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Full Text of SB2499  97th General Assembly

SB2499 97TH GENERAL ASSEMBLY

  
  

 


 
97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
SB2499

 

Introduced 10/12/2011, by Sen. Matt Murphy - Shane Cultra - William E. Brady - Dave Syverson

 

SYNOPSIS AS INTRODUCED:
 
40 ILCS 5/3-110  from Ch. 108 1/2, par. 3-110
40 ILCS 5/4-108  from Ch. 108 1/2, par. 4-108
40 ILCS 5/5-214  from Ch. 108 1/2, par. 5-214
40 ILCS 5/6-209  from Ch. 108 1/2, par. 6-209
40 ILCS 5/7-132  from Ch. 108 1/2, par. 7-132
40 ILCS 5/8-226  from Ch. 108 1/2, par. 8-226
40 ILCS 5/11-215  from Ch. 108 1/2, par. 11-215
40 ILCS 5/15-107  from Ch. 108 1/2, par. 15-107
40 ILCS 5/16-106  from Ch. 108 1/2, par. 16-106
40 ILCS 5/17-134  from Ch. 108 1/2, par. 17-134

    Amends the Illinois Pension Code. Amends various Articles of the Code to provide that participants under those Articles are only entitled to creditable service for periods of service with a labor organization if the employee and employer contributions for the service is received by the Fund before the effective date of the amendatory Act. Amends the IMRF Article of the Illinois Pension Code to provide that the Illinois Municipal League and the Will County Governmental League are participating instrumentalities only with respect to service on or before the effective date of the amendatory Act. Effective immediately.


LRB097 13622 AMC 58158 b

FISCAL NOTE ACT MAY APPLY
PENSION IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB2499LRB097 13622 AMC 58158 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 3-110, 4-108, 5-214, 6-209, 7-132, 8-226, 11-215,
615-107, 16-106, and 17-134 as follows:
 
7    (40 ILCS 5/3-110)  (from Ch. 108 1/2, par. 3-110)
8    Sec. 3-110. Creditable service.
9    (a) "Creditable service" is the time served by a police
10officer as a member of a regularly constituted police force of
11a municipality. In computing creditable service furloughs
12without pay exceeding 30 days shall not be counted, but all
13leaves of absence for illness or accident, regardless of
14length, and all periods of disability retirement for which a
15police officer has received no disability pension payments
16under this Article shall be counted.
17    (a-5) Up to 3 years of time during which the police officer
18receives a disability pension under Section 3-114.1, 3-114.2,
193-114.3, or 3-114.6 shall be counted as creditable service,
20provided that (i) the police officer returns to active service
21after the disability for a period at least equal to the period
22for which credit is to be established and (ii) the police
23officer makes contributions to the fund based on the rates

 

 

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1specified in Section 3-125.1 and the salary upon which the
2disability pension is based. These contributions may be paid at
3any time prior to the commencement of a retirement pension. The
4police officer may, but need not, elect to have the
5contributions deducted from the disability pension or to pay
6them in installments on a schedule approved by the board. If
7not deducted from the disability pension, the contributions
8shall include interest at the rate of 6% per year, compounded
9annually, from the date for which service credit is being
10established to the date of payment. If contributions are paid
11under this subsection (a-5) in excess of those needed to
12establish the credit, the excess shall be refunded. This
13subsection (a-5) applies to persons receiving a disability
14pension under Section 3-114.1, 3-114.2, 3-114.3, or 3-114.6 on
15the effective date of this amendatory Act of the 91st General
16Assembly, as well as persons who begin to receive such a
17disability pension after that date.
18    (b) Creditable service includes all periods of service in
19the military, naval or air forces of the United States entered
20upon while an active police officer of a municipality, provided
21that upon applying for a permanent pension, and in accordance
22with the rules of the board, the police officer pays into the
23fund the amount the officer would have contributed if he or she
24had been a regular contributor during such period, to the
25extent that the municipality which the police officer served
26has not made such contributions in the officer's behalf. The

 

 

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1total amount of such creditable service shall not exceed 5
2years, except that any police officer who on July 1, 1973 had
3more than 5 years of such creditable service shall receive the
4total amount thereof.
5    (b-5) Creditable service includes all periods of service in
6the military, naval, or air forces of the United States entered
7upon before beginning service as an active police officer of a
8municipality, provided that, in accordance with the rules of
9the board, the police officer pays into the fund the amount the
10police officer would have contributed if he or she had been a
11regular contributor during such period, plus an amount
12determined by the Board to be equal to the municipality's
13normal cost of the benefit, plus interest at the actuarially
14assumed rate calculated from the date the employee last became
15a police officer under this Article. The total amount of such
16creditable service shall not exceed 2 years.
17    (c) Creditable service also includes service rendered by a
18police officer while on leave of absence from a police
19department to serve as an executive of an organization whose
20membership consists of members of a police department, subject
21to the following conditions: (i) the police officer is a
22participant of a fund established under this Article with at
23least 10 years of service as a police officer; (ii) the police
24officer received no credit for such service under any other
25retirement system, pension fund, or annuity and benefit fund
26included in this Code; (iii) pursuant to the rules of the board

 

 

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1the police officer pays to the fund the amount he or she would
2have contributed had the officer been an active member of the
3police department; and (iv) the organization pays a
4contribution equal to the municipality's normal cost for that
5period of service; and (v) the employee and employer
6contributions for the service is received by the fund before
7the effective date of this amendatory Act of the 97th General
8Assembly.
9        (d)(1) Creditable service also includes periods of
10    service originally established in another police pension
11    fund under this Article or in the Fund established under
12    Article 7 of this Code for which (i) the contributions have
13    been transferred under Section 3-110.7 or Section 7-139.9
14    and (ii) any additional contribution required under
15    paragraph (2) of this subsection has been paid in full in
16    accordance with the requirements of this subsection (d).
17        (2) If the board of the pension fund to which
18    creditable service and related contributions are
19    transferred under Section 7-139.9 determines that the
20    amount transferred is less than the true cost to the
21    pension fund of allowing that creditable service to be
22    established, then in order to establish that creditable
23    service the police officer must pay to the pension fund,
24    within the payment period specified in paragraph (3) of
25    this subsection, an additional contribution equal to the
26    difference, as determined by the board in accordance with

 

 

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1    the rules and procedures adopted under paragraph (6) of
2    this subsection. If the board of the pension fund to which
3    creditable service and related contributions are
4    transferred under Section 3-110.7 determines that the
5    amount transferred is less than the true cost to the
6    pension fund of allowing that creditable service to be
7    established, then the police officer may elect (A) to
8    establish that creditable service by paying to the pension
9    fund, within the payment period specified in paragraph (3)
10    of this subsection (d), an additional contribution equal to
11    the difference, as determined by the board in accordance
12    with the rules and procedures adopted under paragraph (6)
13    of this subsection (d) or (B) to have his or her creditable
14    service reduced by an amount equal to the difference
15    between the amount transferred under Section 3-110.7 and
16    the true cost to the pension fund of allowing that
17    creditable service to be established, as determined by the
18    board in accordance with the rules and procedures adopted
19    under paragraph (6) of this subsection (d).
20        (3) Except as provided in paragraph (4), the additional
21    contribution that is required or elected under paragraph
22    (2) of this subsection (d) must be paid to the board (i)
23    within 5 years from the date of the transfer of
24    contributions under Section 3-110.7 or 7-139.9 and (ii)
25    before the police officer terminates service with the fund.
26    The additional contribution may be paid in a lump sum or in

 

 

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1    accordance with a schedule of installment payments
2    authorized by the board.
3        (4) If the police officer dies in service before
4    payment in full has been made and before the expiration of
5    the 5-year payment period, the surviving spouse of the
6    officer may elect to pay the unpaid amount on the officer's
7    behalf within 6 months after the date of death, in which
8    case the creditable service shall be granted as though the
9    deceased police officer had paid the remaining balance on
10    the day before the date of death.
11        (5) If the additional contribution that is required or
12    elected under paragraph (2) of this subsection (d) is not
13    paid in full within the required time, the creditable
14    service shall not be granted and the police officer (or the
15    officer's surviving spouse or estate) shall be entitled to
16    receive a refund of (i) any partial payment of the
17    additional contribution that has been made by the police
18    officer and (ii) those portions of the amounts transferred
19    under subdivision (a)(1) of Section 3-110.7 or
20    subdivisions (a)(1) and (a)(3) of Section 7-139.9 that
21    represent employee contributions paid by the police
22    officer (but not the accumulated interest on those
23    contributions) and interest paid by the police officer to
24    the prior pension fund in order to reinstate service
25    terminated by acceptance of a refund.
26        At the time of paying a refund under this item (5), the

 

 

