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| [ Introduced ] | [ Engrossed ] | [ House Amendment 002 ] |
91_SB0851enr SB851 Enrolled LRB9105991EGfg 1 AN ACT in relation to public employee benefits. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. The Illinois Pension Code is amended by 5 changing Sections 3-110, 3-111, 3-111.1, 3-112, 3-113.1, 6 3-114.1, 3-114.2, 3-114.3, 3-114.6, 3-120, 3-124.1, 3-125.1, 7 and 3-127 and adding Sections 3-105.2, 3-109.2, and 3-109.3 8 as follows: 9 (40 ILCS 5/3-105.2 new) 10 Sec. 3-105.2. Self-Managed Plan. "Self-managed plan": 11 The defined contribution retirement program established for 12 eligible employees under Section 3-109.3. The self-managed 13 plan includes disability benefits as provided in Sections 14 3-114.1, 3-114.2, 3-114.3, and 3-114.6 (but disregarding 15 disability retirement annuities under Section 3-116.1). The 16 self-managed plan does not include any retirement annuities, 17 death benefits, or survivors insurance benefits payable 18 directly from the fund under Section 3-111, 3-111.1, 3-112, 19 3-114.1, 3-114.2, 3-114.3, 3-114.6, or 3-116.1 or any refunds 20 determined under Section 3-124. 21 (40 ILCS 5/3-109.2 new) 22 Sec. 3-109.2. Retirement Program Elections. 23 (a) For the purposes of this Section and Section 24 3-109.3: 25 "Eligible employee" means a police officer who is hired 26 on or within one year after the effective date of the 27 self-managed plan established under Section 3-109.3. 28 "Ineligible employee" means a police officer who is hired 29 before or more than one year after that effective date. 30 (b) Each eligible employee may elect to participate in SB851 Enrolled -2- LRB9105991EGfg 1 the self-managed plan with respect to all periods of covered 2 employment occurring on and after the effective date of the 3 eligible employee's election. The election must be made in 4 writing, in the manner prescribed by the fund, and within 6 5 months after the later of (i) the date upon which the 6 self-managed plan takes effect or (ii) the date of hire. 7 The election, once made, is irrevocable. If an employee 8 terminates employment after making the election, then upon 9 his or her subsequent re-employment under this Article with 10 the same municipality, the original election shall 11 automatically be reinstated. 12 A police officer who does not elect to participate in the 13 self-managed plan within the permitted time shall participate 14 in the defined benefit plan otherwise provided under this 15 Article. 16 The employer shall not remit contributions to the fund on 17 behalf of an eligible employee until the earlier of the 18 expiration of the employee's 6-month election period or the 19 date on which the employee submits a properly completed 20 election to the employer or to the fund. 21 (c) Each eligible employee shall be provided with 22 written information prepared or prescribed by the fund, 23 describing the employee's retirement program choices. The 24 eligible employee shall be offered an opportunity to receive 25 counseling from the fund prior to making his or her election. 26 This counseling may consist of videotaped materials, group 27 presentations, individual consultation with an employee or 28 authorized representative of the fund in person or by 29 telephone or other electronic means, or any combination of 30 these methods. 31 (40 ILCS 5/3-109.3 new) 32 Sec. 3-109.3. Self-managed plan. 33 (a) Purpose. The General Assembly finds that it is SB851 Enrolled -3- LRB9105991EGfg 1 important for municipalities to be able to attract and retain 2 the most qualified police officers and that in order to 3 attract and retain these police officers, municipalities 4 should have the flexibility to provide a defined contribution 5 plan as an alternative for eligible employees who elect not 6 to participate in a defined benefit retirement program 7 provided under this Article. Accordingly, a self-managed 8 plan shall be provided, which shall offer participating 9 employees the opportunity to accumulate assets for retirement 10 through a combination of employee and employer contributions 11 that may be invested in mutual funds, collective investment 12 funds, or other investment products and used to purchase 13 annuity contracts, either fixed or variable, or a combination 14 thereof. The plan must be qualified under the Internal 15 Revenue Code of 1986. 16 (b) Study by Commission; Adoption of plan. The Illinois 17 Pension Laws Commission shall study and evaluate the creation 18 of a statewide self-managed plan for eligible employees under 19 this Article. The Commission shall report its findings and 20 recommendations to the General Assembly no later than January 21 1, 2002. 22 In accordance with the recommendations of the Commission 23 and any action taken by the General Assembly in response to 24 those recommendations, a statewide self-managed plan shall be 25 adopted for eligible employees under this Article. The 26 self-managed plan shall take effect as specified in the plan, 27 but in no event earlier than July 1, 2002 or the date of its 28 approval by the U.S. Internal Revenue Service, whichever 29 occurs later. 30 The self-managed plan shall include a plan document and 31 shall provide for the adoption of such rules and procedures 32 as are necessary or desirable for the administration of the 33 self-managed plan. Consistent with fiduciary duty to the 34 participants and beneficiaries of the self-managed plan, it SB851 Enrolled -4- LRB9105991EGfg 1 may provide for delegation of suitable aspects of plan 2 administration to companies authorized to do business in this 3 State. 4 (c) Selection of service providers and funding vehicles. 5 The principal administrator of the self-managed plan shall 6 solicit proposals to provide administrative services and 7 funding vehicles for the self-managed plan from insurance and 8 annuity companies and mutual fund companies, banks, trust 9 companies, or other financial institutions authorized to do 10 business in this State. In reviewing the proposals received 11 and approving and contracting with no fewer than 2 and no 12 more than 7 companies, the principal administrator shall 13 consider, among other things, the following criteria: 14 (1) the nature and extent of the benefits that 15 would be provided to the participants; 16 (2) the reasonableness of the benefits in relation 17 to the premium charged; 18 (3) the suitability of the benefits to the needs 19 and interests of the participating employees and the 20 employer; 21 (4) the ability of the company to provide benefits 22 under the contract and the financial stability of the 23 company; and 24 (5) the efficacy of the contract in the recruitment 25 and retention of employees. 