thereon at
17    the effective rate for each year, compounded annually, from
18    the date of termination of the service for which credit is
19    being transferred to the date of payment, exceeds (2) the
20    amount actually transferred to the Fund. Such transferred
21    service shall be deemed to be service as a sheriff's law
22    enforcement employee for the purposes of Section 7-142.1.
23        10. (Blank). For service transferred from an Article 3
24    system under Section 3-110.8: Credits and creditable
25    service shall be granted for service under Article 3 of
26    this Act as provided in Section 3-110.8, to any active

 

 

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1    member of this Fund upon transfer of such credits pursuant
2    to Section 3-110.8. If the amount by which (1) the employer
3    and employee contributions that would have been required if
4    he had participated in this Fund during the period for
5    which credit is being transferred, plus interest thereon at
6    the effective rate for each year, compounded annually, from
7    the date of termination of the service for which credit is
8    being transferred to the date of payment, exceeds (2) the
9    amount actually transferred to the Fund, then the amount of
10    creditable service established under this paragraph 10
11    shall be reduced by a corresponding amount in accordance
12    with the rules and procedures established under this
13    paragraph 10.
14        The board shall establish by rule the manner of making
15    the calculation required under this paragraph 10, taking
16    into account the appropriate actuarial assumptions; the
17    member's service, age, and salary history; the level of
18    funding of the employer; and any other factors that the
19    board determines to be relevant.
20        Until January 1, 2010, members who transferred service
21    from an Article 3 system under the provisions of Public Act
22    94-356 may establish additional credit in this Fund, but
23    only up to the amount of the service credit reduction in
24    that transfer, as calculated under the actuarial
25    assumptions. This credit may be established upon payment by
26    the member of an amount to be determined by the board,

 

 

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1    equal to (1) the amount that would have been contributed as
2    employee and employer contributions had all the service
3    been as an employee under this Article, plus interest
4    thereon compounded annually from the date of service to the
5    date of transfer, less (2) the total amount transferred
6    from the Article 3 system, plus (3) interest on the
7    difference at the effective rate for each year, compounded
8    annually, from the date of the transfer to the date of
9    payment. The additional service credit is allowed under
10    this amendatory Act of the 95th General Assembly
11    notwithstanding the provisions of Article 3 terminating
12    all transferred credits on the date of transfer.
13        11. For service transferred from an Article 3 system
14    under Section 3-110.3: Credits and creditable service
15    shall be granted for service under Article 3 of this Act as
16    provided in Section 3-110.3, to any active member of this
17    Fund, upon transfer of such credits pursuant to Section
18    3-110.3. If the board determines that the amount
19    transferred is less than the true cost to the Fund of
20    allowing that creditable service to be established, then in
21    order to establish that creditable service, the member must
22    pay to the Fund an additional contribution equal to the
23    difference, as determined by the board in accordance with
24    the rules and procedures adopted under this paragraph. If
25    the member does not make the full additional payment as
26    required by this paragraph prior to termination of his

 

 

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1    participation with that employer, then his or her
2    creditable service shall be reduced by an amount equal to
3    the difference between the amount transferred under
4    Section 3-110.3, including any payments made by the member
5    under this paragraph prior to termination, and the true
6    cost to the Fund of allowing that creditable service to be
7    established, as determined by the board in accordance with
8    the rules and procedures adopted under this paragraph.
9        The board shall establish by rule the manner of making
10    the calculation required under this paragraph 11, taking
11    into account the appropriate actuarial assumptions; the
12    member's service, age, and salary history, and any other
13    factors that the board determines to be relevant.
14        12. For omitted service: Any employee who was employed
15    by a participating employer in a position that required
16    participation, but who was not enrolled in the Fund, may
17    establish such credits under the following conditions:
18            a. Application for such credits is received by the
19        Board while the employee is an active participant of
20        the Fund or a reciprocal retirement system.
21            b. Eligibility for participation and earnings are
22        verified by the Authorized Agent of the participating
23        employer for which the service was rendered.
24        Creditable service under this paragraph shall be
25    granted upon payment of the employee contributions that
26    would have been required had he participated, which shall

 

 

