Sen. Kwame Raoul

Filed: 11/8/2011

 

 


 

 


 
09700HB3813sam001LRB097 13613 JDS 59696 a

1
AMENDMENT TO HOUSE BILL 3813

2    AMENDMENT NO. ______. Amend House Bill 3813 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Illinois Pension Code is amended by
5changing Sections 1-114, 1-135, 3-110, 4-108, 5-214, 6-209,
68-226, 8-233, 9-219, 11-215, 11-217, 15-107, 16-106, and 17-134
7as follows:
 
8    (40 ILCS 5/1-114)  (from Ch. 108 1/2, par. 1-114)
9    Sec. 1-114. Liability for Breach of Fiduciary Duty. (a) Any
10person who is a fiduciary with respect to a retirement system
11or pension fund established under this Code who breaches any
12duty imposed upon fiduciaries by this Code, including, but not
13limited to, a failure to report a reasonable suspicion of a
14false statement specified in Section 1-135 of this Code, shall
15be personally liable to make good to such retirement system or
16pension fund any losses to it resulting from each such breach,

 

 

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1and to restore to such retirement system or pension fund any
2profits of such fiduciary which have been made through use of
3assets of the retirement system or pension fund by the
4fiduciary, and shall be subject to such equitable or remedial
5relief as the court may deem appropriate, including the removal
6of such fiduciary.
7    (b) No person shall be liable with respect to a breach of
8fiduciary duty under this Code if such breach occurred before
9such person became a fiduciary or after such person ceased to
10be a fiduciary.
11(Source: P.A. 82-960.)
 
12    (40 ILCS 5/1-135)
13    Sec. 1-135. Fraud. Any person who knowingly makes any false
14statement or falsifies or permits to be falsified any record of
15a retirement system or pension fund created under this Code or
16the Illinois State Board of Investment in an attempt to defraud
17the retirement system or pension fund created under this Code
18or the Illinois State Board of Investment is guilty of a Class
193 felony. Any reasonable suspicion by any appointed or elected
20commissioner, trustee, director, or board member of a
21retirement system or pension fund created under this Code or
22the State Board of Investment of a false statement or falsified
23record being submitted or permitted by a person under this Code
24shall be immediately referred to the board of trustees of the
25applicable retirement system or pension fund created under this

 

 

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1Code, the State Board of Investment, or the State's Attorney of
2the jurisdiction where the alleged fraudulent activity
3occurred. The board of trustees of a retirement system or
4pension fund created under this Code or the State Board of
5Investment shall immediately notify the State's Attorney of the
6jurisdiction where any alleged fraudulent activity occurred
7for investigation. For the purposes of this Section,
8"reasonable suspicion" means a belief, based upon specific and
9articulable facts, taken together with rational inferences
10from those facts, that would lead a reasonable person to
11believe that fraud has been, or will be, committed. A
12reasonable suspicion is more than a non-particularized
13suspicion. A mere inconsistency, standing alone, does not give
14rise to a reasonable suspicion.
15(Source: P.A. 96-6, eff. 4-3-09.)
 
16    (40 ILCS 5/3-110)  (from Ch. 108 1/2, par. 3-110)
17    Sec. 3-110. Creditable service.
18    (a) "Creditable service" is the time served by a police
19officer as a member of a regularly constituted police force of
20a municipality. In computing creditable service furloughs
21without pay exceeding 30 days shall not be counted, but all
22leaves of absence for illness or accident, regardless of
23length, and all periods of disability retirement for which a
24police officer has received no disability pension payments
25under this Article shall be counted.

 

 

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1    (a-5) Up to 3 years of time during which the police officer
2receives a disability pension under Section 3-114.1, 3-114.2,
33-114.3, or 3-114.6 shall be counted as creditable service,
4provided that (i) the police officer returns to active service
5after the disability for a period at least equal to the period
6for which credit is to be established and (ii) the police
7officer makes contributions to the fund based on the rates
8specified in Section 3-125.1 and the salary upon which the
9disability pension is based. These contributions may be paid at
10any time prior to the commencement of a retirement pension. The
11police officer may, but need not, elect to have the
12contributions deducted from the disability pension or to pay
13them in installments on a schedule approved by the board. If
14not deducted from the disability pension, the contributions
15shall include interest at the rate of 6% per year, compounded
16annually, from the date for which service credit is being
17established to the date of payment. If contributions are paid
18under this subsection (a-5) in excess of those needed to
19establish the credit, the excess shall be refunded. This
20subsection (a-5) applies to persons receiving a disability
21pension under Section 3-114.1, 3-114.2, 3-114.3, or 3-114.6 on
22the effective date of this amendatory Act of the 91st General
23Assembly, as well as persons who begin to receive such a
24disability pension after that date.
25    (b) Creditable service includes all periods of service in
26the military, naval or air forces of the United States entered

 

 

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1upon while an active police officer of a municipality, provided
2that upon applying for a permanent pension, and in accordance
3with the rules of the board, the police officer pays into the
4fund the amount the officer would have contributed if he or she
5had been a regular contributor during such period, to the
6extent that the municipality which the police officer served
7has not made such contributions in the officer's behalf. The
8total amount of such creditable service shall not exceed 5
9years, except that any police officer who on July 1, 1973 had
10more than 5 years of such creditable service shall receive the
11total amount thereof.
12    (b-5) Creditable service includes all periods of service in
13the military, naval, or air forces of the United States entered
14upon before beginning service as an active police officer of a
15municipality, provided that, in accordance with the rules of
16the board, the police officer pays into the fund the amount the
17police officer would have contributed if he or she had been a
18regular contributor during such period, plus an amount
19determined by the Board to be equal to the municipality's
20normal cost of the benefit, plus interest at the actuarially
21assumed rate calculated from the date the employee last became
22a police officer under this Article. The total amount of such
23creditable service shall not exceed 2 years.
24    (c) Creditable service also includes service rendered by a
25police officer while on leave of absence from a police
26department to serve as an executive of an organization whose

 

 

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1membership consists of members of a police department, subject
2to the following conditions: (i) the police officer is a
3participant of a fund established under this Article with at
4least 10 years of service as a police officer; (ii) the police
5officer received no credit for such service under any other
6retirement system, pension fund, or annuity and benefit fund
7included in this Code; (iii) pursuant to the rules of the board
8the police officer pays to the fund the amount he or she would
9have contributed had the officer been an active member of the
10police department; and (iv) the organization pays a
11contribution equal to the municipality's normal cost for that
12period of service; and (v) for all leaves of absence under this
13subsection (c), including those beginning before the effective
14date of this amendatory Act of the 97th General Assembly, the
15police officer continues to remain in sworn status, subject to
16the professional standards of the public employer or those
17terms established in statute.
18        (d)(1) Creditable service also includes periods of
19    service originally established in another police pension
20    fund under this Article or in the Fund established under
21    Article 7 of this Code for which (i) the contributions have
22    been transferred under Section 3-110.7 or Section 7-139.9
23    and (ii) any additional contribution required under
24    paragraph (2) of this subsection has been paid in full in
25    accordance with the requirements of this subsection (d).
26        (2) If the board of the pension fund to which

 

 

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1    creditable service and related contributions are
2    transferred under Section 7-139.9 determines that the
3    amount transferred is less than the true cost to the
4    pension fund of allowing that creditable service to be
5    established, then in order to establish that creditable
6    service the police officer must pay to the pension fund,
7    within the payment period specified in paragraph (3) of
8    this subsection, an additional contribution equal to the
9    difference, as determined by the board in accordance with
10    the rules and procedures adopted under paragraph (6) of
11    this subsection. If the board of the pension fund to which
12    creditable service and related contributions are
13    transferred under Section 3-110.7 determines that the
14    amount transferred is less than the true cost to the
15    pension fund of allowing that creditable service to be
16    established, then the police officer may elect (A) to
17    establish that creditable service by paying to the pension
18    fund, within the payment period specified in paragraph (3)
19    of this subsection (d), an additional contribution equal to
20    the difference, as determined by the board in accordance
21    with the rules and procedures adopted under paragraph (6)
22    of this subsection (d) or (B) to have his or her creditable
23    service reduced by an amount equal to the difference
24    between the amount transferred under Section 3-110.7 and
25    the true cost to the pension fund of allowing that
26    creditable service to be established, as determined by the