26 The principal administrator shall periodically review 27 each approved company. A company may continue to provide 28 administrative services and funding vehicles for the 29 self-managed plan only so long as it continues to be an 30 approved company under contract with the principal 31 administrator. 32 (d) Employee Direction. Employees who are participating 33 in the program must be allowed to direct the transfer of 34 their account balances among the various investment options SB851 Enrolled -5- LRB9105991EGfg 1 offered, subject to applicable contractual provisions. The 2 participant shall not be deemed a fiduciary by reason of 3 providing such investment direction. A person who is a 4 fiduciary shall not be liable for any loss resulting from 5 such investment direction and shall not be deemed to have 6 breached any fiduciary duty by acting in accordance with that 7 direction. The self-managed plan does not guarantee any of 8 the investments in the employee's account balances. 9 (e) Participation. An eligible employee must make a 10 written election in accordance with the provisions of Section 11 3-109.2 and the procedures established under the self-managed 12 plan. Participation in the self-managed plan by an eligible 13 employee who elects to participate in the self-managed plan 14 shall begin on the first day of the first pay period 15 following the later of the date the employee's election is 16 filed with the fund or the employer, but in no event sooner 17 than the effective date of the self-managed plan. 18 A police officer who has elected to participate in the 19 self-managed plan under this Section must continue 20 participation while employed in an eligible position, and may 21 not participate in any other retirement program administered 22 by the municipality while employed as a police officer by 23 that municipality. Participation in the self-managed plan 24 under this Section shall constitute membership in an Article 25 3 pension fund. 26 (f) No Duplication of Service Credit. Notwithstanding 27 any other provision of this Article, a police officer may not 28 purchase or receive service or service credit applicable to 29 any other retirement program administered by a fund under 30 this Article for any period during which the police officer 31 was a participant in the self-managed plan established under 32 this Section. 33 (g) Contributions. The self-managed plan shall be 34 funded by contributions from participants in the self-managed SB851 Enrolled -6- LRB9105991EGfg 1 plan and employer contributions as provided in this Section. 2 The contribution rate for a participant in the 3 self-managed plan under this Section shall be a minimum of 4 10% of his or her salary. This required contribution shall 5 be made as an "employer pick-up" under Section 414(h) of the 6 Internal Revenue Code of 1986 or any successor Section 7 thereof. An employee may make additional contributions to 8 the self-managed plan in accordance with the terms of the 9 plan. 10 The self-managed plan shall provide for employer 11 contributions to be credited to each self-managed plan 12 participant at a rate of 10% of the participating employee's 13 salary, less the amount of the employer contribution used to 14 provide disability benefits for the employee. The amounts so 15 credited shall be paid into the participant's self-managed 16 plan accounts in the manner prescribed by the plan. 17 An amount of employer contribution, not exceeding 1.5% of 18 the participating employee's salary, shall be used for the 19 purpose of providing disability benefits to the participating 20 employee. Prior to the beginning of each plan year under the 21 self-managed plan, the principal administrator shall 22 determine, as a percentage of salary, the amount of employer 23 contributions to be allocated during that plan year for 24 providing disability benefits for employees in the 25 self-managed plan. 26 (h) Vesting; Withdrawal; Return to Service. A 27 participant in the self-managed plan becomes fully vested in 28 the employer contributions credited to his or her account in 29 the self-managed plan on the earliest to occur of the 30 following: 31 (1) completion of 6 years of service with the 32 municipality; or 33 (2) the death of the participating employee while 34 employed by the municipality, if the participant has SB851 Enrolled -7- LRB9105991EGfg 1 completed at least 1.5 years of service. 2 A participant in the self-managed plan who receives a 3 distribution of his or her vested amounts from the 4 self-managed plan upon or after termination of employment 5 shall forfeit all service credit and accrued rights in the 6 fund of his or her employer; if subsequently re-employed, the 7 participant shall be considered a new employee. If a former 8 participant again becomes a participating employee and 9 continues as such for at least 2 years, all such rights, 10 service credit, and previous status as a participant shall be 11 restored upon repayment of the amount of the distribution 12 without interest. 13 (i) Benefit amounts. If a participating employee who is 14 fully vested in employer contributions terminates employment, 15 the participating employee shall be entitled to a benefit 16 which is based on the account values attributable to both 17 employer and employee contributions and any investment return 18 thereon. 