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1    be calculated by the Fund using the member contribution
2    rate in effect during the period that the service was
3    rendered.
4    (b) Creditable service - amount:
5        1. One month of creditable service shall be allowed for
6    each month for which a participating employee made
7    contributions as required under Section 7-173, or for which
8    creditable service is otherwise granted hereunder. Not
9    more than 1 month of service shall be credited and counted
10    for 1 calendar month, and not more than 1 year of service
11    shall be credited and counted for any calendar year. A
12    calendar month means a nominal month beginning on the first
13    day thereof, and a calendar year means a year beginning
14    January 1 and ending December 31.
15        2. A seasonal employee shall be given 12 months of
16    creditable service if he renders the number of months of
17    service normally required by the position in a 12-month
18    period and he remains in service for the entire 12-month
19    period. Otherwise a fractional year of service in the
20    number of months of service rendered shall be credited.
21        3. An intermittent employee shall be given creditable
22    service for only those months in which a contribution is
23    made under Section 7-173.
24    (c) No application for correction of credits or creditable
25service shall be considered unless the board receives an
26application for correction while (1) the applicant is a

 

 

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1participating employee and in active employment with a
2participating municipality or instrumentality, or (2) while
3the applicant is actively participating in a pension fund or
4retirement system which is a participating system under the
5Retirement Systems Reciprocal Act. A participating employee or
6other applicant shall not be entitled to credits or creditable
7service unless the required employee contributions are made in
8a lump sum or in installments made in accordance with board
9rule.
10    (d) Upon the granting of a retirement, surviving spouse or
11child annuity, a death benefit or a separation benefit, on
12account of any employee, all individual accumulated credits
13shall thereupon terminate. Upon the withdrawal of additional
14contributions, the credits applicable thereto shall thereupon
15terminate. Terminated credits shall not be applied to increase
16the benefits any remaining employee would otherwise receive
17under this Article.
18(Source: P.A. 97-415, eff. 8-16-11; 98-439, eff. 8-16-13.)
 
19    (Text of Section after amendment by P.A. 98-599)
20    Sec. 7-139. Credits and creditable service to employees.
21    (a) Each participating employee shall be granted credits
22and creditable service, for purposes of determining the amount
23of any annuity or benefit to which he or a beneficiary is
24entitled, as follows:
25        1. For prior service: Each participating employee who

 

 

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1    is an employee of a participating municipality or
2    participating instrumentality on the effective date shall
3    be granted creditable service, but no credits under
4    paragraph 2 of this subsection (a), for periods of prior
5    service for which credit has not been received under any
6    other pension fund or retirement system established under
7    this Code, as follows:
8        If the effective date of participation for the
9    participating municipality or participating
10    instrumentality is on or before January 1, 1998, creditable
11    service shall be granted for the entire period of prior
12    service with that employer without any employee
13    contribution.
14        If the effective date of participation for the
15    participating municipality or participating
16    instrumentality is after January 1, 1998, creditable
17    service shall be granted for the last 20% of the period of
18    prior service with that employer, but no more than 5 years,
19    without any employee contribution. A participating
20    employee may establish creditable service for the
21    remainder of the period of prior service with that employer
22    by making an application in writing, accompanied by payment
23    of an employee contribution in an amount determined by the
24    Fund, based on the employee contribution rates in effect at
25    the time of application for the creditable service and the
26    employee's salary rate on the effective date of

 

 

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1    participation for that employer, plus interest at the
2    effective rate from the date of the prior service to the
3    date of payment. Application for this creditable service
4    may be made at any time while the employee is still in
5    service.
6        A municipality that (i) has at least 35 employees; (ii)
7    is located in a county with at least 2,000,000 inhabitants;
8    and (iii) maintains an independent defined benefit pension
9    plan for the benefit of its eligible employees may restrict
10    creditable service in whole or in part for periods of prior
11    service with the employer if the governing body of the
12    municipality adopts an irrevocable resolution to restrict
13    that creditable service and files the resolution with the
14    board before the municipality's effective date of
15    participation.
16        Any person who has withdrawn from the service of a
17    participating municipality or participating
18    instrumentality prior to the effective date, who reenters
19    the service of the same municipality or participating
20    instrumentality after the effective date and becomes a
21    participating employee is entitled to creditable service
22    for prior service as otherwise provided in this subdivision
23    (a)(1) only if he or she renders 2 years of service as a
24    participating employee after the effective date.
25    Application for such service must be made while in a
26    participating status. The salary rate to be used in the

 

 

