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Public Act 91-0939
SB851 Enrolled LRB9105991EGfg
AN ACT in relation to public employee benefits.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Pension Code is amended by
changing Sections 3-110, 3-111, 3-111.1, 3-112, 3-113.1,
3-114.1, 3-114.2, 3-114.3, 3-114.6, 3-120, 3-124.1, 3-125.1,
and 3-127 and adding Sections 3-105.2, 3-109.2, and 3-109.3
as follows:
(40 ILCS 5/3-105.2 new)
Sec. 3-105.2. Self-Managed Plan. "Self-managed plan":
The defined contribution retirement program established for
eligible employees under Section 3-109.3. The self-managed
plan includes disability benefits as provided in Sections
3-114.1, 3-114.2, 3-114.3, and 3-114.6 (but disregarding
disability retirement annuities under Section 3-116.1). The
self-managed plan does not include any retirement annuities,
death benefits, or survivors insurance benefits payable
directly from the fund under Section 3-111, 3-111.1, 3-112,
3-114.1, 3-114.2, 3-114.3, 3-114.6, or 3-116.1 or any refunds
determined under Section 3-124.
(40 ILCS 5/3-109.2 new)
Sec. 3-109.2. Retirement Program Elections.
(a) For the purposes of this Section and Section
3-109.3:
"Eligible employee" means a police officer who is hired
on or within one year after the effective date of the
self-managed plan established under Section 3-109.3.
"Ineligible employee" means a police officer who is hired
before or more than one year after that effective date.
(b) Each eligible employee may elect to participate in
the self-managed plan with respect to all periods of covered
employment occurring on and after the effective date of the
eligible employee's election. The election must be made in
writing, in the manner prescribed by the fund, and within 6
months after the later of (i) the date upon which the
self-managed plan takes effect or (ii) the date of hire.
The election, once made, is irrevocable. If an employee
terminates employment after making the election, then upon
his or her subsequent re-employment under this Article with
the same municipality, the original election shall
automatically be reinstated.
A police officer who does not elect to participate in the
self-managed plan within the permitted time shall participate
in the defined benefit plan otherwise provided under this
Article.
The employer shall not remit contributions to the fund on
behalf of an eligible employee until the earlier of the
expiration of the employee's 6-month election period or the
date on which the employee submits a properly completed
election to the employer or to the fund.
(c) Each eligible employee shall be provided with
written information prepared or prescribed by the fund,
describing the employee's retirement program choices. The
eligible employee shall be offered an opportunity to receive
counseling from the fund prior to making his or her election.
This counseling may consist of videotaped materials, group
presentations, individual consultation with an employee or
authorized representative of the fund in person or by
telephone or other electronic means, or any combination of
these methods.
(40 ILCS 5/3-109.3 new)
Sec. 3-109.3. Self-managed plan.
(a) Purpose. The General Assembly finds that it is
important for municipalities to be able to attract and retain
the most qualified police officers and that in order to
attract and retain these police officers, municipalities
should have the flexibility to provide a defined contribution
plan as an alternative for eligible employees who elect not
to participate in a defined benefit retirement program
provided under this Article. Accordingly, a self-managed
plan shall be provided, which shall offer participating
employees the opportunity to accumulate assets for retirement
through a combination of employee and employer contributions
that may be invested in mutual funds, collective investment
funds, or other investment products and used to purchase
annuity contracts, either fixed or variable, or a combination
thereof. The plan must be qualified under the Internal
Revenue Code of 1986.
(b) Study by Commission; Adoption of plan. The Illinois
Pension Laws Commission shall study and evaluate the creation
of a statewide self-managed plan for eligible employees under
this Article. The Commission shall report its findings and
recommendations to the General Assembly no later than January
1, 2002.
In accordance with the recommendations of the Commission
and any action taken by the General Assembly in response to
those recommendations, a statewide self-managed plan shall be
adopted for eligible employees under this Article. The
self-managed plan shall take effect as specified in the plan,
but in no event earlier than July 1, 2002 or the date of its
approval by the U.S. Internal Revenue Service, whichever
occurs later.
The self-managed plan shall include a plan document and
shall provide for the adoption of such rules and procedures
as are necessary or desirable for the administration of the
self-managed plan. Consistent with fiduciary duty to the
participants and beneficiaries of the self-managed plan, it
may provide for delegation of suitable aspects of plan
administration to companies authorized to do business in this
State.
(c) Selection of service providers and funding vehicles.
