Illinois General Assembly - Full Text of HB4153

LRB104 15799 JDS 28997 b

104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
HB4153

Introduced 10/15/2025, by Rep. Harry Benton

SYNOPSIS AS INTRODUCED:

40 ILCS 5/14-104.10

Amends the State Employee Article of the Illinois Pension Code. Provides that a contributing employee may establish additional service credit for periods of full-time employment with the federal government or a unit of state or local government located outside Illinois for which he or she does not qualify for credit under any other provision of the State Employee Article of the Code, provided that (i) the amount of service credit established by a person under the provision shall not exceed 9 years, (ii) the amount of service credit established by a person under the provision for federal employment, when added to the amount of all military service credit granted to the person under the State Employee Article, shall not exceed 14 years, and (iii) any credit received for the federal or out-of-state employment in any federal or other public employee pension fund or retirement system has been terminated or relinquished. Prohibits credit from being established under the provision for any period of military service or for any period for which credit has been or may be established under the alternative formula provisions of the State Employee Article of the Code. Requires the applicant for the additional service credit to submit a written application to the State Employees' Retirement System of Illinois within 6 months after the effective date of the amendatory Act, including documentation of the federal or out-of-state employment satisfactory to the System's Board, and pay to the System (1) employee contributions at the rates provided in the Article based upon the person's salary on the last day as a participating employee prior to the federal or out-of-state employment, or on the first day as a participating employee after that employment, whichever is greater, plus (2) an amount determined by the Board to be equal to the employer's normal cost of the benefits accrued for that employment, plus (3) regular interest on items (1) and (2) from the date of conclusion of the employment to the date of payment. Effective immediately.

A BILL FOR

AN ACT concerning 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 Section 14-104.10 as follows:

(40 ILCS 5/14-104.10)

Sec. 14-104.10. Federal or out-of-state employment.

(a) A contributing employee may establish additional service credit for periods of full-time employment by the federal government or a unit of state or local government located outside Illinois for which he or she does not qualify for credit under any other provision of this Article, provided that (i) the amount of service credit established by a person under this subsection Section shall not exceed 8 years or 40% of his or her membership service under this Article, whichever is less, (ii) the amount of service credit established by a person under this subsection Section for federal employment, when added to the amount of all military service credit granted to the person under this Article, shall not exceed 8 years, and (iii) any credit received for the federal or out-of-state employment in any federal or other public employee pension fund or retirement system has been terminated or relinquished. Credit may not be established under this subsection Section for any period of military service or for any period for which credit has been or may be established under Section 14-110 or any other provision of this Article.

In order to establish service credit under this subsection Section, the applicant must submit a written application to the System by June 30, 1999, including documentation of the federal or out-of-state employment satisfactory to the Board, and pay to the System (1) employee contributions at the rates provided in this Article based upon the person's salary on the last day as a participating employee prior to the federal or out-of-state employment, or on the first day as a participating employee after that employment, whichever is greater, plus (2) an amount determined by the Board to be equal to the employer's normal cost of the benefits accrued for that employment, plus (3) regular interest on items (1) and (2) from the date of conclusion of the employment to the date of payment.

(b) A contributing employee may establish additional service credit for periods of full-time employment with the federal government or a unit of state or local government located outside Illinois for which he or she does not qualify for credit under any other provision of this Article, provided that (i) the amount of service credit established by a person under this subsection shall not exceed 9 years, (ii) the amount of service credit established by a person under this subsection for federal employment, when added to the amount of all military service credit granted to the person under this Article, shall not exceed 14 years, and (iii) any credit received for the federal or out-of-state employment in any federal or other public employee pension fund or retirement system has been terminated or relinquished. Credit may not be established under this subsection for any period of military service or for any period for which credit has been or may be established under Section 14-110 or any other provision of this Article.

In order to establish service credit under this subsection, the applicant must submit a written application to the System within 6 months after the effective date of this amendatory Act of the 104th General Assembly, including documentation of the federal or out-of-state employment satisfactory to the Board, and pay to the System (1) employee contributions at the rates provided in this Article based upon the person's salary on the last day as a participating employee prior to the federal or out-of-state employment, or on the first day as a participating employee after that employment, whichever is greater, plus (2) an amount determined by the Board to be equal to the employer's normal cost of the benefits accrued for that employment, plus (3) regular interest on items (1) and (2) from the date of conclusion of the employment to the date of payment.

(Source: P.A. 90-32, eff. 6-27-97; 90-655, eff. 7-30-98; 90-766, eff. 8-14-98.)

Section 99. Effective date. This Act takes effect upon becoming law.