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1    calculation of the required employee contribution, if any,
2    shall be the employee's salary rate at the time of first
3    reentering service with the employer after the employer's
4    effective date of participation.
5        2. For current service, each participating employee
6    shall be credited with:
7            a. Additional credits of amounts equal to each
8        payment of additional contributions received from him
9        under Section 7-173, as of the date the corresponding
10        payment of earnings is payable to him.
11            b. Normal credits of amounts equal to each payment
12        of normal contributions received from him, as of the
13        date the corresponding payment of earnings is payable
14        to him, and normal contributions made for the purpose
15        of establishing out-of-state service credits as
16        permitted under the conditions set forth in paragraph 6
17        of this subsection (a).
18            c. Municipality credits in an amount equal to 1.4
19        times the normal credits, except those established by
20        out-of-state service credits, as of the date of
21        computation of any benefit if these credits would
22        increase the benefit.
23            d. Survivor credits equal to each payment of
24        survivor contributions received from the participating
25        employee as of the date the corresponding payment of
26        earnings is payable, and survivor contributions made

 

 

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1        for the purpose of establishing out-of-state service
2        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
8    for disability benefits, shall also be granted if such
9    credits would result in a higher benefit to any such
10    employee or his 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
14    absence without pay under the following conditions:
15            a. An application for credits and creditable
16        service is submitted to the board while the employee is
17        in a status of active employment.
18            b. Not more than 12 complete months of creditable
19        service for authorized leave of absence without pay
20        shall be counted for purposes of determining any
21        benefits payable under this Article.
22            c. Credits and creditable service shall be granted
23        for leave of absence only if such leave is approved by
24        the governing body of the municipality, including
25        approval of the estimated cost thereof to the
26        municipality as determined by the fund, and employee

 

 

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1        contributions, plus interest at the effective rate
2        applicable for each year from the end of the period of
3        leave to date of payment, have been paid to the fund in
4        accordance with Section 7-173. The contributions shall
5        be computed upon the assumption earnings continued
6        during the period of leave at the rate in effect when
7        the leave began.
8            d. Benefits under the provisions of Sections
9        7-141, 7-146, 7-150 and 7-163 shall become payable to
10        employees on authorized leave of absence, or their
11        designated beneficiary, only if such leave of absence
12        is creditable hereunder, and if the employee has at
13        least one year of creditable service other than the
14        service granted for leave of absence. Any employee
15        contributions due may be deducted from any benefits
16        payable.
17            e. No credits or creditable service shall be
18        allowed for leave of absence without pay during any
19        period of prior service.
20        5. For military service: The governing body of a
21    municipality or participating instrumentality may elect to
22    allow creditable service to participating employees who
23    leave their employment to serve in the armed forces of the
24    United States for all periods of such service, provided
25    that the person returns to active employment within 90 days
26    after completion of full time active duty, but no

 

 

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1    creditable service shall be allowed such person for any
2    period that can be used in the computation of a pension or
3    any other pay or benefit, other than pay for active duty,
4    for service in any branch of the armed forces of the United
5    States. If necessary to the computation of any benefit, the
6    board shall establish municipality credits for
7    participating employees under this paragraph on the
8    assumption that the employee received earnings at the rate
9    received at the time he left the employment to enter the
10    armed forces. A participating employee in the armed forces
11    shall not be considered an employee during such period of
12    service and no additional death and no disability benefits
13    are payable for death or disability during such period.
14        Any participating employee who left his employment
15    with a municipality or participating instrumentality to
16    serve in the armed forces of the United States and who
17    again became a participating employee within 90 days after
18    completion of full time active duty by entering the service
19    of a different municipality or participating
20    instrumentality, which has elected to allow creditable
21    service for periods of military service under the preceding
22    paragraph, shall also be allowed creditable service for his
23    period of military service on the same terms that would
24    apply if he had been employed, before entering military
25    service, by the municipality or instrumentality which
26    employed him after he left the military service and the

 

 

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1    employer costs arising in relation to such grant of
2    creditable service shall be charged to and paid by that
3    municipality or instrumentality.
4        Notwithstanding the foregoing, any participating
5    employee shall be entitled to creditable service as
6    required by any federal law relating to re-employment
7    rights of persons who served in the United States Armed
8    Services. Such creditable service shall be granted upon
9    payment by the member of an amount equal to the employee
10    contributions which would have been required had the
11    employee continued in service at the same rate of earnings
12    during the military leave period, plus interest at the
13    effective rate.
14        5.1. In addition to any creditable service established
15    under paragraph 5 of this subsection (a), creditable
16    service may be granted for up to 48 months of service in
17    the armed forces of the United States.
18        In order to receive creditable service for military
19    service under this paragraph 5.1, a participating employee
20    must (1) apply to the Fund in writing and provide evidence
21    of the military service that is satisfactory to the Board;
22    (2) obtain the written approval of the current employer;
23    and (3) make contributions to the Fund equal to (i) the
24    employee contributions that would have been required had
25    the service been rendered as a member, plus (ii) an amount
26    determined by the board to be equal to the employer's