The principal administrator of the self-managed plan shall
solicit proposals to provide administrative services and
funding vehicles for the self-managed plan from insurance and
annuity companies and mutual fund companies, banks, trust
companies, or other financial institutions authorized to do
business in this State. In reviewing the proposals received
and approving and contracting with no fewer than 2 and no
more than 7 companies, the principal administrator shall
consider, among other things, the following criteria:
(1) the nature and extent of the benefits that
would be provided to the participants;
(2) the reasonableness of the benefits in relation
to the premium charged;
(3) the suitability of the benefits to the needs
and interests of the participating employees and the
employer;
(4) the ability of the company to provide benefits
under the contract and the financial stability of the
company; and
(5) the efficacy of the contract in the recruitment
and retention of employees.
The principal administrator shall periodically review
each approved company. A company may continue to provide
administrative services and funding vehicles for the
self-managed plan only so long as it continues to be an
approved company under contract with the principal
administrator.
(d) Employee Direction. Employees who are participating
in the program must be allowed to direct the transfer of
their account balances among the various investment options
offered, subject to applicable contractual provisions. The
participant shall not be deemed a fiduciary by reason of
providing such investment direction. A person who is a
fiduciary shall not be liable for any loss resulting from
such investment direction and shall not be deemed to have
breached any fiduciary duty by acting in accordance with that
direction. The self-managed plan does not guarantee any of
the investments in the employee's account balances.
(e) Participation. An eligible employee must make a
written election in accordance with the provisions of Section
3-109.2 and the procedures established under the self-managed
plan. Participation in the self-managed plan by an eligible
employee who elects to participate in the self-managed plan
shall begin on the first day of the first pay period
following the later of the date the employee's election is
filed with the fund or the employer, but in no event sooner
than the effective date of the self-managed plan.
A police officer who has elected to participate in the
self-managed plan under this Section must continue
participation while employed in an eligible position, and may
not participate in any other retirement program administered
by the municipality while employed as a police officer by
that municipality. Participation in the self-managed plan
under this Section shall constitute membership in an Article
3 pension fund.
(f) No Duplication of Service Credit. Notwithstanding
any other provision of this Article, a police officer may not
purchase or receive service or service credit applicable to
any other retirement program administered by a fund under
this Article for any period during which the police officer
was a participant in the self-managed plan established under
this Section.
(g) Contributions. The self-managed plan shall be
funded by contributions from participants in the self-managed
plan and employer contributions as provided in this Section.
The contribution rate for a participant in the
self-managed plan under this Section shall be a minimum of
10% of his or her salary. This required contribution shall
be made as an "employer pick-up" under Section 414(h) of the
Internal Revenue Code of 1986 or any successor Section
thereof. An employee may make additional contributions to
the self-managed plan in accordance with the terms of the
plan.
The self-managed plan shall provide for employer
contributions to be credited to each self-managed plan
participant at a rate of 10% of the participating employee's
salary, less the amount of the employer contribution used to
provide disability benefits for the employee. The amounts so
credited shall be paid into the participant's self-managed
plan accounts in the manner prescribed by the plan.
An amount of employer contribution, not exceeding 1.5% of
the participating employee's salary, shall be used for the
purpose of providing disability benefits to the participating
employee. Prior to the beginning of each plan year under the
self-managed plan, the principal administrator shall
determine, as a percentage of salary, the amount of employer
contributions to be allocated during that plan year for
providing disability benefits for employees in the
self-managed plan.
(h) Vesting; Withdrawal; Return to Service. A
participant in the self-managed plan becomes fully vested in
the employer contributions credited to his or her account in
the self-managed plan on the earliest to occur of the
following:
(1) completion of 6 years of service with the
municipality; or
(2) the death of the participating employee while
employed by the municipality, if the participant has
completed at least 1.5 years of service.
A participant in the self-managed plan who receives a
distribution of his or her vested amounts from the
self-managed plan upon or after termination of employment
shall forfeit all service credit and accrued rights in the
fund of his or her employer; if subsequently re-employed, the
participant shall be considered a new employee. If a former
participant again becomes a participating employee and
continues as such for at least 2 years, all such rights,
service credit, and previous status as a participant shall be
restored upon repayment of the amount of the distribution
without interest.
(i) Benefit amounts. If a participating employee who is
fully vested in employer contributions terminates employment,
the participating employee shall be entitled to a benefit
which is based on the account values attributable to both
employer and employee contributions and any investment return
thereon.
If a participating employee who is not fully vested in
employer contributions terminates employment, the employee
shall be entitled to a benefit based on the account values
attributable to the employee's contributions and any
investment return thereon, plus the following percentage of
employer contributions and any investment return thereon: 20%
after the second year; 40% after the third year; 60% after
the fourth year; 80% after the fifth year; and 100% after the
sixth year. The remainder of employer contributions and
investment return thereon shall be forfeited. Any employer
contributions that are forfeited shall be held in escrow by
the company investing those contributions and shall be used
as directed by the municipality for future allocations of
employer contributions or for the restoration of amounts
previously forfeited by former participants who again become
participating employees.