 

 

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1    board in accordance with the rules and procedures adopted
2    under paragraph (6) of this subsection (d).
3        (3) Except as provided in paragraph (4), the additional
4    contribution that is required or elected under paragraph
5    (2) of this subsection (d) must be paid to the board (i)
6    within 5 years from the date of the transfer of
7    contributions under Section 3-110.7 or 7-139.9 and (ii)
8    before the police officer terminates service with the fund.
9    The additional contribution may be paid in a lump sum or in
10    accordance with a schedule of installment payments
11    authorized by the board.
12        (4) If the police officer dies in service before
13    payment in full has been made and before the expiration of
14    the 5-year payment period, the surviving spouse of the
15    officer may elect to pay the unpaid amount on the officer's
16    behalf within 6 months after the date of death, in which
17    case the creditable service shall be granted as though the
18    deceased police officer had paid the remaining balance on
19    the day before the date of death.
20        (5) If the additional contribution that is required or
21    elected under paragraph (2) of this subsection (d) is not
22    paid in full within the required time, the creditable
23    service shall not be granted and the police officer (or the
24    officer's surviving spouse or estate) shall be entitled to
25    receive a refund of (i) any partial payment of the
26    additional contribution that has been made by the police

 

 

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1    officer and (ii) those portions of the amounts transferred
2    under subdivision (a)(1) of Section 3-110.7 or
3    subdivisions (a)(1) and (a)(3) of Section 7-139.9 that
4    represent employee contributions paid by the police
5    officer (but not the accumulated interest on those
6    contributions) and interest paid by the police officer to
7    the prior pension fund in order to reinstate service
8    terminated by acceptance of a refund.
9        At the time of paying a refund under this item (5), the
10    pension fund shall also repay to the pension fund from
11    which the contributions were transferred under Section
12    3-110.7 or 7-139.9 the amount originally transferred under
13    subdivision (a)(2) of that Section, plus interest at the
14    rate of 6% per year, compounded annually, from the date of
15    the original transfer to the date of repayment. Amounts
16    repaid to the Article 7 fund under this provision shall be
17    credited to the appropriate municipality.
18        Transferred credit that is not granted due to failure
19    to pay the additional contribution within the required time
20    is lost; it may not be transferred to another pension fund
21    and may not be reinstated in the pension fund from which it
22    was transferred.
23        (6) The Public Employee Pension Fund Division of the
24    Department of Insurance shall establish by rule the manner
25    of making the calculation required under paragraph (2) of
26    this subsection, taking into account the appropriate

 

 

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1    actuarial assumptions; the police officer's service, age,
2    and salary history; the level of funding of the pension
3    fund to which the credits are being transferred; and any
4    other factors that the Division determines to be relevant.
5    The rules may require that all calculations made under
6    paragraph (2) be reported to the Division by the board
7    performing the calculation, together with documentation of
8    the creditable service to be transferred, the amounts of
9    contributions and interest to be transferred, the manner in
10    which the calculation was performed, the numbers relied
11    upon in making the calculation, the results of the
12    calculation, and any other information the Division may
13    deem useful.
14        (e)(1) Creditable service also includes periods of
15    service originally established in the Fund established
16    under Article 7 of this Code for which the contributions
17    have been transferred under Section 7-139.11.
18        (2) If the board of the pension fund to which
19    creditable service and related contributions are
20    transferred under Section 7-139.11 determines that the
21    amount transferred is less than the true cost to the
22    pension fund of allowing that creditable service to be
23    established, then the amount of creditable service the
24    police officer may establish under this subsection (e)
25    shall be reduced by an amount equal to the difference, as
26    determined by the board in accordance with the rules and

 

 

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1    procedures adopted under paragraph (3) of this subsection.
2        (3) The Public Pension Division of the Department of
3    Financial and Professional Regulation shall establish by
4    rule the manner of making the calculation required under
5    paragraph (2) of this subsection, taking into account the
6    appropriate actuarial assumptions; the police officer's
7    service, age, and salary history; the level of funding of
8    the pension fund to which the credits are being
9    transferred; and any other factors that the Division
10    determines to be relevant. The rules may require that all
11    calculations made under paragraph (2) be reported to the
12    Division by the board performing the calculation, together
13    with documentation of the creditable service to be
14    transferred, the amounts of contributions and interest to
15    be transferred, the manner in which the calculation was
16    performed, the numbers relied upon in making the
17    calculation, the results of the calculation, and any other
18    information the Division may deem useful.
19        (4) Until January 1, 2010, a police officer who
20    transferred service from the Fund established under
21    Article 7 of this Code under the provisions of Public Act
22    94-356 may establish additional credit, but only for the
23    amount of the service credit reduction in that transfer, as
24    calculated under paragraph (3) of this subsection (e). This
25    credit may be established upon payment by the police
26    officer of an amount to be determined by the board, equal

 

 

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1    to (1) the amount that would have been contributed as
2    employee and employer contributions had all of the service
3    been as an employee under this Article, plus interest
4    thereon at the rate of 6% per year, compounded annually
5    from the date of service to the date of transfer, less (2)
6    the total amount transferred from the Article 7 Fund, plus
7    (3) interest on the difference at the rate of 6% per year,
8    compounded annually, from the date of the transfer to the
9    date of payment. The additional service credit is allowed
10    under this amendatory Act of the 95th General Assembly
11    notwithstanding the provisions of Article 7 terminating
12    all transferred credits on the date of transfer.
13(Source: P.A. 95-812, eff. 8-13-08; 96-297, eff. 8-11-09;
1496-1260, eff. 7-23-10.)
 
15    (40 ILCS 5/4-108)  (from Ch. 108 1/2, par. 4-108)
16    Sec. 4-108. Creditable service.
17    (a) Creditable service is the time served as a firefighter
18of a municipality. In computing creditable service, furloughs
19and leaves of absence without pay exceeding 30 days in any one
20year shall not be counted, but leaves of absence for illness or
21accident regardless of length, and periods of disability for
22which a firefighter received no disability pension payments
23under this Article, shall be counted.
24    (b) Furloughs and leaves of absence of 30 days or less in
25any one year may be counted as creditable service, if the

 

 

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1firefighter makes the contribution to the fund that would have
2been required had he or she not been on furlough or leave of
3absence. To qualify for this creditable service, the
4firefighter must pay the required contributions to the fund not
5more than 90 days subsequent to the termination of the furlough
6or leave of absence, to the extent that the municipality has
7not made such contribution on his or her behalf.
8    (c) Creditable service includes:
9        (1) Service in the military, naval or air forces of the
10    United States entered upon when the person was an active
11    firefighter, provided that, upon applying for a permanent
12    pension, and in accordance with the rules of the board the
13    firefighter pays into the fund the amount that would have
14    been contributed had he or she been a regular contributor
15    during such period of service, if and to the extent that
16    the municipality which the firefighter served made no such
17    contributions in his or her behalf. The total amount of
18    such creditable service shall not exceed 5 years, except
19    that any firefighter who on July 1, 1973 had more than 5
20    years of such creditable service shall receive the total
21    amount thereof as of that date.
22        (1.5) Up to 24 months of service in the military,
23    naval, or air forces of the United States that was served
24    prior to employment by a municipality or fire protection
25    district as a firefighter. To receive the credit for the
26    military service prior to the employment as a firefighter,

 

 

