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91_SB0851ham002
LRB9105991EGfgam20
1 AMENDMENT TO SENATE BILL 851
2 AMENDMENT NO. . Amend Senate Bill 851 by replacing
3 the title with the following:
4 "AN ACT in relation to public employee benefits."; and
5 by replacing everything after the enacting clause with the
6 following:
7 "Section 5. The Illinois Pension Code is amended by
8 changing Sections 3-110, 3-111, 3-111.1, 3-112, 3-113.1,
9 3-114.1, 3-114.2, 3-114.3, 3-114.6, 3-120, 3-124.1, 3-125.1,
10 and 3-127 and adding Sections 3-105.2, 3-109.2, and 3-109.3
11 as follows:
12 (40 ILCS 5/3-105.2 new)
13 Sec. 3-105.2. Self-Managed Plan. "Self-managed plan":
14 The defined contribution retirement program established for
15 eligible employees under Section 3-109.3. The self-managed
16 plan includes disability benefits as provided in Sections
17 3-114.1, 3-114.2, 3-114.3, and 3-114.6 (but disregarding
18 disability retirement annuities under Section 3-116.1). The
19 self-managed plan does not include any retirement annuities,
20 death benefits, or survivors insurance benefits payable
21 directly from the fund under Section 3-111, 3-111.1, 3-112,
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1 3-114.1, 3-114.2, 3-114.3, 3-114.6, or 3-116.1 or any refunds
2 determined under Section 3-124.
3 (40 ILCS 5/3-109.2 new)
4 Sec. 3-109.2. Retirement Program Elections.
5 (a) For the purposes of this Section and Section
6 3-109.3:
7 "Eligible employee" means a police officer who is hired
8 on or within one year after the effective date of the
9 self-managed plan established under Section 3-109.3.
10 "Ineligible employee" means a police officer who is hired
11 before or more than one year after that effective date.
12 (b) Each eligible employee may elect to participate in
13 the self-managed plan with respect to all periods of covered
14 employment occurring on and after the effective date of the
15 eligible employee's election. The election must be made in
16 writing, in the manner prescribed by the fund, and within 6
17 months after the later of (i) the date upon which the
18 self-managed plan takes effect or (ii) the date of hire.
19 The election, once made, is irrevocable. If an employee
20 terminates employment after making the election, then upon
21 his or her subsequent re-employment under this Article with
22 the same municipality, the original election shall
23 automatically be reinstated.
24 A police officer who does not elect to participate in the
25 self-managed plan within the permitted time shall participate
26 in the defined benefit plan otherwise provided under this
27 Article.
28 The employer shall not remit contributions to the fund on
29 behalf of an eligible employee until the earlier of the
30 expiration of the employee's 6-month election period or the
31 date on which the employee submits a properly completed
32 election to the employer or to the fund.
33 (c) Each eligible employee shall be provided with
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1 written information prepared or prescribed by the fund,
2 describing the employee's retirement program choices. The
3 eligible employee shall be offered an opportunity to receive
4 counseling from the fund prior to making his or her election.
5 This counseling may consist of videotaped materials, group
6 presentations, individual consultation with an employee or
7 authorized representative of the fund in person or by
8 telephone or other electronic means, or any combination of
9 these methods.
10 (40 ILCS 5/3-109.3 new)
11 Sec. 3-109.3. Self-managed plan.
12 (a) Purpose. The General Assembly finds that it is
13 important for municipalities to be able to attract and retain
14 the most qualified police officers and that in order to
15 attract and retain these police officers, municipalities
16 should have the flexibility to provide a defined contribution
17 plan as an alternative for eligible employees who elect not
18 to participate in a defined benefit retirement program
19 provided under this Article. Accordingly, a self-managed
20 plan shall be provided, which shall offer participating
21 employees the opportunity to accumulate assets for retirement
22 through a combination of employee and employer contributions
23 that may be invested in mutual funds, collective investment
24 funds, or other investment products and used to purchase
25 annuity contracts, either fixed or variable, or a combination
26 thereof. The plan must be qualified under the Internal
27 Revenue Code of 1986.
28 (b) Study by Commission; Adoption of plan. The Illinois
29 Pension Laws Commission shall study and evaluate the creation
30 of a statewide self-managed plan for eligible employees under
31 this Article. The Commission shall reports its findings and
32 recommendations to the General Assembly no later than January
33 1, 2002.
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1 In accordance with the recommendations of the Commission
2 and any action taken by the General Assembly in response to
3 those recommendations, a statewide self-managed plan shall be
4 adopted for eligible employees under this Article. The
5 self-managed plan shall take effect as specified in the plan,
6 but in no event earlier than July 1, 2002 or the date of its
7 approval by the U.S. Internal Revenue Service, whichever
8 occurs later.
9 The self-managed plan shall include a plan document and
10 shall provide for the adoption of such rules and procedures
11 as are necessary or desirable for the administration of the
12 self-managed plan. Consistent with fiduciary duty to the
13 participants and beneficiaries of the self-managed plan, it
14 may provide for delegation of suitable aspects of plan
15 administration to companies authorized to do business in this
16 State.
17 (c) Selection of service providers and funding vehicles.