(40 ILCS 5/3-110) (from Ch. 108 1/2, par. 3-110)
Sec. 3-110. Creditable service.
(a) "Creditable service" is the time served by a police
officer as a member of a regularly constituted police force
of a municipality. In computing creditable service furloughs
without pay exceeding 30 days shall not be counted, but all
leaves of absence for illness or accident, regardless of
length, and all periods of disability retirement for which a
police officer has received no disability pension payments
under this Article shall be counted.
(a-5) Up to 3 years of time during which the police
officer receives a disability pension under Section 3-114.1,
3-114.2, 3-114.3, or 3-114.6 shall be counted as creditable
service, provided that (i) the police officer returns to
active service after the disability for a period at least
equal to the period for which credit is to be established and
(ii) the police officer makes contributions to the fund based
on the rates specified in Section 3-125.1 and the salary upon
which the disability pension is based. These contributions
may be paid at any time prior to the commencement of a
retirement pension. The police officer may, but need not,
elect to have the contributions deducted from the disability
pension or to pay them in installments on a schedule approved
by the board. If not deducted from the disability pension,
the contributions shall include interest at the rate of 6%
per year, compounded annually, from the date for which
service credit is being established to the date of payment.
If contributions are paid under this subsection (a-5) in
excess of those needed to establish the credit, the excess
shall be refunded. This subsection (a-5) applies to persons
receiving a disability pension under Section 3-114.1,
3-114.2, 3-114.3, or 3-114.6 on the effective date of this
amendatory Act of the 91st General Assembly, as well as
persons who begin to receive such a disability pension after
that date.
(b) Creditable service includes all periods of service
in the military, naval or air forces of the United States
entered upon while an active police officer of a
municipality, provided that upon applying for a permanent
pension, and in accordance with the rules of the board, the
police officer pays into the fund the amount the officer
would have contributed if he or she had been a regular
contributor during such period, to the extent that the
municipality which the police officer served has not made
such contributions in the officer's behalf. The total amount
of such creditable service shall not exceed 5 years, except
that any police officer who on July 1, 1973 had more than 5
years of such creditable service shall receive the total
amount thereof.
(c) Creditable service also includes service rendered by
a police officer while on leave of absence from a police
department to serve as an executive of an organization whose
membership consists of members of a police department,
subject to the following conditions: (i) the police officer
is a participant of a fund established under this Article
with at least 10 years of service as a police officer; (ii)
the police officer received no credit for such service under
any other retirement system, pension fund, or annuity and
benefit fund included in this Code; (iii) pursuant to the
rules of the board the police officer pays to the fund the
amount he or she would have contributed had the officer been
an active member of the police department; and (iv) the
organization pays a contribution equal to the municipality's
normal cost for that period of service.
(d)(1) Creditable service also includes periods of
service originally established in another police pension fund
under this Article or in the Fund established under Article 7
of this Code for which (i) the contributions have been
transferred under Section 3-110.7 or Section 7-139.9 and (ii)
any additional contribution required under paragraph (2) of
this subsection has been paid in full in accordance with the
requirements of this subsection (d).
(2) If the board of the pension fund to which creditable
service and related contributions are transferred under
Section 3-110.7 or 7-139.9 determines that the amount
transferred is less than the true cost to the pension fund of
allowing that creditable service to be established, then in
order to establish that creditable service the police officer
must pay to the pension fund, within the payment period
specified in paragraph (3) of this subsection, an additional
contribution equal to the difference, as determined by the
board in accordance with the rules and procedures adopted
under paragraph (6) of this subsection.
(3) Except as provided in paragraph (4), the additional
contribution must be paid to the board (i) within 5 years
from the date of the transfer of contributions under Section
3-110.7 or 7-139.9 and (ii) before the police officer
terminates service with the fund. The additional
contribution may be paid in a lump sum or in accordance with
a schedule of installment payments authorized by the board.
(4) If the police officer dies in service before payment
in full has been made and before the expiration of the 5-year
payment period, the surviving spouse of the officer may elect
to pay the unpaid amount on the officer's behalf within 6
months after the date of death, in which case the creditable
service shall be granted as though the deceased police
officer had paid the remaining balance on the day before the
date of death.
(5) If the additional contribution is not paid in full
within the required time, the creditable service shall not be
granted and the police officer (or the officer's surviving
spouse or estate) shall be entitled to receive a refund of
(i) any partial payment of the additional contribution that
has been made by the police officer and (ii) those portions
of the amounts transferred under subdivision (a)(1) of
Section 3-110.7 or subdivisions (a)(1) and (a)(3) of Section
7-139.9 that represent employee contributions paid by the
police officer (but not the accumulated interest on those
contributions) and interest paid by the police officer to the
prior pension fund in order to reinstate service terminated
by acceptance of a refund.