 

 

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1    normal cost of the benefits accrued for that military
2    service, plus (iii) interest on items (i) and (ii) from the
3    date of first membership in the Fund to the date of
4    payment. The required interest shall be calculated at the
5    regular interest rate.
6        The changes made to this paragraph 5.1 by Public Acts
7    95-483 and 95-486 apply only to participating employees in
8    service on or after August 28, 2007 (the effective date of
9    those Public Acts).
10        6. For out-of-state service: Creditable service shall
11    be granted for service rendered to an out-of-state local
12    governmental body under the following conditions: The
13    employee had participated and has irrevocably forfeited
14    all rights to benefits in the out-of-state public employees
15    pension system; the governing body of his participating
16    municipality or instrumentality authorizes the employee to
17    establish such service; the employee has 2 years current
18    service with this municipality or participating
19    instrumentality; the employee makes a payment of
20    contributions, which shall be computed at 8% (normal) plus
21    2% (survivor) times length of service purchased times the
22    average rate of earnings for the first 2 years of service
23    with the municipality or participating instrumentality
24    whose governing body authorizes the service established
25    plus interest at the effective rate on the date such
26    credits are established, payable from the date the employee

 

 

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1    completes the required 2 years of current service to date
2    of payment. In no case shall more than 120 months of
3    creditable service be granted under this provision.
4        7. For retroactive service: Any employee who could have
5    but did not elect to become a participating employee, or
6    who should have been a participant in the Municipal Public
7    Utilities Annuity and Benefit Fund before that fund was
8    superseded, may receive creditable service for the period
9    of service not to exceed 50 months; however, a current or
10    former elected or appointed official of a participating
11    municipality may establish credit under this paragraph 7
12    for more than 50 months of service as an official of that
13    municipality, if the excess over 50 months is approved by
14    resolution of the governing body of the affected
15    municipality filed with the Fund before January 1, 2002.
16        Any employee who is a participating employee on or
17    after September 24, 1981 and who was excluded from
18    participation by the age restrictions removed by Public Act
19    82-596 may receive creditable service for the period, on or
20    after January 1, 1979, excluded by the age restriction and,
21    in addition, if the governing body of the participating
22    municipality or participating instrumentality elects to
23    allow creditable service for all employees excluded by the
24    age restriction prior to January 1, 1979, for service
25    during the period prior to that date excluded by the age
26    restriction. Any employee who was excluded from

 

 

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1    participation by the age restriction removed by Public Act
2    82-596 and who is not a participating employee on or after
3    September 24, 1981 may receive creditable service for
4    service after January 1, 1979. Creditable service under
5    this paragraph shall be granted upon payment of the
6    employee contributions which would have been required had
7    he participated, with interest at the effective rate for
8    each year from the end of the period of service established
9    to date of payment.
10        8. For accumulated unused sick leave: A participating
11    employee who first becomes a participating employee before
12    the effective date of this amendatory Act of the 98th
13    General Assembly and who is applying for a retirement
14    annuity shall be entitled to creditable service for that
15    portion of the employee's accumulated unused sick leave for
16    which payment is not received, as follows:
17            a. Sick leave days shall be limited to those
18        accumulated under a sick leave plan established by a
19        participating municipality or participating
20        instrumentality which is available to all employees or
21        a class of employees.
22            b. Except as provided in item b-1, only sick leave
23        days accumulated with a participating municipality or
24        participating instrumentality with which the employee
25        was in service within 60 days of the effective date of
26        his retirement annuity shall be credited; If the

 

 