19 If a participating employee who is not fully vested in 20 employer contributions terminates employment, the employee 21 shall be entitled to a benefit based on the account values 22 attributable to the employee's contributions and any 23 investment return thereon, plus the following percentage of 24 employer contributions and any investment return thereon: 20% 25 after the second year; 40% after the third year; 60% after 26 the fourth year; 80% after the fifth year; and 100% after the 27 sixth year. The remainder of employer contributions and 28 investment return thereon shall be forfeited. Any employer 29 contributions that are forfeited shall be held in escrow by 30 the company investing those contributions and shall be used 31 as directed by the municipality for future allocations of 32 employer contributions or for the restoration of amounts 33 previously forfeited by former participants who again become 34 participating employees. SB851 Enrolled -8- LRB9105991EGfg 1 (40 ILCS 5/3-110) (from Ch. 108 1/2, par. 3-110) 2 Sec. 3-110. Creditable service. 3 (a) "Creditable service" is the time served by a police 4 officer as a member of a regularly constituted police force 5 of a municipality. In computing creditable service furloughs 6 without pay exceeding 30 days shall not be counted, but all 7 leaves of absence for illness or accident, regardless of 8 length, and all periods of disability retirement for which a 9 police officer has received no disability pension payments 10 under this Article shall be counted. 11 (a-5) Up to 3 years of time during which the police 12 officer receives a disability pension under Section 3-114.1, 13 3-114.2, 3-114.3, or 3-114.6 shall be counted as creditable 14 service, provided that (i) the police officer returns to 15 active service after the disability for a period at least 16 equal to the period for which credit is to be established and 17 (ii) the police officer makes contributions to the fund based 18 on the rates specified in Section 3-125.1 and the salary upon 19 which the disability pension is based. These contributions 20 may be paid at any time prior to the commencement of a 21 retirement pension. The police officer may, but need not, 22 elect to have the contributions deducted from the disability 23 pension or to pay them in installments on a schedule approved 24 by the board. If not deducted from the disability pension, 25 the contributions shall include interest at the rate of 6% 26 per year, compounded annually, from the date for which 27 service credit is being established to the date of payment. 28 If contributions are paid under this subsection (a-5) in 29 excess of those needed to establish the credit, the excess 30 shall be refunded. This subsection (a-5) applies to persons 31 receiving a disability pension under Section 3-114.1, 32 3-114.2, 3-114.3, or 3-114.6 on the effective date of this 33 amendatory Act of the 91st General Assembly, as well as 34 persons who begin to receive such a disability pension after SB851 Enrolled -9- LRB9105991EGfg 1 that date. 2 (b) Creditable service includes all periods of service 3 in the military, naval or air forces of the United States 4 entered upon while an active police officer of a 5 municipality, provided that upon applying for a permanent 6 pension, and in accordance with the rules of the board, the 7 police officer pays into the fund the amount the officer 8 would have contributed if he or she had been a regular 9 contributor during such period, to the extent that the 10 municipality which the police officer served has not made 11 such contributions in the officer's behalf. The total amount 12 of such creditable service shall not exceed 5 years, except 13 that any police officer who on July 1, 1973 had more than 5 14 years of such creditable service shall receive the total 15 amount thereof. 16 (c) Creditable service also includes service rendered by 17 a police officer while on leave of absence from a police 18 department to serve as an executive of an organization whose 19 membership consists of members of a police department, 20 subject to the following conditions: (i) the police officer 21 is a participant of a fund established under this Article 22 with at least 10 years of service as a police officer; (ii) 23 the police officer received no credit for such service under 24 any other retirement system, pension fund, or annuity and 25 benefit fund included in this Code; (iii) pursuant to the 26 rules of the board the police officer pays to the fund the 27 amount he or she would have contributed had the officer been 28 an active member of the police department; and (iv) the 29 organization pays a contribution equal to the municipality's 30 normal cost for that period of service. 31 (d)(1) Creditable service also includes periods of 32 service originally established in another police pension fund 33 under this Article or in the Fund established under Article 7 34 of this Code for which (i) the contributions have been SB851 Enrolled -10- LRB9105991EGfg 1 transferred under Section 3-110.7 or Section 7-139.9 and (ii) 2 any additional contribution required under paragraph (2) of 3 this subsection has been paid in full in accordance with the 4 requirements of this subsection (d). 5 (2) If the board of the pension fund to which creditable 6 service and related contributions are transferred under 7 Section 3-110.7 or 7-139.9 determines that the amount 8 transferred is less than the true cost to the pension fund of 9 allowing that creditable service to be established, then in 10 order to establish that creditable service the police officer 11 must pay to the pension fund, within the payment period 12 specified in paragraph (3) of this subsection, an additional 13 contribution equal to the difference, as determined by the 14 board in accordance with the rules and procedures adopted 15 under paragraph (6) of this subsection. 16 (3) Except as provided in paragraph (4), the additional 17 contribution must be paid to the board (i) within 5 years 18 from the date of the transfer of contributions under Section 19 3-110.7 or 7-139.9 and (ii) before the police officer 20 terminates service with the fund. The additional 21 contribution may be paid in a lump sum or in accordance with 22 a schedule of installment payments authorized by the board. 23 (4) If the police officer dies in service before payment 24 in full has been made and before the expiration of the 5-year 25 payment period, the surviving spouse of the officer may elect 26 to pay the unpaid amount on the officer's behalf within 6 27 months after the date of death, in which case the creditable 28 service shall be granted as though the deceased police 29 officer had paid the remaining balance on the day before the 30 date of death. 