At the time of paying a refund under this item (5), the
pension fund shall also repay to the pension fund from which
the contributions were transferred under Section 3-110.7 or
7-139.9 the amount originally transferred under subdivision
(a)(2) of that Section, plus interest at the rate of 6% per
year, compounded annually, from the date of the original
transfer to the date of repayment. Amounts repaid to the
Article 7 fund under this provision shall be credited to the
appropriate municipality.
Transferred credit that is not granted due to failure to
pay the additional contribution within the required time is
lost; it may not be transferred to another pension fund and
may not be reinstated in the pension fund from which it was
transferred.
(6) The Public Employee Pension Fund Division of the
Department of Insurance shall establish by rule the manner of
making the calculation required under paragraph (2) of this
subsection, taking into account the appropriate actuarial
assumptions; the police officer's service, age, and salary
history; the level of funding of the pension fund to which
the credits are being transferred; and any other factors that
the Division determines to be relevant. The rules may
require that all calculations made under paragraph (2) be
reported to the Division by the board performing the
calculation, together with documentation of the creditable
service to be transferred, the amounts of contributions and
interest to be transferred, the manner in which the
calculation was performed, the numbers relied upon in making
the calculation, the results of the calculation, and any
other information the Division may deem useful.
(Source: P.A. 90-460, eff. 8-17-97; 91-887, eff. 7-6-00.)
(40 ILCS 5/3-111) (from Ch. 108 1/2, par. 3-111)
Sec. 3-111. Pension.
(a) A police officer age 50 or more with 20 or more
years of creditable service, who is not a participant in the
self-managed plan under Section 3-109.3 and who is no longer
in service as a police officer, shall receive a pension of
1/2 of the salary attached to the rank held by the officer on
the police force for one year immediately prior to retirement
or, beginning July 1, 1987 for persons terminating service on
or after that date, the salary attached to the rank held on
the last day of service or for one year prior to the last
day, whichever is greater. The pension shall be increased by
2.5% 2% of such salary for each additional year of service
over 20 years of service through 30 years of service, up to
30 years, and 1% of such salary for each additional year of
service over 30 years, to a maximum of 75% of such salary.
The changes made to this subsection (a) by this
amendatory Act of the 91st General Assembly apply to all
pensions that become payable under this subsection on or
after January 1, 1999. All pensions payable under this
subsection that began on or after January 1, 1999 and before
the effective date of this amendatory Act shall be
recalculated, and the amount of the increase accruing for
that period shall be payable to the pensioner in a lump sum.
(a-5) No pension in effect on or granted after June 30,
l973 shall be less than $200 per month. Beginning July 1,
1987, the minimum retirement pension for a police officer
having at least 20 years of creditable service shall be $400
per month, without regard to whether or not retirement
occurred prior to that date. If the minimum pension
established in Section 3-113.1 is greater than the minimum
provided in this subsection, the Section 3-113.1 minimum
controls.
(b) A police officer mandatorily retired from service
due to age by operation of law, having at least 8 but less
than 20 years of creditable service, shall receive a pension
equal to 2 1/2% of the salary attached to the rank he or she
held on the police force for one year immediately prior to
retirement or, beginning July 1, 1987 for persons terminating
service on or after that date, the salary attached to the
rank held on the last day of service or for one year prior to
the last day, whichever is greater, for each year of
creditable service.
A police officer who retires or is separated from service
having at least 8 years but less than 20 years of creditable
service, who is not mandatorily retired due to age by
operation of law, and who does not apply for a refund of
contributions at his or her last separation from police
service, shall receive a pension upon attaining age 60 equal
to 2.5% of the salary attached to the rank held by the police
officer on the police force for one year immediately prior to
retirement or, beginning July 1, 1987 for persons terminating
service on or after that date, the salary attached to the
rank held on the last day of service or for one year prior to
the last day, whichever is greater, for each year of
creditable service.
(c) A police officer no longer in service who has at
least one but less than 8 years of creditable service in a
police pension fund but meets the requirements of this
subsection (c) shall be eligible to receive a pension from
that fund equal to 2.5% of the salary attached to the rank
held on the last day of service under that fund or for one
year prior to that last day, whichever is greater, for each
year of creditable service in that fund. The pension shall
begin no earlier than upon attainment of age 60 (or upon
mandatory retirement from the fund by operation of law due to
age, if that occurs before age 60) and in no event before the
effective date of this amendatory Act of 1997.
In order to be eligible for a pension under this
subsection (c), the police officer must have at least 8 years
of creditable service in a second police pension fund under
this Article and be receiving a pension under subsection (a)
or (b) of this Section from that second fund. The police
officer need not be in service on or after the effective date
of this amendatory Act of 1997.