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1        employee was in service with more than one employer
2        during this period only the sick leave days with the
3        employer with which the employee has the greatest
4        number of unpaid sick leave days shall be considered.
5            b-1. If the employee was in the service of more
6        than one employer as defined in item (2) of paragraph
7        (a) of subsection (A) of Section 7-132, then the sick
8        leave days from all such employers shall be credited,
9        as long as the creditable service attributed to those
10        sick leave days does not exceed the limitation in item
11        f of this paragraph 8. In calculating the creditable
12        service under this item b-1, the sick leave days from
13        the last employer shall be considered first, then the
14        remaining sick leave days shall be considered until
15        there are no more days or the maximum creditable sick
16        leave threshold under item f of this paragraph 8 has
17        been reached.
18            c. The creditable service granted shall be
19        considered solely for the purpose of computing the
20        amount of the retirement annuity and shall not be used
21        to establish any minimum service period required by any
22        provision of the Illinois Pension Code, the effective
23        date of the retirement annuity, or the final rate of
24        earnings.
25            d. The creditable service shall be at the rate of
26        1/20 of a month for each full sick day, provided that

 

 

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1        no more than 12 months may be credited under this
2        subdivision 8.
3            e. Employee contributions shall not be required
4        for creditable service under this subdivision 8.
5            f. Each participating municipality and
6        participating instrumentality with which an employee
7        has service within 60 days of the effective date of his
8        retirement annuity shall certify to the board the
9        number of accumulated unpaid sick leave days credited
10        to the employee at the time of termination of service.
11        9. For service transferred from another system:
12    Credits and creditable service shall be granted for service
13    under Article 4, 5, 8, 14, or 16 of this Act, to any active
14    member of this Fund, and to any inactive member who has
15    been a county sheriff, upon transfer of such credits
16    pursuant to Section 4-108.3, 5-235, 8-226.7, 14-105.6, or
17    16-131.4, and payment by the member of the amount by which
18    (1) the employer and employee contributions that would have
19    been required if he had participated in this Fund as a
20    sheriff's law enforcement employee during the period for
21    which credit is being transferred, plus interest thereon at
22    the effective rate for each year, compounded annually, from
23    the date of termination of the service for which credit is
24    being transferred to the date of payment, exceeds (2) the
25    amount actually transferred to the Fund. Such transferred
26    service shall be deemed to be service as a sheriff's law

 

 

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1    enforcement employee for the purposes of Section 7-142.1.
2        10. (Blank). For service transferred from an Article 3
3    system under Section 3-110.8: Credits and creditable
4    service shall be granted for service under Article 3 of
5    this Act as provided in Section 3-110.8, to any active
6    member of this Fund upon transfer of such credits pursuant
7    to Section 3-110.8. If the amount by which (1) the employer
8    and employee contributions that would have been required if
9    he had participated in this Fund during the period for
10    which credit is being transferred, plus interest thereon at
11    the effective rate for each year, compounded annually, from
12    the date of termination of the service for which credit is
13    being transferred to the date of payment, exceeds (2) the
14    amount actually transferred to the Fund, then the amount of
15    creditable service established under this paragraph 10
16    shall be reduced by a corresponding amount in accordance
17    with the rules and procedures established under this
18    paragraph 10.
19        The board shall establish by rule the manner of making
20    the calculation required under this paragraph 10, taking
21    into account the appropriate actuarial assumptions; the
22    member's service, age, and salary history; the level of
23    funding of the employer; and any other factors that the
24    board determines to be relevant.
25        Until January 1, 2010, members who transferred service
26    from an Article 3 system under the provisions of Public Act

 

 

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1    94-356 may establish additional credit in this Fund, but
2    only up to the amount of the service credit reduction in
3    that transfer, as calculated under the actuarial
4    assumptions. This credit may be established upon payment by
5    the member of an amount to be determined by the board,
6    equal to (1) the amount that would have been contributed as
7    employee and employer contributions had all the service
8    been as an employee under this Article, plus interest
9    thereon compounded annually from the date of service to the
10    date of transfer, less (2) the total amount transferred
11    from the Article 3 system, plus (3) interest on the
12    difference at the effective rate for each year, compounded
13    annually, from the date of the transfer to the date of
14    payment. The additional service credit is allowed under
15    this amendatory Act of the 95th General Assembly
16    notwithstanding the provisions of Article 3 terminating
17    all transferred credits on the date of transfer.
18        11. For service transferred from an Article 3 system
19    under Section 3-110.3: Credits and creditable service
20    shall be granted for service under Article 3 of this Act as
21    provided in Section 3-110.3, to any active member of this
22    Fund, upon transfer of such credits pursuant to Section
23    3-110.3. If the board determines that the amount
24    transferred is less than the true cost to the Fund of
25    allowing that creditable service to be established, then in
26    order to establish that creditable service, the member must