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1    the firefighter must apply in writing to the fund and must
2    make contributions to the fund equal to (i) the employee
3    contributions that would have been required had the service
4    been rendered as a member, plus (ii) an amount determined
5    by the fund to be equal to the employer's normal cost of
6    the benefits accrued for that military service, plus (iii)
7    interest at the actuarially assumed rate provided by the
8    Department of Financial and Professional Regulation,
9    compounded annually from the first date of membership in
10    the fund to the date of payment on items (i) and (ii). The
11    changes to this paragraph (1.5) by this amendatory Act of
12    the 95th General Assembly apply only to participating
13    employees in service on or after its effective date.
14        (2) Service prior to July 1, 1976 by a firefighter
15    initially excluded from participation by reason of age who
16    elected to participate and paid the required contributions
17    for such service.
18        (3) Up to 8 years of service by a firefighter as an
19    officer in a statewide firefighters' association when he is
20    on a leave of absence from a municipality's payroll,
21    provided that (i) the firefighter has at least 10 years of
22    creditable service as an active firefighter, (ii) the
23    firefighter contributes to the fund the amount that he
24    would have contributed had he remained an active member of
25    the fund, and (iii) the employee or statewide firefighter
26    association contributes to the fund an amount equal to the

 

 

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1    employer's required contribution as determined by the
2    board, and (iv) for all leaves of absence under this
3    subdivision (3), including those beginning before the
4    effective date of this amendatory Act of the 97th General
5    Assembly, the firefighter continues to remain in sworn
6    status, subject to the professional standards of the public
7    employer or those terms established in statute.
8        (4) Time spent as an on-call fireman for a
9    municipality, calculated at the rate of one year of
10    creditable service for each 5 years of time spent as an
11    on-call fireman, provided that (i) the firefighter has at
12    least 18 years of creditable service as an active
13    firefighter, (ii) the firefighter spent at least 14 years
14    as an on-call firefighter for the municipality, (iii) the
15    firefighter applies for such creditable service within 30
16    days after the effective date of this amendatory Act of
17    1989, (iv) the firefighter contributes to the Fund an
18    amount representing employee contributions for the number
19    of years of creditable service granted under this
20    subdivision (4), based on the salary and contribution rate
21    in effect for the firefighter at the date of entry into the
22    Fund, to be determined by the board, and (v) not more than
23    3 years of creditable service may be granted under this
24    subdivision (4).
25        Except as provided in Section 4-108.5, creditable
26    service shall not include time spent as a volunteer

 

 

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1    firefighter, whether or not any compensation was received
2    therefor. The change made in this Section by Public Act
3    83-0463 is intended to be a restatement and clarification
4    of existing law, and does not imply that creditable service
5    was previously allowed under this Article for time spent as
6    a volunteer firefighter.
7        (5) Time served between July 1, 1976 and July 1, 1988
8    in the position of protective inspection officer or
9    administrative assistant for fire services, for a
10    municipality with a population under 10,000 that is located
11    in a county with a population over 3,000,000 and that
12    maintains a firefighters' pension fund under this Article,
13    if the position included firefighting duties,
14    notwithstanding that the person may not have held an
15    appointment as a firefighter, provided that application is
16    made to the pension fund within 30 days after the effective
17    date of this amendatory Act of 1991, and the corresponding
18    contributions are paid for the number of years of service
19    granted, based upon the salary and contribution rate in
20    effect for the firefighter at the date of entry into the
21    pension fund, as determined by the Board.
22        (6) Service before becoming a participant by a
23    firefighter initially excluded from participation by
24    reason of age who becomes a participant under the amendment
25    to Section 4-107 made by this amendatory Act of 1993 and
26    pays the required contributions for such service.

 

 

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1        (7) Up to 3 years of time during which the firefighter
2    receives a disability pension under Section 4-110,
3    4-110.1, or 4-111, provided that (i) the firefighter
4    returns to active service after the disability for a period
5    at least equal to the period for which credit is to be
6    established and (ii) the firefighter makes contributions
7    to the fund based on the rates specified in Section 4-118.1
8    and the salary upon which the disability pension is based.
9    These contributions may be paid at any time prior to the
10    commencement of a retirement pension. The firefighter may,
11    but need not, elect to have the contributions deducted from
12    the disability pension or to pay them in installments on a
13    schedule approved by the board. If not deducted from the
14    disability pension, the contributions shall include
15    interest at the rate of 6% per year, compounded annually,
16    from the date for which service credit is being established
17    to the date of payment. If contributions are paid under
18    this subdivision (c)(7) in excess of those needed to
19    establish the credit, the excess shall be refunded. This
20    subdivision (c)(7) applies to persons receiving a
21    disability pension under Section 4-110, 4-110.1, or 4-111
22    on the effective date of this amendatory Act of the 91st
23    General Assembly, as well as persons who begin to receive
24    such a disability pension after that date.
25(Source: P.A. 94-856, eff. 6-15-06; 95-1056, eff. 4-10-09.)
 

 

 

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1    (40 ILCS 5/5-214)  (from Ch. 108 1/2, par. 5-214)
2    Sec. 5-214. Credit for other service. Any participant in
3this fund (other than a member of the fire department of the
4city) who has rendered service as a member of the police
5department of the city for a period of 3 years or more is
6entitled to credit for the various purposes of this Article for
7service rendered prior to becoming a member or subsequent
8thereto for the following periods:
9        (a) While on leave of absence from the police
10    department assigned or detailed to investigative,
11    protective, security or police work for the park district
12    of the city, the department of the Port of Chicago or the
13    sanitary district in which the city is located.
14        (b) As a temporary police officer in the city or while
15    serving in the office of the mayor or in the office of the
16    corporation counsel, as a member of the city council of the
17    city, as an employee of the Policemen's Annuity and Benefit
18    Fund created by this Article, as the head of an
19    organization whose membership consists of members of the
20    police department, the Public Vehicle License Commission
21    and the board of election commissioners of the city,
22    provided that, in each of these cases and for all periods
23    specified in this item (b), including those beginning
24    before the effective date of this amendatory Act of the
25    97th General Assembly, the police officer is on leave to
26    special duty assignments and continues to remain in sworn

 

 

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1    status, subject to the professional standards of the public
2    employer or those terms established in statute.
3        (c) While performing safety or investigative work for
4    the county in which such city is principally located or for
5    the State of Illinois or for the federal government, on
6    leave of absence from the department of police, or while
7    performing investigative work for the department as a
8    civilian employee of the department.
9        (d) While on leave of absence from the police
10    department of the city and serving as the chief of police
11    of a police department outside the city.
12    No credit shall be granted in this fund, however, for this
13service if the policeman has credit therefor in any other
14annuity and benefit fund, or unless he contributes to this fund
15the amount he would have contributed with interest had he
16remained an active member of the police department in the
17position he occupied as a result of a civil service competitive
18examination, certification and appointment by the Civil
19Service Board; or in the case of a city operating under the
20provisions of a personnel ordinance the position he occupied as
21a result of a personnel ordinance competitive examination
22certification and appointment under the authority of a
23Municipal Personnel ordinance.
24    Concurrently with such contributions, the city shall
25contribute the amounts provided by this Article. No credit
26shall be allowed for any period of time for which contributions

 

 

09700HB3813sam001- 20 -LRB097 13613 JDS 59696 a

1by the policeman have not been paid. The period of service
2rendered by such policeman prior to the date he became a member
3of the police department of the city or while detailed,
4assigned or on leave of absence and employed in any of the
5departments set forth hereinabove in this Section for which
6such policeman has contributed to this fund shall be credited
7to him as service for all the purposes of this Article, except
8that he shall not have any of the rights conferred by the
9provisions of Sections 5-127 and 5-162 of this Article.
10    The changes in this Section made by Public Act 86-273 shall
11apply to members of the fund who have not begun receiving a
12pension under this Article on August 23, 1989, without regard
13to whether employment is terminated before that date.
14(Source: P.A. 86-273; 87-1265.)
 
