093_HB3710

 
                                     LRB093 07347 LRD 07509 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 2-110 as follows:

 6        (40 ILCS 5/2-110) (from Ch. 108 1/2, par. 2-110)
 7        Sec. 2-110.  Service.
 8        (A)  "Service" means the period beginning on the day when
 9    a person first became a member, and ending on the date  under
10    consideration,   excluding   all   intervening   periods   of
11    nonmembership following resignation or expiration of any term
12    of office.
13        (B)  "Service" includes:
14             (a)  Military  service  during  war  by a person who
15        entered such service while  a  member,  whether  rendered
16        before  or  after  the  expiration of any term of office;
17        plus up to 2 years of military service that need not have
18        immediately followed service as a member,  and  need  not
19        have been served during wartime, provided that the member
20        (or,  until  July  1, 2004, former member who has not yet
21        begun   to   receive   a   retirement   annuity)    makes
22        contributions  to  the System for such service (1) at the
23        rates provided in Section 2-126 based upon  the  member's
24        rate  of  compensation  on the last date as a participant
25        prior to such military service, or on the first date as a
26        participant after such  military  service,  whichever  is
27        greater,  plus  (2) if payment is made on or after May 1,
28        1993, an amount determined by the Board to  be  equal  to
29        the  employer's  normal  cost of the benefits accrued for
30        such military service, plus (3) interest at the effective
31        rate from the date of first membership in the  System  to
 
                            -2-      LRB093 07347 LRD 07509 b
 1        the date of payment.
 2             A  former  member who has not yet begun to receive a
 3        retirement annuity may establish military service  credit
 4        as provided in this subdivision (a).
 5             The  amendments  to  this subdivision (B)(a) made by
 6        this amendatory Act of the 93rd General Assembly apply to
 7        active participants in the System and to  former  members
 8        who have not yet begun to receive a retirement annuity.
 9             The  amendment  to  this  subdivision (B)(a) made by
10        this amendatory Act of 1993 shall apply  to  persons  who
11        are  active  contributors  to  the  System  on  or  after
12        November   30,   1992.    A  person  who  was  an  active
13        contributor to the System on November 30, 1992 but is  no
14        longer  an  active  contributor  may  apply  to  purchase
15        military  credit  under this subdivision (B)(a) within 60
16        days after the effective date of this amendatory  Act  of
17        1993;  if  the  person  is  an  annuitant,  the resulting
18        increase in annuity shall begin to accrue  on  the  first
19        day  of  the  month  following  the  month  in  which the
20        required payment is received by the System.   The  change
21        in  the  required  contribution  for  purchased  military
22        credit  made  by  this  amendatory  Act of 1993 shall not
23        entitle any person to a refund of  contributions  already
24        paid.
25             (b)  Service  as  a judge of a court  of this State,
26        but credit for such service is subject to  the  following
27        conditions:  (1) such person shall have been a member for
28        at least 4  years  and  contributed  to  the  system  for
29        service  as  a  judge  subsequent to July 8, 1947, at the
30        rates herein provided, including interest at 2% per annum
31        to the date of payment based  on  the  salary  in  effect
32        during  such  service; (2) the member was not an eligible
33        member of nor entitled to credit for such service in  any
34        other  retirement system in the State maintained in whole
 
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 1        or in part by public contributions; and (3)  the  last  4
 2        years  of  service  prior  to  retirement  on annuity was
 3        rendered while a member.
 4             (c)  Service  as  a  participating  employee   under
 5        Articles 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16,
 6        17  or  18 of the Illinois Pension Code.  Credit for such
 7        service may be established by a member and, if  permitted
 8        by   the  credit  transfer  Section  of  the  appropriate
 9        Article, by a former member who is not yet an  annuitant,
10        and is subject to the following conditions:  (1) that the
11        credits  accrued  under the above mentioned Articles have
12        been transferred to this system; and (2) that the  member
13        has contributed to this system an amount equal to (i) the
14        contribution  rate in effect for participants at the date
15        of membership in this system  multiplied  by  the  salary
16        then  in  effect  for members of the General Assembly for
17        each  year  of  service  for  which   credit   is   being
18        transferred,  plus  (ii)  the State's share of the normal
19        cost of benefits under this system expressed as a percent
20        of payroll, as determined by the system's actuary  as  of
21        the  date of the participant's membership in this system,
22        multiplied by the salary then in effect  for  members  of
23        the  General Assembly, for each year of service for which
24        credit is being transferred, plus (iii) interest on items
25        (i) and (ii) above at 6% per annum  compounded  annually,
26        from the date of membership to the date of payment by the
27        participant,  less  (iv)  the  amount transferred to this
28        system on behalf of the participant on account of service
29        rendered while a participant under  the  above  mentioned
30        Articles.
31             (d)  Service,  before October 1, 1975, as an officer
32        elected by the people of Illinois, for  which  creditable
33        service  is  required  to  be  transferred from the State
34        Employees' Retirement  System  to  this  system  by  this
 