 

 

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1    pay to the Fund an additional contribution equal to the
2    difference, as determined by the board in accordance with
3    the rules and procedures adopted under this paragraph. If
4    the member does not make the full additional payment as
5    required by this paragraph prior to termination of his
6    participation with that employer, then his or her
7    creditable service shall be reduced by an amount equal to
8    the difference between the amount transferred under
9    Section 3-110.3, including any payments made by the member
10    under this paragraph prior to termination, and the true
11    cost to the Fund of allowing that creditable service to be
12    established, as determined by the board in accordance with
13    the rules and procedures adopted under this paragraph.
14        The board shall establish by rule the manner of making
15    the calculation required under this paragraph 11, taking
16    into account the appropriate actuarial assumptions; the
17    member's service, age, and salary history, and any other
18    factors that the board determines to be relevant.
19        12. For omitted service: Any employee who was employed
20    by a participating employer in a position that required
21    participation, but who was not enrolled in the Fund, may
22    establish such credits under the following conditions:
23            a. Application for such credits is received by the
24        Board while the employee is an active participant of
25        the Fund or a reciprocal retirement system.
26            b. Eligibility for participation and earnings are

 

 

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1        verified by the Authorized Agent of the participating
2        employer for which the service was rendered.
3        Creditable service under this paragraph shall be
4    granted upon payment of the employee contributions that
5    would have been required had he participated, which shall
6    be calculated by the Fund using the member contribution
7    rate in effect during the period that the service was
8    rendered.
9    (b) Creditable service - amount:
10        1. One month of creditable service shall be allowed for
11    each month for which a participating employee made
12    contributions as required under Section 7-173, or for which
13    creditable service is otherwise granted hereunder. Not
14    more than 1 month of service shall be credited and counted
15    for 1 calendar month, and not more than 1 year of service
16    shall be credited and counted for any calendar year. A
17    calendar month means a nominal month beginning on the first
18    day thereof, and a calendar year means a year beginning
19    January 1 and ending December 31.
20        2. A seasonal employee shall be given 12 months of
21    creditable service if he renders the number of months of
22    service normally required by the position in a 12-month
23    period and he remains in service for the entire 12-month
24    period. Otherwise a fractional year of service in the
25    number of months of service rendered shall be credited.
26        3. An intermittent employee shall be given creditable

 

 

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1    service for only those months in which a contribution is
2    made under Section 7-173.
3    (c) No application for correction of credits or creditable
4service shall be considered unless the board receives an
5application for correction while (1) the applicant is a
6participating employee and in active employment with a
7participating municipality or instrumentality, or (2) while
8the applicant is actively participating in a pension fund or
9retirement system which is a participating system under the
10Retirement Systems Reciprocal Act. A participating employee or
11other applicant shall not be entitled to credits or creditable
12service unless the required employee contributions are made in
13a lump sum or in installments made in accordance with board
14rule.
15    (d) Upon the granting of a retirement, surviving spouse or
16child annuity, a death benefit or a separation benefit, on
17account of any employee, all individual accumulated credits
18shall thereupon terminate. Upon the withdrawal of additional
19contributions, the credits applicable thereto shall thereupon
20terminate. Terminated credits shall not be applied to increase
21the benefits any remaining employee would otherwise receive
22under this Article.
23(Source: P.A. 97-415, eff. 8-16-11; 98-439, eff. 8-16-13;
2498-599, eff. 6-1-14.)
 
25    (40 ILCS 5/7-175)  (from Ch. 108 1/2, par. 7-175)

 

 

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1    Sec. 7-175. Board elections.
2    (a) During the period beginning on August 1 and ending on
3September 15 of each year the board shall accept nominations of
4candidates for election to the trusteeships for terms beginning
5the next January 1, new trusteeships or vacancies to be filled
6by election.
7    (b) All nominations shall be by petition. Three petitions
8for an executive trustee shall be signed by governing bodies of
9contributing participating municipalities or
10instrumentalities.
11    A petition for an employee trustee shall be signed by at
12least 350 participating employees who were participants during
13July of the current year and who, if their employment status
14remained unchanged, would be eligible to vote for such
15candidate at the following election.
16    A petition for an annuitant trustee shall be signed by at
17least 100 persons who were annuitants of the Fund during July
18of the current year and who, if their annuitant status remains
19unchanged, would be eligible to vote for the candidate at the
20following election.
21    (c) A separate ballot shall be used for each class of
22trustee and the names of all candidates properly nominated in
23petitions received by the board shall be placed in alphabetical
24order upon the proper ballot. Where two employee trustees are
25elected to a full term in the same year, there shall be one
26election for the two trusteeships and the two candidates

