093_HB1549

 
                                     LRB093 06267 EFG 06380 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 3-110 as follows:

 6        (40 ILCS 5/3-110) (from Ch. 108 1/2, par. 3-110)
 7        Sec. 3-110.  Creditable service.
 8        (a)  "Creditable  service" is the time served by a police
 9    officer as a member of a regularly constituted  police  force
10    of a municipality.  In computing creditable service furloughs
11    without  pay  exceeding 30 days shall not be counted, but all
12    leaves of absence for  illness  or  accident,  regardless  of
13    length,  and all periods of disability retirement for which a
14    police officer has received no  disability  pension  payments
15    under this Article shall be counted.
16        (a-5)  Up  to  3  years  of  time during which the police
17    officer receives a disability pension under Section  3-114.1,
18    3-114.2,  3-114.3,  or 3-114.6 shall be counted as creditable
19    service, provided that (i)  the  police  officer  returns  to
20    active  service  after  the  disability for a period at least
21    equal to the period for which credit is to be established and
22    (ii) the police officer makes contributions to the fund based
23    on the rates specified in Section 3-125.1 and the salary upon
24    which the disability pension is based.   These  contributions
25    may  be  paid  at  any  time  prior  to the commencement of a
26    retirement pension.  The police officer may,  but  need  not,
27    elect  to have the contributions deducted from the disability
28    pension or to pay them in installments on a schedule approved
29    by the board.  If not deducted from the  disability  pension,
30    the  contributions  shall  include interest at the rate of 6%
31    per year,  compounded  annually,  from  the  date  for  which
 
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 1    service  credit  is being established to the date of payment.
 2    If contributions are paid  under  this  subsection  (a-5)  in
 3    excess  of  those  needed to establish the credit, the excess
 4    shall be refunded.  This subsection (a-5) applies to  persons
 5    receiving   a   disability  pension  under  Section  3-114.1,
 6    3-114.2, 3-114.3, or 3-114.6 on the effective  date  of  this
 7    amendatory  Act  of  the  91st  General  Assembly, as well as
 8    persons who begin to receive such a disability pension  after
 9    that date.
10        (b)  Creditable  service  includes all periods of service
11    in the military, naval or air forces  of  the  United  States
12    entered   upon   while   an   active   police  officer  of  a
13    municipality, provided that upon  applying  for  a  permanent
14    pension,  and  in accordance with the rules of the board, the
15    police officer pays into the  fund  the  amount  the  officer
16    would  have  contributed  if  he  or  she  had been a regular
17    contributor during  such  period,  to  the  extent  that  the
18    municipality  which  the  police  officer served has not made
19    such contributions in the officer's behalf.  The total amount
20    of such creditable service shall not exceed 5  years,  except
21    that  any  police officer who on July 1, 1973 had more than 5
22    years of such creditable  service  shall  receive  the  total
23    amount thereof.
24        (b-1)  In  addition to any creditable service established
25    under subsection (b), creditable service may be  granted  for
26    up  to 24 months of service in the armed forces of the United
27    States that was not immediately preceded by employment  as  a
28    police  officer.   In order to receive creditable service for
29    military  service  under  this  subsection  (b-1),  a  police
30    officer must (1) apply to the Fund  in  writing  and  provide
31    evidence  of the military service that is satisfactory to the
32    Board and (2) make contributions to the Fund equal to (i) the
33    employee contributions that would have been required had  the
34    service  been  rendered  as  a  member,  plus  (ii) an amount
 
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 1    determined by the board to be equal to the employer's  normal
 2    cost  of the benefits accrued for that military service, plus
 3    (iii) interest on items (i) and (ii) from the date  of  first
 4    membership  in  the  Fund  or November 19, 1991, whichever is
 5    later, to the date of payment.  If payment is made during the
 6    6-month period that begins 3 months after the effective  date
 7    of  this  amendatory  Act  of  the 93rd General Assembly, the
 8    required interest shall be at the  rate  of  2.5%  per  year,
 9    compounded  annually;  otherwise, the required interest shall
10    be  calculated  at  the  rate  of  6%  per  year,  compounded
11    annually.
12        (c)  Creditable service also includes service rendered by
13    a police officer while on leave  of  absence  from  a  police
14    department  to serve as an executive of an organization whose
15    membership  consists  of  members  of  a  police  department,
16    subject to the following conditions:  (i) the police  officer
17    is  a  participant  of  a fund established under this Article
18    with at least 10 years of service as a police  officer;  (ii)
19    the  police officer received no credit for such service under
20    any other retirement system, pension  fund,  or  annuity  and
21    benefit  fund  included  in  this Code; (iii) pursuant to the
22    rules of the board the police officer pays to  the  fund  the
23    amount  he or she would have contributed had the officer been
24    an active member of  the  police  department;  and  (iv)  the
25    organization  pays a contribution equal to the municipality's
26    normal cost for that period of service.
27          (d)(1)  Creditable service  also  includes  periods  of
28        service  originally established in another police pension
29        fund under this Article or in the Fund established  under
30        Article  7  of  this Code for which (i) the contributions
31        have been transferred under Section  3-110.7  or  Section
32        7-139.9  and  (ii)  any  additional contribution required
33        under paragraph (2) of this subsection has been  paid  in
34        full   in   accordance  with  the  requirements  of  this
 