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1    pension fund shall also repay to the pension fund from
2    which the contributions were transferred under Section
3    3-110.7 or 7-139.9 the amount originally transferred under
4    subdivision (a)(2) of that Section, plus interest at the
5    rate of 6% per year, compounded annually, from the date of
6    the original transfer to the date of repayment. Amounts
7    repaid to the Article 7 fund under this provision shall be
8    credited to the appropriate municipality.
9        Transferred credit that is not granted due to failure
10    to pay the additional contribution within the required time
11    is lost; it may not be transferred to another pension fund
12    and may not be reinstated in the pension fund from which it
13    was transferred.
14        (6) The Public Employee Pension Fund Division of the
15    Department of Insurance shall establish by rule the manner
16    of making the calculation required under paragraph (2) of
17    this subsection, taking into account the appropriate
18    actuarial assumptions; the police officer's service, age,
19    and salary history; the level of funding of the pension
20    fund to which the credits are being transferred; and any
21    other factors that the Division determines to be relevant.
22    The rules may require that all calculations made under
23    paragraph (2) be reported to the Division by the board
24    performing the calculation, together with documentation of
25    the creditable service to be transferred, the amounts of
26    contributions and interest to be transferred, the manner in

 

 

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1    which the calculation was performed, the numbers relied
2    upon in making the calculation, the results of the
3    calculation, and any other information the Division may
4    deem useful.
5        (e)(1) Creditable service also includes periods of
6    service originally established in the Fund established
7    under Article 7 of this Code for which the contributions
8    have been transferred under Section 7-139.11.
9        (2) If the board of the pension fund to which
10    creditable service and related contributions are
11    transferred under Section 7-139.11 determines that the
12    amount transferred is less than the true cost to the
13    pension fund of allowing that creditable service to be
14    established, then the amount of creditable service the
15    police officer may establish under this subsection (e)
16    shall be reduced by an amount equal to the difference, as
17    determined by the board in accordance with the rules and
18    procedures adopted under paragraph (3) of this subsection.
19        (3) The Public Pension Division of the Department of
20    Financial and Professional Regulation shall establish by
21    rule the manner of making the calculation required under
22    paragraph (2) of this subsection, taking into account the
23    appropriate actuarial assumptions; the police officer's
24    service, age, and salary history; the level of funding of
25    the pension fund to which the credits are being
26    transferred; and any other factors that the Division

 

 

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1    determines to be relevant. The rules may require that all
2    calculations made under paragraph (2) be reported to the
3    Division by the board performing the calculation, together
4    with documentation of the creditable service to be
5    transferred, the amounts of contributions and interest to
6    be transferred, the manner in which the calculation was
7    performed, the numbers relied upon in making the
8    calculation, the results of the calculation, and any other
9    information the Division may deem useful.
10        (4) Until January 1, 2010, a police officer who
11    transferred service from the Fund established under
12    Article 7 of this Code under the provisions of Public Act
13    94-356 may establish additional credit, but only for the
14    amount of the service credit reduction in that transfer, as
15    calculated under paragraph (3) of this subsection (e). This
16    credit may be established upon payment by the police
17    officer of an amount to be determined by the board, equal
18    to (1) the amount that would have been contributed as
19    employee and employer contributions had all of the service
20    been as an employee under this Article, plus interest
21    thereon at the rate of 6% per year, compounded annually
22    from the date of service to the date of transfer, less (2)
23    the total amount transferred from the Article 7 Fund, plus
24    (3) interest on the difference at the rate of 6% per year,
25    compounded annually, from the date of the transfer to the
26    date of payment. The additional service credit is allowed

 

 

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1    under this amendatory Act of the 95th General Assembly
2    notwithstanding the provisions of Article 7 terminating
3    all transferred credits on the date of transfer.
4(Source: P.A. 95-812, eff. 8-13-08; 96-297, eff. 8-11-09;
596-1260, eff. 7-23-10.)
 
6    (40 ILCS 5/4-108)  (from Ch. 108 1/2, par. 4-108)
7    Sec. 4-108. Creditable service.
8    (a) Creditable service is the time served as a firefighter
9of a municipality. In computing creditable service, furloughs
10and leaves of absence without pay exceeding 30 days in any one
11year shall not be counted, but leaves of absence for illness or
12accident regardless of length, and periods of disability for
13which a firefighter received no disability pension payments
14under this Article, shall be counted.
15    (b) Furloughs and leaves of absence of 30 days or less in
16any one year may be counted as creditable service, if the
17firefighter makes the contribution to the fund that would have
18been required had he or she not been on furlough or leave of
19absence. To qualify for this creditable service, the
20firefighter must pay the required contributions to the fund not
21more than 90 days subsequent to the termination of the furlough
22or leave of absence, to the extent that the municipality has
23not made such contribution on his or her behalf.
24    (c) Creditable service includes:
25        (1) Service in the military, naval or air forces of the

 

 

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1    United States entered upon when the person was an active
2    firefighter, provided that, upon applying for a permanent
3    pension, and in accordance with the rules of the board the
4    firefighter pays into the fund the amount that would have
5    been contributed had he or she been a regular contributor
6    during such period of service, if and to the extent that
7    the municipality which the firefighter served made no such
8    contributions in his or her behalf. The total amount of
9    such creditable service shall not exceed 5 years, except
10    that any firefighter who on July 1, 1973 had more than 5
11    years of such creditable service shall receive the total
12    amount thereof as of that date.
13        (1.5) Up to 24 months of service in the military,
14    naval, or air forces of the United States that was served
15    prior to employment by a municipality or fire protection
16    district as a firefighter. To receive the credit for the
17    military service prior to the employment as a firefighter,
18    the firefighter must apply in writing to the fund and must
19    make contributions to the fund equal to (i) the employee
20    contributions that would have been required had the service
21    been rendered as a member, plus (ii) an amount determined
22    by the fund to be equal to the employer's normal cost of
23    the benefits accrued for that military service, plus (iii)
24    interest at the actuarially assumed rate provided by the
25    Department of Financial and Professional Regulation,
26    compounded annually from the first date of membership in

 

 

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1    the fund to the date of payment on items (i) and (ii). The
2    changes to this paragraph (1.5) by this amendatory Act of
3    the 95th General Assembly apply only to participating
4    employees in service on or after its effective date.
5        (2) Service prior to July 1, 1976 by a firefighter
6    initially excluded from participation by reason of age who
7    elected to participate and paid the required contributions
8    for such service.
9        (3) Up to 8 years of service by a firefighter as an
10    officer in a statewide firefighters' association when he is
11    on a leave of absence from a municipality's payroll,
12    provided that (i) the firefighter has at least 10 years of
13    creditable service as an active firefighter, (ii) the
14    firefighter contributes to the fund the amount that he
15    would have contributed had he remained an active member of
16    the fund, and (iii) the employee or statewide firefighter
17    association contributes to the fund an amount equal to the
18    employer's required contribution as determined by the
19    board, and (v) the employee and employer contributions for
20    the service is received by the fund before the effective
21    date of this amendatory Act of the 97th General Assembly.
22        (4) Time spent as an on-call fireman for a
23    municipality, calculated at the rate of one year of
24    creditable service for each 5 years of time spent as an
25    on-call fireman, provided that (i) the firefighter has at
26    least 18 years of creditable service as an active

 

 

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1    firefighter, (ii) the firefighter spent at least 14 years
2    as an on-call firefighter for the municipality, (iii) the
3    firefighter applies for such creditable service within 30
4    days after the effective date of this amendatory Act of
5    1989, (iv) the firefighter contributes to the Fund an
6    amount representing employee contributions for the number
7    of years of creditable service granted under this
8    subdivision (4), based on the salary and contribution rate
9    in effect for the firefighter at the date of entry into the
10    Fund, to be determined by the board, and (v) not more than
11    3 years of creditable service may be granted under this
12    subdivision (4).
13        Except as provided in Section 4-108.5, creditable
14    service shall not include time spent as a volunteer
15    firefighter, whether or not any compensation was received
16    therefor. The change made in this Section by Public Act
17    83-0463 is intended to be a restatement and clarification
18    of existing law, and does not imply that creditable service
19    was previously allowed under this Article for time spent as
20    a volunteer firefighter.
21        (5) Time served between July 1, 1976 and July 1, 1988
22    in the position of protective inspection officer or
23    administrative assistant for fire services, for a
24    municipality with a population under 10,000 that is located
25    in a county with a population over 3,000,000 and that
26    maintains a firefighters' pension fund under this Article,

 

 