18 The principal administrator of the self-managed plan shall
19 solicit proposals to provide administrative services and
20 funding vehicles for the self-managed plan from insurance and
21 annuity companies and mutual fund companies, banks, trust
22 companies, or other financial institutions authorized to do
23 business in this State. In reviewing the proposals received
24 and approving and contracting with no fewer than 2 and no
25 more than 7 companies, the principal administrator shall
26 consider, among other things, the following criteria:
27 (1) the nature and extent of the benefits that
28 would be provided to the participants;
29 (2) the reasonableness of the benefits in relation
30 to the premium charged;
31 (3) the suitability of the benefits to the needs
32 and interests of the participating employees and the
33 employer;
34 (4) the ability of the company to provide benefits
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1 under the contract and the financial stability of the
2 company; and
3 (5) the efficacy of the contract in the recruitment
4 and retention of employees.
5 The principal administrator shall periodically review
6 each approved company. A company may continue to provide
7 administrative services and funding vehicles for the
8 self-managed plan only so long as it continues to be an
9 approved company under contract with the principal
10 administrator.
11 (d) Employee Direction. Employees who are participating
12 in the program must be allowed to direct the transfer of
13 their account balances among the various investment options
14 offered, subject to applicable contractual provisions. The
15 participant shall not be deemed a fiduciary by reason of
16 providing such investment direction. A person who is a
17 fiduciary shall not be liable for any loss resulting from
18 such investment direction and shall not be deemed to have
19 breached any fiduciary duty by acting in accordance with that
20 direction. The self-managed plan does not guarantee any of
21 the investments in the employee's account balances.
22 (e) Participation. An eligible employee must make a
23 written election in accordance with the provisions of Section
24 3-109.2 and the procedures established under the self-managed
25 plan. Participation in the self-managed plan by an eligible
26 employee who elects to participate in the self-managed plan
27 shall begin on the first day of the first pay period
28 following the later of the date the employee's election is
29 filed with the fund or the employer, but in no event sooner
30 than the effective date of the self-managed plan.
31 A police officer who has elected to participate in the
32 self-managed plan under this Section must continue
33 participation while employed in an eligible position, and may
34 not participate in any other retirement program administered
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1 by the municipality while employed as a police officer by
2 that municipality. Participation in the self-managed plan
3 under this Section shall constitute membership in an Article
4 3 pension fund.
5 (f) No Duplication of Service Credit. Notwithstanding
6 any other provision of this Article, a police officer may not
7 purchase or receive service or service credit applicable to
8 any other retirement program administered by a fund under
9 this Article for any period during which the police officer
10 was a participant in the self-managed plan established under
11 this Section.
12 (g) Contributions. The self-managed plan shall be
13 funded by contributions from participants in the self-managed
14 plan and employer contributions as provided in this Section.
15 The contribution rate for a participant in the
16 self-managed plan under this Section shall be a minimum of
17 10% of his or her salary. This required contribution shall
18 be made as an "employer pick-up" under Section 414(h) of the
19 Internal Revenue Code of 1986 or any successor Section
20 thereof. An employee may make additional contributions to
21 the self-managed plan in accordance with the terms of the
22 plan.
23 The self-managed plan shall provide for employer
24 contributions to be credited to each self-managed plan
25 participant at a rate of 10% of the participating employee's
26 salary, less the amount of the employer contribution used to
27 provide disability benefits for the employee. The amounts so
28 credited shall be paid into the participant's self-managed
29 plan accounts in the manner prescribed by the plan.
30 An amount of employer contribution, not exceeding 1.5% of
31 the participating employee's salary, shall be used for the
32 purpose of providing disability benefits to the participating
33 employee. Prior to the beginning of each plan year under the
34 self-managed plan, the principal administrator shall
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1 determine, as a percentage of salary, the amount of employer
2 contributions to be allocated during that plan year for
3 providing disability benefits for employees in the
4 self-managed plan.
5 (h) Vesting; Withdrawal; Return to Service. A
6 participant in the self-managed plan becomes fully vested in
7 the employer contributions credited to his or her account in
8 the self-managed plan on the earliest to occur of the
9 following:
10 (1) completion of 6 years of service with the
11 municipality; or
12 (2) the death of the participating employee while
13 employed by the municipality, if the participant has
14 completed at least 1.5 years of service.
15 A participant in the self-managed plan who receives a
16 distribution of his or her vested amounts from the
17 self-managed plan upon or after termination of employment
18 shall forfeit all service credit and accrued rights in the
19 fund of his or her employer; if subsequently re-employed, the
20 participant shall be considered a new employee. If a former
21 participant again becomes a participating employee and
22 continues as such for at least 2 years, all such rights,
23 service credit, and previous status as a participant shall be
24 restored upon repayment of the amount of the distribution
25 without interest.
26 (i) Benefit amounts. If a participating employee who is
27 fully vested in employer contributions terminates employment,
28 the participating employee shall be entitled to a benefit
29 which is based on the account values attributable to both
30 employer and employee contributions and any investment return
31 thereon.
32 If a participating employee who is not fully vested in
33 employer contributions terminates employment, the employee
34 shall be entitled to a benefit based on the account values
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1 attributable to the employee's contributions and any
2 investment return thereon, plus the following percentage of
3 employer contributions and any investment return thereon: 20%
4 after the second year; 40% after the third year; 60% after
5 the fourth year; 80% after the fifth year; and 100% after the
6 sixth year. The remainder of employer contributions and
7 investment return thereon shall be forfeited. Any employer
8 contributions that are forfeited shall be held in escrow by
9 the company investing those contributions and shall be used
10 as directed by the municipality for future allocations of
11 employer contributions or for the restoration of amounts
12 previously forfeited by former participants who again become
13 participating employees.