31 (5) If the additional contribution is not paid in full 32 within the required time, the creditable service shall not be 33 granted and the police officer (or the officer's surviving 34 spouse or estate) shall be entitled to receive a refund of SB851 Enrolled -11- LRB9105991EGfg 1 (i) any partial payment of the additional contribution that 2 has been made by the police officer and (ii) those portions 3 of the amounts transferred under subdivision (a)(1) of 4 Section 3-110.7 or subdivisions (a)(1) and (a)(3) of Section 5 7-139.9 that represent employee contributions paid by the 6 police officer (but not the accumulated interest on those 7 contributions) and interest paid by the police officer to the 8 prior pension fund in order to reinstate service terminated 9 by acceptance of a refund. 10 At the time of paying a refund under this item (5), the 11 pension fund shall also repay to the pension fund from which 12 the contributions were transferred under Section 3-110.7 or 13 7-139.9 the amount originally transferred under subdivision 14 (a)(2) of that Section, plus interest at the rate of 6% per 15 year, compounded annually, from the date of the original 16 transfer to the date of repayment. Amounts repaid to the 17 Article 7 fund under this provision shall be credited to the 18 appropriate municipality. 19 Transferred credit that is not granted due to failure to 20 pay the additional contribution within the required time is 21 lost; it may not be transferred to another pension fund and 22 may not be reinstated in the pension fund from which it was 23 transferred. 24 (6) The Public Employee Pension Fund Division of the 25 Department of Insurance shall establish by rule the manner of 26 making the calculation required under paragraph (2) of this 27 subsection, taking into account the appropriate actuarial 28 assumptions; the police officer's service, age, and salary 29 history; the level of funding of the pension fund to which 30 the credits are being transferred; and any other factors that 31 the Division determines to be relevant. The rules may 32 require that all calculations made under paragraph (2) be 33 reported to the Division by the board performing the 34 calculation, together with documentation of the creditable SB851 Enrolled -12- LRB9105991EGfg 1 service to be transferred, the amounts of contributions and 2 interest to be transferred, the manner in which the 3 calculation was performed, the numbers relied upon in making 4 the calculation, the results of the calculation, and any 5 other information the Division may deem useful. 6 (Source: P.A. 90-460, eff. 8-17-97; 91-887, eff. 7-6-00.) 7 (40 ILCS 5/3-111) (from Ch. 108 1/2, par. 3-111) 8 Sec. 3-111. Pension. 9 (a) A police officer age 50 or more with 20 or more 10 years of creditable service, who is not a participant in the 11 self-managed plan under Section 3-109.3 and who is no longer 12 in service as a police officer, shall receive a pension of 13 1/2 of the salary attached to the rank held by the officer on 14 the police force for one year immediately prior to retirement 15 or, beginning July 1, 1987 for persons terminating service on 16 or after that date, the salary attached to the rank held on 17 the last day of service or for one year prior to the last 18 day, whichever is greater. The pension shall be increased by 19 2.5%2%of such salary for each additional year of service 20 over 20 years of service through 30 years of service,up to2130 years, and 1% of such salary for each additional year of22service over 30 years,to a maximum of 75% of such salary. 23 The changes made to this subsection (a) by this 24 amendatory Act of the 91st General Assembly apply to all 25 pensions that become payable under this subsection on or 26 after January 1, 1999. All pensions payable under this 27 subsection that began on or after January 1, 1999 and before 28 the effective date of this amendatory Act shall be 29 recalculated, and the amount of the increase accruing for 30 that period shall be payable to the pensioner in a lump sum. 31 (a-5) No pension in effect on or granted after June 30, 32 l973 shall be less than $200 per month. Beginning July 1, 33 1987, the minimum retirement pension for a police officer SB851 Enrolled -13- LRB9105991EGfg 1 having at least 20 years of creditable service shall be $400 2 per month, without regard to whether or not retirement 3 occurred prior to that date. If the minimum pension 4 established in Section 3-113.1 is greater than the minimum 5 provided in this subsection, the Section 3-113.1 minimum 6 controls. 7 (b) A police officer mandatorily retired from service 8 due to age by operation of law, having at least 8 but less 9 than 20 years of creditable service, shall receive a pension 10 equal to 2 1/2% of the salary attached to the rank he or she 11 held on the police force for one year immediately prior to 12 retirement or, beginning July 1, 1987 for persons terminating 13 service on or after that date, the salary attached to the 14 rank held on the last day of service or for one year prior to 15 the last day, whichever is greater, for each year of 16 creditable service. 17 A police officer who retires or is separated from service 18 having at least 8 years but less than 20 years of creditable 19 service, who is not mandatorily retired due to age by 20 operation of law, and who does not apply for a refund of 21 contributions at his or her last separation from police 22 service, shall receive a pension upon attaining age 60 equal 23 to 2.5% of the salary attached to the rank held by the police 24 officer on the police force for one year immediately prior to 25 retirement or, beginning July 1, 1987 for persons terminating 26 service on or after that date, the salary attached to the 27 rank held on the last day of service or for one year prior to 28 the last day, whichever is greater, for each year of 29 creditable service. 