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 1        subsection (d).
 2             (2)  If the board  of  the  pension  fund  to  which
 3        creditable   service   and   related   contributions  are
 4        transferred under Section 3-110.7 or  7-139.9  determines
 5        that the amount transferred is less than the true cost to
 6        the  pension  fund of allowing that creditable service to
 7        be  established,  then  in  order   to   establish   that
 8        creditable  service  the  police  officer must pay to the
 9        pension fund, within  the  payment  period  specified  in
10        paragraph   (3)   of   this   subsection,  an  additional
11        contribution equal to the difference,  as  determined  by
12        the  board  in  accordance  with the rules and procedures
13        adopted under paragraph (6) of this subsection.
14             (3)  Except  as  provided  in  paragraph  (4),   the
15        additional  contribution  must  be  paid to the board (i)
16        within  5  years  from  the  date  of  the  transfer   of
17        contributions  under  Section 3-110.7 or 7-139.9 and (ii)
18        before the police officer  terminates  service  with  the
19        fund.   The additional contribution may be paid in a lump
20        sum or in  accordance  with  a  schedule  of  installment
21        payments authorized by the board.
22             (4)  If  the  police  officer dies in service before
23        payment in full has been made and before  the  expiration
24        of the 5-year payment period, the surviving spouse of the
25        officer  may  elect  to  pay  the  unpaid  amount  on the
26        officer's behalf within 6 months after the date of death,
27        in which case the creditable service shall be granted  as
28        though the deceased police officer had paid the remaining
29        balance on the day before the date of death.
30             (5)  If  the  additional contribution is not paid in
31        full within the required  time,  the  creditable  service
32        shall  not  be  granted  and  the  police officer (or the
33        officer's surviving spouse or estate) shall  be  entitled
34        to  receive  a  refund  of (i) any partial payment of the
 
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 1        additional contribution that has been made by the  police
 2        officer   and   (ii)   those   portions  of  the  amounts
 3        transferred under subdivision (a)(1) of  Section  3-110.7
 4        or subdivisions (a)(1) and (a)(3) of Section 7-139.9 that
 5        represent  employee  contributions  paid  by  the  police
 6        officer  (but  not  the  accumulated  interest  on  those
 7        contributions) and interest paid by the police officer to
 8        the  prior  pension  fund  in  order to reinstate service
 9        terminated by acceptance of a refund.
10             At the time of paying a refund under this item  (5),
11        the  pension  fund  shall  also repay to the pension fund
12        from  which  the  contributions  were  transferred  under
13        Section  3-110.7  or  7-139.9   the   amount   originally
14        transferred  under  subdivision  (a)(2)  of that Section,
15        plus interest at the rate  of  6%  per  year,  compounded
16        annually,  from  the date of the original transfer to the
17        date of repayment.  Amounts repaid to the Article 7  fund
18        under this provision shall be credited to the appropriate
19        municipality.
20             Transferred  credit  that  is  not  granted  due  to
21        failure  to  pay  the  additional contribution within the
22        required time is lost;  it  may  not  be  transferred  to
23        another  pension  fund  and  may not be reinstated in the
24        pension fund from which it was transferred.
25             (6)  The Public Employee Pension  Fund  Division  of
26        the  Department  of Insurance shall establish by rule the
27        manner of making the calculation required under paragraph
28        (2)  of  this  subsection,  taking   into   account   the
29        appropriate  actuarial  assumptions; the police officer's
30        service, age, and salary history; the level of funding of
31        the  pension  fund  to  which  the  credits   are   being
32        transferred;  and  any  other  factors  that the Division
33        determines to be relevant.  The rules  may  require  that
34        all  calculations made under paragraph (2) be reported to
 
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 1        the Division by the  board  performing  the  calculation,
 2        together  with documentation of the creditable service to
 3        be transferred, the amounts of contributions and interest
 4        to be transferred, the manner in  which  the  calculation
 5        was  performed,  the  numbers  relied  upon in making the
 6        calculation, the results  of  the  calculation,  and  any
 7        other information the Division may deem useful.
 8    (Source:  P.A.  90-460,  eff.  8-17-97;  91-887, eff. 7-6-00;
 9    91-939, eff. 2-1-01.)

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

12        (30 ILCS 805/8.27 new)
13        Sec.  8.27.  Exempt  mandate.  Notwithstanding Sections 6
14    and 8 of this Act, no reimbursement by the State is  required
15    for  the  implementation  of  any  mandate  created  by  this
16    amendatory Act of the 93rd General Assembly.

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