14 (40 ILCS 5/3-110) (from Ch. 108 1/2, par. 3-110)
15 Sec. 3-110. Creditable service.
16 (a) "Creditable service" is the time served by a police
17 officer as a member of a regularly constituted police force
18 of a municipality. In computing creditable service furloughs
19 without pay exceeding 30 days shall not be counted, but all
20 leaves of absence for illness or accident, regardless of
21 length, and all periods of disability retirement for which a
22 police officer has received no disability pension payments
23 under this Article shall be counted.
24 (a-5) Up to 3 years of time during which the police
25 officer receives a disability pension under Section 3-114.1,
26 3-114.2, 3-114.3, or 3-114.6 shall be counted as creditable
27 service, provided that (i) the police officer returns to
28 active service after the disability for a period at least
29 equal to the period for which credit is to be established and
30 (ii) the police officer makes contributions to the fund based
31 on the rates specified in Section 3-125.1 and the salary upon
32 which the disability pension is based. These contributions
33 may be paid at any time prior to the commencement of a
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1 retirement pension. The police officer may, but need not,
2 elect to have the contributions deducted from the disability
3 pension or to pay them in installments on a schedule approved
4 by the board. If not deducted from the disability pension,
5 the contributions shall include interest at the rate of 6%
6 per year, compounded annually, from the date for which
7 service credit is being established to the date of payment.
8 If contributions are paid under this subsection (a-5) in
9 excess of those needed to establish the credit, the excess
10 shall be refunded. This subsection (a-5) applies to persons
11 receiving a disability pension under Section 3-114.1,
12 3-114.2, 3-114.3, or 3-114.6 on the effective date of this
13 amendatory Act of the 91st General Assembly, as well as
14 persons who begin to receive such a disability pension after
15 that date.
16 (b) Creditable service includes all periods of service
17 in the military, naval or air forces of the United States
18 entered upon while an active police officer of a
19 municipality, provided that upon applying for a permanent
20 pension, and in accordance with the rules of the board, the
21 police officer pays into the fund the amount the officer
22 would have contributed if he or she had been a regular
23 contributor during such period, to the extent that the
24 municipality which the police officer served has not made
25 such contributions in the officer's behalf. The total amount
26 of such creditable service shall not exceed 5 years, except
27 that any police officer who on July 1, 1973 had more than 5
28 years of such creditable service shall receive the total
29 amount thereof.
30 (c) Creditable service also includes service rendered by
31 a police officer while on leave of absence from a police
32 department to serve as an executive of an organization whose
33 membership consists of members of a police department,
34 subject to the following conditions: (i) the police officer
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1 is a participant of a fund established under this Article
2 with at least 10 years of service as a police officer; (ii)
3 the police officer received no credit for such service under
4 any other retirement system, pension fund, or annuity and
5 benefit fund included in this Code; (iii) pursuant to the
6 rules of the board the police officer pays to the fund the
7 amount he or she would have contributed had the officer been
8 an active member of the police department; and (iv) the
9 organization pays a contribution equal to the municipality's
10 normal cost for that period of service.
11 (d)(1) Creditable service also includes periods of
12 service originally established in another police pension fund
13 under this Article or in the Fund established under Article 7
14 of this Code for which (i) the contributions have been
15 transferred under Section 3-110.7 or Section 7-139.9 and (ii)
16 any additional contribution required under paragraph (2) of
17 this subsection has been paid in full in accordance with the
18 requirements of this subsection (d).
19 (2) If the board of the pension fund to which creditable
20 service and related contributions are transferred under
21 Section 3-110.7 or 7-139.9 determines that the amount
22 transferred is less than the true cost to the pension fund of
23 allowing that creditable service to be established, then in
24 order to establish that creditable service the police officer
25 must pay to the pension fund, within the payment period
26 specified in paragraph (3) of this subsection, an additional
27 contribution equal to the difference, as determined by the
28 board in accordance with the rules and procedures adopted
29 under paragraph (6) of this subsection.
30 (3) Except as provided in paragraph (4), the additional
31 contribution must be paid to the board (i) within 5 years
32 from the date of the transfer of contributions under Section
33 3-110.7 or 7-139.9 and (ii) before the police officer
34 terminates service with the fund. The additional
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1 contribution may be paid in a lump sum or in accordance with
2 a schedule of installment payments authorized by the board.
3 (4) If the police officer dies in service before payment
4 in full has been made and before the expiration of the 5-year
5 payment period, the surviving spouse of the officer may elect
6 to pay the unpaid amount on the officer's behalf within 6
7 months after the date of death, in which case the creditable
8 service shall be granted as though the deceased police
9 officer had paid the remaining balance on the day before the
10 date of death.
