Sen. Rachelle Crowe

Filed: 4/6/2022





10200HB4209sam001LRB102 20423 RPS 38819 a


2    AMENDMENT NO. ______. Amend House Bill 4209 as follows:
3on page 7, immediately below line 6, by inserting the
5    "Section 15. The Illinois Pension Code is amended by
6adding Sections 3-110.14 and 7-139.1a and by changing Section
77-139 as follows:
8    (40 ILCS 5/3-110.14 new)
9    Sec. 3-110.14. Transfer to Article 7. On and after January
101, 2023 but no later than July 1, 2023, a participant who is
11actively employed as a sheriff's law enforcement employee may
12make an election to transfer up to 10 years of creditable
13service from a fund established under this Article to the
14Illinois Municipal Retirement Fund established under Article
157. Upon receiving a written election by a participant under



10200HB4209sam001- 2 -LRB102 20423 RPS 38819 a

1this Section, the fund shall transfer the employee and
2employer contributions to the Illinois Municipal Retirement
3Fund as soon as is practicable. Participation in the police
4pension fund with respect to the service to be transferred
5shall terminate on the date of transfer.
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
17    service for which credit has not been received under any
18    other pension fund or retirement system established under
19    this Code, as follows:
20        If the effective date of participation for the
21    participating municipality or participating
22    instrumentality is on or before January 1, 1998,
23    creditable service shall be granted for the entire period
24    of prior service with that employer without any employee
25    contribution.



10200HB4209sam001- 3 -LRB102 20423 RPS 38819 a

1        If the effective date of participation for the
2    participating municipality or participating
3    instrumentality is after January 1, 1998, creditable
4    service shall be granted for the last 20% of the period of
5    prior service with that employer, but no more than 5
6    years, without any employee contribution. A participating
7    employee may establish creditable service for the
8    remainder of the period of prior service with that
9    employer by making an application in writing, accompanied
10    by payment of an employee contribution in an amount
11    determined by the Fund, based on the employee contribution
12    rates in effect at the time of application for the
13    creditable service and the employee's salary rate on the
14    effective date of participation for that employer, plus
15    interest at the effective rate from the date of the prior
16    service to the date of payment. Application for this
17    creditable service may be made at any time while the
18    employee is still in service.
19        A municipality that (i) has at least 35 employees;
20    (ii) is located in a county with at least 2,000,000
21    inhabitants; and (iii) maintains an independent defined
22    benefit pension plan for the benefit of its eligible
23    employees may restrict creditable service in whole or in
24    part for periods of prior service with the employer if the
25    governing body of the municipality adopts an irrevocable
26    resolution to restrict that creditable service and files



10200HB4209sam001- 4 -LRB102 20423 RPS 38819 a

1    the resolution with the board before the municipality's
2    effective date of participation.
3        Any person who has withdrawn from the service of a
4    participating municipality or participating
5    instrumentality prior to the effective date, who reenters
6    the service of the same municipality or participating
7    instrumentality after the effective date and becomes a
8    participating employee is entitled to creditable service
9    for prior service as otherwise provided in this
10    subdivision (a)(1) only if he or she renders 2 years of
11    service as a participating employee after the effective
12    date. Application for such service must be made while in a
13    participating status. The salary rate to be used in the
14    calculation of the required employee contribution, if any,
15    shall be the employee's salary rate at the time of first
16    reentering service with the employer after the employer's
17    effective date of participation.
18        2. For current service, each participating employee
19    shall be credited with:
20            a. Additional credits of amounts equal to each
21        payment of additional contributions received from him
22        under Section 7-173, as of the date the corresponding
23        payment of earnings is payable to him.
24            b. Normal credits of amounts equal to each payment
25        of normal contributions received from him, as of the
26        date the corresponding payment of earnings is payable