30 (c) A police officer no longer in service who has at 31 least one but less than 8 years of creditable service in a 32 police pension fund but meets the requirements of this 33 subsection (c) shall be eligible to receive a pension from 34 that fund equal to 2.5% of the salary attached to the rank SB851 Enrolled -14- LRB9105991EGfg 1 held on the last day of service under that fund or for one 2 year prior to that last day, whichever is greater, for each 3 year of creditable service in that fund. The pension shall 4 begin no earlier than upon attainment of age 60 (or upon 5 mandatory retirement from the fund by operation of law due to 6 age, if that occurs before age 60) and in no event before the 7 effective date of this amendatory Act of 1997. 8 In order to be eligible for a pension under this 9 subsection (c), the police officer must have at least 8 years 10 of creditable service in a second police pension fund under 11 this Article and be receiving a pension under subsection (a) 12 or (b) of this Section from that second fund. The police 13 officer need not be in service on or after the effective date 14 of this amendatory Act of 1997. 15 (Source: P.A. 90-460, eff. 8-17-97.) 16 (40 ILCS 5/3-111.1) (from Ch. 108 1/2, par. 3-111.1) 17 Sec. 3-111.1. Increase in pension. 18 (a) Except as provided in subsection (e), the monthly 19 pension of a police officer who retires after July 1, 1971, 20 and prior to January 1, 1986, shall be increased, upon either 21 the first of the month following the first anniversary of the 22 date of retirement if the officer is 60 years of age or over 23 at retirement date, or upon the first day of the month 24 following attainment of age 60 if it occurs after the first 25 anniversary of retirement, by 3% of the originally granted 26 pension and by an additional 3% of the originally granted 27 pension in January of each year thereafter. 28 (b) The monthly pension of a police officer who retired 29 from service with 20 or more years of service, on or before 30 July 1, 1971, shall be increased in January of the year 31 following the year of attaining age 65 or in January of 1972, 32 if then over age 65, by 3% of the originally granted pension 33 for each year the police officer received pension payments. SB851 Enrolled -15- LRB9105991EGfg 1 In each January thereafter, he or she shall receive an 2 additional increase of 3% of the original pension. 3 (c) The monthly pension of a police officer who retires 4 on disability or is retired for disability shall be increased 5 in January of the year following the year of attaining age 6 60, by 3% of the original grant of pension for each year he 7 or she received pension payments. In each January 8 thereafter, the police officer shall receive an additional 9 increase of 3% of the original pension. 10 (d) The monthly pension of a police officer who retires 11 after January 1, 1986, shall be increased, upon either the 12 first of the month following the first anniversary of the 13 date of retirement if the officer is 55 years of age or over 14at the retirement date, or upon the first day of the month 15 following attainment of age 55 if it occurs after the first 16 anniversary of retirement, by 1/12 of 3% of the originally 17 granted pension for each full monthyearthat has elapsed 18 since the pension began, and by an additional 3% of the 19 originally granted pension in January of each year 20 thereafter. 21 The changes made to this subsection (d) by this 22 amendatory Act of the 91st General Assembly apply to all 23 initial increases that become payable under this subsection 24 on or after January 1, 1999. All initial increases that 25 became payable under this subsection on or after January 1, 26 1999 and before the effective date of this amendatory Act 27 shall be recalculated and the additional amount accruing for 28 that period, if any, shall be payable to the pensioner in a 29 lump sum. 30 (e) Notwithstanding the provisions of subsection (a), 31 upon the first day of the month following (1) the first 32 anniversary of the date of retirement, or (2) the attainment 33 of age 55, or (3) July 1, 1987, whichever occurs latest, the 34 monthly pension of a police officer who retired on or after SB851 Enrolled -16- LRB9105991EGfg 1 January 1, 1977 and on or before January 1, 1986, and did not 2 receive an increase under subsection (a) before July 1, 1987, 3 shall be increased by 3% of the originally granted monthly 4 pension for each full year that has elapsed since the pension 5 began, and by an additional 3% of the originally granted 6 pension in each January thereafter. The increases provided 7 under this subsection are in lieu of the increases provided 8 in subsection (a). 9 (f) Notwithstanding the other provisions of this 10 Section, beginning with increases granted on or after July 1, 11 1993, the second and all subsequent automatic annual 12 increases granted under subsection (a), (b), (d), or (e) of 13 this Section shall be calculated as 3% of the amount of 14 pension payable at the time of the increase, including any 15 increases previously granted under this Section, rather than 16 3% of the originally granted pension amount. Section 1-103.1 17 does not apply to this subsection (f). 18 (Source: P.A. 87-1265.) 19 (40 ILCS 5/3-112) (from Ch. 108 1/2, par. 3-112) 20 Sec. 3-112. Pension to survivors. 21 (a) Upon the death of a police officer entitled to a 22 pension under Section 3-111, the surviving spouse shall be 23 entitled to the pension to which the police officer was then 24 entitled. Upon the death of the surviving spouse, or upon 25 the remarriage of the surviving spouse if that remarriage 26 terminates the surviving spouse's eligibility under Section 27 3-121, the police officer's unmarried children who are under 28 age 18 or who are dependent because of physical or mental 29 disability shall be entitled to equal shares of such pension. 30 If there is no eligible surviving spouse and no eligible 31 child, the dependent parent or parents of the officer shall 32 be entitled to receive or share such pension until their 33 death or marriage or remarriage after the death of the police SB851 Enrolled -17- LRB9105991EGfg 1 officer. 