093_HB2547

 
                                     LRB093 07480 EFG 07651 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    adding Section 14-114.1 as follows:

 6        (40 ILCS 5/14-114.1 new)
 7        Sec. 14-114.1.  Plan of optional additional benefits  and
 8    contributions.
 9        (a)  While  this  plan  is  in  effect,  an  employee may
10    establish optional additional credit for additional  benefits
11    by   electing   in   writing   to  make  optional  additional
12    contributions either for future service under subsection  (b)
13    or  for  previous  service under subsection (c).  An employee
14    may not elect to make additional contributions under both (b)
15    and (c).
16        (b)  The optional  additional  contribution  for  service
17    after   the   option  is  elected  shall  be  3%  of  salary,
18    contributed to the System on the same  basis  and  under  the
19    same  conditions  as  required  contributions  under Sections
20    14-133 and 14-133.1.  The employee may discontinue making the
21    optional additional contributions under this  subsection  (b)
22    at any time by so notifying the System in writing.
23        (c)  The optional additional contribution for a period of
24    service  before  the option is elected shall be 4% of salary,
25    to be paid by the  employee  directly  to  the  System.   The
26    maximum  period  for  which optional additional contributions
27    may be made under  this  subsection  (c)  is  4  years.   The
28    optional  additional contribution must be paid in full before
29    the additional benefit is given.
30        (d)  For  each  year  of  service  for   which   optional
31    additional  contributions  have  been  paid,  the  retirement
 
                            -2-      LRB093 07480 EFG 07651 b
 1    annuity shall be increased at the time of retirement by 1% of
 2    the  final  average  compensation  upon  which the retirement
 3    annuity is based; but the resulting annuity shall not  exceed
 4    the  established  percentage maximum for annuities calculated
 5    under the applicable formula.  The additional  benefit  shall
 6    be  included  in  the  calculation  of  the  automatic annual
 7    increase in annuity and, where applicable, in the calculation
 8    of a widow's or survivor's annuity.
 9        (e)  Optional additional contributions  under  this  plan
10    may   be   made  only  with  respect  to  periods  of  active
11    participation  as  a  contributing  employee,  and  not  with
12    respect to periods of military, reciprocal, or other optional
13    service credit.  No optional additional contributions may  be
14    made under subsection (c) for any period of service for which
15    credit  has  been  previously  forfeited  by  acceptance of a
16    refund, unless the refund is repaid in full with interest  at
17    the effective rate from the date of the refund to the date of
18    repayment.
19        (f)  An  employee  who elects to make optional additional
20    contributions under subsection (c) must withdraw from service
21    by the later of December 31, 2003 or a date  6  months  after
22    the commencement of the program under subsection (g).  Such a
23    person  who  returns to employment under this Article thereby
24    forfeits the additional benefits established under subsection
25    (c) and, if he  or  she  has  not  yet  begun  to  receive  a
26    retirement  annuity,  shall  be  entitled  to a refund of the
27    optional additional contributions, without interest.
28        Other refunds of optional additional contributions  shall
29    be  made  on  the same basis and under the same conditions as
30    refunds of other optional contributions under this Article.
31        (g)  This  plan  of  optional  additional  benefits   and
32    contributions  becomes  effective on July 1, 2003 or the date
33    upon which  approval  is  received  from  the  U.S.  Internal
34    Revenue Service, whichever is later.
 
                            -3-      LRB093 07480 EFG 07651 b
 1        (h)  This   plan  of  optional  additional  benefits  and
 2    contributions  expires   July   1,   2006.    No   additional
 3    contributions  may be made after that date, and no additional
 4    benefits will accrue after that date.

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