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1    if the position included firefighting duties,
2    notwithstanding that the person may not have held an
3    appointment as a firefighter, provided that application is
4    made to the pension fund within 30 days after the effective
5    date of this amendatory Act of 1991, and the corresponding
6    contributions are paid for the number of years of service
7    granted, based upon the salary and contribution rate in
8    effect for the firefighter at the date of entry into the
9    pension fund, as determined by the Board.
10        (6) Service before becoming a participant by a
11    firefighter initially excluded from participation by
12    reason of age who becomes a participant under the amendment
13    to Section 4-107 made by this amendatory Act of 1993 and
14    pays the required contributions for such service.
15        (7) Up to 3 years of time during which the firefighter
16    receives a disability pension under Section 4-110,
17    4-110.1, or 4-111, provided that (i) the firefighter
18    returns to active service after the disability for a period
19    at least equal to the period for which credit is to be
20    established and (ii) the firefighter makes contributions
21    to the fund based on the rates specified in Section 4-118.1
22    and the salary upon which the disability pension is based.
23    These contributions may be paid at any time prior to the
24    commencement of a retirement pension. The firefighter may,
25    but need not, elect to have the contributions deducted from
26    the disability pension or to pay them in installments on a

 

 

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1    schedule approved by the board. If not deducted from the
2    disability pension, the contributions shall include
3    interest at the rate of 6% per year, compounded annually,
4    from the date for which service credit is being established
5    to the date of payment. If contributions are paid under
6    this subdivision (c)(7) in excess of those needed to
7    establish the credit, the excess shall be refunded. This
8    subdivision (c)(7) applies to persons receiving a
9    disability pension under Section 4-110, 4-110.1, or 4-111
10    on the effective date of this amendatory Act of the 91st
11    General Assembly, as well as persons who begin to receive
12    such a disability pension after that date.
13(Source: P.A. 94-856, eff. 6-15-06; 95-1056, eff. 4-10-09.)
 
14    (40 ILCS 5/5-214)  (from Ch. 108 1/2, par. 5-214)
15    Sec. 5-214. Credit for other service. Any participant in
16this fund (other than a member of the fire department of the
17city) who has rendered service as a member of the police
18department of the city for a period of 3 years or more is
19entitled to credit for the various purposes of this Article for
20service rendered prior to becoming a member or subsequent
21thereto for the following periods:
22        (a) While on leave of absence from the police
23    department assigned or detailed to investigative,
24    protective, security or police work for the park district
25    of the city, the department of the Port of Chicago or the

 

 

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1    sanitary district in which the city is located.
2        (b) As a temporary police officer in the city or while
3    serving in the office of the mayor or in the office of the
4    corporation counsel, as a member of the city council of the
5    city, as an employee of the Policemen's Annuity and Benefit
6    Fund created by this Article, as the head of an
7    organization whose membership consists of members of the
8    police department, the Public Vehicle License Commission
9    and the board of election commissioners of the city.
10        (c) While performing safety or investigative work for
11    the county in which such city is principally located or for
12    the State of Illinois or for the federal government, on
13    leave of absence from the department of police, or while
14    performing investigative work for the department as a
15    civilian employee of the department.
16        (d) While on leave of absence from the police
17    department of the city and serving as the chief of police
18    of a police department outside the city.
19    No credit shall be granted in this fund, however, for this
20service if the policeman has credit therefor in any other
21annuity and benefit fund, or unless he contributes to this fund
22the amount he would have contributed with interest had he
23remained an active member of the police department in the
24position he occupied as a result of a civil service competitive
25examination, certification and appointment by the Civil
26Service Board; or in the case of a city operating under the

 

 

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1provisions of a personnel ordinance the position he occupied as
2a result of a personnel ordinance competitive examination
3certification and appointment under the authority of a
4Municipal Personnel ordinance.
5    Concurrently with such contributions, the city shall
6contribute the amounts provided by this Article. No credit
7shall be allowed for any period of time for which contributions
8by the policeman have not been paid. The period of service
9rendered by such policeman prior to the date he became a member
10of the police department of the city or while detailed,
11assigned or on leave of absence and employed in any of the
12departments set forth hereinabove in this Section for which
13such policeman has contributed to this fund shall be credited
14to him as service for all the purposes of this Article, except
15that he shall not have any of the rights conferred by the
16provisions of Sections 5-127 and 5-162 of this Article.
17    The changes in this Section made by Public Act 86-273 shall
18apply to members of the fund who have not begun receiving a
19pension under this Article on August 23, 1989, without regard
20to whether employment is terminated before that date.
21    Notwithstanding any other provision of this Section,
22participants are only entitled to credit for service under
23paragraph (b) of this Section as the head of an organization
24whose membership consists of members of the police department
25if the employee and employer contributions for the service is
26received by the Fund before the effective date of this

 

 

SB2499- 18 -LRB097 13622 AMC 58158 b

1amendatory Act of the 97th General Assembly.
2(Source: P.A. 86-273; 87-1265.)
 
3    (40 ILCS 5/6-209)  (from Ch. 108 1/2, par. 6-209)
4    Sec. 6-209. In computing the service rendered by a fireman
5prior to the effective date, the following periods shall be
6counted, in addition to all periods during which he performed
7the duties of his position, as periods of service for annuity
8purposes only: All periods of (a) vacation, (b) leave of
9absence with whole or part pay, (c) leave of absence without
10pay which were necessary on account of disability, and (d)
11leave of absence during which he was engaged in the military or
12naval service of the United States of America. Service credit
13shall not be allowed for any period during which a fireman was
14in receipt of pension on account of disability from any pension
15fund superseded by this fund.
16    In computing the service rendered by a fireman on and after
17the effective date, the following periods shall be counted in
18addition to all periods during which he performed the duties of
19his position, as periods of service for annuity purposes only:
20All periods of (a) vacation, (b) leave of absence with whole or
21part pay, (c) leave of absence during which he was engaged in
22the military or naval service of the United States of America,
23(d) disability for which he receives any disability benefit,
24(e) disability for which he receives whole or part pay, (f)
25leave of absence, or other authorized relief from active duty,

 

 

SB2499- 19 -LRB097 13622 AMC 58158 b

1during which he served as president of The Firemen's
2Association of Chicago, (g) periods of suspension from duty not
3to exceed a total of one year during the total period of
4service of the fireman, and (h) a period of time not to exceed
523 days in 1980 in accordance with an agreement with the City
6on a settlement of strike; provided that the fireman elects to
7make contributions to the Fund for the various annuity and
8benefit purposes according to the provisions of this Article as
9though he were an active fireman, based upon the salary
10attached to the civil service rank held by him during such
11absence from duty, and if the fireman so elects, the city shall
12make the prescribed concurrent contributions for such annuity
13and benefit purposes as provided in this Article, all to the
14end that such fireman shall be entitled to receive the same
15annuities and benefits for which he would otherwise be eligible
16if he had continued as an active fireman during the periods of
17absence from duty. Notwithstanding any other provision of this
18Section, a fireman may only use a leave of absence, or other
19authorized relief from active duty, during which the fireman
20served as president of The Firemen's Association of Chicago in
21computing his or her service if the employee and employer
22contributions for the service is received by the Fund before
23the effective date of this amendatory Act of the 97th General
24Assembly.
25    In computing service on and after the effective date for
26ordinary disability benefit, all periods described in the

 

 

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1preceding paragraph, except any period for which a fireman
2receives ordinary disability benefit, shall be counted as
3periods of service.
4    In computing service for any of the purposes of this
5Article, credit shall be given for any periods prior to January
69, 1997, during which an active fireman (or fire paramedic) who
7is a member of the General Assembly is on leave of absence or
8is otherwise authorized to be absent from duty to enable him to
9perform his legislative duties, notwithstanding any reduction
10in salary for such periods and notwithstanding that the
11contributions paid by the fireman were based on such reduced
12salary rather than the full amount of salary attached to his
13civil service rank.
14    In computing service for any of the purposes of this
15Article, no credit shall be given for any period during which a
16fireman was not rendering active service because of his
17discharge from the service, unless proceedings to test the
18legality of the discharge are filed in a court of competent
19jurisdiction within one year from the date of discharge and a
20final judgment is entered therein declaring the discharge
21illegal.
22    No overtime or extra service shall be included in computing
23service of a fireman and not more than one year or a proper
24fractional part thereof of service shall be allowed for service
25rendered during any calendar year.
26(Source: P.A. 86-273; 86-1488; 87-1265.)
 

 

 

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1    (40 ILCS 5/7-132)   (from Ch. 108 1/2, par. 7-132)
2    Sec. 7-132. Municipalities, instrumentalities and
3participating instrumentalities included and effective dates.
 
