State of Illinois
91st General Assembly
Legislation

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91_HB1081

 
                                               LRB9102047EGfg

 1        AN ACT to amend  the  Illinois  Pension  Code  by  adding
 2    Section 3-111.2 and to amend the State Mandates Act.

 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 adding
 6    Section 3-111.2 as follows:

 7        (40 ILCS 5/3-111.2 new)
 8        Sec. 3-111.2. Early retirement incentives.
 9        (a)  To be eligible for the  benefits  provided  in  this
10    Section, a person must:
11             (1)  on  March  1,  2000,  be  (i) in active payroll
12        status as a police officer with a municipality under this
13        Article, (ii) on layoff status from such a position  with
14        a  right  of re-employment or recall to service, or (iii)
15        on disability or leave of absence from such  a  position,
16        but   only  if  the  member  has  not  been  receiving  a
17        disability benefit under this Article  for  a  continuous
18        period of 2 years or more as of the date of application;
19             (2)  have not retired under this Article;
20             (3)  file with the Board on or before March 1, 2000,
21        a written application requesting the benefits provided in
22        this Section;
23             (4)  establish  eligibility  to receive a retirement
24        pension under this Article (for  which  purpose  any  age
25        enhancement  or  creditable  service  received under this
26        Section may be used) and elect to receive the  retirement
27        pension  beginning  no  earlier  than  May 1, 2000 and no
28        later than  September  1,  2000  (September  1,  2001  if
29        retirement  is  delayed  under  subsection  (e)  of  this
30        Section);
31             (5)  have  attained  age  50 (without the use of any
 
                            -2-                LRB9102047EGfg
 1        age enhancement  received  under  this  Section)  by  the
 2        effective date of the retirement pension.
 3        (b)  An  eligible  person  may establish up to 5 years of
 4    creditable service under this Article, in increments  of  one
 5    month,  by  making  the contributions specified in subsection
 6    (c).  In addition,  for  each  month  of  creditable  service
 7    established  under this Section, a person's age at retirement
 8    shall be deemed to be one month older than it actually is.
 9        Except  as  otherwise  specified  in  this  Section,  the
10    creditable service and age enhancement established under this
11    Section may be used for  all  purposes  under  this  Article,
12    including  establishing  eligibility for the automatic annual
13    increase under Section 3-111.1.
14        (c)  For all creditable service  established  under  this
15    Section,  the  municipality  must pay to the fund an employer
16    contribution consisting of 9% of the officer's annual  salary
17    on  March 1, 2000 for each year of creditable service granted
18    under this Section.
19        The employer contribution shall be paid to  the  fund  in
20    one  of  the following ways:  (i) in a single sum at the time
21    of  the  member's  retirement,  (ii)   in   equal   quarterly
22    installments  over  a  period  of  5  years  from the date of
23    retirement, or (iii) subject to the approval of the Board  of
24    the  fund,  in  unequal installments over a period of no more
25    than 10 years from the date of retirement, as provided  in  a
26    payment plan designed by the fund to accommodate the needs of
27    the  employer.   The  employer's failure to make the required
28    contributions in a timely manner does not affect the  payment
29    of the retirement pension.
30        For   all   creditable  service  established  under  this
31    Section, the police officer must pay to the fund an  employee
32    contribution  consisting of 4% of the officer's annual salary
33    on March 1, 2000 for each year of creditable service  granted
34    under  this Section.  The officer may elect either to pay the
 
                            -3-                LRB9102047EGfg
 1    employee contribution in full before the  retirement  pension
 2    commences  or to have it deducted from the retirement pension
 3    in 12 monthly installments.
 4        (d)  Notwithstanding Section 3-124.1,  an  annuitant  who
 5    has  received any age enhancement or creditable service under
 6    this Section and reenters service under this Article  thereby
 7    forfeits  the  age  enhancement and creditable service and is
 8    entitled to a refund of the  contributions  made  under  this
 9    Section.
10        (e)  If  the  number  of  officers of a municipality that
11    actually  apply  for  early  retirement  under  this  Section
12    exceeds 15% of those eligible, the employer may require that,
13    for the number of applicants  in  excess  of  that  15%,  the
14    starting  date  of the retirement pension enhanced under this
15    Section may not be earlier than June 1, 2001.  The  right  to
16    have  the  retirement pension begin before that date shall be
17    allocated among the applicants on the basis of  seniority  in
18    the service of that employer.
19        This  delay  applies only to persons who are applying for
20    early retirement incentives under this Section and  does  not
21    prevent  a  person  whose  application  for  early retirement
22    incentives has been withdrawn  from  receiving  a  retirement
23    pension  on  the  earliest  date  upon  which  the  person is
24    otherwise eligible under this Article.

25        Section 90.  The State Mandates Act is amended by  adding
26    Section 8.23 as follows:

27        (30 ILCS 805/8.23 new)
28        Sec.  8.23.  Exempt  mandate.  Notwithstanding Sections 6
29    and 8 of this Act, no reimbursement by the State is  required
30    for  the  implementation  of  any  mandate  created  by  this
31    amendatory Act of the 91st General Assembly.
 
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 1        Section  99.  Effective date.  This Act takes effect upon
 2    becoming law.

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