10200HB4209sam001- 5 -LRB102 20423 RPS 38819 a

1        to him, and normal contributions made for the purpose
2        of establishing out-of-state service credits as
3        permitted under the conditions set forth in paragraph
4        6 of this subsection (a).
5            c. Municipality credits in an amount equal to 1.4
6        times the normal credits, except those established by
7        out-of-state service credits, as of the date of
8        computation of any benefit if these credits would
9        increase the benefit.
10            d. Survivor credits equal to each payment of
11        survivor contributions received from the participating
12        employee as of the date the corresponding payment of
13        earnings is payable, and survivor contributions made
14        for the purpose of establishing out-of-state service
15        credits.
16        3. For periods of temporary and total and permanent
17    disability benefits, each employee receiving disability
18    benefits shall be granted creditable service for the
19    period during which disability benefits are payable.
20    Normal and survivor credits, based upon the rate of
21    earnings applied for disability benefits, shall also be
22    granted if such credits would result in a higher benefit
23    to any such employee or his beneficiary.
24        4. For authorized leave of absence without pay: A
25    participating employee shall be granted credits and
26    creditable service for periods of authorized leave of



10200HB4209sam001- 6 -LRB102 20423 RPS 38819 a

1    absence without pay under the following conditions:
2            a. An application for credits and creditable
3        service is submitted to the board while the employee
4        is in a status of active employment.
5            b. Not more than 12 complete months of creditable
6        service for authorized leave of absence without pay
7        shall be counted for purposes of determining any
8        benefits payable under this Article.
9            c. Credits and creditable service shall be granted
10        for leave of absence only if such leave is approved by
11        the governing body of the municipality, including
12        approval of the estimated cost thereof to the
13        municipality as determined by the fund, and employee
14        contributions, plus interest at the effective rate
15        applicable for each year from the end of the period of
16        leave to date of payment, have been paid to the fund in
17        accordance with Section 7-173. The contributions shall
18        be computed upon the assumption earnings continued
19        during the period of leave at the rate in effect when
20        the leave began.
21            d. Benefits under the provisions of Sections
22        7-141, 7-146, 7-150 and 7-163 shall become payable to
23        employees on authorized leave of absence, or their
24        designated beneficiary, only if such leave of absence
25        is creditable hereunder, and if the employee has at
26        least one year of creditable service other than the



10200HB4209sam001- 7 -LRB102 20423 RPS 38819 a

1        service granted for leave of absence. Any employee
2        contributions due may be deducted from any benefits
3        payable.
4            e. No credits or creditable service shall be
5        allowed for leave of absence without pay during any
6        period of prior service.
7        5. For military service: The governing body of a
8    municipality or participating instrumentality may elect to
9    allow creditable service to participating employees who
10    leave their employment to serve in the armed forces of the
11    United States for all periods of such service, provided
12    that the person returns to active employment within 90
13    days after completion of full time active duty, but no
14    creditable service shall be allowed such person for any
15    period that can be used in the computation of a pension or
16    any other pay or benefit, other than pay for active duty,
17    for service in any branch of the armed forces of the United
18    States. If necessary to the computation of any benefit,
19    the board shall establish municipality credits for
20    participating employees under this paragraph on the
21    assumption that the employee received earnings at the rate
22    received at the time he left the employment to enter the
23    armed forces. A participating employee in the armed forces
24    shall not be considered an employee during such period of
25    service and no additional death and no disability benefits
26    are payable for death or disability during such period.



10200HB4209sam001- 8 -LRB102 20423 RPS 38819 a

1        Any participating employee who left his employment
2    with a municipality or participating instrumentality to
3    serve in the armed forces of the United States and who
4    again became a participating employee within 90 days after
5    completion of full time active duty by entering the
6    service of a different municipality or participating
7    instrumentality, which has elected to allow creditable
8    service for periods of military service under the
9    preceding paragraph, shall also be allowed creditable
10    service for his period of military service on the same
11    terms that would apply if he had been employed, before
12    entering military service, by the municipality or
13    instrumentality which employed him after he left the
14    military service and the employer costs arising in
15    relation to such grant of creditable service shall be
16    charged to and paid by that municipality or
17    instrumentality.
18        Notwithstanding the foregoing, any participating
19    employee shall be entitled to creditable service as
20    required by any federal law relating to re-employment
21    rights of persons who served in the United States Armed
22    Services. Such creditable service shall be granted upon
23    payment by the member of an amount equal to the employee
24    contributions which would have been required had the
25    employee continued in service at the same rate of earnings
26    during the military leave period, plus interest at the



