Sen. Andy Manar

Filed: 5/3/2019

 

 


 

 


 
10100HB2884sam001LRB101 08812 RPS 60232 a

1
AMENDMENT TO HOUSE BILL 2884

2    AMENDMENT NO. ______. Amend House Bill 2884 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Illinois Pension Code is amended by
5changing Section 7-139 as follows:
 
6    (40 ILCS 5/7-139)  (from Ch. 108 1/2, par. 7-139)
7    Sec. 7-139. Credits and creditable service to employees.
8    (a) Each participating employee shall be granted credits
9and creditable service, for purposes of determining the amount
10of any annuity or benefit to which he or a beneficiary is
11entitled, as follows:
12        1. For prior service: Each participating employee who
13    is an employee of a participating municipality or
14    participating instrumentality on the effective date shall
15    be granted creditable service, but no credits under
16    paragraph 2 of this subsection (a), for periods of prior

 

 

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1    service for which credit has not been received under any
2    other pension fund or retirement system established under
3    this Code, as follows:
4        If the effective date of participation for the
5    participating municipality or participating
6    instrumentality is on or before January 1, 1998, creditable
7    service shall be granted for the entire period of prior
8    service with that employer without any employee
9    contribution.
10        If the effective date of participation for the
11    participating municipality or participating
12    instrumentality is after January 1, 1998, creditable
13    service shall be granted for the last 20% of the period of
14    prior service with that employer, but no more than 5 years,
15    without any employee contribution. A participating
16    employee may establish creditable service for the
17    remainder of the period of prior service with that employer
18    by making an application in writing, accompanied by payment
19    of an employee contribution in an amount determined by the
20    Fund, based on the employee contribution rates in effect at
21    the time of application for the creditable service and the
22    employee's salary rate on the effective date of
23    participation for that employer, plus interest at the
24    effective rate from the date of the prior service to the
25    date of payment. Application for this creditable service
26    may be made at any time while the employee is still in

 

 

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1    service.
2        A municipality that (i) has at least 35 employees; (ii)
3    is located in a county with at least 2,000,000 inhabitants;
4    and (iii) maintains an independent defined benefit pension
5    plan for the benefit of its eligible employees may restrict
6    creditable service in whole or in part for periods of prior
7    service with the employer if the governing body of the
8    municipality adopts an irrevocable resolution to restrict
9    that creditable service and files the resolution with the
10    board before the municipality's effective date of
11    participation.
12        Any person who has withdrawn from the service of a
13    participating municipality or participating
14    instrumentality prior to the effective date, who reenters
15    the service of the same municipality or participating
16    instrumentality after the effective date and becomes a
17    participating employee is entitled to creditable service
18    for prior service as otherwise provided in this subdivision
19    (a)(1) only if he or she renders 2 years of service as a
20    participating employee after the effective date.
21    Application for such service must be made while in a
22    participating status. The salary rate to be used in the
23    calculation of the required employee contribution, if any,
24    shall be the employee's salary rate at the time of first
25    reentering service with the employer after the employer's
26    effective date of participation.

 

 

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1        2. For current service, each participating employee
2    shall be credited with:
3            a. Additional credits of amounts equal to each
4        payment of additional contributions received from him
5        under Section 7-173, as of the date the corresponding
6        payment of earnings is payable to him.
7            b. Normal credits of amounts equal to each payment
8        of normal contributions received from him, as of the
9        date the corresponding payment of earnings is payable
10        to him, and normal contributions made for the purpose
11        of establishing out-of-state service credits as
12        permitted under the conditions set forth in paragraph 6
13        of this subsection (a).
14            c. Municipality credits in an amount equal to 1.4
15        times the normal credits, except those established by
16        out-of-state service credits, as of the date of
17        computation of any benefit if these credits would
18        increase the benefit.
19            d. Survivor credits equal to each payment of
20        survivor contributions received from the participating
21        employee as of the date the corresponding payment of
22        earnings is payable, and survivor contributions made
23        for the purpose of establishing out-of-state service
24        credits.
25        3. For periods of temporary and total and permanent
26    disability benefits, each employee receiving disability

 

 

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1    benefits shall be granted creditable service for the period
2    during which disability benefits are payable. Normal and
3    survivor credits, based upon the rate of earnings applied
4    for disability benefits, shall also be granted if such
5    credits would result in a higher benefit to any such
6    employee or his beneficiary.
7        4. For authorized leave of absence without pay: A
8    participating employee shall be granted credits and
9    creditable service for periods of authorized leave of
10    absence without pay under the following conditions:
11            a. An application for credits and creditable
12        service is submitted to the board while the employee is
13        in a status of active employment.
14            b. Not more than 12 complete months of creditable
15        service for authorized leave of absence without pay
16        shall be counted for purposes of determining any
17        benefits payable under this Article.
18            c. Credits and creditable service shall be granted
19        for leave of absence only if such leave is approved by
20        the governing body of the municipality, including
21        approval of the estimated cost thereof to the
22        municipality as determined by the fund, and employee
23        contributions, plus interest at the effective rate
24        applicable for each year from the end of the period of
25        leave to date of payment, have been paid to the fund in
26        accordance with Section 7-173. The contributions shall