11 (5) If the additional contribution is not paid in full
12 within the required time, the creditable service shall not be
13 granted and the police officer (or the officer's surviving
14 spouse or estate) shall be entitled to receive a refund of
15 (i) any partial payment of the additional contribution that
16 has been made by the police officer and (ii) those portions
17 of the amounts transferred under subdivision (a)(1) of
18 Section 3-110.7 or subdivisions (a)(1) and (a)(3) of Section
19 7-139.9 that represent employee contributions paid by the
20 police officer (but not the accumulated interest on those
21 contributions) and interest paid by the police officer to the
22 prior pension fund in order to reinstate service terminated
23 by acceptance of a refund.
24 At the time of paying a refund under this item (5), the
25 pension fund shall also repay to the pension fund from which
26 the contributions were transferred under Section 3-110.7 or
27 7-139.9 the amount originally transferred under subdivision
28 (a)(2) of that Section, plus interest at the rate of 6% per
29 year, compounded annually, from the date of the original
30 transfer to the date of repayment. Amounts repaid to the
31 Article 7 fund under this provision shall be credited to the
32 appropriate municipality.
33 Transferred credit that is not granted due to failure to
34 pay the additional contribution within the required time is
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1 lost; it may not be transferred to another pension fund and
2 may not be reinstated in the pension fund from which it was
3 transferred.
4 (6) The Public Employee Pension Fund Division of the
5 Department of Insurance shall establish by rule the manner of
6 making the calculation required under paragraph (2) of this
7 subsection, taking into account the appropriate actuarial
8 assumptions; the police officer's service, age, and salary
9 history; the level of funding of the pension fund to which
10 the credits are being transferred; and any other factors that
11 the Division determines to be relevant. The rules may
12 require that all calculations made under paragraph (2) be
13 reported to the Division by the board performing the
14 calculation, together with documentation of the creditable
15 service to be transferred, the amounts of contributions and
16 interest to be transferred, the manner in which the
17 calculation was performed, the numbers relied upon in making
18 the calculation, the results of the calculation, and any
19 other information the Division may deem useful.
20 (Source: P.A. 90-460, eff. 8-17-97; 91-887, eff. 7-6-00.)
21 (40 ILCS 5/3-111) (from Ch. 108 1/2, par. 3-111)
22 Sec. 3-111. Pension.
23 (a) A police officer age 50 or more with 20 or more
24 years of creditable service, who is not a participant in the
25 self-managed plan under Section 3-109.3 and who is no longer
26 in service as a police officer, shall receive a pension of
27 1/2 of the salary attached to the rank held by the officer on
28 the police force for one year immediately prior to retirement
29 or, beginning July 1, 1987 for persons terminating service on
30 or after that date, the salary attached to the rank held on
31 the last day of service or for one year prior to the last
32 day, whichever is greater. The pension shall be increased by
33 2.5% 2% of such salary for each additional year of service
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1 over 20 years of service through 30 years of service, up to
2 30 years, and 1% of such salary for each additional year of
3 service over 30 years, to a maximum of 75% of such salary.
4 The changes made to this subsection (a) by this
5 amendatory Act of the 91st General Assembly apply to all
6 pensions that become payable under this subsection on or
7 after January 1, 1999. All pensions payable under this
8 subsection that began on or after January 1, 1999 and before
9 the effective date of this amendatory Act shall be
10 recalculated, and the amount of the increase accruing for
11 that period shall be payable to the pensioner in a lump sum.
12 (a-5) No pension in effect on or granted after June 30,
13 l973 shall be less than $200 per month. Beginning July 1,
14 1987, the minimum retirement pension for a police officer
15 having at least 20 years of creditable service shall be $400
16 per month, without regard to whether or not retirement
17 occurred prior to that date. If the minimum pension
18 established in Section 3-113.1 is greater than the minimum
19 provided in this subsection, the Section 3-113.1 minimum
20 controls.
21 (b) A police officer mandatorily retired from service
22 due to age by operation of law, having at least 8 but less
23 than 20 years of creditable service, shall receive a pension
24 equal to 2 1/2% of the salary attached to the rank he or she
25 held on the police force for one year immediately prior to
26 retirement or, beginning July 1, 1987 for persons terminating
27 service on or after that date, the salary attached to the
28 rank held on the last day of service or for one year prior to
29 the last day, whichever is greater, for each year of
30 creditable service.
31 A police officer who retires or is separated from service
32 having at least 8 years but less than 20 years of creditable
33 service, who is not mandatorily retired due to age by
34 operation of law, and who does not apply for a refund of
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1 contributions at his or her last separation from police
2 service, shall receive a pension upon attaining age 60 equal
3 to 2.5% of the salary attached to the rank held by the police
4 officer on the police force for one year immediately prior to
5 retirement or, beginning July 1, 1987 for persons terminating
6 service on or after that date, the salary attached to the
7 rank held on the last day of service or for one year prior to
8 the last day, whichever is greater, for each year of
9 creditable service.
10 (c) A police officer no longer in service who has at
11 least one but less than 8 years of creditable service in a
12 police pension fund but meets the requirements of this
13 subsection (c) shall be eligible to receive a pension from
14 that fund equal to 2.5% of the salary attached to the rank
15 held on the last day of service under that fund or for one
16 year prior to that last day, whichever is greater, for each
17 year of creditable service in that fund. The pension shall
18 begin no earlier than upon attainment of age 60 (or upon
19 mandatory retirement from the fund by operation of law due to
20 age, if that occurs before age 60) and in no event before the
21 effective date of this amendatory Act of 1997.