10200HB4209sam001- 9 -LRB102 20423 RPS 38819 a

1    effective rate.
2        5.1. In addition to any creditable service established
3    under paragraph 5 of this subsection (a), creditable
4    service may be granted for up to 48 months of service in
5    the armed forces of the United States.
6        In order to receive creditable service for military
7    service under this paragraph 5.1, a participating employee
8    must (1) apply to the Fund in writing and provide evidence
9    of the military service that is satisfactory to the Board;
10    (2) obtain the written approval of the current employer;
11    and (3) make contributions to the Fund equal to (i) the
12    employee contributions that would have been required had
13    the service been rendered as a member, plus (ii) an amount
14    determined by the board to be equal to the employer's
15    normal cost of the benefits accrued for that military
16    service, plus (iii) interest on items (i) and (ii) from
17    the date of first membership in the Fund to the date of
18    payment. The required interest shall be calculated at the
19    regular interest rate.
20        The changes made to this paragraph 5.1 by Public Acts
21    95-483 and 95-486 apply only to participating employees in
22    service on or after August 28, 2007 (the effective date of
23    those Public Acts).
24        6. For out-of-state service: Creditable service shall
25    be granted for service rendered to an out-of-state local
26    governmental body under the following conditions: The



10200HB4209sam001- 10 -LRB102 20423 RPS 38819 a

1    employee had participated and has irrevocably forfeited
2    all rights to benefits in the out-of-state public
3    employees pension system; the governing body of his
4    participating municipality or instrumentality authorizes
5    the employee to establish such service; the employee has 2
6    years current service with this municipality or
7    participating instrumentality; the employee makes a
8    payment of contributions, which shall be computed at 8%
9    (normal) plus 2% (survivor) times length of service
10    purchased times the average rate of earnings for the first
11    2 years of service with the municipality or participating
12    instrumentality whose governing body authorizes the
13    service established plus interest at the effective rate on
14    the date such credits are established, payable from the
15    date the employee completes the required 2 years of
16    current service to date of payment. In no case shall more
17    than 120 months of creditable service be granted under
18    this provision.
19        7. For retroactive service: Any employee who could
20    have but did not elect to become a participating employee,
21    or who should have been a participant in the Municipal
22    Public Utilities Annuity and Benefit Fund before that fund
23    was superseded, may receive creditable service for the
24    period of service not to exceed 50 months; however, a
25    current or former elected or appointed official of a
26    participating municipality may establish credit under this



10200HB4209sam001- 11 -LRB102 20423 RPS 38819 a

1    paragraph 7 for more than 50 months of service as an
2    official of that municipality, if the excess over 50
3    months is approved by resolution of the governing body of
4    the affected municipality filed with the Fund before
5    January 1, 2002.
6        Any employee who is a participating employee on or
7    after September 24, 1981 and who was excluded from
8    participation by the age restrictions removed by Public
9    Act 82-596 may receive creditable service for the period,
10    on or after January 1, 1979, excluded by the age
11    restriction and, in addition, if the governing body of the
12    participating municipality or participating
13    instrumentality elects to allow creditable service for all
14    employees excluded by the age restriction prior to January
15    1, 1979, for service during the period prior to that date
16    excluded by the age restriction. Any employee who was
17    excluded from participation by the age restriction removed
18    by Public Act 82-596 and who is not a participating
19    employee on or after September 24, 1981 may receive
20    creditable service for service after January 1, 1979.
21    Creditable service under this paragraph shall be granted
22    upon payment of the employee contributions which would
23    have been required had he participated, with interest at
24    the effective rate for each year from the end of the period
25    of service established to date of payment.
26        8. For accumulated unused sick leave: A participating