4(A) Municipalities and their instrumentalities.
5    (a) The following described municipalities, but not
6including any with more than 1,000,000 inhabitants, and the
7instrumentalities thereof, shall be included within and be
8subject to this Article beginning upon the effective dates
9specified by the Board:
10        (1) Except as to the municipalities and
11    instrumentalities thereof specifically excluded under this
12    Article, every county shall be subject to this Article, and
13    all cities, villages and incorporated towns having a
14    population in excess of 5,000 inhabitants as determined by
15    the last preceding decennial or subsequent federal census,
16    shall be subject to this Article following publication of
17    the census by the Bureau of the Census. Within 90 days
18    after publication of the census, the Board shall notify any
19    municipality that has become subject to this Article as a
20    result of that census, and shall provide information to the
21    corporate authorities of the municipality explaining the
22    duties and consequences of participation. The notification
23    shall also include a proposed date upon which participation
24    by the municipality will commence.

 

 

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1        However, for any city, village or incorporated town
2    that attains a population over 5,000 inhabitants after
3    having provided social security coverage for its employees
4    under the Social Security Enabling Act, participation
5    under this Article shall not be mandatory but may be
6    elected in accordance with subparagraph (3) or (4) of this
7    paragraph (a), whichever is applicable.
8        (2) School districts, other than those specifically
9    excluded under this Article, shall be subject to this
10    Article, without election, with respect to all employees
11    thereof.
12        (3) Towns and all other bodies politic and corporate
13    which are formed by vote of, or are subject to control by,
14    the electors in towns and are located in towns which are
15    not participating municipalities on the effective date of
16    this Act, may become subject to this Article by election
17    pursuant to Section 7-132.1.
18        (4) Any other municipality (together with its
19    instrumentalities), other than those specifically excluded
20    from participation and those described in paragraph (3)
21    above, may elect to be included either by referendum under
22    Section 7-134 or by the adoption of a resolution or
23    ordinance by its governing body. A copy of such resolution
24    or ordinance duly authenticated and certified by the clerk
25    of the municipality or other appropriate official of its
26    governing body shall constitute the required notice to the

 

 

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1    board of such action.
2    (b) A municipality that is about to begin participation
3shall submit to the Board an application to participate, in a
4form acceptable to the Board, not later than 90 days prior to
5the proposed effective date of participation. The Board shall
6act upon the application within 90 days, and if it finds that
7the application is in conformity with its requirements and the
8requirements of this Article, participation by the applicant
9shall commence on a date acceptable to the municipality and
10specified by the Board, but in no event more than one year from
11the date of application.
12    (c) A participating municipality which succeeds to the
13functions of a participating municipality which is dissolved or
14terminates its existence shall assume and be transferred the
15net accumulation balance in the municipality reserve and the
16municipality account receivable balance of the terminated
17municipality.
18    (d) In the case of a Veterans Assistance Commission whose
19employees were being treated by the Fund on January 1, 1990 as
20employees of the county served by the Commission, the Fund may
21continue to treat the employees of the Veterans Assistance
22Commission as county employees for the purposes of this
23Article, unless the Commission becomes a participating
24instrumentality in accordance with subsection (B) of this
25Section.
 

 

 

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1(B) Participating instrumentalities.
2    (a) The participating instrumentalities designated in
3paragraph (b) of this subsection shall be included within and
4be subject to this Article if:
5        (1) an application to participate, in a form acceptable
6    to the Board and adopted by a two-thirds vote of the
7    governing body, is presented to the Board not later than 90
8    days prior to the proposed effective date; and
9        (2) the Board finds that the application is in
10    conformity with its requirements, that the applicant has
11    reasonable expectation to continue as a political entity
12    for a period of at least 10 years and has the prospective
13    financial capacity to meet its current and future
14    obligations to the Fund, and that the actuarial soundness
15    of the Fund may be reasonably expected to be unimpaired by
16    approval of participation by the applicant.
17    The Board shall notify the applicant of its findings within
1890 days after receiving the application, and if the Board
19approves the application, participation by the applicant shall
20commence on the effective date specified by the Board.
21    (b) The following participating instrumentalities, so long
22as they meet the requirements of Section 7-108 and the area
23served by them or within their jurisdiction is not located
24entirely within a municipality having more than one million
25inhabitants, may be included hereunder:
26        i. Township School District Trustees.

 

 

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1        ii. Multiple County and Consolidated Health
2    Departments created under Division 5-25 of the Counties
3    Code or its predecessor law.
4        iii. Public Building Commissions created under the
5    Public Building Commission Act, and located in counties of
6    less than 1,000,000 inhabitants.
7        iv. A multitype, consolidated or cooperative library
8    system created under the Illinois Library System Act. Any
9    library system created under the Illinois Library System
10    Act that has one or more predecessors that participated in
11    the Fund may participate in the Fund upon application. The
12    Board shall establish procedures for implementing the
13    transfer of rights and obligations from the predecessor
14    system to the successor system.
15        v. Regional Planning Commissions created under
16    Division 5-14 of the Counties Code or its predecessor law.
17        vi. Local Public Housing Authorities created under the
18    Housing Authorities Act, located in counties of less than
19    1,000,000 inhabitants.
20        vii. Illinois Municipal League, but only with respect
21    to service on or before the effective date of this
22    amendatory Act of the 97th General Assembly.
23        viii. Northeastern Illinois Metropolitan Area Planning
24    Commission.
25        ix. Southwestern Illinois Metropolitan Area Planning
26    Commission.

 

 

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1        x. Illinois Association of Park Districts.
2        xi. Illinois Supervisors, County Commissioners and
3    Superintendents of Highways Association.
4        xii. Tri-City Regional Port District.
5        xiii. An association, or not-for-profit corporation,
6    membership in which is authorized under Section 85-15 of
7    the Township Code.
8        xiv. Drainage Districts operating under the Illinois
9    Drainage Code.
10        xv. Local mass transit districts created under the
11    Local Mass Transit District Act.
12        xvi. Soil and water conservation districts created
13    under the Soil and Water Conservation Districts Law.
14        xvii. Commissions created to provide water supply or
15    sewer services or both under Division 135 or Division 136
16    of Article 11 of the Illinois Municipal Code.
17        xviii. Public water districts created under the Public
18    Water District Act.
19        xix. Veterans Assistance Commissions established under
20    Section 9 of the Military Veterans Assistance Act that
21    serve counties with a population of less than 1,000,000.
22        xx. The governing body of an entity, other than a
23    vocational education cooperative, created under an
24    intergovernmental cooperative agreement established
25    between participating municipalities under the
26    Intergovernmental Cooperation Act, which by the terms of

 

 

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1    the agreement is the employer of the persons performing
2    services under the agreement under the usual common law
3    rules determining the employer-employee relationship. The
4    governing body of such an intergovernmental cooperative
5    entity established prior to July 1, 1988 may make
6    participation retroactive to the effective date of the
7    agreement and, if so, the effective date of participation
8    shall be the date the required application is filed with
9    the fund. If any such entity is unable to pay the required
10    employer contributions to the fund, then the participating
11    municipalities shall make payment of the required
12    contributions and the payments shall be allocated as
13    provided in the agreement or, if not so provided, equally
14    among them.
15        xxi. The Illinois Municipal Electric Agency.
16        xxii. The Waukegan Port District.
17        xxiii. The Fox Waterway Agency created under the Fox
18    Waterway Agency Act.
19        xxiv. The Illinois Municipal Gas Agency.
20        xxv. The Kaskaskia Regional Port District.
21        xxvi. The Southwestern Illinois Development Authority.
22        xxvii. The Cairo Public Utility Company.
23        xxviii. Except with respect to employees who elect to
24    participate in the State Employees' Retirement System of
25    Illinois under Section 14-104.13 of this Code, the Chicago
26    Metropolitan Agency for Planning created under the

 

 

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1    Regional Planning Act, provided that, with respect to the
2    benefits payable pursuant to Sections 7-146, 7-150, and
3    7-164 and the requirement that eligibility for such
4    benefits is conditional upon satisfying a minimum period of
5    service or a minimum contribution, any employee of the
6    Chicago Metropolitan Agency for Planning that was
7    immediately prior to such employment an employee of the
8    Chicago Area Transportation Study or the Northeastern
9    Illinois Planning Commission, such employee's service at
10    the Chicago Area Transportation Study or the Northeastern
11    Illinois Planning Commission and contributions to the
12    State Employees' Retirement System of Illinois established
13    under Article 14 and the Illinois Municipal Retirement Fund
14    shall count towards the satisfaction of such requirements.
15        xxix. United Counties Council (formerly the Urban
16    Counties Council), but only if the Council has a ruling
17    from the United States Internal Revenue Service that it is
18    a governmental entity.
19        xxx. The Will County Governmental League, but only if
20    the League has a ruling from the United States Internal
21    Revenue Service that it is a governmental entity and only
22    with respect to service on or before the effective date of
23    this amendatory Act of the 97th General Assembly.
24    (c) The governing boards of special education joint
25agreements created under Section 10-22.31 of the School Code
26without designation of an administrative district shall be

 

 