22 In order to be eligible for a pension under this
23 subsection (c), the police officer must have at least 8 years
24 of creditable service in a second police pension fund under
25 this Article and be receiving a pension under subsection (a)
26 or (b) of this Section from that second fund. The police
27 officer need not be in service on or after the effective date
28 of this amendatory Act of 1997.
29 (Source: P.A. 90-460, eff. 8-17-97.)
30 (40 ILCS 5/3-111.1) (from Ch. 108 1/2, par. 3-111.1)
31 Sec. 3-111.1. Increase in pension.
32 (a) Except as provided in subsection (e), the monthly
33 pension of a police officer who retires after July 1, 1971,
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1 and prior to January 1, 1986, shall be increased, upon either
2 the first of the month following the first anniversary of the
3 date of retirement if the officer is 60 years of age or over
4 at retirement date, or upon the first day of the month
5 following attainment of age 60 if it occurs after the first
6 anniversary of retirement, by 3% of the originally granted
7 pension and by an additional 3% of the originally granted
8 pension in January of each year thereafter.
9 (b) The monthly pension of a police officer who retired
10 from service with 20 or more years of service, on or before
11 July 1, 1971, shall be increased in January of the year
12 following the year of attaining age 65 or in January of 1972,
13 if then over age 65, by 3% of the originally granted pension
14 for each year the police officer received pension payments.
15 In each January thereafter, he or she shall receive an
16 additional increase of 3% of the original pension.
17 (c) The monthly pension of a police officer who retires
18 on disability or is retired for disability shall be increased
19 in January of the year following the year of attaining age
20 60, by 3% of the original grant of pension for each year he
21 or she received pension payments. In each January
22 thereafter, the police officer shall receive an additional
23 increase of 3% of the original pension.
24 (d) The monthly pension of a police officer who retires
25 after January 1, 1986, shall be increased, upon either the
26 first of the month following the first anniversary of the
27 date of retirement if the officer is 55 years of age or over
28 at the retirement date, or upon the first day of the month
29 following attainment of age 55 if it occurs after the first
30 anniversary of retirement, by 1/12 of 3% of the originally
31 granted pension for each full month year that has elapsed
32 since the pension began, and by an additional 3% of the
33 originally granted pension in January of each year
34 thereafter.
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1 The changes made to this subsection (d) by this
2 amendatory Act of the 91st General Assembly apply to all
3 initial increases that become payable under this subsection
4 on or after January 1, 1999. All initial increases that
5 became payable under this subsection on or after January 1,
6 1999 and before the effective date of this amendatory Act
7 shall be recalculated and the additional amount accruing for
8 that period, if any, shall be payable to the pensioner in a
9 lump sum.
10 (e) Notwithstanding the provisions of subsection (a),
11 upon the first day of the month following (1) the first
12 anniversary of the date of retirement, or (2) the attainment
13 of age 55, or (3) July 1, 1987, whichever occurs latest, the
14 monthly pension of a police officer who retired on or after
15 January 1, 1977 and on or before January 1, 1986, and did not
16 receive an increase under subsection (a) before July 1, 1987,
17 shall be increased by 3% of the originally granted monthly
18 pension for each full year that has elapsed since the pension
19 began, and by an additional 3% of the originally granted
20 pension in each January thereafter. The increases provided
21 under this subsection are in lieu of the increases provided
22 in subsection (a).
23 (f) Notwithstanding the other provisions of this
24 Section, beginning with increases granted on or after July 1,
25 1993, the second and all subsequent automatic annual
26 increases granted under subsection (a), (b), (d), or (e) of
27 this Section shall be calculated as 3% of the amount of
28 pension payable at the time of the increase, including any
29 increases previously granted under this Section, rather than
30 3% of the originally granted pension amount. Section 1-103.1
31 does not apply to this subsection (f).
32 (Source: P.A. 87-1265.)
33 (40 ILCS 5/3-112) (from Ch. 108 1/2, par. 3-112)
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1 Sec. 3-112. Pension to survivors.
2 (a) Upon the death of a police officer entitled to a
3 pension under Section 3-111, the surviving spouse shall be
4 entitled to the pension to which the police officer was then
5 entitled. Upon the death of the surviving spouse, or upon
6 the remarriage of the surviving spouse if that remarriage
7 terminates the surviving spouse's eligibility under Section
8 3-121, the police officer's unmarried children who are under
9 age 18 or who are dependent because of physical or mental
10 disability shall be entitled to equal shares of such pension.
11 If there is no eligible surviving spouse and no eligible
12 child, the dependent parent or parents of the officer shall
13 be entitled to receive or share such pension until their
14 death or marriage or remarriage after the death of the police
15 officer.
16 (b) Upon the death of a police officer while in service,
17 having at least 20 years of creditable service, or upon the
18 death of a police officer who retired from service with at
19 least 20 years of creditable service, whether death occurs
20 before or after attainment of age 50, the pension earned by
21 the police officer as of the date of death as provided in
22 Section 3-111 shall be paid to the survivors in the sequence
23 provided in subsection (a) of this Section.