15    (40 ILCS 5/6-209)  (from Ch. 108 1/2, par. 6-209)
16    Sec. 6-209. In computing the service rendered by a fireman
17prior to the effective date, the following periods shall be
18counted, in addition to all periods during which he performed
19the duties of his position, as periods of service for annuity
20purposes only: All periods of (a) vacation, (b) leave of
21absence with whole or part pay, (c) leave of absence without
22pay which were necessary on account of disability, and (d)
23leave of absence during which he was engaged in the military or
24naval service of the United States of America. Service credit
25shall not be allowed for any period during which a fireman was

 

 

09700HB3813sam001- 21 -LRB097 13613 JDS 59696 a

1in receipt of pension on account of disability from any pension
2fund superseded by this fund.
3    In computing the service rendered by a fireman on and after
4the effective date, the following periods shall be counted in
5addition to all periods during which he performed the duties of
6his position, as periods of service for annuity purposes only:
7All periods of (a) vacation, (b) leave of absence with whole or
8part pay, (c) leave of absence during which he was engaged in
9the military or naval service of the United States of America,
10(d) disability for which he receives any disability benefit,
11(e) disability for which he receives whole or part pay, (f)
12leave of absence, or other authorized relief from active duty,
13during which he served as president of The Firemen's
14Association of Chicago, provided that for all leaves of absence
15or other authorized relief under this item (f), including those
16beginning before the effective date of this amendatory Act of
17the 97th General Assembly, the fireman continues to remain in
18sworn status, subject to the professional standards of the
19public employer or those terms established in statute, (g)
20periods of suspension from duty not to exceed a total of one
21year during the total period of service of the fireman, and (h)
22a period of time not to exceed 23 days in 1980 in accordance
23with an agreement with the City on a settlement of strike;
24provided that the fireman elects to make contributions to the
25Fund for the various annuity and benefit purposes according to
26the provisions of this Article as though he were an active

 

 

09700HB3813sam001- 22 -LRB097 13613 JDS 59696 a

1fireman, based upon the salary attached to the civil service
2rank held by him during such absence from duty, and if the
3fireman so elects, the city shall make the prescribed
4concurrent contributions for such annuity and benefit purposes
5as provided in this Article, all to the end that such fireman
6shall be entitled to receive the same annuities and benefits
7for which he would otherwise be eligible if he had continued as
8an active fireman during the periods of absence from duty.
9    In computing service on and after the effective date for
10ordinary disability benefit, all periods described in the
11preceding paragraph, except any period for which a fireman
12receives ordinary disability benefit, shall be counted as
13periods of service.
14    In computing service for any of the purposes of this
15Article, credit shall be given for any periods prior to January
169, 1997, during which an active fireman (or fire paramedic) who
17is a member of the General Assembly is on leave of absence or
18is otherwise authorized to be absent from duty to enable him to
19perform his legislative duties, notwithstanding any reduction
20in salary for such periods and notwithstanding that the
21contributions paid by the fireman were based on such reduced
22salary rather than the full amount of salary attached to his
23civil service rank.
24    In computing service for any of the purposes of this
25Article, no credit shall be given for any period during which a
26fireman was not rendering active service because of his

 

 

09700HB3813sam001- 23 -LRB097 13613 JDS 59696 a

1discharge from the service, unless proceedings to test the
2legality of the discharge are filed in a court of competent
3jurisdiction within one year from the date of discharge and a
4final judgment is entered therein declaring the discharge
5illegal.
6    No overtime or extra service shall be included in computing
7service of a fireman and not more than one year or a proper
8fractional part thereof of service shall be allowed for service
9rendered during any calendar year.
10(Source: P.A. 86-273; 86-1488; 87-1265.)
 
11    (40 ILCS 5/8-226)  (from Ch. 108 1/2, par. 8-226)
12    Sec. 8-226. Computation of service. In computing the term
13of service of an employee prior to the effective date, the
14entire period beginning on the date he was first appointed and
15ending on the day before the effective date, except any
16intervening period during which he was separated by withdrawal
17from service, shall be counted for all purposes of this
18Article, except that for any employee who was not in service on
19the day before the effective date, service rendered prior to
20such date shall not be considered for the purposes of Section
218-138.
22    For a person employed by an employer for whom this Article
23was in effect prior to January 1, 1950, from whose salary
24deductions are first made under this Article after December 31,
251949, any period of service rendered prior to the effective

 

 

09700HB3813sam001- 24 -LRB097 13613 JDS 59696 a

1date, unless he was in service on the day before the effective
2date, shall not be counted as service.
3    The time a person was an employee of any territory annexed
4to the city prior to the effective date shall be counted as a
5period of service.
6    In computing the term of service of any employee subsequent
7to the day before the effective date, the following periods
8shall be counted as periods of service for age and service,
9widow's and child's annuity purposes:
10        (a) The time during which he performed the duties of
11    his position;
12        (b) Vacations, leaves of absence with whole or part
13    pay, and leaves of absence without pay not longer than 90
14    days;
15        (c) Leaves of absence without pay that begin before the
16    effective date of this amendatory Act of the 97th General
17    Assembly and during which a participant is employed
18    full-time by a local labor organization that represents
19    municipal employees, provided that (1) the participant
20    continues to make employee contributions to the Fund as
21    though he were an active employee, based on the regular
22    salary rate received by the participant for his municipal
23    employment immediately prior to such leave of absence (and
24    in the case of such employment prior to December 9, 1987,
25    pays to the Fund an amount equal to the employee
26    contributions for such employment plus regular interest

 

 

09700HB3813sam001- 25 -LRB097 13613 JDS 59696 a

1    thereon as calculated by the board), and based on his
2    current salary with such labor organization after the
3    effective date of this amendatory Act of 1991, (2) after
4    January 1, 1989 the participant, or the labor organization
5    on the participant's behalf, makes contributions to the
6    Fund as though it were the employer, in the same amount and
7    same manner as specified under this Article, based on the
8    regular salary rate received by the participant for his
9    municipal employment immediately prior to such leave of
10    absence, and based on his current salary with such labor
11    organization after the effective date of this amendatory
12    Act of 1991, and (3) the participant does not receive
13    credit in any pension plan established by the local labor
14    organization based on his employment by the organization;
15        (d) Any period of disability for which he received (i)
16    a disability benefit under this Article, or (ii) a
17    temporary total disability benefit under the Workers'
18    Compensation Act if the disability results from a condition
19    commonly termed heart attack or stroke or any other
20    condition falling within the broad field of coronary
21    involvement or heart disease, or (iii) whole or part pay;
22        (e) Any period for which contributions and service
23    credit have been transferred to this Fund under subsection
24    (d) of Section 9-121.1 or subsection (d) of Section
25    12-127.1 of this Code.
26    For a person employed by an employer in which the 1921 Act

 

 

09700HB3813sam001- 26 -LRB097 13613 JDS 59696 a

1was in effect prior to January 1, 1950, from whose salary
2deductions are first made under the 1921 Act or this Article
3after December 31, 1949, any period of service rendered
4subsequent to the effective date and prior to the date he
5became an employee and contributor, shall not be counted as a
6period of service under this Article, except such period for
7which he made payment as provided in Section 8-230 of this
8Article, in which case such period shall be counted as a period
9of service for all annuity purposes hereunder.
10    In computing the term of service of an employee subsequent
11to the day before the effective date for ordinary disability
12benefit purposes, all periods described in the preceding
13paragraph, except any such period for which he receives
14ordinary disability benefit, shall be counted as periods of
15service; provided, that for any person employed by an employer
16in which this Article was in effect prior to January 1, 1950,
17from whose salary deductions are first made under this Article
18after December 31, 1949, any period of service rendered
19subsequent to the effective date and prior to the date he
20became an employee and contributor, shall not be counted as a
21period of service for ordinary disability benefit purposes,
22unless the person made payment for the period as provided in
23Section 8-230 of this Article, in which case the period shall
24be counted as a period of service for ordinary disability
25purposes for periods of disability on or after the effective
26date of this amendatory Act of 1997.