 

 

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1        be computed upon the assumption earnings continued
2        during the period of leave at the rate in effect when
3        the leave began.
4            d. Benefits under the provisions of Sections
5        7-141, 7-146, 7-150 and 7-163 shall become payable to
6        employees on authorized leave of absence, or their
7        designated beneficiary, only if such leave of absence
8        is creditable hereunder, and if the employee has at
9        least one year of creditable service other than the
10        service granted for leave of absence. Any employee
11        contributions due may be deducted from any benefits
12        payable.
13            e. No credits or creditable service shall be
14        allowed for leave of absence without pay during any
15        period of prior service.
16        5. For military service: The governing body of a
17    municipality or participating instrumentality may elect to
18    allow creditable service to participating employees who
19    leave their employment to serve in the armed forces of the
20    United States for all periods of such service, provided
21    that the person returns to active employment within 90 days
22    after completion of full time active duty, but no
23    creditable service shall be allowed such person for any
24    period that can be used in the computation of a pension or
25    any other pay or benefit, other than pay for active duty,
26    for service in any branch of the armed forces of the United

 

 

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1    States. If necessary to the computation of any benefit, the
2    board shall establish municipality credits for
3    participating employees under this paragraph on the
4    assumption that the employee received earnings at the rate
5    received at the time he left the employment to enter the
6    armed forces. A participating employee in the armed forces
7    shall not be considered an employee during such period of
8    service and no additional death and no disability benefits
9    are payable for death or disability during such period.
10        Any participating employee who left his employment
11    with a municipality or participating instrumentality to
12    serve in the armed forces of the United States and who
13    again became a participating employee within 90 days after
14    completion of full time active duty by entering the service
15    of a different municipality or participating
16    instrumentality, which has elected to allow creditable
17    service for periods of military service under the preceding
18    paragraph, shall also be allowed creditable service for his
19    period of military service on the same terms that would
20    apply if he had been employed, before entering military
21    service, by the municipality or instrumentality which
22    employed him after he left the military service and the
23    employer costs arising in relation to such grant of
24    creditable service shall be charged to and paid by that
25    municipality or instrumentality.
26        Notwithstanding the foregoing, any participating

 

 

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1    employee shall be entitled to creditable service as
2    required by any federal law relating to re-employment
3    rights of persons who served in the United States Armed
4    Services. Such creditable service shall be granted upon
5    payment by the member of an amount equal to the employee
6    contributions which would have been required had the
7    employee continued in service at the same rate of earnings
8    during the military leave period, plus interest at the
9    effective rate.
10        5.1. In addition to any creditable service established
11    under paragraph 5 of this subsection (a), creditable
12    service may be granted for up to 48 months of service in
13    the armed forces of the United States.
14        In order to receive creditable service for military
15    service under this paragraph 5.1, a participating employee
16    must (1) apply to the Fund in writing and provide evidence
17    of the military service that is satisfactory to the Board;
18    (2) obtain the written approval of the current employer;
19    and (3) make contributions to the Fund equal to (i) the
20    employee contributions that would have been required had
21    the service been rendered as a member, plus (ii) an amount
22    determined by the board to be equal to the employer's
23    normal cost of the benefits accrued for that military
24    service, plus (iii) interest on items (i) and (ii) from the
25    date of first membership in the Fund to the date of
26    payment. The required interest shall be calculated at the

 

 

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1    regular interest rate.
2        The changes made to this paragraph 5.1 by Public Acts
3    95-483 and 95-486 apply only to participating employees in
4    service on or after August 28, 2007 (the effective date of
5    those Public Acts).
6        6. For out-of-state service: Creditable service shall
7    be granted for service rendered to an out-of-state local
8    governmental body under the following conditions: The
9    employee had participated and has irrevocably forfeited
10    all rights to benefits in the out-of-state public employees
11    pension system; the governing body of his participating
12    municipality or instrumentality authorizes the employee to
13    establish such service; the employee has 2 years current
14    service with this municipality or participating
15    instrumentality; the employee makes a payment of
16    contributions, which shall be computed at 8% (normal) plus
17    2% (survivor) times length of service purchased times the
18    average rate of earnings for the first 2 years of service
19    with the municipality or participating instrumentality
20    whose governing body authorizes the service established
21    plus interest at the effective rate on the date such
22    credits are established, payable from the date the employee
23    completes the required 2 years of current service to date
24    of payment. In no case shall more than 120 months of
25    creditable service be granted under this provision.
26        7. For retroactive service: Any employee who could have