(Source: P.A. 90-460, eff. 8-17-97.)
(40 ILCS 5/3-111.1) (from Ch. 108 1/2, par. 3-111.1)
Sec. 3-111.1. Increase in pension.
(a) Except as provided in subsection (e), the monthly
pension of a police officer who retires after July 1, 1971,
and prior to January 1, 1986, shall be increased, upon either
the first of the month following the first anniversary of the
date of retirement if the officer is 60 years of age or over
at retirement date, or upon the first day of the month
following attainment of age 60 if it occurs after the first
anniversary of retirement, by 3% of the originally granted
pension and by an additional 3% of the originally granted
pension in January of each year thereafter.
(b) The monthly pension of a police officer who retired
from service with 20 or more years of service, on or before
July 1, 1971, shall be increased in January of the year
following the year of attaining age 65 or in January of 1972,
if then over age 65, by 3% of the originally granted pension
for each year the police officer received pension payments.
In each January thereafter, he or she shall receive an
additional increase of 3% of the original pension.
(c) The monthly pension of a police officer who retires
on disability or is retired for disability shall be increased
in January of the year following the year of attaining age
60, by 3% of the original grant of pension for each year he
or she received pension payments. In each January
thereafter, the police officer shall receive an additional
increase of 3% of the original pension.
(d) The monthly pension of a police officer who retires
after January 1, 1986, shall be increased, upon either the
first of the month following the first anniversary of the
date of retirement if the officer is 55 years of age or over
at the retirement date, or upon the first day of the month
following attainment of age 55 if it occurs after the first
anniversary of retirement, by 1/12 of 3% of the originally
granted pension for each full month year that has elapsed
since the pension began, and by an additional 3% of the
originally granted pension in January of each year
thereafter.
The changes made to this subsection (d) by this
amendatory Act of the 91st General Assembly apply to all
initial increases that become payable under this subsection
on or after January 1, 1999. All initial increases that
became payable under this subsection on or after January 1,
1999 and before the effective date of this amendatory Act
shall be recalculated and the additional amount accruing for
that period, if any, shall be payable to the pensioner in a
lump sum.
(e) Notwithstanding the provisions of subsection (a),
upon the first day of the month following (1) the first
anniversary of the date of retirement, or (2) the attainment
of age 55, or (3) July 1, 1987, whichever occurs latest, the
monthly pension of a police officer who retired on or after
January 1, 1977 and on or before January 1, 1986, and did not
receive an increase under subsection (a) before July 1, 1987,
shall be increased by 3% of the originally granted monthly
pension for each full year that has elapsed since the pension
began, and by an additional 3% of the originally granted
pension in each January thereafter. The increases provided
under this subsection are in lieu of the increases provided
in subsection (a).
(f) Notwithstanding the other provisions of this
Section, beginning with increases granted on or after July 1,
1993, the second and all subsequent automatic annual
increases granted under subsection (a), (b), (d), or (e) of
this Section shall be calculated as 3% of the amount of
pension payable at the time of the increase, including any
increases previously granted under this Section, rather than
3% of the originally granted pension amount. Section 1-103.1
does not apply to this subsection (f).
(Source: P.A. 87-1265.)
(40 ILCS 5/3-112) (from Ch. 108 1/2, par. 3-112)
Sec. 3-112. Pension to survivors.
(a) Upon the death of a police officer entitled to a
pension under Section 3-111, the surviving spouse shall be
entitled to the pension to which the police officer was then
entitled. Upon the death of the surviving spouse, or upon
the remarriage of the surviving spouse if that remarriage
terminates the surviving spouse's eligibility under Section
3-121, the police officer's unmarried children who are under
age 18 or who are dependent because of physical or mental
disability shall be entitled to equal shares of such pension.
If there is no eligible surviving spouse and no eligible
child, the dependent parent or parents of the officer shall
be entitled to receive or share such pension until their
death or marriage or remarriage after the death of the police
officer.
(b) Upon the death of a police officer while in service,
having at least 20 years of creditable service, or upon the
death of a police officer who retired from service with at
least 20 years of creditable service, whether death occurs
before or after attainment of age 50, the pension earned by
the police officer as of the date of death as provided in
Section 3-111 shall be paid to the survivors in the sequence
provided in subsection (a) of this Section.
(c) Upon the death of a police officer while in service,
having at least 10 but less than 20 years of service, a
pension of 1/2 of the salary attached to the rank or ranks
held by the officer for one year immediately prior to death
shall be payable to the survivors in the sequence provided in
subsection (a) of this Section. If death occurs as a result
of the performance of duty, the 10 year requirement shall not
apply and the pension to survivors shall be payable after any
period of service.