 

 

09700HB3813sam001- 27 -LRB097 13613 JDS 59696 a

1    Overtime or extra service shall not be included in
2computing any term of service. Not more than 1 year of service
3shall be allowed for service rendered during any calendar year.
4    For the purposes of this Section, the phrase "any pension
5plan established by the local labor organization" means any
6pension plan in which a participant may receive credit as a
7result of his or her membership in the local labor
8organization, including, but not limited to, the local labor
9organization itself and its affiliates at the local,
10intrastate, State, multi-state, national, or international
11level. The definition of this phrase is a declaration of
12existing law and shall not be construed as a new enactment.
13(Source: P.A. 90-511, eff. 8-22-97.)
 
14    (40 ILCS 5/8-233)  (from Ch. 108 1/2, par. 8-233)
15    Sec. 8-233. Basis of annual salary. For the purpose of this
16Article, the annual salary of an employee whose salary or wage
17is appropriated, fixed, or arranged in the annual appropriation
18ordinance upon other than an annual basis shall be determined
19as follows:
20    (a) If the employee is paid on a monthly basis, the annual
21salary is 12 times the monthly salary. If the employee is paid
22on a weekly basis, the annual salary is 52 times the weekly
23salary.
24    "Monthly salary" means the amount of compensation or salary
25appropriated and payable for a normal and regular month's work

 

 

09700HB3813sam001- 28 -LRB097 13613 JDS 59696 a

1in the employee's position in the service. "Weekly salary"
2means the amount of compensation or salary appropriated and
3payable for a normal and regular week's work in the employee's
4position in the service. If the work is on a regularly
5scheduled part time basis, then "monthly salary" and "weekly
6salary" refer, respectively, to the part time monthly or weekly
7salary.
8    If the appropriation for the position is for a shorter
9period than 12 months a year, or 52 weeks a year if on a weekly
10basis, or the employee is in a class, grade, or category in
11which the employee normally works for fewer than 12 months or
1252 weeks a year, then the basis shall be adjusted downward to
13the extent that the appropriated or customary work period is
14less than the normal 12 months or 52 weeks of service in a
15year.
16    Compensation for overtime, at regular or overtime rates,
17that is paid in addition to the appropriated regular and normal
18monthly or weekly salary shall not be considered.
19    (b) If the employee is paid on a daily basis, the annual
20salary is 260 times the daily wage. If the employee is paid on
21an hourly basis, the annual salary is 2080 times the hourly
22wage.
23    The norm is based on a 12-month per year, 5-day work week
24of 8 hours per day and 40 hours per week, with consideration
25given only to time compensated for at the straight time rate of
26compensation or wage. The norm shall be increased (subject to a

 

 

09700HB3813sam001- 29 -LRB097 13613 JDS 59696 a

1maximum of 300 days or 2400 hours per year) or decreased for an
2employee to the extent that the normal and established work
3period, at the straight time compensation or wage for the
4position held in the class, grade, or category in which the
5employee is assigned, is for a greater or lesser number of
6months, weeks, days, or hours than the period on which the
7established norm is based.
8    "Daily wage" and "hourly wage" mean, respectively, the
9normal, regular, or basic straight time rate of compensation or
10wage appropriated and payable for a normal and regular day's
11work, or hour's work, in the employee's position in the
12service.
13    Any time worked in excess of the norm (or the increased or
14decreased norm, whichever is applicable) that is compensated
15for at overtime, premium, or other than regular or basic
16straight time rates shall not be considered as time worked, and
17the compensation for that work shall not be considered as
18salary or wage. Such time and compensation shall in every case
19and for all purposes be considered overtime and shall be
20excluded for all purposes under this Article. However, the
21straight time portion of compensation or wage, for time worked
22on holidays that fall within an employee's established norm,
23shall be included for all purposes under this Article.
24    (c) For minimum annuity purposes under Section 8-138, where
25a salary rate change occurs during the year, it shall be
26considered that the annual salary for that year is (1) the

 

 

09700HB3813sam001- 30 -LRB097 13613 JDS 59696 a

1annual equivalent of the monthly, weekly, daily, or hourly
2salary or wage rate that was applicable for the greater number
3of months, weeks, days, or hours (whichever is applicable) in
4the year under consideration, or (2) the annual equivalent of
5the average salary or wage rate in effect for the employee
6during the year, whichever is greater. The average salary or
7wage rate shall be calculated by multiplying each salary or
8wage rate in effect for the employee during the year by the
9number of months, weeks, days, or hours (whichever is
10applicable) during which that rate was in effect, and dividing
11the sum of the resulting products by the total number of
12months, weeks, days, or hours (whichever is applicable) worked
13by the employee during the year.
14    (d) The changes to subsection (c) made by this amendatory
15Act of 1997 apply to persons withdrawing from service on or
16after July 1, 1990 and for each such person are intended to be
17retroactive to the date upon which the affected annuity began.
18The Fund shall recompute the affected annuity and shall pay the
19additional amount due for the period before the increase
20resulting from this amendatory Act in a lump sum, without
21interest.
22    (e) This Article shall not be construed to authorize a
23salary paid by an entity other than an employer, as defined in
24Section 8-110, to be used to calculate the highest average
25annual salary of a participant. This subsection (e) is a
26declaration of existing law and shall not be construed as a new

 

 

09700HB3813sam001- 31 -LRB097 13613 JDS 59696 a

1enactment.
2(Source: P.A. 90-31, eff. 6-27-97.)
 
3    (40 ILCS 5/9-219)  (from Ch. 108 1/2, par. 9-219)
4    Sec. 9-219. Computation of service.
5    (1) In computing the term of service of an employee prior
6to the effective date, the entire period beginning on the date
7he was first appointed and ending on the day before the
8effective date, except any intervening period during which he
9was separated by withdrawal from service, shall be counted for
10all purposes of this Article.
11    (2) In computing the term of service of any employee on or
12after the effective date, the following periods of time shall
13be counted as periods of service for age and service, widow's
14and child's annuity purposes:
15        (a) The time during which he performed the duties of
16    his position.
17        (b) Vacations, leaves of absence with whole or part
18    pay, and leaves of absence without pay not longer than 90
19    days.
20        (c) For an employee who is a member of a county police
21    department or a correctional officer with the county
22    department of corrections, approved leaves of absence
23    without pay during which the employee serves as a full-time
24    officer or employee of an employee association, the
25    membership of which consists of other participants in the

 

 

09700HB3813sam001- 32 -LRB097 13613 JDS 59696 a

1    Fund, provided that the employee contributes to the Fund
2    (1) the amount that he would have contributed had he
3    remained an active employee in the position he occupied at
4    the time the leave of absence was granted, (2) an amount
5    calculated by the Board representing employer
6    contributions, and (3) regular interest thereon from the
7    date of service to the date of payment. However, if the
8    employee's application to establish credit under this
9    subsection is received by the Fund on or after July 1, 2002
10    and before July 1, 2003, the amount representing employer
11    contributions specified in item (2) shall be waived.
12        For a former member of a county police department who
13    has received a refund under Section 9-164, periods during
14    which the employee serves as head of an employee
15    association, the membership of which consists of other
16    police officers, provided that the employee contributes to
17    the Fund (1) the amount that he would have contributed had
18    he remained an active member of the county police
19    department in the position he occupied at the time he left
20    service, (2) an amount calculated by the Board representing
21    employer contributions, and (3) regular interest thereon
22    from the date of service to the date of payment. However,
23    if the former member of the county police department
24    retires on or after January 1, 1993 but no later than March
25    1, 1993, the amount representing employer contributions
26    specified in item (2) shall be waived.