 

 

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1    but did not elect to become a participating employee, or
2    who should have been a participant in the Municipal Public
3    Utilities Annuity and Benefit Fund before that fund was
4    superseded, may receive creditable service for the period
5    of service not to exceed 50 months; however, a current or
6    former elected or appointed official of a participating
7    municipality may establish credit under this paragraph 7
8    for more than 50 months of service as an official of that
9    municipality, if the excess over 50 months is approved by
10    resolution of the governing body of the affected
11    municipality filed with the Fund before January 1, 2002.
12        Any employee who is a participating employee on or
13    after September 24, 1981 and who was excluded from
14    participation by the age restrictions removed by Public Act
15    82-596 may receive creditable service for the period, on or
16    after January 1, 1979, excluded by the age restriction and,
17    in addition, if the governing body of the participating
18    municipality or participating instrumentality elects to
19    allow creditable service for all employees excluded by the
20    age restriction prior to January 1, 1979, for service
21    during the period prior to that date excluded by the age
22    restriction. Any employee who was excluded from
23    participation by the age restriction removed by Public Act
24    82-596 and who is not a participating employee on or after
25    September 24, 1981 may receive creditable service for
26    service after January 1, 1979. Creditable service under

 

 

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1    this paragraph shall be granted upon payment of the
2    employee contributions which would have been required had
3    he participated, with interest at the effective rate for
4    each year from the end of the period of service established
5    to date of payment.
6        8. For accumulated unused sick leave: A participating
7    employee who is applying for a retirement annuity shall be
8    entitled to creditable service for that portion of the
9    employee's accumulated unused sick leave for which payment
10    is not received, as follows:
11            a. Sick leave days shall be limited to those
12        accumulated under a sick leave plan established by a
13        participating municipality or participating
14        instrumentality which is available to all employees or
15        a class of employees.
16            b. Except as provided in item b-1, only sick leave
17        days accumulated with a participating municipality or
18        participating instrumentality with which the employee
19        was in service within 60 days of the effective date of
20        his retirement annuity shall be credited; If the
21        employee was in service with more than one employer
22        during this period only the sick leave days with the
23        employer with which the employee has the greatest
24        number of unpaid sick leave days shall be considered.
25            b-1. If the employee was in the service of more
26        than one employer as defined in item (2) of paragraph

 

 

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1        (a) of subsection (A) of Section 7-132, then the sick
2        leave days from all such employers shall be credited,
3        as long as the creditable service attributed to those
4        sick leave days does not exceed the limitation in item
5        d f of this paragraph 8. If the employee was in the
6        service of more than one employer described in
7        paragraph (c) of subsection (B) of Section 7-132 on or
8        after the effective date of this amendatory Act of the
9        101st General Assembly, then the sick leave days from
10        all such employers, except for employers from which the
11        employee terminated service before the effective date
12        of this amendatory Act of the 101st General Assembly,
13        shall be credited, as long as the creditable service
14        attributed to those sick leave days does not exceed the
15        limitation in item d of this paragraph 8. In
16        calculating the creditable service under this item
17        b-1, the sick leave days from the last employer shall
18        be considered first, then the remaining sick leave days
19        shall be considered until there are no more days or the
20        maximum creditable sick leave threshold under item d f
21        of this paragraph 8 has been reached.
22            c. The creditable service granted shall be
23        considered solely for the purpose of computing the
24        amount of the retirement annuity and shall not be used
25        to establish any minimum service period required by any
26        provision of the Illinois Pension Code, the effective

 

 

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1        date of the retirement annuity, or the final rate of
2        earnings.
3            d. The creditable service shall be at the rate of
4        1/20 of a month for each full sick day, provided that
5        no more than 12 months may be credited under this
6        subdivision 8.
7            e. Employee contributions shall not be required
8        for creditable service under this subdivision 8.
9            f. Each participating municipality and
10        participating instrumentality with which an employee
11        has service within 60 days of the effective date of his
12        retirement annuity shall certify to the board the
13        number of accumulated unpaid sick leave days credited
14        to the employee at the time of termination of service.
15        9. For service transferred from another system:
16    Credits and creditable service shall be granted for service
17    under Article 4, 5, 8, 14, or 16 of this Act, to any active
18    member of this Fund, and to any inactive member who has
19    been a county sheriff, upon transfer of such credits
20    pursuant to Section 4-108.3, 5-235, 8-226.7, 14-105.6, or
21    16-131.4, and payment by the member of the amount by which
22    (1) the employer and employee contributions that would have
23    been required if he had participated in this Fund as a
24    sheriff's law enforcement employee during the period for
25    which credit is being transferred, plus interest thereon at
26    the effective rate for each year, compounded annually, from

 

 

