093_HB1545

 
                                     LRB093 06269 EFG 06382 b

 1        AN ACT in relation to public employee benefits.

 2        Be  it  enacted  by  the People of the State of Illinois,
 3    represented in the General Assembly:

 4        Section 5.  The  Illinois  Pension  Code  is  amended  by
 5    changing Section 15-113.3 as follows:

 6        (40 ILCS 5/15-113.3) (from Ch. 108 1/2, par. 15-113.3)
 7        Sec.  15-113.3.  Service for periods of military service.
 8    "Service for periods of military  service":   Those  periods,
 9    not  exceeding  5  years, during which a person served in the
10    armed forces of the United States, of which all but  2  years
11    must have immediately followed a period of employment with an
12    employer under this System or the State Employees' Retirement
13    System  of  Illinois;  provided  that  the  person received a
14    discharge  other  than  dishonorable  and  again  became   an
15    employee  under  this System within one year after discharge.
16    However, for the up  to  2  years  of  military  service  not
17    immediately  following  employment,  the  applicant must make
18    contributions to the System (1)  at  the  rates  provided  in
19    Section  15-157  based upon the employee's basic compensation
20    on the last date as a participating employee  prior  to  such
21    military  service,  or  on  the first date as a participating
22    employee after such military service, whichever  is  greater,
23    plus (2) an amount determined by the board to be equal to the
24    employer's  normal  cost  of  the  benefits  accrued for such
25    military service, plus (3) interest on items (1) and  (2)  at
26    the  effective  rate  from the date the person last became an
27    employee or November 19, 1991, whichever is later,  later  of
28    the  date  of  first  membership in the System or the date of
29    conclusion of military service to the date of payment.
30        The change in the manner of  calculating  interest  under
31    this  Section made by this amendatory Act of the 93rd General
 
                            -2-      LRB093 06269 EFG 06382 b
 1    Assembly applies to credit purchased by  an  employee  on  or
 2    after its effective date and does not entitle any person to a
 3    refund of contributions or interest already paid.
 4        The  change  in  the  required contribution for purchased
 5    military credit made by this amendatory Act of 1993 does  not
 6    entitle any person to a refund of contributions already paid.
 7        The  changes  to this Section made by this amendatory Act
 8    of 1991 shall apply not only to persons who on or  after  its
 9    effective  date  are in service under the System, but also to
10    persons whose  employment  terminated  prior  to  that  date,
11    whether  or  not the person is an annuitant on that date.  In
12    the case of an annuitant who  applies  for  credit  allowable
13    under  this Section for a period of military service that did
14    not immediately follow  employment,  and  who  has  made  the
15    required  contributions for such credit, the annuity shall be
16    recalculated to include the additional service  credit,  with
17    the  increase  taking  effect on the date the System received
18    written notification of the annuitant's  intent  to  purchase
19    the  credit,  if payment of all the required contributions is
20    made within 60 days of such notice,  or  else  on  the  first
21    annuity  payment  date  following  the date of payment of the
22    required contributions.  In calculating the automatic  annual
23    increase for an annuity that has been recalculated under this
24    Section,  the increase attributable to the additional service
25    allowable under this amendatory Act of 1991 shall be included
26    in the calculation of  automatic  annual  increases  accruing
27    after the effective date of the recalculation.
28    (Source: P.A. 90-65, eff. 7-7-97; 90-511, eff. 8-22-97.)

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