(d) Beginning July 1, 1987, a minimum pension of $400
per month shall be paid to all surviving spouses, without
regard to the fact that the death of the police officer
occurred prior to that date. If the minimum pension
established in Section 3-113.1 is greater than the minimum
provided in this subsection, the Section 3-113.1 minimum
controls.
(e) The pension of the surviving spouse of a police
officer who dies (i) on or after January 1, 2001, (ii)
without having begun to receive either a retirement pension
payable under Section 3-111 or a disability pension payable
under Section 3-114.1, 3-114.2, 3-114.3, or 3-114.6, and
(iii) as a result of sickness, accident, or injury incurred
in or resulting from the performance of an act of duty shall
not be less than 100% of the salary attached to the rank held
by the deceased police officer on the last day of service,
notwithstanding any provision in this Article to the
contrary.
(Source: P.A. 89-408, eff. 11-15-95.)
(40 ILCS 5/3-113.1)
Sec. 3-113.1. Minimum retirement, survivor, and
disability pensions.
(a) Beginning January 1, 1999, the minimum retirement
pension payable to a police officer with 20 or more years of
creditable service, the minimum disability pension payable
under Section 3-114.1, 3-114.2, or 3-114.3, or 3-114.6, and
the minimum surviving spouse's pension shall be $600 per
month, without regard to whether the police officer was in
service on or after the effective date of this amendatory Act
of the 91st General Assembly.
In the case of a pensioner whose pension began before the
effective date of this amendatory Act and is subject to
increase under this subsection (a), the pensioner shall be
entitled to a lump sum payment of the amount of that increase
accruing from January 1, 1999 (or the date the pension began,
if later) to the effective date of this amendatory Act.
(b) Beginning January 1, 2000, the minimum retirement
pension payable to a police officer with 20 or more years of
creditable service, the minimum disability pension payable
under Section 3-114.1, 3-114.2, or 3-114.3, or 3-114.6, and
the minimum surviving spouse's pension shall be $800 per
month, without regard to whether the police officer was in
service on or after the effective date of this amendatory Act
of the 91st General Assembly.
(c) Beginning January 1, 2001, the minimum retirement
pension payable to a police officer with 20 or more years of
creditable service, the minimum disability pension payable
under Section 3-114.1, 3-114.2, or 3-114.3, or 3-114.6, and
the minimum surviving spouse's pension shall be $1000 per
month, without regard to whether the police officer was in
service on or after the effective date of this amendatory Act
of the 91st General Assembly.
(d) This Section does not grant a pension to any
surviving spouse who is not otherwise eligible to receive a
pension under this Article.
(e) No survivor benefits are payable to a participant in
the self-managed plan.
(Source: P.A. 91-466, eff. 8-6-99.)
(40 ILCS 5/3-114.1) (from Ch. 108 1/2, par. 3-114.1)
Sec. 3-114.1. Disability pension - Line of duty.
(a) If a police officer as the result of sickness,
accident or injury incurred in or resulting from the
performance of an act of duty, is found to be physically or
mentally disabled for service in the police department, so as
to render necessary his or her suspension or retirement from
the police service, the police officer shall be entitled to a
disability retirement pension equal to the greatest of (1)
65% of the salary attached to the rank on the police force
held by the officer at the date of suspension of duty or
retirement, (2) the retirement pension that the police
officer would be eligible to receive if he or she retired
(but not including any automatic annual increase in that
retirement pension), or (3) the pension provided under
subsection (d), if applicable.
A police officer shall be considered "on duty", while on
any assignment approved by the chief of the police department
of the municipality he or she serves, whether the assignment
is within or outside the municipality.
(b) If a police officer on disability pension dies while
still disabled, the disability pension shall continue to be
paid to his or her survivors in the sequence provided in
Section 3-112.
(c) From and after July 1, 1987, any pension payable
under this Section shall be at least $400 per month, without
regard to the fact that the disability or death of the police
officer occurred prior to that date. If the minimum pension
established in Section 3-113.1 is greater than the minimum
provided in this Section, the Section 3-113.1 minimum
controls.
(d) A disabled police officer who (1) is receiving a
pension under this Section on the effective date of this
amendatory Act of the 91st General Assembly, (2) files with
the Fund, within 30 days after that effective date and
annually thereafter while the pension remains payable, a
written application for the benefits of this subsection,
including an affidavit stating that the applicant has not
earned any income from gainful employment during the most
recently concluded tax year and a copy of his or her most
recent Illinois income tax return, (3) has service credit in
the Fund for at least 7 years of active duty, and (4) has
been receiving the pension under this Section for a period
which, when added to the officer's total service credit in
the Fund, equals at least 20 years, shall be eligible to
receive an annual noncompounded increase in his or her
pension under this Section, equal to 3% of the original
pension.