10200HB4209sam001- 12 -LRB102 20423 RPS 38819 a

1    employee who is applying for a retirement annuity shall be
2    entitled to creditable service for that portion of the
3    employee's accumulated unused sick leave for which payment
4    is not received, as follows:
5            a. Sick leave days shall be limited to those
6        accumulated under a sick leave plan established by a
7        participating municipality or participating
8        instrumentality which is available to all employees or
9        a class of employees.
10            b. Except as provided in item b-1, only sick leave
11        days accumulated with a participating municipality or
12        participating instrumentality with which the employee
13        was in service within 60 days of the effective date of
14        his retirement annuity shall be credited; If the
15        employee was in service with more than one employer
16        during this period only the sick leave days with the
17        employer with which the employee has the greatest
18        number of unpaid sick leave days shall be considered.
19            b-1. If the employee was in the service of more
20        than one employer as defined in item (2) of paragraph
21        (a) of subsection (A) of Section 7-132, then the sick
22        leave days from all such employers shall be credited,
23        as long as the creditable service attributed to those
24        sick leave days does not exceed the limitation in item
25        d of this paragraph 8. If the employee was in the
26        service of more than one employer described in



10200HB4209sam001- 13 -LRB102 20423 RPS 38819 a

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



10200HB4209sam001- 14 -LRB102 20423 RPS 38819 a

1            e. Employee contributions shall not be required
2        for creditable service under this subdivision 8.
3            f. Each participating municipality and
4        participating instrumentality with which an employee
5        has service within 60 days of the effective date of his
6        retirement annuity shall certify to the board the
7        number of accumulated unpaid sick leave days credited
8        to the employee at the time of termination of service.
9        9. For service transferred from another system:
10    Credits and creditable service shall be granted for
11    service under Article 4, 5, 8, 14, or 16 of this Act, to
12    any active member of this Fund, and to any inactive member
13    who has been a county sheriff, upon transfer of such
14    credits pursuant to Section 4-108.3, 5-235, 8-226.7,
15    14-105.6, or 16-131.4, and payment by the member of the
16    amount by which (1) the employer and employee
17    contributions that would have been required if he had
18    participated in this Fund as a sheriff's law enforcement
19    employee during the period for which credit is being
20    transferred, plus interest thereon at the effective rate
21    for each year, compounded annually, from the date of
22    termination of the service for which credit is being
23    transferred to the date of payment, exceeds (2) the amount
24    actually transferred to the Fund. Such transferred service
25    shall be deemed to be service as a sheriff's law
26    enforcement employee for the purposes of Section 7-142.1.



10200HB4209sam001- 15 -LRB102 20423 RPS 38819 a

1        10. (Blank).
2        11. For service transferred from an Article 3 system
3    under Section 3-110.3: Credits and creditable service
4    shall be granted for service under Article 3 of this Act as
5    provided in Section 3-110.3, to any active member of this
6    Fund, upon transfer of such credits pursuant to Section
7    3-110.3. If the board determines that the amount
8    transferred is less than the true cost to the Fund of
9    allowing that creditable service to be established, then
10    in order to establish that creditable service, the member
11    must pay to the Fund an additional contribution equal to
12    the difference, as determined by the board in accordance
13    with the rules and procedures adopted under this
14    paragraph. If the member does not make the full additional
15    payment as required by this paragraph prior to termination
16    of his participation with that employer, then his or her
17    creditable service shall be reduced by an amount equal to
18    the difference between the amount transferred under
19    Section 3-110.3, including any payments made by the member
20    under this paragraph prior to termination, and the true
21    cost to the Fund of allowing that creditable service to be
22    established, as determined by the board in accordance with
23    the rules and procedures adopted under this paragraph.
24        The board shall establish by rule the manner of making
25    the calculation required under this paragraph 11, taking
26    into account the appropriate actuarial assumptions; the