                            -4-      LRB093 07347 LRD 07509 b
 1        amendatory Act of 1975.
 2             (e)  Service rendered prior to January 1, 1964, as a
 3        justice  of  the peace or police magistrate or as a civil
 4        referee in the Municipal Court of Chicago, but credit for
 5        such service may not be granted until the member has paid
 6        to the system an amount equal  to  (1)  the  contribution
 7        rate  for  participants at the date of membership in this
 8        system multiplied  by  the  salary  then  in  effect  for
 9        members  of the General Assembly for each year of service
10        for which credit  is  being  transferred,  plus  (2)  the
11        State's  share  of the normal cost of benefits under this
12        system expressed as a percent of payroll,  as  determined
13        by   the   system's   actuary  as  of  the  date  of  the
14        participant's  membership in this system,  multiplied  by
15        the  salary  then  in  effect  for members of the General
16        Assembly, for each year of service for  which  credit  is
17        allowed,  plus,  (3)  interest on (1) and (2) above at 6%
18        per annum compounded annually from the date of membership
19        to the  date  of  payment  by  the  member.   However,  a
20        participant  may  not receive more than 6 years of credit
21        for such service nor may any member receive credit  under
22        this  paragraph  for  service  for  which credit has been
23        granted in any other public pension  fund  or  retirement
24        system in the State.
25             (f)  Service  before January 16, 1981, as an officer
26        elected by the people of Illinois, for  which  creditable
27        service   is   transferred   from  the  State  Employees'
28        Retirement System to this system.
29        (C)  Service during any fraction  of  a  month  shall  be
30    considered as a month of service.
31          Service  includes  the total period of time for which a
32    participant is elected as a member or officer, even though he
33    or  she  does  not  complete  the  term  because  of   death,
34    resignation, judicial decision, or operation of law, provided
 
                            -5-      LRB093 07347 LRD 07509 b
 1    that  the  contributions required under this Article for such
 2    entire period of office have been made by or on behalf of the
 3    participant. In  the  case  of  a  participant  appointed  or
 4    elected  to fill a vacancy, service includes the total period
 5    from January 1 of the  year  in  which  his  or  her  service
 6    commences to the end of the term in which the vacancy occurs,
 7    provided   the   participant  contributes  in  the  year   of
 8    appointment an amount equal to the contributions  that  would
 9    have  been  required  had the participant received salary for
10    the entire year.  The  foregoing  provisions  relating  to  a
11    participant  appointed or elected to fill a vacancy shall not
12    apply  if  the  participant  was  a  member  of   the   other
13    legislative chamber at the time of appointment or election.
14        (D)  Notwithstanding   the   other   provisions  of  this
15    Section, if application  to  transfer  or  establish  service
16    credit  under  paragraph (c) or (e) of subsection (B) of this
17    Section is made between January 1, 1992 and February 1, 1993,
18    the contribution required for such credit shall be an  amount
19    equal to (1) the contribution rate in effect for participants
20    at  the  date  of membership in this system multiplied by the
21    salary then in effect for members of the General Assembly for
22    each year of service for which credit is being granted,  plus
23    (2)  interest  thereon  at  6% per annum compounded annually,
24    from the date of membership to the date  of  payment  by  the
25    member,  less  (3)  any  amount transferred to this system on
26    behalf of the member on account of such service credit.
27    (Source: P.A. 86-27; 86-1028; 87-794; 87-1265.)

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