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91_SB0944
LRB9106076EGfg
1 AN ACT to amend the Illinois Pension Code by changing
2 Sections 3-110 and 3-110.7 and to amend the State Mandates
3 Act.
4 Be it enacted by the People of the State of Illinois,
5 represented in the General Assembly:
6 Section 5. The Illinois Pension Code is amended by
7 changing Sections 3-110 and 3-110.7 as follows:
8 (40 ILCS 5/3-110) (from Ch. 108 1/2, par. 3-110)
9 Sec. 3-110. Creditable service.
10 (a) "Creditable service" is the time served by a police
11 officer as a member of a regularly constituted police force
12 of a municipality. In computing creditable service furloughs
13 without pay exceeding 30 days shall not be counted, but all
14 leaves of absence for illness or accident, regardless of
15 length, and all periods of disability retirement for which a
16 police officer has received no disability pension payments
17 under this Article shall be counted.
18 (b) Creditable service includes all periods of service
19 in the military, naval or air forces of the United States
20 entered upon while an active police officer of a
21 municipality, provided that upon applying for a permanent
22 pension, and in accordance with the rules of the board, the
23 police officer pays into the fund the amount the officer
24 would have contributed if he or she had been a regular
25 contributor during such period, to the extent that the
26 municipality which the police officer served has not made
27 such contributions in the officer's behalf. The total amount
28 of such creditable service shall not exceed 5 years, except
29 that any police officer who on July 1, 1973 had more than 5
30 years of such creditable service shall receive the total
31 amount thereof.
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1 (c) Creditable service also includes service rendered by
2 a police officer while on leave of absence from a police
3 department to serve as an executive of an organization whose
4 membership consists of members of a police department,
5 subject to the following conditions: (i) the police officer
6 is a participant of a fund established under this Article
7 with at least 10 years of service as a police officer; (ii)
8 the police officer received no credit for such service under
9 any other retirement system, pension fund, or annuity and
10 benefit fund included in this Code; (iii) pursuant to the
11 rules of the board the police officer pays to the fund the
12 amount he or she would have contributed had the officer been
13 an active member of the police department; and (iv) the
14 organization pays a contribution equal to the municipality's
15 normal cost for that period of service.
16 (d)(1) Creditable service also includes periods of
17 service originally established in another police pension fund
18 under this Article or in the Fund established under Article 7
19 of this Code for which (i) the contributions have been
20 transferred under Section 3-110.7 or Section 7-139.9 and (ii)
21 any additional contribution required under paragraph (2) of
22 this subsection has been paid in full in accordance with the
23 requirements of this subsection (d).
24 (2) With respect to transfers occurring on or after the
25 effective date of this amendatory Act of the 91st General
26 Assembly, no additional contribution is required under this
27 paragraph (2). This amendatory Act does not affect the
28 additional contribution required under this paragraph (2)
29 with respect to transfers occurring before the effective date
30 of this amendatory Act of the 91st General Assembly, and does
31 not entitle any person to a refund of contributions already
32 paid. If the board of the pension fund to which creditable
33 service and related contributions are transferred under
34 Section 3-110.7 or 7-139.9 determines that the amount
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1 transferred is less than the true cost to the pension fund of
2 allowing that creditable service to be established, then in
3 order to establish that creditable service the police officer
4 must pay to the pension fund, within the payment period
5 specified in paragraph (3) of this subsection, an additional
6 contribution equal to the difference, as determined by the
7 board in accordance with the rules and procedures adopted
8 under paragraph (6) of this subsection.
9 (3) Except as provided in paragraph (4), the additional
10 contribution must be paid to the board (i) within 5 years
11 from the date of the transfer of contributions under Section
12 3-110.7 or 7-139.9 and (ii) before the police officer
13 terminates service with the fund. The additional
14 contribution may be paid in a lump sum or in accordance with
15 a schedule of installment payments authorized by the board.