SB2499- 29 -LRB097 13622 AMC 58158 b

1included within and be subject to this Article as participating
2instrumentalities when the joint agreement becomes effective.
3However, the governing board of any such special education
4joint agreement in effect before September 5, 1975 shall not be
5subject to this Article unless the joint agreement is modified
6by the school districts to provide that the governing board is
7subject to this Article, except as otherwise provided by this
8Section.
9    The governing board of the Special Education District of
10Lake County shall become subject to this Article as a
11participating instrumentality on July 1, 1997. Notwithstanding
12subdivision (a)1 of Section 7-139, on the effective date of
13participation, employees of the governing board of the Special
14Education District of Lake County shall receive creditable
15service for their prior service with that employer, up to a
16maximum of 5 years, without any employee contribution.
17Employees may establish creditable service for the remainder of
18their prior service with that employer, if any, by applying in
19writing and paying an employee contribution in an amount
20determined by the Fund, based on the employee contribution
21rates in effect at the time of application for the creditable
22service and the employee's salary rate on the effective date of
23participation for that employer, plus interest at the effective
24rate from the date of the prior service to the date of payment.
25Application for this creditable service must be made before
26July 1, 1998; the payment may be made at any time while the

 

 

SB2499- 30 -LRB097 13622 AMC 58158 b

1employee is still in service. The employer may elect to make
2the required contribution on behalf of the employee.
3    The governing board of a special education joint agreement
4created under Section 10-22.31 of the School Code for which an
5administrative district has been designated, if there are
6employees of the cooperative educational entity who are not
7employees of the administrative district, may elect to
8participate in the Fund and be included within this Article as
9a participating instrumentality, subject to such application
10procedures and rules as the Board may prescribe.
11    The Boards of Control of cooperative or joint educational
12programs or projects created and administered under Section
133-15.14 of the School Code, whether or not the Boards act as
14their own administrative district, shall be included within and
15be subject to this Article as participating instrumentalities
16when the agreement establishing the cooperative or joint
17educational program or project becomes effective.
18    The governing board of a special education joint agreement
19entered into after June 30, 1984 and prior to September 17,
201985 which provides for representation on the governing board
21by less than all the participating districts shall be included
22within and subject to this Article as a participating
23instrumentality. Such participation shall be effective as of
24the date the joint agreement becomes effective.
25    The governing boards of educational service centers
26established under Section 2-3.62 of the School Code shall be

 

 

SB2499- 31 -LRB097 13622 AMC 58158 b

1included within and subject to this Article as participating
2instrumentalities. The governing boards of vocational
3education cooperative agreements created under the
4Intergovernmental Cooperation Act and approved by the State
5Board of Education shall be included within and be subject to
6this Article as participating instrumentalities. If any such
7governing boards or boards of control are unable to pay the
8required employer contributions to the fund, then the school
9districts served by such boards shall make payment of required
10contributions as provided in Section 7-172. The payments shall
11be allocated among the several school districts in proportion
12to the number of students in average daily attendance for the
13last full school year for each district in relation to the
14total number of students in average attendance for such period
15for all districts served. If such educational service centers,
16vocational education cooperatives or cooperative or joint
17educational programs or projects created and administered
18under Section 3-15.14 of the School Code are dissolved, the
19assets and obligations shall be distributed among the districts
20in the same proportions unless otherwise provided.
21    The governing board of Paris Cooperative High School shall
22be included within and be subject to this Article as a
23participating instrumentality on the effective date of this
24amendatory Act of the 96th General Assembly. If the governing
25board of Paris Cooperative High School is unable to pay the
26required employer contributions to the fund, then the school

 

 

SB2499- 32 -LRB097 13622 AMC 58158 b

1districts served shall make payment of required contributions
2as provided in Section 7-172. The payments shall be allocated
3among the several school districts in proportion to the number
4of students in average daily attendance for the last full
5school year for each district in relation to the total number
6of students in average attendance for such period for all
7districts served. If Paris Cooperative High School is
8dissolved, then the assets and obligations shall be distributed
9among the districts in the same proportions unless otherwise
10provided.
11    Financial Oversight Panels established under Article 1H of
12the School Code shall be included within and be subject to this
13Article as a participating instrumentality on the effective
14date of this amendatory Act of the 97th General Assembly. If
15the Financial Oversight Panel is unable to pay the required
16employer contributions to the fund, then the school districts
17served shall make payment of required contributions as provided
18in Section 7-172. If the Financial Oversight Panel is
19dissolved, then the assets and obligations shall be distributed
20to the district served.
21    (d) The governing boards of special recreation joint
22agreements created under Section 8-10b of the Park District
23Code, operating without designation of an administrative
24district or an administrative municipality appointed to
25administer the program operating under the authority of such
26joint agreement shall be included within and be subject to this

 

 

SB2499- 33 -LRB097 13622 AMC 58158 b

1Article as participating instrumentalities when the joint
2agreement becomes effective. However, the governing board of
3any such special recreation joint agreement in effect before
4January 1, 1980 shall not be subject to this Article unless the
5joint agreement is modified, by the districts and
6municipalities which are parties to the agreement, to provide
7that the governing board is subject to this Article.
8    If the Board returns any employer and employee
9contributions to any employer which erroneously submitted such
10contributions on behalf of a special recreation joint
11agreement, the Board shall include interest computed from the
12end of each year to the date of payment, not compounded, at the
13rate of 7% per annum.
14    (e) Each multi-township assessment district, the board of
15trustees of which has adopted this Article by ordinance prior
16to April 1, 1982, shall be a participating instrumentality
17included within and subject to this Article effective December
181, 1981. The contributions required under Section 7-172 shall
19be included in the budget prepared under and allocated in
20accordance with Section 2-30 of the Property Tax Code.
21    (f) The Illinois Medical District Commission created under
22the Illinois Medical District Act may be included within and
23subject to this Article as a participating instrumentality,
24notwithstanding that the location of the District is entirely
25within the City of Chicago. To become a participating
26instrumentality, the Commission must apply to the Board in the

 

 

SB2499- 34 -LRB097 13622 AMC 58158 b

1manner set forth in paragraph (a) of this subsection (B). If
2the Board approves the application, under the criteria and
3procedures set forth in paragraph (a) and any other applicable
4rules, criteria, and procedures of the Board, participation by
5the Commission shall commence on the effective date specified
6by the Board.
 
7(C) Prospective participants.
8     Beginning January 1, 1992, each prospective participating
9municipality or participating instrumentality shall pay to the
10Fund the cost, as determined by the Board, of a study prepared
11by the Fund or its actuary, detailing the prospective costs of
12participation in the Fund to be expected by the municipality or
13instrumentality.
14(Source: P.A. 96-211, eff. 8-10-09; 96-551, eff. 8-17-09;
1596-1000, eff. 7-2-10; 96-1046, eff. 7-14-10; 97-429, eff.
168-16-11.)
 
17    (40 ILCS 5/8-226)  (from Ch. 108 1/2, par. 8-226)
18    Sec. 8-226. Computation of service. In computing the term
19of service of an employee prior to the effective date, the
20entire period beginning on the date he was first appointed and
21ending on the day before the effective date, except any
22intervening period during which he was separated by withdrawal
23from service, shall be counted for all purposes of this
24Article, except that for any employee who was not in service on

 

 

SB2499- 35 -LRB097 13622 AMC 58158 b

1the day before the effective date, service rendered prior to
2such date shall not be considered for the purposes of Section
38-138.
4    For a person employed by an employer for whom this Article
5was in effect prior to January 1, 1950, from whose salary
6deductions are first made under this Article after December 31,
71949, any period of service rendered prior to the effective
8date, unless he was in service on the day before the effective
9date, shall not be counted as service.
10    The time a person was an employee of any territory annexed
11to the city prior to the effective date shall be counted as a
12period of service.
13    In computing the term of service of any employee subsequent
14to the day before the effective date, the following periods
15shall be counted as periods of service for age and service,
16widow's and child's annuity purposes:
17        (a) The time during which he performed the duties of
18    his position;
19        (b) Vacations, leaves of absence with whole or part
20    pay, and leaves of absence without pay not longer than 90
21    days;
22        (c) Leaves of absence without pay during which a
23    participant is employed full-time by a local labor
24    organization that represents municipal employees, provided
25    that (1) the participant continues to make employee
26    contributions to the Fund as though he were an active

 

 