 

 

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1getting the highest number of votes shall be elected.
2    (d) At any election, each contributing participating
3municipality and participating instrumentality and each
4contributing participating employee employed by such
5participating municipality or participating instrumentality
6during September of any year, shall be entitled to vote as
7follows:
8        1. The governing body of each such participating
9    municipality and participating instrumentality shall have
10    one vote at any election in which an executive trustee is
11    to be elected, and may cast such vote for any candidate on
12    the executive trustee ballot.
13        2. Each participating employee shall have one vote at
14    any election in which an employee trustee is to be elected,
15    and may cast such vote for any candidate on the employee
16    trustee ballot.
17        3. Each annuitant of the Fund shall have one vote at
18    any election in which an annuitant trustee is to be
19    elected, and may cast that vote for any candidate on the
20    annuitant trustee ballot.
21        4. A vote may be cast for a person not on the ballot by
22    writing in his or her name.
23    (e) The election shall be by ballot pursuant to the rules
24and regulations established by the board and shall be completed
25by December 31 of the year. The results shall be entered in the
26minutes of the meeting of the board following the tally of

 

 

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1votes.
2    (f) In case of a tie vote, the candidate employed by or
3retired from the participating municipality or participating
4instrumentality having the greatest number of participating
5employees at the time shall be elected.
6    (g) Notwithstanding any other provision of this Article, if
7only one candidate is properly nominated in petitions received
8by the Board, that candidate shall be deemed the winner. In the
9case of 2 employee trustees elected to a full term in the same
10year, if only 2 candidates are properly nominated in petitions
11received by the Board, those 2 candidates shall both be deemed
12winners. If a candidate is deemed a winner under this
13paragraph, no election under this Section or Section 7-175.1
14shall be required.
15(Source: P.A. 89-136, eff. 7-14-95.)
 
16    (40 ILCS 5/7-175.1)  (from Ch. 108 1/2, par. 7-175.1)
17    Sec. 7-175.1. Election of employee and annuitant trustees.
18    (a) The board shall prepare and send ballots and ballot
19envelopes to the employees and annuitants eligible to vote as
20of September of that year. The ballots shall contain the names
21of all candidates in alphabetical order and an appropriate
22place where a name may be written in on the ballot. The ballot
23envelope shall have on the outside a form of certificate
24stating that the person voting the ballot is a participating
25employee or annuitant entitled to vote.

 

 

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1    (b) Employees and annuitants, upon receipt of the ballot,
2shall vote the ballot and place it in the ballot envelope, seal
3the envelope, execute the certificate thereon and return the
4ballot to the Fund.
5    (c) The board shall set a final date for ballot return, and
6ballots received prior to that date in a ballot envelope with a
7properly executed certificate and properly voted, shall be
8valid ballots.
9    (d) The board shall set a day for counting the ballots and
10name judges and clerks of election to conduct the count of
11ballots, and shall make any rules and regulations necessary for
12the conduct of the count.
13    (e) No election under this Section shall be required if a
14candidate is deemed the winner under subsection (g) of Section
157-175.
16(Source: P.A. 89-136, eff. 7-14-95.)
 
17    (40 ILCS 5/7-139.7 rep.)
18    (40 ILCS 5/7-139.9 rep.)
19    (40 ILCS 5/7-139.11 rep.)
20    (40 ILCS 5/7-139.13 rep.)
21    Section 10. The Illinois Pension Code is amended by
22repealing Sections 7-139.7, 7-139.9, 7-139.11, and 7-139.13.
 
23    Section 95. No acceleration or delay. Where this Act makes
24changes in a statute that is represented in this Act by text

 

 

HB5696 Engrossed- 40 -LRB098 17307 RPM 52401 b

1that is not yet or no longer in effect (for example, a Section
2represented by multiple versions), the use of that text does
3not accelerate or delay the taking effect of (i) the changes
4made by this Act or (ii) provisions derived from any other
5Public Act.
 
6    Section 99. Effective date. This Act takes effect upon
7becoming law.