24 (c) Upon the death of a police officer while in service,
25 having at least 10 but less than 20 years of service, a
26 pension of 1/2 of the salary attached to the rank or ranks
27 held by the officer for one year immediately prior to death
28 shall be payable to the survivors in the sequence provided in
29 subsection (a) of this Section. If death occurs as a result
30 of the performance of duty, the 10 year requirement shall not
31 apply and the pension to survivors shall be payable after any
32 period of service.
33 (d) Beginning July 1, 1987, a minimum pension of $400
34 per month shall be paid to all surviving spouses, without
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1 regard to the fact that the death of the police officer
2 occurred prior to that date. If the minimum pension
3 established in Section 3-113.1 is greater than the minimum
4 provided in this subsection, the Section 3-113.1 minimum
5 controls.
6 (e) The pension of the surviving spouse of a police
7 officer who dies (i) on or after January 1, 2001, (ii)
8 without having begun to receive either a retirement pension
9 payable under Section 3-111 or a disability pension payable
10 under Section 3-114.1, 3-114.2, 3-114.3, or 3-114.6, and
11 (iii) as a result of sickness, accident, or injury incurred
12 in or resulting from the performance of an act of duty shall
13 not be less than 100% of the salary attached to the rank held
14 by the deceased police officer on the last day of service,
15 notwithstanding any provision in this Article to the
16 contrary.
17 (Source: P.A. 89-408, eff. 11-15-95.)
18 (40 ILCS 5/3-113.1)
19 Sec. 3-113.1. Minimum retirement, survivor, and
20 disability pensions.
21 (a) Beginning January 1, 1999, 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, or 3-114.3, or 3-114.6, and
25 the minimum surviving spouse's pension shall be $600 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 In the case of a pensioner whose pension began before the
30 effective date of this amendatory Act and is subject to
31 increase under this subsection (a), the pensioner shall be
32 entitled to a lump sum payment of the amount of that increase
33 accruing from January 1, 1999 (or the date the pension began,
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1 if later) to the effective date of this amendatory Act.
2 (b) Beginning January 1, 2000, the minimum retirement
3 pension payable to a police officer with 20 or more years of
4 creditable service, the minimum disability pension payable
5 under Section 3-114.1, 3-114.2, or 3-114.3, or 3-114.6, and
6 the minimum surviving spouse's pension shall be $800 per
7 month, without regard to whether the police officer was in
8 service on or after the effective date of this amendatory Act
9 of the 91st General Assembly.
10 (c) Beginning January 1, 2001, the minimum retirement
11 pension payable to a police officer with 20 or more years of
12 creditable service, the minimum disability pension payable
13 under Section 3-114.1, 3-114.2, or 3-114.3, or 3-114.6, and
14 the minimum surviving spouse's pension shall be $1000 per
15 month, without regard to whether the police officer was in
16 service on or after the effective date of this amendatory Act
17 of the 91st General Assembly.
18 (d) This Section does not grant a pension to any
19 surviving spouse who is not otherwise eligible to receive a
20 pension under this Article.
21 (e) No survivor benefits are payable to a participant in
22 the self-managed plan.
23 (Source: P.A. 91-466, eff. 8-6-99.)
24 (40 ILCS 5/3-114.1) (from Ch. 108 1/2, par. 3-114.1)
25 Sec. 3-114.1. Disability pension - Line of duty.
26 (a) If a police officer as the result of sickness,
27 accident or injury incurred in or resulting from the
28 performance of an act of duty, is found to be physically or
29 mentally disabled for service in the police department, so as
30 to render necessary his or her suspension or retirement from
31 the police service, the police officer shall be entitled to a
32 disability retirement pension equal to the greatest of (1)
33 65% of the salary attached to the rank on the police force
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1 held by the officer at the date of suspension of duty or
2 retirement, (2) the retirement pension that the police
3 officer would be eligible to receive if he or she retired
4 (but not including any automatic annual increase in that
5 retirement pension), or (3) the pension provided under
6 subsection (d), if applicable.
7 A police officer shall be considered "on duty", while on
8 any assignment approved by the chief of the police department
9 of the municipality he or she serves, whether the assignment
10 is within or outside the municipality.
11 (b) If a police officer on disability pension dies while
12 still disabled, the disability pension shall continue to be
13 paid to his or her survivors in the sequence provided in
14 Section 3-112.
15 (c) From and after July 1, 1987, any pension payable
16 under this Section shall be at least $400 per month, without
17 regard to the fact that the disability or death of the police
18 officer occurred prior to that date. If the minimum pension
19 established in Section 3-113.1 is greater than the minimum
20 provided in this Section, the Section 3-113.1 minimum
21 controls.
22 (d) A disabled police officer who (1) is receiving a
23 pension under this Section on the effective date of this
24 amendatory Act of the 91st General Assembly, (2) files with
25 the Fund, within 30 days after that effective date and
26 annually thereafter while the pension remains payable, a
27 written application for the benefits of this subsection,
28 including an affidavit stating that the applicant has not
29 earned any income from gainful employment during the most
30 recently concluded tax year and a copy of his or her most
31 recent Illinois income tax return, (3) has service credit in
32 the Fund for at least 7 years of active duty, and (4) has
33 been receiving the pension under this Section for a period
34 which, when added to the officer's total service credit in
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1 the Fund, equals at least 20 years, shall be eligible to
2 receive an annual noncompounded increase in his or her
3 pension under this Section, equal to 3% of the original
4 pension.