SB2499- 36 -LRB097 13622 AMC 58158 b

1    employee, based on the regular salary rate received by the
2    participant for his municipal employment immediately prior
3    to such leave of absence (and in the case of such
4    employment prior to December 9, 1987, pays to the Fund an
5    amount equal to the employee contributions for such
6    employment plus regular interest thereon as calculated by
7    the board), and based on his current salary with such labor
8    organization after the effective date of this amendatory
9    Act of 1991, (2) after January 1, 1989 the participant, or
10    the labor organization on the participant's behalf, makes
11    contributions to the Fund as though it were the employer,
12    in the same amount and same manner as specified under this
13    Article, based on the regular salary rate received by the
14    participant for his municipal employment immediately prior
15    to such leave of absence, and based on his current salary
16    with such labor organization after the effective date of
17    this amendatory Act of 1991, and (3) the participant does
18    not receive credit in any pension plan established by the
19    local labor organization based on his employment by the
20    organization, and (4) the employee and employer
21    contributions for the service is received by the Fund
22    before the effective date of this amendatory Act of the
23    97th General Assembly;
24        (d) Any period of disability for which he received (i)
25    a disability benefit under this Article, or (ii) a
26    temporary total disability benefit under the Workers'

 

 

SB2499- 37 -LRB097 13622 AMC 58158 b

1    Compensation Act if the disability results from a condition
2    commonly termed heart attack or stroke or any other
3    condition falling within the broad field of coronary
4    involvement or heart disease, or (iii) whole or part pay;
5        (e) Any period for which contributions and service
6    credit have been transferred to this Fund under subsection
7    (d) of Section 9-121.1 or subsection (d) of Section
8    12-127.1 of this Code.
9    For a person employed by an employer in which the 1921 Act
10was in effect prior to January 1, 1950, from whose salary
11deductions are first made under the 1921 Act or this Article
12after December 31, 1949, any period of service rendered
13subsequent to the effective date and prior to the date he
14became an employee and contributor, shall not be counted as a
15period of service under this Article, except such period for
16which he made payment as provided in Section 8-230 of this
17Article, in which case such period shall be counted as a period
18of service for all annuity purposes hereunder.
19    In computing the term of service of an employee subsequent
20to the day before the effective date for ordinary disability
21benefit purposes, all periods described in the preceding
22paragraph, except any such period for which he receives
23ordinary disability benefit, shall be counted as periods of
24service; provided, that for any person employed by an employer
25in which this Article was in effect prior to January 1, 1950,
26from whose salary deductions are first made under this Article

 

 

SB2499- 38 -LRB097 13622 AMC 58158 b

1after December 31, 1949, any period of service rendered
2subsequent to the effective date and prior to the date he
3became an employee and contributor, shall not be counted as a
4period of service for ordinary disability benefit purposes,
5unless the person made payment for the period as provided in
6Section 8-230 of this Article, in which case the period shall
7be counted as a period of service for ordinary disability
8purposes for periods of disability on or after the effective
9date of this amendatory Act of 1997.
10    Overtime or extra service shall not be included in
11computing any term of service. Not more than 1 year of service
12shall be allowed for service rendered during any calendar year.
13(Source: P.A. 90-511, eff. 8-22-97.)
 
14    (40 ILCS 5/11-215)  (from Ch. 108 1/2, par. 11-215)
15    Sec. 11-215. Computation of service.
16    (a) In computing the term of service of an employee prior
17to the effective date, the entire period beginning on the date
18he was first appointed and ending on the day before the
19effective date, except any intervening period during which he
20was separated by withdrawal from service, shall be counted for
21all purposes of this Article. Only the first year of each
22period of lay-off or leave of absence without pay, continuing
23or extending for a period in excess of one year, shall be
24counted as such service.
25    (b) For a person employed by an employer for whom this

 

 

SB2499- 39 -LRB097 13622 AMC 58158 b

1Article was in effect prior to August 1, 1949, from whose
2salary deductions are first made under this Article after July
331, 1949, any period of service rendered prior to the effective
4date, unless he was in service on the day before the effective
5date, shall not be counted as service.
6    (c) In computing the term of service of an employee
7subsequent to the day before the effective date, the following
8periods of time shall be counted as periods of service for
9annuity purposes:
10        (1) the time during which he performed the duties of
11    his position;
12        (2) leaves of absence with whole or part pay, and
13    leaves of absence without pay not longer than 90 days;
14        (3) leaves of absence without pay during which a
15    participant is employed full-time by a local labor
16    organization that represents municipal employees, provided
17    that (A) the participant continues to make employee
18    contributions to the Fund as though he were an active
19    employee, based on the regular salary rate received by the
20    participant for his municipal employment immediately prior
21    to such leave of absence (and in the case of such
22    employment prior to December 9, 1987, pays to the Fund an
23    amount equal to the employee contributions for such
24    employment plus regular interest thereon as calculated by
25    the board), and based on his current salary with such labor
26    organization after the effective date of this amendatory

 

 

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1    Act of 1991, (B) after January 1, 1989 the participant, or
2    the labor organization on the participant's behalf, makes
3    contributions to the Fund as though it were the employer,
4    in the same amount and same manner as specified under this
5    Article, based on the regular salary rate received by the
6    participant for his municipal employment immediately prior
7    to such leave of absence, and based on his current salary
8    with such labor organization after the effective date of
9    this amendatory Act of 1991, and (C) the participant does
10    not receive credit in any pension plan established by the
11    local labor organization based on his employment by the
12    organization, and (D) the employee and employer
13    contributions for the service is received by the Fund
14    before the effective date of this amendatory Act of the
15    97th General Assembly;
16        (4) any period of disability for which he received (i)
17    a disability benefit under this Article, or (ii) a
18    temporary total disability benefit under the Workers'
19    Compensation Act if the disability results from a condition
20    commonly termed heart attack or stroke or any other
21    condition falling within the broad field of coronary
22    involvement or heart disease, or (iii) whole or part pay.
23    (d) For a person employed by an employer, or the retirement
24board, in which "The 1935 Act" was in effect prior to August 1,
251949, from whose salary deductions are first made under "The
261935 Act" or this Article after July 31, 1949, any period of

 

 

SB2499- 41 -LRB097 13622 AMC 58158 b

1service rendered subsequent to the effective date and prior to
2August 1, 1949, shall not be counted as a period of service
3under this Article, except such period for which he made
4payment, as provided in Section 11-221 of this Article, in
5which case such period shall be counted as a period of service
6for all annuity purposes hereunder.
7    (e) In computing the term of service of an employee
8subsequent to the day before the effective date for ordinary
9disability benefit purposes, the following periods of time
10shall be counted as periods of service:
11        (1) any period during which he performed the duties of
12    his position;
13        (2) leaves of absence with whole or part pay;
14        (3) any period of disability for which he received (i)
15    a duty disability benefit under this Article, or (ii) a
16    temporary total disability benefit under the Workers'
17    Compensation Act if the disability results from a condition
18    commonly termed heart attack or stroke or any other
19    condition falling within the broad field of coronary
20    involvement or heart disease, or (iii) whole or part pay.
21    However, any period of service rendered by an employee
22contributor prior to the date he became a contributor to the
23fund shall not be counted as a period of service for ordinary
24disability purposes, unless the person made payment for the
25period as provided in Section 11-221 of this Article, in which
26case the period shall be counted as a period of service for

 

 

SB2499- 42 -LRB097 13622 AMC 58158 b

1ordinary disability purposes for periods of disability on or
2after the effective date of this amendatory Act of 1997.
3    Overtime or extra service shall not be included in
4computing any term of service. Not more than 1 year of service
5shall be allowed for service rendered during any calendar year.
6(Source: P.A. 90-511, eff. 8-22-97.)
 
7    (40 ILCS 5/15-107)  (from Ch. 108 1/2, par. 15-107)
8    Sec. 15-107. Employee.
9    (a) "Employee" means any member of the educational,
10administrative, secretarial, clerical, mechanical, labor or
11other staff of an employer whose employment is permanent and
12continuous or who is employed in a position in which services
13are expected to be rendered on a continuous basis for at least
144 months or one academic term, whichever is less, who (A)
15receives payment for personal services on a warrant issued
16pursuant to a payroll voucher certified by an employer and
17drawn by the State Comptroller upon the State Treasurer or by
18an employer upon trust, federal or other funds, or (B) is on a
19leave of absence without pay. Employment which is irregular,
20intermittent or temporary shall not be considered continuous
21for purposes of this paragraph.
22    However, a person is not an "employee" if he or she:
23        (1) is a student enrolled in and regularly attending
24    classes in a college or university which is an employer,
25    and is employed on a temporary basis at less than full

 

 