16 (4) If the police officer dies in service before payment
17 in full has been made and before the expiration of the 5-year
18 payment period, the surviving spouse of the officer may elect
19 to pay the unpaid amount on the officer's behalf within 6
20 months after the date of death, in which case the creditable
21 service shall be granted as though the deceased police
22 officer had paid the remaining balance on the day before the
23 date of death.
24 (5) If the additional contribution is not paid in full
25 within the required time, the creditable service shall not be
26 granted and the police officer (or the officer's surviving
27 spouse or estate) shall be entitled to receive a refund of
28 (i) any partial payment of the additional contribution that
29 has been made by the police officer and (ii) those portions
30 of the amounts transferred under subdivision (a)(1) of
31 Section 3-110.7 or subdivisions (a)(1) and (a)(3) of Section
32 7-139.9 that represent employee contributions paid by the
33 police officer (but not the accumulated interest on those
34 contributions) and interest paid by the police officer to the
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1 prior pension fund in order to reinstate service terminated
2 by acceptance of a refund.
3 Transferred credit that is not granted due to failure to
4 pay the additional contribution within the required time is
5 lost; it may not be transferred to another pension fund and
6 may not be reinstated in the pension fund from which it was
7 transferred.
8 (6) The Public Employee Pension Fund Division of the
9 Department of Insurance shall establish by rule the manner of
10 making the calculation required under paragraph (2) of this
11 subsection, taking into account the appropriate actuarial
12 assumptions; the police officer's service, age, and salary
13 history; the level of funding of the pension fund to which
14 the credits are being transferred; and any other factors that
15 the Division determines to be relevant. The rules may
16 require that all calculations made under paragraph (2) be
17 reported to the Division by the board performing the
18 calculation, together with documentation of the creditable
19 service to be transferred, the amounts of contributions and
20 interest to be transferred, the manner in which the
21 calculation was performed, the numbers relied upon in making
22 the calculation, the results of the calculation, and any
23 other information the Division may deem useful.
24 (Source: P.A. 89-52, eff. 6-30-95; 90-460, eff. 8-17-97.)
25 (40 ILCS 5/3-110.7)
26 Sec. 3-110.7. Transfer between Article 3 funds.
27 (a) An active member of a pension fund established under
28 this Article may apply for transfer to that fund of his or
29 her creditable service and related contributions accumulated
30 in any other police pension fund established under this
31 Article, except that a police officer may not transfer
32 creditable service under this Section from a pension fund
33 unless (i) the police officer actively served in the police
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1 department under that fund for at least 2 years, (ii) the
2 police officer actively served in the police department under
3 that fund for less than 2 years but was laid off or otherwise
4 involuntarily terminated for a reason other than the fault of
5 the officer, or (iii) the police officer was not in service
6 in the police department under that fund on or after the
7 effective date of this Section. Upon receiving the
8 application, that other pension fund shall transfer to the
9 pension fund in which the applicant currently participates an
10 amount equal to:
11 (1) the amounts actually contributed by or on
12 behalf of the applicant to the fund as employee
13 contributions (including any interest paid by the
14 applicant in order to reinstate service), plus interest
15 on those amounts at the rate of 6% per year, compounded
16 annually, from the last day of service date of
17 contribution to the date of transfer; plus
18 (2) an amount representing employer contributions,
19 equal to the total amount determined under subdivision
20 (1).
21 Participation in that other pension fund shall terminate on
22 the date of transfer.
23 (b) An active member of a pension fund established under
24 this Article may reinstate service in any other pension fund
25 established under this Article that was terminated by receipt
26 of a refund, by paying to that other pension fund the amount
27 of the refund plus interest thereon at the rate of 6% per
28 year, compounded annually, from the date of refund to the
29 date of payment.
30 (Source: P.A. 90-460, eff. 8-17-97.)
31 Section 90. The State Mandates Act is amended by adding
32 Section 8.23 as follows:
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1 (30 ILCS 805/8.23 new)
2 Sec. 8.23. 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.