State of Illinois
90th General Assembly
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90_SB1299

      40 ILCS 5/14-104          from Ch. 108 1/2, par. 14-104
          Amends the State Employee Article of  the  Pension  Code.
      Allows  a  member  to  establish  service  credit for certain
      periods of employment prior  to  becoming  a  member  without
      paying  interest, if application and payment in full are made
      before January 1, 2000.  Effective immediately.
                                                     LRB9008716EGfg
                                               LRB9008716EGfg
 1        AN ACT to amend the Illinois  Pension  Code  by  changing
 2    Section 14-104.
 3        Be  it  enacted  by  the People of the State of Illinois,
 4    represented in the General Assembly:
 5        Section 5.  The  Illinois  Pension  Code  is  amended  by
 6    changing Section 14-104 as follows:
 7        (40 ILCS 5/14-104) (from Ch. 108 1/2, par. 14-104)
 8        Sec.   14-104.   Service   for  which  contributions  are
 9    permitted.  Creditable service shall be  granted  under  this
10    Section  for the types of service specified, upon application
11    in writing and payment of the contributions provided  for  in
12    this Section covering shall cover the period of service to be
13    granted.   The  contributions  shall,  and  be based upon the
14    applicant's employee's compensation and contribution rate  in
15    effect  on  the  date  he  or she last became a member of the
16    System; provided that for all employment prior to January  1,
17    1969,  the  contribution  rate  shall be that in effect for a
18    noncovered employee on the date he last became  a  member  of
19    the System.  Contributions permitted under this Section shall
20    include  regular  interest  from  the  date  the applicant an
21    employee last became a member of the System to  the  date  of
22    payment.
23        These   contributions   must   be  paid  in  full  before
24    retirement either in a lump sum or in installment payments in
25    accordance with such rules as may be adopted by the board.
26        (a)  Any member may make  contributions  as  required  in
27    this  Section  for  any  period of service, subsequent to the
28    date of establishment, but prior to the date  of  membership.
29    With   respect   only   to  service  established  under  this
30    subdivision (a), if application and payment in full are  made
31    on or after the effective date of this amendatory Act of 1998
                            -2-                LRB9008716EGfg
 1    and  before  January  1, 2000, the payment of interest is not
 2    required.
 3        (b)  Any employee who had been previously  excluded  from
 4    membership  because  of  age at entry and subsequently became
 5    eligible may elect to make contributions as required in  this
 6    Section  for  the  period  of  service  during  which  he was
 7    ineligible.
 8        (c)  An employee of  the  Department  of  Insurance  who,
 9    after  January  1,  1944  but  prior to becoming eligible for
10    membership, received salary from funds of insurance companies
11    in the process of rehabilitation,  liquidation,  conservation
12    or  dissolution,  may elect to make contributions as required
13    in this Section for such service.
14        (d)  Any employee who rendered service in a State  office
15    to  which he was elected, or rendered service in the elective
16    office of Clerk of the Appellate Court prior to the  date  he
17    became  a  member, may make contributions for such service as
18    required  in  this  Section.   Any  member  who   served   by
19    appointment  of  the  Governor under the Civil Administrative
20    Code of Illinois and did not participate in this  System  may
21    make  contributions  as  required  in  this  Section for such
22    service.
23        (e)  Any person employed by the United States  government
24    or any instrumentality or agency thereof from January 1, 1942
25    through  November  15,  1946 as the result of a transfer from
26    State service by executive order  of  the  President  of  the
27    United  States  shall  be  entitled  to  prior service credit
28    covering the period from January 1, 1942 through December 31,
29    1943 as provided  for  in  this  Article  and  to  membership
30    service  credit   for the period from January 1, 1944 through
31    November 15, 1946 by making  the  contributions  required  in
32    this  Section.   A  person so employed on January 1, 1944 but
33    whose employment began after January 1, 1942 may qualify  for
34    prior  service  and  membership service credit under the same
                            -3-                LRB9008716EGfg
 1    conditions.
 2        (f)  An employee of the Department of Labor of the  State
 3    of   Illinois  who  performed  services  for  and  under  the
 4    supervision of that Department prior to January 1,  1944  but
 5    who  was  compensated  for those services directly by federal
 6    funds and not by a warrant of the Auditor of Public  Accounts
 7    paid  by  the  State  Treasurer may establish credit for such
 8    employment by  making  the  contributions  required  in  this
 9    Section.  An employee of the Department of Agriculture of the
10    State of Illinois, who performed services for and  under  the
11    supervision of that Department prior to June 1, 1963, but was
12    compensated  for those services directly by federal funds and
13    not paid by a warrant of the Auditor of Public Accounts  paid
14    by  the  State  Treasurer,  and who did not contribute to any
15    other public employee retirement system for such service, may
16    establish  credit  for  such   employment   by   making   the
17    contributions required in this Section.