SB2499- 43 -LRB097 13622 AMC 58158 b

1    time;
2        (2) is currently receiving a retirement annuity or a
3    disability retirement annuity under Section 15-153.2 from
4    this System;
5        (3) is on a military leave of absence;
6        (4) is eligible to participate in the Federal Civil
7    Service Retirement System and is currently making
8    contributions to that system based upon earnings paid by an
9    employer;
10        (5) is on leave of absence without pay for more than 60
11    days immediately following termination of disability
12    benefits under this Article;
13        (6) is hired after June 30, 1979 as a public service
14    employment program participant under the Federal
15    Comprehensive Employment and Training Act and receives
16    earnings in whole or in part from funds provided under that
17    Act; or
18        (7) is employed on or after July 1, 1991 to perform
19    services that are excluded by subdivision (a)(7)(f) or
20    (a)(19) of Section 210 of the federal Social Security Act
21    from the definition of employment given in that Section (42
22    U.S.C. 410).
23    (b) Any employer may, by filing a written notice with the
24board, exclude from the definition of "employee" all persons
25employed pursuant to a federally funded contract entered into
26after July 1, 1982 with a federal military department in a

 

 

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1program providing training in military courses to federal
2military personnel on a military site owned by the United
3States Government, if this exclusion is not prohibited by the
4federally funded contract or federal laws or rules governing
5the administration of the contract.
6    (c) Any person appointed by the Governor under the Civil
7Administrative Code of the State is an employee, if he or she
8is a participant in this system on the effective date of the
9appointment.
10    (d) A participant on lay-off status under civil service
11rules is considered an employee for not more than 120 days from
12the date of the lay-off.
13    (e) A participant is considered an employee during (1) the
14first 60 days of disability leave, (2) the period, not to
15exceed one year, in which his or her eligibility for disability
16benefits is being considered by the board or reviewed by the
17courts, and (3) the period he or she receives disability
18benefits under the provisions of Section 15-152, workers'
19compensation or occupational disease benefits, or disability
20income under an insurance contract financed wholly or partially
21by the employer.
22    (f) Absences without pay, other than formal leaves of
23absence, of less than 30 calendar days, are not considered as
24an interruption of a person's status as an employee. If such
25absences during any period of 12 months exceed 30 work days,
26the employee status of the person is considered as interrupted

 

 

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1as of the 31st work day.
2    (g) A staff member whose employment contract requires
3services during an academic term is to be considered an
4employee during the summer and other vacation periods, unless
5he or she declines an employment contract for the succeeding
6academic term or his or her employment status is otherwise
7terminated, and he or she receives no earnings during these
8periods.
9    (h) An individual who was a participating employee employed
10in the fire department of the University of Illinois's
11Champaign-Urbana campus immediately prior to the elimination
12of that fire department and who immediately after the
13elimination of that fire department became employed by the fire
14department of the City of Urbana or the City of Champaign shall
15continue to be considered as an employee for purposes of this
16Article for so long as the individual remains employed as a
17firefighter by the City of Urbana or the City of Champaign. The
18individual shall cease to be considered an employee under this
19subsection (h) upon the first termination of the individual's
20employment as a firefighter by the City of Urbana or the City
21of Champaign.
22    (i) An individual who is employed on a full-time basis as
23an officer or employee of a statewide teacher organization that
24serves System participants or an officer of a national teacher
25organization that serves System participants may participate
26in the System and shall be deemed an employee, provided that

 

 

SB2499- 46 -LRB097 13622 AMC 58158 b

1(1) the individual has previously earned creditable service
2under this Article, (2) the individual files with the System an
3irrevocable election to become a participant, and (3) the
4individual does not receive credit for that employment under
5any other Article of this Code and (4) the employee and
6employer contribution for the service is received by the Fund
7before the effective date of this amendatory Act of the 97th
8General Assembly. An employee under this subsection (i) is
9responsible for paying to the System both (A) employee
10contributions based on the actual compensation received for
11service with the teacher organization and (B) employer
12contributions equal to the normal costs (as defined in Section
1315-155) resulting from that service; all or any part of these
14contributions may be paid on the employee's behalf or picked up
15for tax purposes (if authorized under federal law) by the
16teacher organization.
17    A person who is an employee as defined in this subsection
18(i) may establish service credit for similar employment prior
19to becoming an employee under this subsection by paying to the
20System for that employment the contributions specified in this
21subsection, plus interest at the effective rate from the date
22of service to the date of payment. However, credit shall not be
23granted under this subsection for any such prior employment for
24which the applicant received credit under any other provision
25of this Code, or during which the applicant was on a leave of
26absence under Section 15-113.2.

 

 

SB2499- 47 -LRB097 13622 AMC 58158 b

1    (j) A person employed by the State Board of Higher
2Education in a position with the Illinois Century Network as of
3June 30, 2004 shall be considered to be an employee for so long
4as he or she remains continuously employed after that date by
5the Department of Central Management Services in a position
6with the Illinois Century Network, the Bureau of Communication
7and Computer Services, or, if applicable, any successor bureau
8and meets the requirements of subsection (a).
9(Source: P.A. 95-369, eff. 8-23-07.)
 
10    (40 ILCS 5/16-106)  (from Ch. 108 1/2, par. 16-106)
11    Sec. 16-106. Teacher. "Teacher": The following
12individuals, provided that, for employment prior to July 1,
131990, they are employed on a full-time basis, or if not
14full-time, on a permanent and continuous basis in a position in
15which services are expected to be rendered for at least one
16school term:
17        (1) Any educational, administrative, professional or
18    other staff employed in the public common schools included
19    within this system in a position requiring certification
20    under the law governing the certification of teachers;
21        (2) Any educational, administrative, professional or
22    other staff employed in any facility of the Department of
23    Children and Family Services or the Department of Human
24    Services, in a position requiring certification under the
25    law governing the certification of teachers, and any person

 

 

SB2499- 48 -LRB097 13622 AMC 58158 b

1    who (i) works in such a position for the Department of
2    Corrections, (ii) was a member of this System on May 31,
3    1987, and (iii) did not elect to become a member of the
4    State Employees' Retirement System pursuant to Section
5    14-108.2 of this Code; except that "teacher" does not
6    include any person who (A) becomes a security employee of
7    the Department of Human Services, as defined in Section
8    14-110, after June 28, 2001 (the effective date of Public
9    Act 92-14), or (B) becomes a member of the State Employees'
10    Retirement System pursuant to Section 14-108.2c of this
11    Code;
12        (3) Any regional superintendent of schools, assistant
13    regional superintendent of schools, State Superintendent
14    of Education; any person employed by the State Board of
15    Education as an executive; any executive of the boards
16    engaged in the service of public common school education in
17    school districts covered under this system of which the
18    State Superintendent of Education is an ex-officio member;
19        (4) Any employee of a school board association
20    operating in compliance with Article 23 of the School Code
21    who is certificated under the law governing the
22    certification of teachers;
23        (5) Any person employed by the retirement system who:
24            (i) was an employee of and a participant in the
25        system on August 17, 2001 (the effective date of Public
26        Act 92-416), or

 

 

SB2499- 49 -LRB097 13622 AMC 58158 b

1            (ii) becomes an employee of the system on or after
2        August 17, 2001;
3        (6) Any educational, administrative, professional or
4    other staff employed by and under the supervision and
5    control of a regional superintendent of schools, provided
6    such employment position requires the person to be
7    certificated under the law governing the certification of
8    teachers and is in an educational program serving 2 or more
9    districts in accordance with a joint agreement authorized
10    by the School Code or by federal legislation;
11        (7) Any educational, administrative, professional or
12    other staff employed in an educational program serving 2 or
13    more school districts in accordance with a joint agreement
14    authorized by the School Code or by federal legislation and
15    in a position requiring certification under the laws
16    governing the certification of teachers;
17        (8) Any officer or employee of a statewide teacher
18    organization or officer of a national teacher organization
19    who is certified under the law governing certification of
20    teachers, provided: (i) the individual had previously
21    established creditable service under this Article, (ii)
22    the individual files with the system an irrevocable
23    election to become a member, and (iii) the individual does
24    not receive credit for such service under any other Article
25    of this Code, and (iv) the employee and employer
26    contributions for the service is received by the Fund

 

 

SB2499- 50 -LRB097 13622 AMC 58158 b

1    before the effective date of this amendatory Act of the
2    97th General Assembly;
3        (9) Any educational, administrative, professional, or
4    other staff employed in a charter school operating in
5    compliance with the Charter Schools Law who is certificated
6    under the law governing the certification of teachers.
7        (10) Any person employed, on the effective date of this
8    amendatory Act of the 94th General Assembly, by the
9    Macon-Piatt Regional Office of Education in a
10    birth-through-age-three pilot program receiving funds
11    under Section 2-389 of the School Code who is required by
12    the Macon-Piatt Regional Office of Education to hold a
13    teaching certificate, provided that the Macon-Piatt
14    Regional Office of Education makes an election, within 6
15    months after the effective date of this amendatory Act of
16    the 94th General Assembly, to have the person participate
17    in the system. Any service established prior to the
18    effective date of this amendatory Act of the 94th General
19    Assembly for service as an employee of the Macon-Piatt
20    Regional Office of Education in a birth-through-age-three
21    pilot program receiving funds under Section 2-389 of the
22    School Code shall be considered service as a teacher if
23    employee and employer contributions have been received by
24    the system and the system has not refunded those
25    contributions.
26    An annuitant receiving a retirement annuity under this