 

 

09700HB3813sam001- 33 -LRB097 13613 JDS 59696 a

1        For leaves of absence to which this item (c) applies
2    and for other periods to which this item (c) applies,
3    including those leaves of absence and other periods of
4    service beginning before the effective date of this
5    amendatory Act of the 97th General Assembly, the employee
6    or former member must continue to remain in sworn status,
7    subject to the professional standards of the public
8    employer or those terms established in statute.
9        (d) Any period of disability for which he received
10    disability benefit or whole or part pay.
11        (e) Accumulated vacation or other time for which an
12    employee who retires on or after November 1, 1990 receives
13    a lump sum payment at the time of retirement, provided that
14    contributions were made to the fund at the time such lump
15    sum payment was received. The service granted for the lump
16    sum payment shall not change the employee's date of
17    withdrawal for computing the effective date of the annuity.
18        (f) An employee may receive service credit for annuity
19    purposes for accumulated sick leave as of the date of the
20    employee's withdrawal from service, not to exceed a total
21    of 180 days, provided that the amount of such accumulated
22    sick leave is certified by the County Comptroller to the
23    Board and the employee pays an amount equal to 8.5% (9% for
24    members of the County Police Department who are eligible to
25    receive an annuity under Section 9-128.1) of the amount
26    that would have been paid had such accumulated sick leave

 

 

09700HB3813sam001- 34 -LRB097 13613 JDS 59696 a

1    been paid at the employee's final rate of salary. Such
2    payment shall be made within 30 days after the date of
3    withdrawal and prior to receipt of the first annuity check.
4    The service credit granted for such accumulated sick leave
5    shall not change the employee's date of withdrawal for the
6    purpose of computing the effective date of the annuity.
7    (3) In computing the term of service of an employee on or
8after the effective date for ordinary disability benefit
9purposes, the following periods of time shall be counted as
10periods of service:
11        (a) Unless otherwise specified in Section 9-157, the
12    time during which he performed the duties of his position.
13        (b) Paid vacations and leaves of absence with whole or
14    part pay.
15        (c) Any period for which he received duty disability
16    benefit.
17        (d) Any period of disability for which he received
18    whole or part pay.
19    (4) For an employee who on January 1, 1958, was transferred
20by Act of the 70th General Assembly from his position in a
21department of welfare of any city located in the county in
22which this Article is in force and effect to a similar position
23in a department of such county, service shall also be credited
24for ordinary disability benefit and child's annuity for such
25period of department of welfare service during which period he
26was a contributor to a statutory annuity and benefit fund in

 

 

09700HB3813sam001- 35 -LRB097 13613 JDS 59696 a

1such city and for which purposes service credit would otherwise
2not be credited by virtue of such involuntary transfer.
3    (5) An employee described in subsection (e) of Section
49-108 shall receive credit for child's annuity and ordinary
5disability benefit for the period of time for which he was
6credited with service in the fund from which he was
7involuntarily separated through class or group transfer;
8provided, that no such credit shall be allowed to the extent
9that it results in a duplication of credits or benefits, and
10neither shall such credit be allowed to the extent that it was
11or may be forfeited by the application for and acceptance of a
12refund from the fund from which the employee was transferred.
13    (6) Overtime or extra service shall not be included in
14computing service. Not more than 1 year of service shall be
15allowed for service rendered during any calendar year.
16(Source: P.A. 92-599, eff. 6-28-02.)
 
17    (40 ILCS 5/11-215)  (from Ch. 108 1/2, par. 11-215)
18    Sec. 11-215. Computation of service.
19    (a) In computing the term of service of an employee prior
20to the effective date, the entire period beginning on the date
21he was first appointed and ending on the day before the
22effective date, except any intervening period during which he
23was separated by withdrawal from service, shall be counted for
24all purposes of this Article. Only the first year of each
25period of lay-off or leave of absence without pay, continuing

 

 

09700HB3813sam001- 36 -LRB097 13613 JDS 59696 a

1or extending for a period in excess of one year, shall be
2counted as such service.
3    (b) For a person employed by an employer for whom this
4Article was in effect prior to August 1, 1949, from whose
5salary deductions are first made under this Article after July
631, 1949, any period of service rendered prior to the effective
7date, unless he was in service on the day before the effective
8date, shall not be counted as service.
9    (c) In computing the term of service of an employee
10subsequent to the day before the effective date, the following
11periods of time shall be counted as periods of service for
12annuity purposes:
13        (1) the time during which he performed the duties of
14    his position;
15        (2) leaves of absence with whole or part pay, and
16    leaves of absence without pay not longer than 90 days;
17        (3) leaves of absence without pay that begin before the
18    effective date of this amendatory Act of the 97th General
19    Assembly and during which a participant is employed
20    full-time by a local labor organization that represents
21    municipal employees, provided that (A) the participant
22    continues to make employee contributions to the Fund as
23    though he were an active employee, based on the regular
24    salary rate received by the participant for his municipal
25    employment immediately prior to such leave of absence (and
26    in the case of such employment prior to December 9, 1987,

 

 

09700HB3813sam001- 37 -LRB097 13613 JDS 59696 a

1    pays to the Fund an amount equal to the employee
2    contributions for such employment plus regular interest
3    thereon as calculated by the board), and based on his
4    current salary with such labor organization after the
5    effective date of this amendatory Act of 1991, (B) after
6    January 1, 1989 the participant, or the labor organization
7    on the participant's behalf, makes contributions to the
8    Fund as though it were the employer, in the same amount and
9    same manner as specified under this Article, based on the
10    regular salary rate received by the participant for his
11    municipal employment immediately prior to such leave of
12    absence, and based on his current salary with such labor
13    organization after the effective date of this amendatory
14    Act of 1991, and (C) the participant does not receive
15    credit in any pension plan established by the local labor
16    organization based on his employment by the organization;
17        (4) any period of disability for which he received (i)
18    a disability benefit under this Article, or (ii) a
19    temporary total disability benefit under the Workers'
20    Compensation Act if the disability results from a condition
21    commonly termed heart attack or stroke or any other
22    condition falling within the broad field of coronary
23    involvement or heart disease, or (iii) whole or part pay.
24    (d) For a person employed by an employer, or the retirement
25board, in which "The 1935 Act" was in effect prior to August 1,
261949, from whose salary deductions are first made under "The

 

 

09700HB3813sam001- 38 -LRB097 13613 JDS 59696 a

11935 Act" or this Article after July 31, 1949, any period of
2service rendered subsequent to the effective date and prior to
3August 1, 1949, shall not be counted as a period of service
4under this Article, except such period for which he made
5payment, as provided in Section 11-221 of this Article, in
6which case such period shall be counted as a period of service
7for all annuity purposes hereunder.
8    (e) In computing the term of service of an employee
9subsequent to the day before the effective date for ordinary
10disability benefit purposes, the following periods of time
11shall be counted as periods of service:
12        (1) any period during which he performed the duties of
13    his position;
14        (2) leaves of absence with whole or part pay;
15        (3) any period of disability for which he received (i)
16    a duty disability benefit under this Article, or (ii) a
17    temporary total disability benefit under the Workers'
18    Compensation Act if the disability results from a condition
19    commonly termed heart attack or stroke or any other
20    condition falling within the broad field of coronary
21    involvement or heart disease, or (iii) whole or part pay.
22    However, any period of service rendered by an employee
23contributor prior to the date he became a contributor to the
24fund shall not be counted as a period of service for ordinary
25disability purposes, unless the person made payment for the
26period as provided in Section 11-221 of this Article, in which

 

 

09700HB3813sam001- 39 -LRB097 13613 JDS 59696 a

1case the period shall be counted as a period of service for
2ordinary disability purposes for periods of disability on or
3after the effective date of this amendatory Act of 1997.
4    Overtime or extra service shall not be included in
5computing any term of service. Not more than 1 year of service
6shall be allowed for service rendered during any calendar year.
7    For the purposes of this Section, the phrase "any pension
8plan established by the local labor organization" means any
9pension plan in which a participant may receive credit as a
10result of his or her membership in the local labor
11organization, including, but not limited to, the local labor
12organization itself and its affiliates at the local,
13intrastate, State, multi-state, national, or international
14level. The definition of this phrase is a declaration of
15existing law and shall not be construed as a new enactment.
16(Source: P.A. 90-511, eff. 8-22-97.)
 