2 (b) Upon the death of a police officer while in service, 3 having at least 20 years of creditable service, or upon the 4 death of a police officer who retired from service with at 5 least 20 years of creditable service, whether death occurs 6 before or after attainment of age 50, the pension earned by 7 the police officer as of the date of death as provided in 8 Section 3-111 shall be paid to the survivors in the sequence 9 provided in subsection (a) of this Section. 10 (c) Upon the death of a police officer while in service, 11 having at least 10 but less than 20 years of service, a 12 pension of 1/2 of the salary attached to the rank or ranks 13 held by the officer for one year immediately prior to death 14 shall be payable to the survivors in the sequence provided in 15 subsection (a) of this Section. If death occurs as a result 16 of the performance of duty, the 10 year requirement shall not 17 apply and the pension to survivors shall be payable after any 18 period of service. 19 (d) Beginning July 1, 1987, a minimum pension of $400 20 per month shall be paid to all surviving spouses, without 21 regard to the fact that the death of the police officer 22 occurred prior to that date. If the minimum pension 23 established in Section 3-113.1 is greater than the minimum 24 provided in this subsection, the Section 3-113.1 minimum 25 controls. 26 (e) The pension of the surviving spouse of a police 27 officer who dies (i) on or after January 1, 2001, (ii) 28 without having begun to receive either a retirement pension 29 payable under Section 3-111 or a disability pension payable 30 under Section 3-114.1, 3-114.2, 3-114.3, or 3-114.6, and 31 (iii) as a result of sickness, accident, or injury incurred 32 in or resulting from the performance of an act of duty shall 33 not be less than 100% of the salary attached to the rank held 34 by the deceased police officer on the last day of service, SB851 Enrolled -18- LRB9105991EGfg 1 notwithstanding any provision in this Article to the 2 contrary. 3 (Source: P.A. 89-408, eff. 11-15-95.) 4 (40 ILCS 5/3-113.1) 5 Sec. 3-113.1. Minimum retirement, survivor, and 6 disability pensions. 7 (a) Beginning January 1, 1999, the minimum retirement 8 pension payable to a police officer with 20 or more years of 9 creditable service, the minimum disability pension payable 10 under Section 3-114.1, 3-114.2,or3-114.3, or 3-114.6, and 11 the minimum surviving spouse's pension shall be $600 per 12 month, without regard to whether the police officer was in 13 service on or after the effective date of this amendatory Act 14 of the 91st General Assembly. 15 In the case of a pensioner whose pension began before the 16 effective date of this amendatory Act and is subject to 17 increase under this subsection (a), the pensioner shall be 18 entitled to a lump sum payment of the amount of that increase 19 accruing from January 1, 1999 (or the date the pension began, 20 if later) to the effective date of this amendatory Act. 21 (b) Beginning January 1, 2000, the minimum retirement 22 pension payable to a police officer with 20 or more years of 23 creditable service, the minimum disability pension payable 24 under Section 3-114.1, 3-114.2,or3-114.3, or 3-114.6, and 25 the minimum surviving spouse's pension shall be $800 per 26 month, without regard to whether the police officer was in 27 service on or after the effective date of this amendatory Act 28 of the 91st General Assembly. 29 (c) Beginning January 1, 2001, the minimum retirement 30 pension payable to a police officer with 20 or more years of 31 creditable service, the minimum disability pension payable 32 under Section 3-114.1, 3-114.2,or3-114.3, or 3-114.6, and 33 the minimum surviving spouse's pension shall be $1000 per SB851 Enrolled -19- LRB9105991EGfg 1 month, without regard to whether the police officer was in 2 service on or after the effective date of this amendatory Act 3 of the 91st General Assembly. 4 (d) This Section does not grant a pension to any 5 surviving spouse who is not otherwise eligible to receive a 6 pension under this Article. 7 (e) No survivor benefits are payable to a participant in 8 the self-managed plan. 9 (Source: P.A. 91-466, eff. 8-6-99.) 10 (40 ILCS 5/3-114.1) (from Ch. 108 1/2, par. 3-114.1) 11 Sec. 3-114.1. Disability pension - Line of duty. 12 (a) If a police officer as the result of sickness, 13 accident or injury incurred in or resulting from the 14 performance of an act of duty, is found to be physically or 15 mentally disabled for service in the police department, so as 16 to render necessary his or her suspension or retirement from 17 the police service, the police officer shall be entitled to a 18 disability retirement pension equal to the greatest of (1) 19 65% of the salary attached to the rank on the police force 20 held by the officer at the date of suspension of duty or 21 retirement, (2) the retirement pension that the police 22 officer would be eligible to receive if he or she retired 23 (but not including any automatic annual increase in that 24 retirement pension), or (3) the pension provided under 25 subsection (d), if applicable. 26 A police officer shall be considered "on duty",while on 27 any assignment approved by the chief of the police department 28 of the municipality he or she serves, whether the assignment 29 is within or outside the municipality. 30 (b) If a police officer on disability pension dies while 31 still disabled, the disability pension shall continue to be 32 paid to his or her survivors in the sequence provided in 33 Section 3-112. SB851 Enrolled -20- LRB9105991EGfg 1 (c) From and after July 1, 1987, any pension payable 2 under this Section shall be at least $400 per month, without 3 regard to the fact that the disability or death of the police 4 officer occurred prior to that date. If the minimum pension 5 established in Section 3-113.1 is greater than the minimum 6 provided in this Section, the Section 3-113.1 minimum 7 controls. 