18        (g)  Any  employee  who  executed  a waiver of membership
19    within 60 days prior to January 1,  1944  may,  at  any  time
20    while  in  the service of a department, file with the board a
21    rescission of such waiver.   Upon  making  the  contributions
22    required  by  this  Section,  the member shall be granted the
23    creditable service that  would  have  been  received  if  the
24    waiver had not been executed.
25        (h)  Until May 1, 1990, an employee who was employed on a
26    full-time  basis  by  a  regional  planning commission for at
27    least 5 continuous years may establish creditable service for
28    such employment by making the  contributions  required  under
29    this  Section,  provided  that  any  credits  earned  by  the
30    employee  in  the  commission's  retirement  plan  have  been
31    terminated.
32        (i)  Any   person  who  rendered  full  time  contractual
33    services to the General Assembly as a member of a legislative
34    staff may establish service credit for up to 8 years of  such
                            -4-                LRB9008716EGfg
 1    services  by  making  the  contributions  required under this
 2    Section, provided that application therefor is made not later
 3    than July 1, 1991.
 4        (j)  By paying the contributions otherwise required under
 5    this Section, plus an amount determined by the  Board  to  be
 6    equal  to  the  employer's  normal  cost  of the benefit plus
 7    interest, an employee may  establish  service  credit  for  a
 8    period  of up to 2 years spent in active military service for
 9    which he does not qualify for credit  under  Section  14-105,
10    provided  that  (1)  he  was not dishonorably discharged from
11    such military service, and (2) the amount of  service  credit
12    established by a member under this subsection (j), when added
13    to  the  amount  of  military  service  credit granted to the
14    member under subsection (b)  of  Section  14-105,  shall  not
15    exceed 5 years.
16        (k)  An employee who was employed on a full-time basis by
17    the   Illinois   State's   Attorneys   Association  Statewide
18    Appellate Assistance Service LEAA-ILEC grant project prior to
19    the time that project became the State's Attorneys  Appellate
20    Service  Commission,  now the Office of the State's Attorneys
21    Appellate Prosecutor, an  agency  of  State  government,  may
22    establish  creditable  service  for  not  more than 60 months
23    service for such employment by making contributions  required
24    under this Section.
25        (l)  By paying the contributions otherwise required under
26    this  Section,  plus  an amount determined by the Board to be
27    equal to the employer's  normal  cost  of  the  benefit  plus
28    interest,  a  member may establish service credit for periods
29    of less than one year spent on authorized  leave  of  absence
30    from  service, provided that (1) the period of leave began on
31    or after January 1, 1982 and (2) any  credit  established  by
32    the  member  for  the  period  of  leave  in any other public
33    employee retirement system has been terminated.  A member may
34    establish service credit under this subsection for more  than
                            -5-                LRB9008716EGfg
 1    one  period  of  authorized leave, and in that case the total
 2    period of service credit established by the member under this
 3    subsection may exceed one year.
 4        (m) (l)  Any person who rendered contractual services  to
 5    a  member of the General Assembly as a worker in the member's
 6    district office may establish creditable service for up to  3
 7    years   of   those   contractual   services   by  making  the
 8    contributions required under this Section.  The System  shall
 9    determine  a  full-time  salary equivalent for the purpose of
10    calculating the required contribution.  To  establish  credit
11    under this subsection, the applicant must apply to the System
12    by March 1, 1998.
13        (n)  (l)  Any person who rendered contractual services to
14    a member of  the  General  Assembly  as  a  worker  providing
15    constituent  services to persons in the member's district may
16    establish creditable service for  up  to  8  years  of  those
17    contractual  services  by  making  the contributions required
18    under this Section.  The System shall determine  a  full-time
19    salary equivalent for the purpose of calculating the required
20    contribution.  To establish credit under this subsection, the
21    applicant must apply to the System by March 1, 1998.
22    (Source: P.A.  90-32,  eff.  6-27-97;  90-448,  eff. 8-16-97;
23    90-511, eff. 8-22-97; revised 9-5-97.)
24        Section 99. Effective date.  This Act takes  effect  upon
25    becoming law.

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