The Fund may take appropriate steps to verify the
applicant's disability and earnings status, and for this
purpose may request from the Department of Revenue a
certified copy of the applicant's Illinois income tax return
for any year for which a benefit under this Section is
payable or has been paid.
The annual increase shall accrue on each anniversary of
the initial pension payment date, for so long as the pension
remains payable to the disabled police officer and the
required annual application is made, except that the annual
increases under this subsection shall cease if the disabled
police officer earns income from gainful employment. Within
60 days after accepting an initial application under this
subsection, the Fund shall pay to the disabled police
officer, in a lump sum without interest, the amounts
resulting from the annual increases that have accrued
retroactively.
This subsection is not limited to persons in active
service on or after its effective date, but it applies only
to a pension that is payable under this Section to a disabled
police officer (rather than a survivor). Upon the death of
the disabled police officer, the annuity payable under this
Section to his or her survivors shall include any annual
increases previously received, but no additional increases
shall accrue under this subsection.
(Source: P.A. 85-941.)
(40 ILCS 5/3-114.2) (from Ch. 108 1/2, par. 3-114.2)
Sec. 3-114.2. Disability pension - Not on duty. A
police officer who becomes disabled as a result of any cause
other than the performance of an act of duty, and who is
found to be physically or mentally disabled so as to render
necessary his or her suspension or retirement from police
service in the police department, shall be entitled to a
disability pension of 50% of the salary attached to the
officer's rank on the police force at the date of suspension
of duty or retirement.
If a police officer on disability pension dies while
still disabled, the disability pension shall continue to be
paid to the officer's survivors in the sequence provided in
Section 3-112.
From and after July 1, 1987, any pension payable under
this Section shall be at least $400 per month, without regard
to the fact that the disability or death of the police
officer occurred prior to that date. If the minimum pension
established in Section 3-113.1 is greater than the minimum
provided in this Section, the Section 3-113.1 minimum
controls.
(Source: P.A. 85-941.)
(40 ILCS 5/3-114.3) (from Ch. 108 1/2, par. 3-114.3)
Sec. 3-114.3. Heart attack or stroke suffered in
performance of duties. Any police officer who suffers a
heart attack or stroke as a result of the performance and
discharge of police duty shall be considered as having been
injured in the performance of an act of duty and shall be
eligible for the benefits provided under this Article for
police officers injured in the performance of an act of duty
or, if applicable, the benefits provided in Section 3-114.6.
(Source: P.A. 90-766, eff. 8-14-98.)
(40 ILCS 5/3-114.6)
Sec. 3-114.6. Occupational disease disability pension.
(a) This Section applies only to police officers who are
employed by a municipality with a combined police and fire
department and who have regular firefighting duties in
addition to their law enforcement duties.
(b) The General Assembly finds that service in a police
department that also has firefighting duties requires
officers to perform unusual tasks in times of stress and
danger; that officers are subject to exposure to extreme heat
or extreme cold in certain seasons while performing their
duties; that they are required to work in the midst of and
are subject to heavy smoke fumes and carcinogenic, poisonous,
toxic, or chemical gases from fires; and that these
conditions exist and arise out of or in the course of
employment.
(c) An active officer with 5 or more years of creditable
service who is found to be unable to perform his or her
duties in the department by reason of heart disease, stroke,
tuberculosis, or any disease of the lungs or respiratory
tract, resulting from service as an officer, is entitled to
an occupational disease disability pension during any period
of such disability for which he or she has no right to
receive salary.
An active officer who has completed 5 or more years of
service and is unable to perform his or her duties in the
department by reason of a disabling cancer, which develops or
manifests itself during a period while the officer is in the
service of the department, is entitled to receive an
occupational disease disability benefit during any period of
such disability for which he or she does not have a right to
receive salary. In order to receive this occupational
disease disability benefit, (i) the cancer must be of a type
that may be caused by exposure to heat, radiation, or a known
carcinogen as defined by the International Agency for
Research on Cancer and (ii) the cancer must (and is
rebuttably presumed to) arise as a result of service as an
officer.
An officer who, after the effective date of this
amendatory Act of 1998, enters the service of a combined
police and fire department and has regular firefighting
duties shall be examined by one or more practicing physicians
appointed by the board. If the examination discloses
impairment of the heart, lungs, or respiratory tract, or the
existence of cancer, the officer shall not be entitled to an
occupational disease disability pension under this Section
unless and until a subsequent examination reveals no such
impairment or cancer.
The occupational disease disability pension shall be
equal to the greater of 65% of the salary attached to the
rank held by the officer at the time of his or her removal
from the municipality's department payroll or (2) the
retirement pension that the police officer would be eligible
to receive if he or she retired (but not including any
automatic annual increase in that retirement pension).