8 (d) A disabled police officer who (1) is receiving a 9 pension under this Section on the effective date of this 10 amendatory Act of the 91st General Assembly, (2) files with 11 the Fund, within 30 days after that effective date and 12 annually thereafter while the pension remains payable, a 13 written application for the benefits of this subsection, 14 including an affidavit stating that the applicant has not 15 earned any income from gainful employment during the most 16 recently concluded tax year and a copy of his or her most 17 recent Illinois income tax return, (3) has service credit in 18 the Fund for at least 7 years of active duty, and (4) has 19 been receiving the pension under this Section for a period 20 which, when added to the officer's total service credit in 21 the Fund, equals at least 20 years, shall be eligible to 22 receive an annual noncompounded increase in his or her 23 pension under this Section, equal to 3% of the original 24 pension. 25 The Fund may take appropriate steps to verify the 26 applicant's disability and earnings status, and for this 27 purpose may request from the Department of Revenue a 28 certified copy of the applicant's Illinois income tax return 29 for any year for which a benefit under this Section is 30 payable or has been paid. 31 The annual increase shall accrue on each anniversary of 32 the initial pension payment date, for so long as the pension 33 remains payable to the disabled police officer and the 34 required annual application is made, except that the annual SB851 Enrolled -21- LRB9105991EGfg 1 increases under this subsection shall cease if the disabled 2 police officer earns income from gainful employment. Within 3 60 days after accepting an initial application under this 4 subsection, the Fund shall pay to the disabled police 5 officer, in a lump sum without interest, the amounts 6 resulting from the annual increases that have accrued 7 retroactively. 8 This subsection is not limited to persons in active 9 service on or after its effective date, but it applies only 10 to a pension that is payable under this Section to a disabled 11 police officer (rather than a survivor). Upon the death of 12 the disabled police officer, the annuity payable under this 13 Section to his or her survivors shall include any annual 14 increases previously received, but no additional increases 15 shall accrue under this subsection. 16 (Source: P.A. 85-941.) 17 (40 ILCS 5/3-114.2) (from Ch. 108 1/2, par. 3-114.2) 18 Sec. 3-114.2. Disability pension - Not on duty. A 19 police officer who becomes disabled as a result of any cause 20 other than the performance of an act of duty, and who is 21 found to be physically or mentally disabled so as to render 22 necessary his or her suspension or retirement from police 23 service in the police department, shall be entitled to a 24 disability pension of 50% of the salary attached to the 25 officer's rank on the police force at the date of suspension 26 of duty or retirement. 27 If a police officer on disability pension dies while 28 still disabled, the disability pension shall continue to be 29 paid to the officer's survivors in the sequence provided in 30 Section 3-112. 31 From and after July 1, 1987, any pension payable under 32 this Section shall be at least $400 per month, without regard 33 to the fact that the disability or death of the police SB851 Enrolled -22- LRB9105991EGfg 1 officer occurred prior to that date. If the minimum pension 2 established in Section 3-113.1 is greater than the minimum 3 provided in this Section, the Section 3-113.1 minimum 4 controls. 5 (Source: P.A. 85-941.) 6 (40 ILCS 5/3-114.3) (from Ch. 108 1/2, par. 3-114.3) 7 Sec. 3-114.3. Heart attack or stroke suffered in 8 performance of duties. Any police officer who suffers a 9 heart attack or stroke as a result of the performance and 10 discharge of police duty shall be considered as having been 11 injured in the performance of an act of duty and shall be 12 eligible for the benefits provided under this Article for 13 police officers injured in the performance of an act of duty 14 or, if applicable, the benefits provided in Section 3-114.6. 15 (Source: P.A. 90-766, eff. 8-14-98.) 16 (40 ILCS 5/3-114.6) 17 Sec. 3-114.6. Occupational disease disability pension. 18 (a) This Section applies only to police officers who are 19 employed by a municipality with a combined police and fire 20 department and who have regular firefighting duties in 21 addition to their law enforcement duties. 22 (b) The General Assembly finds that service in a police 23 department that also has firefighting duties requires 24 officers to perform unusual tasks in times of stress and 25 danger; that officers are subject to exposure to extreme heat 26 or extreme cold in certain seasons while performing their 27 duties; that they are required to work in the midst of and 28 are subject to heavy smoke fumes and carcinogenic, poisonous, 29 toxic, or chemical gases from fires; and that these 30 conditions exist and arise out of or in the course of 31 employment. 32 (c) An active officer with 5 or more years of creditable SB851 Enrolled -23- LRB9105991EGfg 1 service who is found to be unable to perform his or her 2 duties in the department by reason of heart disease, stroke, 3 tuberculosis, or any disease of the lungs or respiratory 4 tract, resulting from service as an officer, is entitled to 5 an occupational disease disability pension during any period 6 of such disability for which he or she has no right to 7 receive salary. 8 An active officer who has completed 5 or more years of 9 service and is unable to perform his or her duties in the 10 department by reason of a disabling cancer, which develops or 11 manifests itself during a period while the officer is in the 12 service of the department, is entitled to receive an 13 occupational disease disability benefit during any period of 14 such disability for which he or she does not have a right to 15 receive salary. In order to receive this occupational 16 disease disability benefit, (i) the cancer must be of a type 17 that may be caused by exposure to heat, radiation, or a known 18 carcinogen as defined by the International Agency for 19 Research on Cancer and (ii) the cancer must (and is 20 rebuttably presumed to) arise as a result of service as an 21 officer. 22 An officer who, after the effective date of this 23 amendatory Act of 1998, enters the service of a combined 24 police and fire department and has regular firefighting 25 duties shall be examined by one or more practicing physicians 26 appointed by the board. If the examination discloses 27 impairment of the heart, lungs, or respiratory tract, or the 28 existence of cancer, the officer shall not be entitled to an 29 occupational disease disability pension under this Section 30 unless and until a subsequent examination reveals no such 31 impairment or cancer. 