17    (40 ILCS 5/11-217)  (from Ch. 108 1/2, par. 11-217)
18    Sec. 11-217. Basis of annual salary. For the purpose of
19this Article, the annual salary of an employee whose salary or
20wage is appropriated, fixed, or arranged in the annual
21appropriation ordinance upon other than an annual basis shall
22be determined as follows:
23    (a) If the employee is paid on a monthly basis, the annual
24salary is 12 times the monthly salary. If the employee is paid
25on a weekly basis, the annual salary is 52 times the weekly

 

 

09700HB3813sam001- 40 -LRB097 13613 JDS 59696 a

1salary.
2    "Monthly salary" means the amount of compensation or salary
3appropriated and payable for a normal and regular month's work
4in the employee's position in the service. "Weekly salary"
5means the amount of compensation or salary appropriated and
6payable for a normal and regular week's work in the employee's
7position in the service. If the work is on a regularly
8scheduled part time basis, then "monthly salary" and "weekly
9salary" refer, respectively, to the part time monthly or weekly
10salary.
11    If the appropriation for the position is for a shorter
12period than 12 months a year, or 52 weeks a year if on a weekly
13basis, or the employee is in a class, grade, or category in
14which the employee normally works for fewer than 12 months or
1552 weeks a year, then the basis shall be adjusted downward to
16the extent that the appropriated or customary work period is
17less than the normal 12 months or 52 weeks of service in a
18year.
19    Compensation for overtime, at regular or overtime rates,
20that is paid in addition to the appropriated regular and normal
21monthly or weekly salary shall not be considered.
22    (b) If the employee is paid on a daily basis, the annual
23salary is 260 times the daily wage. If the employee is paid on
24an hourly basis, the annual salary is 2080 times the hourly
25wage.
26    The norm is based on a 12-month per year, 5-day work week

 

 

09700HB3813sam001- 41 -LRB097 13613 JDS 59696 a

1of 8 hours per day and 40 hours per week, with consideration
2given only to time compensated for at the straight time rate of
3compensation or wage. The norm shall be increased (subject to a
4maximum of 300 days or 2400 hours per year) or decreased for an
5employee to the extent that the normal and established work
6period, at the straight time compensation or wage for the
7position held in the class, grade, or category in which the
8employee is assigned, is for a greater or lesser number of
9months, weeks, days, or hours than the period on which the
10established norm is based.
11    "Daily wage" and "hourly wage" mean, respectively, the
12normal, regular, or basic straight time rate of compensation or
13wage appropriated and payable for a normal and regular day's
14work, or hour's work, in the employee's position in the
15service.
16    Any time worked in excess of the norm (or the increased or
17decreased norm, whichever is applicable) that is compensated
18for at overtime, premium, or other than regular or basic
19straight time rates shall not be considered as time worked, and
20the compensation for that work shall not be considered as
21salary or wage. Such time and compensation shall in every case
22and for all purposes be considered overtime and shall be
23excluded for all purposes under this Article. However, the
24straight time portion of compensation or wage, for time worked
25on holidays that fall within an employee's established norm,
26shall be included for all purposes under this Article.

 

 

09700HB3813sam001- 42 -LRB097 13613 JDS 59696 a

1    (c) For minimum annuity purposes under Section 11-134,
2where a salary rate change occurs during the year, it shall be
3considered that the annual salary for that year is (1) the
4annual equivalent of the monthly, weekly, daily, or hourly
5salary or wage rate that was applicable for the greater number
6of months, weeks, days, or hours (whichever is applicable) in
7the year under consideration, or (2) the annual equivalent of
8the average salary or wage rate in effect for the employee
9during the year, whichever is greater. The average salary or
10wage rate shall be calculated by multiplying each salary or
11wage rate in effect for the employee during the year by the
12number of months, weeks, days, or hours (whichever is
13applicable) during which that rate was in effect, and dividing
14the sum of the resulting products by the total number of
15months, weeks, days, or hours (whichever is applicable) worked
16by the employee during the year.
17    (d) The changes to subsection (c) made by this amendatory
18Act of 1997 apply to persons withdrawing from service on or
19after July 1, 1990 and for each such person are intended to be
20retroactive to the date upon which the affected annuity began.
21The Fund shall recompute the affected annuity and shall pay the
22additional amount due for the period before the increase
23resulting from this amendatory Act in a lump sum, without
24interest.
25    (e) This Article shall not be construed to authorize a
26salary paid by an entity other than an employer, as defined in

 

 

09700HB3813sam001- 43 -LRB097 13613 JDS 59696 a

1Section 11-107, to be used to calculate the highest average
2annual salary of a participant. This subsection (e) is a
3declaration of existing law and shall not be construed as a new
4enactment.
5(Source: P.A. 90-31, eff. 6-27-97.)
 
6    (40 ILCS 5/15-107)  (from Ch. 108 1/2, par. 15-107)
7    Sec. 15-107. Employee.
8    (a) "Employee" means any member of the educational,
9administrative, secretarial, clerical, mechanical, labor or
10other staff of an employer whose employment is permanent and
11continuous or who is employed in a position in which services
12are expected to be rendered on a continuous basis for at least
134 months or one academic term, whichever is less, who (A)
14receives payment for personal services on a warrant issued
15pursuant to a payroll voucher certified by an employer and
16drawn by the State Comptroller upon the State Treasurer or by
17an employer upon trust, federal or other funds, or (B) is on a
18leave of absence without pay. Employment which is irregular,
19intermittent or temporary shall not be considered continuous
20for purposes of this paragraph.
21    However, a person is not an "employee" if he or she:
22        (1) is a student enrolled in and regularly attending
23    classes in a college or university which is an employer,
24    and is employed on a temporary basis at less than full
25    time;

 

 

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1        (2) is currently receiving a retirement annuity or a
2    disability retirement annuity under Section 15-153.2 from
3    this System;
4        (3) is on a military leave of absence;
5        (4) is eligible to participate in the Federal Civil
6    Service Retirement System and is currently making
7    contributions to that system based upon earnings paid by an
8    employer;
9        (5) is on leave of absence without pay for more than 60
10    days immediately following termination of disability
11    benefits under this Article;
12        (6) is hired after June 30, 1979 as a public service
13    employment program participant under the Federal
14    Comprehensive Employment and Training Act and receives
15    earnings in whole or in part from funds provided under that
16    Act; or
17        (7) is employed on or after July 1, 1991 to perform
18    services that are excluded by subdivision (a)(7)(f) or
19    (a)(19) of Section 210 of the federal Social Security Act
20    from the definition of employment given in that Section (42
21    U.S.C. 410).
22    (b) Any employer may, by filing a written notice with the
23board, exclude from the definition of "employee" all persons
24employed pursuant to a federally funded contract entered into
25after July 1, 1982 with a federal military department in a
26program providing training in military courses to federal

 

 

09700HB3813sam001- 45 -LRB097 13613 JDS 59696 a

1military personnel on a military site owned by the United
2States Government, if this exclusion is not prohibited by the
3federally funded contract or federal laws or rules governing
4the administration of the contract.
5    (c) Any person appointed by the Governor under the Civil
6Administrative Code of the State is an employee, if he or she
7is a participant in this system on the effective date of the
8appointment.
9    (d) A participant on lay-off status under civil service
10rules is considered an employee for not more than 120 days from
11the date of the lay-off.
12    (e) A participant is considered an employee during (1) the
13first 60 days of disability leave, (2) the period, not to
14exceed one year, in which his or her eligibility for disability
15benefits is being considered by the board or reviewed by the
16courts, and (3) the period he or she receives disability
17benefits under the provisions of Section 15-152, workers'
18compensation or occupational disease benefits, or disability
19income under an insurance contract financed wholly or partially
20by the employer.
21    (f) Absences without pay, other than formal leaves of
22absence, of less than 30 calendar days, are not considered as
23an interruption of a person's status as an employee. If such
24absences during any period of 12 months exceed 30 work days,
25the employee status of the person is considered as interrupted
26as of the 31st work day.