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1    the date of termination of the service for which credit is
2    being transferred to the date of payment, exceeds (2) the
3    amount actually transferred to the Fund. Such transferred
4    service shall be deemed to be service as a sheriff's law
5    enforcement employee for the purposes of Section 7-142.1.
6        10. (Blank).
7        11. For service transferred from an Article 3 system
8    under Section 3-110.3: Credits and creditable service
9    shall be granted for service under Article 3 of this Act as
10    provided in Section 3-110.3, to any active member of this
11    Fund, upon transfer of such credits pursuant to Section
12    3-110.3. If the board determines that the amount
13    transferred is less than the true cost to the Fund of
14    allowing that creditable service to be established, then in
15    order to establish that creditable service, the member must
16    pay to the Fund an additional contribution equal to the
17    difference, as determined by the board in accordance with
18    the rules and procedures adopted under this paragraph. If
19    the member does not make the full additional payment as
20    required by this paragraph prior to termination of his
21    participation with that employer, then his or her
22    creditable service shall be reduced by an amount equal to
23    the difference between the amount transferred under
24    Section 3-110.3, including any payments made by the member
25    under this paragraph prior to termination, and the true
26    cost to the Fund of allowing that creditable service to be

 

 

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1    established, as determined by the board in accordance with
2    the rules and procedures adopted under this paragraph.
3        The board shall establish by rule the manner of making
4    the calculation required under this paragraph 11, taking
5    into account the appropriate actuarial assumptions; the
6    member's service, age, and salary history, and any other
7    factors that the board determines to be relevant.
8        12. For omitted service: Any employee who was employed
9    by a participating employer in a position that required
10    participation, but who was not enrolled in the Fund, may
11    establish such credits under the following conditions:
12            a. Application for such credits is received by the
13        Board while the employee is an active participant of
14        the Fund or a reciprocal retirement system.
15            b. Eligibility for participation and earnings are
16        verified by the Authorized Agent of the participating
17        employer for which the service was rendered.
18        Creditable service under this paragraph shall be
19    granted upon payment of the employee contributions that
20    would have been required had he participated, which shall
21    be calculated by the Fund using the member contribution
22    rate in effect during the period that the service was
23    rendered.
24    (b) Creditable service - amount:
25        1. One month of creditable service shall be allowed for
26    each month for which a participating employee made

 

 

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1    contributions as required under Section 7-173, or for which
2    creditable service is otherwise granted hereunder. Not
3    more than 1 month of service shall be credited and counted
4    for 1 calendar month, and not more than 1 year of service
5    shall be credited and counted for any calendar year. A
6    calendar month means a nominal month beginning on the first
7    day thereof, and a calendar year means a year beginning
8    January 1 and ending December 31.
9        2. A seasonal employee shall be given 12 months of
10    creditable service if he renders the number of months of
11    service normally required by the position in a 12-month
12    period and he remains in service for the entire 12-month
13    period. Otherwise a fractional year of service in the
14    number of months of service rendered shall be credited.
15        3. An intermittent employee shall be given creditable
16    service for only those months in which a contribution is
17    made under Section 7-173.
18    (c) No application for correction of credits or creditable
19service shall be considered unless the board receives an
20application for correction while (1) the applicant is a
21participating employee and in active employment with a
22participating municipality or instrumentality, or (2) while
23the applicant is actively participating in a pension fund or
24retirement system which is a participating system under the
25Retirement Systems Reciprocal Act. A participating employee or
26other applicant shall not be entitled to credits or creditable

 

 

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1service unless the required employee contributions are made in
2a lump sum or in installments made in accordance with board
3rule. Payments made to establish service credit under paragraph
41, 4, 5, 5.1, 6, 7, or 12 of subsection (a) of this Section must
5be received by the Board while the applicant is an active
6participant in the Fund or a reciprocal retirement system,
7except that an applicant may make one payment after termination
8of active participation in the Fund or a reciprocal retirement
9system.
10    (d) Upon the granting of a retirement, surviving spouse or
11child annuity, a death benefit or a separation benefit, on
12account of any employee, all individual accumulated credits
13shall thereupon terminate. Upon the withdrawal of additional
14contributions, the credits applicable thereto shall thereupon
15terminate. Terminated credits shall not be applied to increase
16the benefits any remaining employee would otherwise receive
17under this Article.
18(Source: P.A. 100-148, eff. 8-18-17.)
 
19    Section 90. The State Mandates Act is amended by adding
20Section 8.43 as follows:
 
21    (30 ILCS 805/8.43 new)
22    Sec. 8.43. Exempt mandate. Notwithstanding Sections 6 and 8
23of this Act, no reimbursement by the State is required for the
24implementation of any mandate created by this amendatory Act of

 

 

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1the 101st General Assembly.
 
2    Section 99. Effective date. This Act takes effect upon
3becoming law.".