32 The occupational disease disability pension shall be 33 equal to the greater of 65% of the salary attached to the 34 rank held by the officer at the time of his or her removal SB851 Enrolled -24- LRB9105991EGfg 1 from the municipality's department payroll or (2) the 2 retirement pension that the police officer would be eligible 3 to receive if he or she retired (but not including any 4 automatic annual increase in that retirement pension). 5 The occupational disease disability pension is payable to 6 the officer during the period of the disability. If the 7 disability ceases before the death of the officer, the 8 disability pension payable under this Section shall also 9 cease and the officer thereafter shall receive such pension 10 benefits as are provided in accordance with other provisions 11 of this Article. 12 If an officer dies while still disabled and receiving a 13 disability pension under this Section, the disability pension 14 shall continue to be paid to the officer's survivors in the 15 sequence provided in Section 3-112. 16 (Source: P.A. 90-766, eff. 8-14-98.) 17 (40 ILCS 5/3-120) (from Ch. 108 1/2, par. 3-120) 18 Sec. 3-120. Marriage after retirement. 19 (a) If a police officer marries subsequent to 20 retirement on any pension under this Article other than a 21 pension established under Section 3-109.3, the surviving 22 spouse and the children of such surviving spouse shall 23 receive no pension on the death of the officer, except as 24 provided in subsection (b). 25 (b) Notwithstanding Section 1-103.1 of this Code, this 26 Section shall not be deemed to disqualify from receiving a 27 survivor's pension the surviving spouse and children of any 28 police officer who (i) retired from service in 1973, married 29 the surviving spouse during 1974, and died in 1988, or (ii) 30 retired on disability in October of 1982, married the 31 surviving spouse during 1991, and died in 1992. In the case 32 of a person who becomes eligible for a benefit under this 33 subsection (b), the benefit shall begin to accrue on July 1, SB851 Enrolled -25- LRB9105991EGfg 1 1990 or July 1 of the year following the police officer's 2 death, whichever is later. 3 (Source: P.A. 87-794; 87-1265.) 4 (40 ILCS 5/3-124.1) (from Ch. 108 1/2, par. 3-124.1) 5 Sec. 3-124.1. Re-entry into active service. If a police 6 officer who is receiving pension payments other than as 7 provided in Section 3-109.3 re-enters active service, pension 8 payment shall be suspended while he or she is in service. 9 When he or she again retires, pension payments shall be 10 resumed. If the police officer remains in service after 11 re-entry for a period of less than 5 years, the pension shall 12 be the same as upon first retirement. If the officer's 13 service after re-entry is at least 5 years and the officer 14 makes the required contributions during the period of 15 re-entry, his or her pension shall be recomputed by taking 16 into account the additional period of service and salary. 17 (Source: P.A. 83-1440.) 18 (40 ILCS 5/3-125.1) (from Ch. 108 1/2, par. 3-125.1) 19 Sec. 3-125.1. Contributions by police officers. Each 20 police officer shall contribute to the pension fund the 21 following percentages of salary for the periods stated: 22 Beginning July 1, 1909 and prior to July 23, 1943, 1% (except 23 that prior to July 1, 1921 not more than one dollar per month 24 shall be deducted, and except that beginning July 1, 1921 and 25 prior to July 1, 1927 not more than $2 per month shall be 26 deducted); beginning July 23, 1943 and prior to July 20, 27 1949, 3%; beginning July 20, 1949 and prior to July 17, 1959, 28 5%; beginning July 17, 1959 and prior to July 1, 1971, 7%; 29 beginning July 1, 1971 and prior to July 1, 1975, 7 1/2%; 30 beginning July 1, 1975 and prior to January 1, 1987, 8 1/2%; 31andbeginning January 1, 1987 and prior to January 1, 2001, 32 9%; and beginning January 1, 2001, 9.91%. Such sums shall SB851 Enrolled -26- LRB9105991EGfg 1 be paid or deducted monthly. Contribution to the 2 self-managed plan shall be no less than 10% of salary. 3 "Salary" means the annual salary, including longevity, 4 attached to the police officer's rank, as established by the 5 municipality's appropriation ordinance, including any 6 compensation for overtime which is included in the salary so 7 established, but excluding any "overtime pay", "holiday pay", 8 "bonus pay", "merit pay", or any other cash benefit not 9 included in the salary so established. 10 (Source: P.A. 84-1472.) 11 (40 ILCS 5/3-127) (from Ch. 108 1/2, par. 3-127) 12 Sec. 3-127. Reserves. The board shall establish and 13 maintain a reserve to insure the payment of all obligations 14 incurred under this Article excluding retirement annuities 15 established under Section 3-109.3. The reserve to be 16 accumulated shall be equal to the estimated total actuarial 17 requirements of the fund. 18 If a pension fund has a reserve of less than the accrued 19 liabilities of the fund, the board of the pension fund, in 20 making its annual report to the city council or board of 21 trustees of the municipality, shall designate the amount, 22 calculated as a level percentage of payroll, needed annually 23 to insure the accumulation of the reserve to the level of the 24 fund's accrued liabilities over a period of 40 years from 25 July 1, 1993 for pension funds then in operation, or from the 26 date of establishment in the case of a fund created 27 thereafter, so that the necessary reserves will be attained 28 over such a period. 29 (Source: P.A. 87-1265.) 30 Section 90. The State Mandates Act is amended by adding 31 Section 8.24 as follows: SB851 Enrolled -27- LRB9105991EGfg 1 (30 ILCS 805/8.24 new) 2 Sec. 8.24. Exempt mandate. Notwithstanding Sections 6 3 and 8 of this Act, no reimbursement by the State is required 4 for the implementation of any mandate created by this 5 amendatory Act of the 91st General Assembly. 6 Section 99. Effective date. This Act takes effect upon 7 becoming law.