5 The Fund may take appropriate steps to verify the
6 applicant's disability and earnings status, and for this
7 purpose may request from the Department of Revenue a
8 certified copy of the applicant's Illinois income tax return
9 for any year for which a benefit under this Section is
10 payable or has been paid.
11 The annual increase shall accrue on each anniversary of
12 the initial pension payment date, for so long as the pension
13 remains payable to the disabled police officer and the
14 required annual application is made, except that the annual
15 increases under this subsection shall cease if the disabled
16 police officer earns income from gainful employment. Within
17 60 days after accepting an initial application under this
18 subsection, the Fund shall pay to the disabled police
19 officer, in a lump sum without interest, the amounts
20 resulting from the annual increases that have accrued
21 retroactively.
22 This subsection is not limited to persons in active
23 service on or after its effective date, but it applies only
24 to a pension that is payable under this Section to a disabled
25 police officer (rather than a survivor). Upon the death of
26 the disabled police officer, the annuity payable under this
27 Section to his or her survivors shall include any annual
28 increases previously received, but no additional increases
29 shall accrue under this subsection.
30 (Source: P.A. 85-941.)
31 (40 ILCS 5/3-114.2) (from Ch. 108 1/2, par. 3-114.2)
32 Sec. 3-114.2. Disability pension - Not on duty. A
33 police officer who becomes disabled as a result of any cause
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1 other than the performance of an act of duty, and who is
2 found to be physically or mentally disabled so as to render
3 necessary his or her suspension or retirement from police
4 service in the police department, shall be entitled to a
5 disability pension of 50% of the salary attached to the
6 officer's rank on the police force at the date of suspension
7 of duty or retirement.
8 If a police officer on disability pension dies while
9 still disabled, the disability pension shall continue to be
10 paid to the officer's survivors in the sequence provided in
11 Section 3-112.
12 From and after July 1, 1987, any pension payable under
13 this Section shall be at least $400 per month, without regard
14 to the fact that the disability or death of the police
15 officer occurred prior to that date. If the minimum pension
16 established in Section 3-113.1 is greater than the minimum
17 provided in this Section, the Section 3-113.1 minimum
18 controls.
19 (Source: P.A. 85-941.)
20 (40 ILCS 5/3-114.3) (from Ch. 108 1/2, par. 3-114.3)
21 Sec. 3-114.3. Heart attack or stroke suffered in
22 performance of duties. Any police officer who suffers a
23 heart attack or stroke as a result of the performance and
24 discharge of police duty shall be considered as having been
25 injured in the performance of an act of duty and shall be
26 eligible for the benefits provided under this Article for
27 police officers injured in the performance of an act of duty
28 or, if applicable, the benefits provided in Section 3-114.6.
29 (Source: P.A. 90-766, eff. 8-14-98.)
30 (40 ILCS 5/3-114.6)
31 Sec. 3-114.6. Occupational disease disability pension.
32 (a) This Section applies only to police officers who are
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1 employed by a municipality with a combined police and fire
2 department and who have regular firefighting duties in
3 addition to their law enforcement duties.
4 (b) The General Assembly finds that service in a police
5 department that also has firefighting duties requires
6 officers to perform unusual tasks in times of stress and
7 danger; that officers are subject to exposure to extreme heat
8 or extreme cold in certain seasons while performing their
9 duties; that they are required to work in the midst of and
10 are subject to heavy smoke fumes and carcinogenic, poisonous,
11 toxic, or chemical gases from fires; and that these
12 conditions exist and arise out of or in the course of
13 employment.
14 (c) An active officer with 5 or more years of creditable
15 service who is found to be unable to perform his or her
16 duties in the department by reason of heart disease, stroke,
17 tuberculosis, or any disease of the lungs or respiratory
18 tract, resulting from service as an officer, is entitled to
19 an occupational disease disability pension during any period
20 of such disability for which he or she has no right to
21 receive salary.
22 An active officer who has completed 5 or more years of
23 service and is unable to perform his or her duties in the
24 department by reason of a disabling cancer, which develops or
25 manifests itself during a period while the officer is in the
26 service of the department, is entitled to receive an
27 occupational disease disability benefit during any period of
28 such disability for which he or she does not have a right to
29 receive salary. In order to receive this occupational
30 disease disability benefit, (i) the cancer must be of a type
31 that may be caused by exposure to heat, radiation, or a known
32 carcinogen as defined by the International Agency for
33 Research on Cancer and (ii) the cancer must (and is
34 rebuttably presumed to) arise as a result of service as an
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1 officer.
2 An officer who, after the effective date of this
3 amendatory Act of 1998, enters the service of a combined
4 police and fire department and has regular firefighting
5 duties shall be examined by one or more practicing physicians
6 appointed by the board. If the examination discloses
7 impairment of the heart, lungs, or respiratory tract, or the
8 existence of cancer, the officer shall not be entitled to an
9 occupational disease disability pension under this Section
10 unless and until a subsequent examination reveals no such
11 impairment or cancer.
12 The occupational disease disability pension shall be
13 equal to the greater of 65% of the salary attached to the
14 rank held by the officer at the time of his or her removal
15 from the municipality's department payroll or (2) the
16 retirement pension that the police officer would be eligible
17 to receive if he or she retired (but not including any
18 automatic annual increase in that retirement pension).