The occupational disease disability pension is payable to
the officer during the period of the disability. If the
disability ceases before the death of the officer, the
disability pension payable under this Section shall also
cease and the officer thereafter shall receive such pension
benefits as are provided in accordance with other provisions
of this Article.
If an officer dies while still disabled and receiving a
disability pension under this Section, the disability pension
shall continue to be paid to the officer's survivors in the
sequence provided in Section 3-112.
(Source: P.A. 90-766, eff. 8-14-98.)
(40 ILCS 5/3-120) (from Ch. 108 1/2, par. 3-120)
Sec. 3-120. Marriage after retirement.
(a) If a police officer marries subsequent to
retirement on any pension under this Article other than a
pension established under Section 3-109.3, the surviving
spouse and the children of such surviving spouse shall
receive no pension on the death of the officer, except as
provided in subsection (b).
(b) Notwithstanding Section 1-103.1 of this Code, this
Section shall not be deemed to disqualify from receiving a
survivor's pension the surviving spouse and children of any
police officer who (i) retired from service in 1973, married
the surviving spouse during 1974, and died in 1988, or (ii)
retired on disability in October of 1982, married the
surviving spouse during 1991, and died in 1992. In the case
of a person who becomes eligible for a benefit under this
subsection (b), the benefit shall begin to accrue on July 1,
1990 or July 1 of the year following the police officer's
death, whichever is later.
(Source: P.A. 87-794; 87-1265.)
(40 ILCS 5/3-124.1) (from Ch. 108 1/2, par. 3-124.1)
Sec. 3-124.1. Re-entry into active service. If a police
officer who is receiving pension payments other than as
provided in Section 3-109.3 re-enters active service, pension
payment shall be suspended while he or she is in service.
When he or she again retires, pension payments shall be
resumed. If the police officer remains in service after
re-entry for a period of less than 5 years, the pension shall
be the same as upon first retirement. If the officer's
service after re-entry is at least 5 years and the officer
makes the required contributions during the period of
re-entry, his or her pension shall be recomputed by taking
into account the additional period of service and salary.
(Source: P.A. 83-1440.)
(40 ILCS 5/3-125.1) (from Ch. 108 1/2, par. 3-125.1)
Sec. 3-125.1. Contributions by police officers. Each
police officer shall contribute to the pension fund the
following percentages of salary for the periods stated:
Beginning July 1, 1909 and prior to July 23, 1943, 1% (except
that prior to July 1, 1921 not more than one dollar per month
shall be deducted, and except that beginning July 1, 1921 and
prior to July 1, 1927 not more than $2 per month shall be
deducted); beginning July 23, 1943 and prior to July 20,
1949, 3%; beginning July 20, 1949 and prior to July 17, 1959,
5%; beginning July 17, 1959 and prior to July 1, 1971, 7%;
beginning July 1, 1971 and prior to July 1, 1975, 7 1/2%;
beginning July 1, 1975 and prior to January 1, 1987, 8 1/2%;
and beginning January 1, 1987 and prior to January 1, 2001,
9%; and beginning January 1, 2001, 9.91%. Such sums shall
be paid or deducted monthly. Contribution to the
self-managed plan shall be no less than 10% of salary.
"Salary" means the annual salary, including longevity,
attached to the police officer's rank, as established by the
municipality's appropriation ordinance, including any
compensation for overtime which is included in the salary so
established, but excluding any "overtime pay", "holiday pay",
"bonus pay", "merit pay", or any other cash benefit not
included in the salary so established.
(Source: P.A. 84-1472.)
(40 ILCS 5/3-127) (from Ch. 108 1/2, par. 3-127)
Sec. 3-127. Reserves. The board shall establish and
maintain a reserve to insure the payment of all obligations
incurred under this Article excluding retirement annuities
established under Section 3-109.3. The reserve to be
accumulated shall be equal to the estimated total actuarial
requirements of the fund.
If a pension fund has a reserve of less than the accrued
liabilities of the fund, the board of the pension fund, in
making its annual report to the city council or board of
trustees of the municipality, shall designate the amount,
calculated as a level percentage of payroll, needed annually
to insure the accumulation of the reserve to the level of the
fund's accrued liabilities over a period of 40 years from
July 1, 1993 for pension funds then in operation, or from the
date of establishment in the case of a fund created
thereafter, so that the necessary reserves will be attained
over such a period.
(Source: P.A. 87-1265.)
Section 90. The State Mandates Act is amended by adding
Section 8.24 as follows:
(30 ILCS 805/8.24 new)
Sec. 8.24. Exempt mandate. Notwithstanding Sections 6
and 8 of this Act, no reimbursement by the State is required
for the implementation of any mandate created by this
amendatory Act of the 91st General Assembly.
Section 99. Effective date. This Act takes effect upon
becoming law.
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