10200HB4209sam001- 16 -LRB102 20423 RPS 38819 a

1    member's service, age, and salary history, and any other
2    factors that the board determines to be relevant.
3        12. For omitted service: Any employee who was employed
4    by a participating employer in a position that required
5    participation, but who was not enrolled in the Fund, may
6    establish such credits under the following conditions:
7            a. Application for such credits is received by the
8        Board while the employee is an active participant of
9        the Fund or a reciprocal retirement system.
10            b. Eligibility for participation and earnings are
11        verified by the Authorized Agent of the participating
12        employer for which the service was rendered.
13        Creditable service under this paragraph shall be
14    granted upon payment of the employee contributions that
15    would have been required had he participated, which shall
16    be calculated by the Fund using the member contribution
17    rate in effect during the period that the service was
18    rendered.
19        13. For service transferred under Section 7-139.1a.
20    (b) Creditable service - amount:
21        1. One month of creditable service shall be allowed
22    for each month for which a participating employee made
23    contributions as required under Section 7-173, or for
24    which creditable service is otherwise granted hereunder.
25    Not more than 1 month of service shall be credited and
26    counted for 1 calendar month, and not more than 1 year of



10200HB4209sam001- 17 -LRB102 20423 RPS 38819 a

1    service shall be credited and counted for any calendar
2    year. A calendar month means a nominal month beginning on
3    the first day thereof, and a calendar year means a year
4    beginning January 1 and ending December 31.
5        2. A seasonal employee shall be given 12 months of
6    creditable service if he renders the number of months of
7    service normally required by the position in a 12-month
8    period and he remains in service for the entire 12-month
9    period. Otherwise a fractional year of service in the
10    number of months of service rendered shall be credited.
11        3. An intermittent employee shall be given creditable
12    service for only those months in which a contribution is
13    made under Section 7-173.
14    (c) No application for correction of credits or creditable
15service shall be considered unless the board receives an
16application for correction while (1) the applicant is a
17participating employee and in active employment with a
18participating municipality or instrumentality, or (2) while
19the applicant is actively participating in a pension fund or
20retirement system which is a participating system under the
21Retirement Systems Reciprocal Act. A participating employee or
22other applicant shall not be entitled to credits or creditable
23service unless the required employee contributions are made in
24a lump sum or in installments made in accordance with board
25rule. Payments made to establish service credit under
26paragraph 1, 4, 5, 5.1, 6, 7, or 12 of subsection (a) of this



10200HB4209sam001- 18 -LRB102 20423 RPS 38819 a

1Section must be received by the Board while the applicant is an
2active participant in the Fund or a reciprocal retirement
3system, except that an applicant may make one payment after
4termination of active participation in the Fund or a
5reciprocal retirement system.
6    (d) Upon the granting of a retirement, surviving spouse or
7child annuity, a death benefit or a separation benefit, on
8account of any employee, all individual accumulated credits
9shall thereupon terminate. Upon the withdrawal of additional
10contributions, the credits applicable thereto shall thereupon
11terminate. Terminated credits shall not be applied to increase
12the benefits any remaining employee would otherwise receive
13under this Article.
14(Source: P.A. 100-148, eff. 8-18-17; 101-492, eff. 8-23-19.)
15    (40 ILCS 5/7-139.1a new)
16    Sec. 7-139.1a. Transfer from Article 3. On and after
17January 1, 2023 but no later than July 1, 2023, a person who is
18a sheriff's law enforcement employee may elect to transfer up
19to 10 years of service credit to the Fund. The service shall
20accrue to the employee with the benefits of service credit
21that was otherwise earned as service credit under Section
227-142.1. In order to transfer the service credit, the employee
23must: (1) make a written election for a refund of the employee
24and employer contributions for the corresponding service
25credit under Article 3; (2) make a written election to the Fund



10200HB4209sam001- 19 -LRB102 20423 RPS 38819 a

1to purchase an amount of service credit that is not greater
2than the term of service credited under item (1); and (3) make
3payment of the amount determined by the Fund to represent the
4actual costs of the benefits as established by the Fund minus
5the amounts received from the fund established under Article