 

 

SB2499- 51 -LRB097 13622 AMC 58158 b

1Article or under Article 17 of this Code who is employed by a
2board of education or other employer as permitted under Section
316-118 or 16-150.1 is not a "teacher" for purposes of this
4Article. A person who has received a single-sum retirement
5benefit under Section 16-136.4 of this Article is not a
6"teacher" for purposes of this Article.
7    A person who is a teacher as described in item (8) of this
8Section may establish service credit for similar employment
9prior to becoming certified as a teacher if he or she (i) is
10certified as a teacher on or before the effective date of this
11amendatory Act of the 94th General Assembly, (ii) applies in
12writing to the system within 6 months after the effective date
13of this amendatory Act of the 94th General Assembly, and (iii)
14pays to the system contributions equal to the normal costs
15calculated from the date of first full-time employment as
16described in item (8) to the date of payment, compounded
17annually at the rate of 8.5% per year for periods before the
18effective date of this amendatory Act of the 94th General
19Assembly and for subsequent periods at a rate equal to the
20System's actuarially assumed rate of return on investments, and
21(iv) the employee and employer contributions for the service is
22received by the Fund before the effective date of this
23amendatory Act of the 97th General Assembly. However, credit
24shall not be granted under this paragraph for any such prior
25employment for which the applicant received credit under any
26other provision of this Code.

 

 

SB2499- 52 -LRB097 13622 AMC 58158 b

1(Source: P.A. 93-320, eff. 7-23-03; 94-1111, eff. 2-27-07.)
 
2    (40 ILCS 5/17-134)  (from Ch. 108 1/2, par. 17-134)
3    Sec. 17-134. Contributions for leaves of absence; military
4service; computing service. In computing service for pension
5purposes the following periods of service shall stand in lieu
6of a like number of years of teaching service upon payment
7therefor in the manner hereinafter provided: (a) time spent on
8a leave of absence granted by the employer; (b) service with
9teacher or labor organizations based upon special leaves of
10absence therefor granted by an Employer; (c) a maximum of 5
11years spent in the military service of the United States, of
12which up to 2 years may have been served outside the pension
13period; (d) unused sick days at termination of service to a
14maximum of 244 days; (e) time lost due to layoff and
15curtailment of the school term from June 6 through June 21,
161976; and (f) time spent after June 30, 1982 as a member of the
17Board of Education, if required to resign from an
18administrative or teaching position in order to qualify as a
19member of the Board of Education.
20        (1) For time spent on or after September 6, 1948 on
21    sabbatical leaves of absence or sick leaves, for which
22    salaries are paid, an Employer shall make payroll
23    deductions at the applicable rates in effect during such
24    periods.
25        (2) For time spent on a leave of absence granted by the

 

 

SB2499- 53 -LRB097 13622 AMC 58158 b

1    employer for which no salaries are paid, teachers desiring
2    credit therefor shall pay the required contributions at the
3    rates in effect during such periods as though they were in
4    teaching service. If an Employer pays salary for vacations
5    which occur during a teacher's sick leave or maternity or
6    paternity leave without salary, vacation pay for which the
7    teacher would have qualified while in active service shall
8    be considered part of the teacher's total salary for
9    pension purposes. No more than 36 months of leave credit
10    may be allowed any person during the entire term of
11    service. Sabbatical leave credit shall be limited to the
12    time the person on leave without salary under an Employer's
13    rules is allowed to engage in an activity for which he
14    receives salary or compensation.
15        (3) For time spent prior to September 6, 1948, on
16    sabbatical leaves of absence or sick leaves for which
17    salaries were paid, teachers desiring service credit
18    therefor shall pay the required contributions at the
19    maximum applicable rates in effect during such periods.
20        (4) For service with teacher or labor organizations
21    authorized by special leaves of absence, for which no
22    payroll deductions are made by an Employer, teachers
23    desiring service credit therefor shall contribute to the
24    Fund upon the basis of the actual salary received from such
25    organizations at the percentage rates in effect during such
26    periods for certified positions with such Employer. To the

 

 

SB2499- 54 -LRB097 13622 AMC 58158 b

1    extent the actual salary exceeds the regular salary, which
2    shall be defined as the salary rate, as calculated by the
3    Board, in effect for the teacher's regular position in
4    teaching service on September 1, 1983 or on the effective
5    date of the leave with the organization, whichever is
6    later, the organization shall pay to the Fund the
7    employer's normal cost as set by the Board on the
8    increment. Notwithstanding any other provision of this
9    subdivision (4), teachers are only entitled to credit for
10    service under this subdivision (4) if the employee and
11    employer contributions for the service is received by the
12    System before the effective date of this amendatory Act of
13    the 97th General Assembly.
14        (5) For time spent in the military service, teachers
15    entitled to and desiring credit therefor shall contribute
16    the amount required for each year of service or fraction
17    thereof at the rates in force (a) at the date of
18    appointment, or (b) on return to teaching service as a
19    regularly certified teacher, as the case may be; provided
20    such rates shall not be less than $450 per year of service.
21    These conditions shall apply unless an Employer elects to
22    and does pay into the Fund the amount which would have been
23    due from such person had he been employed as a teacher
24    during such time. In the case of credit for military
25    service not during the pension period, the teacher must
26    also pay to the Fund an amount determined by the Board to

 

 

SB2499- 55 -LRB097 13622 AMC 58158 b

1    be equal to the employer's normal cost of the benefits
2    accrued from such service, plus interest thereon at 5% per
3    year, compounded annually, from the date of appointment to
4    the date of payment.
5        The changes to this Section made by Public Act 87-795
6    shall apply not only to persons who on or after its
7    effective date are in service under the Fund, but also to
8    persons whose status as a teacher terminated prior to that
9    date, whether or not the person is an annuitant on that
10    date. In the case of an annuitant who applies for credit
11    allowable under this Section for a period of military
12    service that did not immediately follow employment, and who
13    has made the required contributions for such credit, the
14    annuity shall be recalculated to include the additional
15    service credit, with the increase taking effect on the date
16    the Fund received written notification of the annuitant's
17    intent to purchase the credit, if payment of all the
18    required contributions is made within 60 days of such
19    notice, or else on the first annuity payment date following
20    the date of payment of the required contributions. In
21    calculating the automatic annual increase for an annuity
22    that has been recalculated under this Section, the increase
23    attributable to the additional service allowable under
24    this amendatory Act of 1991 shall be included in the
25    calculation of automatic annual increases accruing after
26    the effective date of the recalculation.

 

 

SB2499- 56 -LRB097 13622 AMC 58158 b

1        The total credit for military service shall not exceed
2    5 years, except that any teacher who on July 1, 1963, had
3    validated credit for more than 5 years of military service
4    shall be entitled to the total amount of such credit.
5        (6) A maximum of 244 unused sick days credited to his
6    account by an Employer on the date of termination of
7    employment. Members, upon verification of unused sick
8    days, may add this service time to total creditable
9    service.
10        (7) In all cases where time spent on leave is
11    creditable and no payroll deductions therefor are made by
12    an Employer, persons desiring service credit shall make the
13    required contributions directly to the Fund.
14        (8) For time lost without pay due to layoff and
15    curtailment of the school term from June 6 through June 21,
16    1976, as provided in item (e) of the first paragraph of
17    this Section, persons who were contributors on the days
18    immediately preceding such layoff shall receive credit
19    upon paying to the Fund a contribution based on the rates
20    of compensation and employee contributions in effect at the
21    time of such layoff, together with an additional amount
22    equal to 12.2% of the compensation computed for such period
23    of layoff, plus interest on the entire amount at 5% per
24    annum from January 1, 1978 to the date of payment. If such
25    contribution is paid, salary for pension purposes for any
26    year in which such a layoff occurred shall include the

 

 

SB2499- 57 -LRB097 13622 AMC 58158 b

1    compensation recognized for purposes of computing that
2    contribution.
3        (9) For time spent after June 30, 1982, as a
4    nonsalaried member of the Board of Education, if required
5    to resign from an administrative or teaching position in
6    order to qualify as a member of the Board of Education, an
7    administrator or teacher desiring credit therefor shall
8    pay the required contributions at the rates and salaries in
9    effect during such periods as though the member were in
10    service.
11    Effective September 1, 1974, the interest charged for
12validation of service described in paragraphs (2) through (5)
13of this Section shall be compounded annually at a rate of 5%
14commencing one year after the termination of the leave or
15return to service.
16(Source: P.A. 92-599, eff. 6-28-02.)
 
17    Section 99. Effective date. This Act takes effect upon
18becoming law.