19 The occupational disease disability pension is payable to
20 the officer during the period of the disability. If the
21 disability ceases before the death of the officer, the
22 disability pension payable under this Section shall also
23 cease and the officer thereafter shall receive such pension
24 benefits as are provided in accordance with other provisions
25 of this Article.
26 If an officer dies while still disabled and receiving a
27 disability pension under this Section, the disability pension
28 shall continue to be paid to the officer's survivors in the
29 sequence provided in Section 3-112.
30 (Source: P.A. 90-766, eff. 8-14-98.)
31 (40 ILCS 5/3-120) (from Ch. 108 1/2, par. 3-120)
32 Sec. 3-120. Marriage after retirement.
33 (a) If a police officer marries subsequent to
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1 retirement on any pension under this Article other than a
2 pension established under Section 3-109.3, the surviving
3 spouse and the children of such surviving spouse shall
4 receive no pension on the death of the officer, except as
5 provided in subsection (b).
6 (b) Notwithstanding Section 1-103.1 of this Code, this
7 Section shall not be deemed to disqualify from receiving a
8 survivor's pension the surviving spouse and children of any
9 police officer who (i) retired from service in 1973, married
10 the surviving spouse during 1974, and died in 1988, or (ii)
11 retired on disability in October of 1982, married the
12 surviving spouse during 1991, and died in 1992. In the case
13 of a person who becomes eligible for a benefit under this
14 subsection (b), the benefit shall begin to accrue on July 1,
15 1990 or July 1 of the year following the police officer's
16 death, whichever is later.
17 (Source: P.A. 87-794; 87-1265.)
18 (40 ILCS 5/3-124.1) (from Ch. 108 1/2, par. 3-124.1)
19 Sec. 3-124.1. Re-entry into active service. If a police
20 officer who is receiving pension payments other than as
21 provided in Section 3-109.3 re-enters active service, pension
22 payment shall be suspended while he or she is in service.
23 When he or she again retires, pension payments shall be
24 resumed. If the police officer remains in service after
25 re-entry for a period of less than 5 years, the pension shall
26 be the same as upon first retirement. If the officer's
27 service after re-entry is at least 5 years and the officer
28 makes the required contributions during the period of
29 re-entry, his or her pension shall be recomputed by taking
30 into account the additional period of service and salary.
31 (Source: P.A. 83-1440.)
32 (40 ILCS 5/3-125.1) (from Ch. 108 1/2, par. 3-125.1)
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1 Sec. 3-125.1. Contributions by police officers. Each
2 police officer shall contribute to the pension fund the
3 following percentages of salary for the periods stated:
4 Beginning July 1, 1909 and prior to July 23, 1943, 1% (except
5 that prior to July 1, 1921 not more than one dollar per month
6 shall be deducted, and except that beginning July 1, 1921 and
7 prior to July 1, 1927 not more than $2 per month shall be
8 deducted); beginning July 23, 1943 and prior to July 20,
9 1949, 3%; beginning July 20, 1949 and prior to July 17, 1959,
10 5%; beginning July 17, 1959 and prior to July 1, 1971, 7%;
11 beginning July 1, 1971 and prior to July 1, 1975, 7 1/2%;
12 beginning July 1, 1975 and prior to January 1, 1987, 8 1/2%;
13 and beginning January 1, 1987 and prior to January 1, 2001,
14 9%; and beginning January 1, 2001, 9.91%. Such sums shall
15 be paid or deducted monthly. Contribution to the
16 self-managed plan shall be no less than 10% of salary.
17 "Salary" means the annual salary, including longevity,
18 attached to the police officer's rank, as established by the
19 municipality's appropriation ordinance, including any
20 compensation for overtime which is included in the salary so
21 established, but excluding any "overtime pay", "holiday pay",
22 "bonus pay", "merit pay", or any other cash benefit not
23 included in the salary so established.
24 (Source: P.A. 84-1472.)
25 (40 ILCS 5/3-127) (from Ch. 108 1/2, par. 3-127)
26 Sec. 3-127. Reserves. The board shall establish and
27 maintain a reserve to insure the payment of all obligations
28 incurred under this Article excluding retirement annuities
29 established under Section 3-109.3. The reserve to be
30 accumulated shall be equal to the estimated total actuarial
31 requirements of the fund.
32 If a pension fund has a reserve of less than the accrued
33 liabilities of the fund, the board of the pension fund, in
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1 making its annual report to the city council or board of
2 trustees of the municipality, shall designate the amount,
3 calculated as a level percentage of payroll, needed annually
4 to insure the accumulation of the reserve to the level of the
5 fund's accrued liabilities over a period of 40 years from
6 July 1, 1993 for pension funds then in operation, or from the
7 date of establishment in the case of a fund created
8 thereafter, so that the necessary reserves will be attained
9 over such a period.
10 (Source: P.A. 87-1265.)
11 Section 90. The State Mandates Act is amended by adding
12 Section 8.24 as follows:
13 (30 ILCS 805/8.24 new)
14 Sec. 8.24. Exempt mandate. Notwithstanding Sections 6
15 and 8 of this Act, no reimbursement by the State is required
16 for the implementation of any mandate created by this
17 amendatory Act of the 91st General Assembly.
18 Section 99. Effective date. This Act takes effect upon
19 becoming law.".