 

 

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1    (g) A staff member whose employment contract requires
2services during an academic term is to be considered an
3employee during the summer and other vacation periods, unless
4he or she declines an employment contract for the succeeding
5academic term or his or her employment status is otherwise
6terminated, and he or she receives no earnings during these
7periods.
8    (h) An individual who was a participating employee employed
9in the fire department of the University of Illinois's
10Champaign-Urbana campus immediately prior to the elimination
11of that fire department and who immediately after the
12elimination of that fire department became employed by the fire
13department of the City of Urbana or the City of Champaign shall
14continue to be considered as an employee for purposes of this
15Article for so long as the individual remains employed as a
16firefighter by the City of Urbana or the City of Champaign. The
17individual shall cease to be considered an employee under this
18subsection (h) upon the first termination of the individual's
19employment as a firefighter by the City of Urbana or the City
20of Champaign.
21    (i) An individual who is employed on a full-time basis as
22an officer or employee of a statewide teacher organization that
23serves System participants or an officer of a national teacher
24organization that serves System participants may participate
25in the System and shall be deemed an employee, provided that
26(1) the individual has previously earned creditable service

 

 

09700HB3813sam001- 47 -LRB097 13613 JDS 59696 a

1under this Article, (2) the individual files with the System an
2irrevocable election to become a participant, and (3) the
3individual does not receive credit for that employment under
4any other Article of this Code, and (4) the individual first
5became a full-time employee of the teacher organization and
6becomes a participant before the effective date of this
7amendatory Act of the 97th General Assembly. An employee under
8this subsection (i) is responsible for paying to the System
9both (A) employee contributions based on the actual
10compensation received for service with the teacher
11organization and (B) employer contributions equal to the normal
12costs (as defined in Section 15-155) resulting from that
13service; all or any part of these contributions may be paid on
14the employee's behalf or picked up for tax purposes (if
15authorized under federal law) by the teacher organization.
16    A person who is an employee as defined in this subsection
17(i) may establish service credit for similar employment prior
18to becoming an employee under this subsection by paying to the
19System for that employment the contributions specified in this
20subsection, plus interest at the effective rate from the date
21of service to the date of payment. However, credit shall not be
22granted under this subsection for any such prior employment for
23which the applicant received credit under any other provision
24of this Code, or during which the applicant was on a leave of
25absence under Section 15-113.2.
26    (j) A person employed by the State Board of Higher

 

 

09700HB3813sam001- 48 -LRB097 13613 JDS 59696 a

1Education in a position with the Illinois Century Network as of
2June 30, 2004 shall be considered to be an employee for so long
3as he or she remains continuously employed after that date by
4the Department of Central Management Services in a position
5with the Illinois Century Network, the Bureau of Communication
6and Computer Services, or, if applicable, any successor bureau
7and meets the requirements of subsection (a).
8(Source: P.A. 95-369, eff. 8-23-07.)
 
9    (40 ILCS 5/16-106)  (from Ch. 108 1/2, par. 16-106)
10    Sec. 16-106. Teacher. "Teacher": The following
11individuals, provided that, for employment prior to July 1,
121990, they are employed on a full-time basis, or if not
13full-time, on a permanent and continuous basis in a position in
14which services are expected to be rendered for at least one
15school term:
16        (1) Any educational, administrative, professional or
17    other staff employed in the public common schools included
18    within this system in a position requiring certification
19    under the law governing the certification of teachers;
20        (2) Any educational, administrative, professional or
21    other staff employed in any facility of the Department of
22    Children and Family Services or the Department of Human
23    Services, in a position requiring certification under the
24    law governing the certification of teachers, and any person
25    who (i) works in such a position for the Department of

 

 

09700HB3813sam001- 49 -LRB097 13613 JDS 59696 a

1    Corrections, (ii) was a member of this System on May 31,
2    1987, and (iii) did not elect to become a member of the
3    State Employees' Retirement System pursuant to Section
4    14-108.2 of this Code; except that "teacher" does not
5    include any person who (A) becomes a security employee of
6    the Department of Human Services, as defined in Section
7    14-110, after June 28, 2001 (the effective date of Public
8    Act 92-14), or (B) becomes a member of the State Employees'
9    Retirement System pursuant to Section 14-108.2c of this
10    Code;
11        (3) Any regional superintendent of schools, assistant
12    regional superintendent of schools, State Superintendent
13    of Education; any person employed by the State Board of
14    Education as an executive; any executive of the boards
15    engaged in the service of public common school education in
16    school districts covered under this system of which the
17    State Superintendent of Education is an ex-officio member;
18        (4) Any employee of a school board association
19    operating in compliance with Article 23 of the School Code
20    who is certificated under the law governing the
21    certification of teachers;
22        (5) Any person employed by the retirement system who:
23            (i) was an employee of and a participant in the
24        system on August 17, 2001 (the effective date of Public
25        Act 92-416), or
26            (ii) becomes an employee of the system on or after

 

 

09700HB3813sam001- 50 -LRB097 13613 JDS 59696 a

1        August 17, 2001;
2        (6) Any educational, administrative, professional or
3    other staff employed by and under the supervision and
4    control of a regional superintendent of schools, provided
5    such employment position requires the person to be
6    certificated under the law governing the certification of
7    teachers and is in an educational program serving 2 or more
8    districts in accordance with a joint agreement authorized
9    by the School Code or by federal legislation;
10        (7) Any educational, administrative, professional or
11    other staff employed in an educational program serving 2 or
12    more school districts in accordance with a joint agreement
13    authorized by the School Code or by federal legislation and
14    in a position requiring certification under the laws
15    governing the certification of teachers;
16        (8) Any officer or employee of a statewide teacher
17    organization or officer of a national teacher organization
18    who is certified under the law governing certification of
19    teachers, provided: (i) the individual had previously
20    established creditable service under this Article, (ii)
21    the individual files with the system an irrevocable
22    election to become a member, and (iii) the individual does
23    not receive credit for such service under any other Article
24    of this Code, and (iv) the individual first became an
25    officer or employee of the teacher organization and becomes
26    a member before the effective date of this amendatory Act

 

 

09700HB3813sam001- 51 -LRB097 13613 JDS 59696 a

1    of the 97th General Assembly;
2        (9) Any educational, administrative, professional, or
3    other staff employed in a charter school operating in
4    compliance with the Charter Schools Law who is certificated
5    under the law governing the certification of teachers.
6        (10) Any person employed, on the effective date of this
7    amendatory Act of the 94th General Assembly, by the
8    Macon-Piatt Regional Office of Education in a
9    birth-through-age-three pilot program receiving funds
10    under Section 2-389 of the School Code who is required by
11    the Macon-Piatt Regional Office of Education to hold a
12    teaching certificate, provided that the Macon-Piatt
13    Regional Office of Education makes an election, within 6
14    months after the effective date of this amendatory Act of
15    the 94th General Assembly, to have the person participate
16    in the system. Any service established prior to the
17    effective date of this amendatory Act of the 94th General
18    Assembly for service as an employee of the Macon-Piatt
19    Regional Office of Education in a birth-through-age-three
20    pilot program receiving funds under Section 2-389 of the
21    School Code shall be considered service as a teacher if
22    employee and employer contributions have been received by
23    the system and the system has not refunded those
24    contributions.
25    An annuitant receiving a retirement annuity under this
26Article or under Article 17 of this Code who is employed by a

 

 

09700HB3813sam001- 52 -LRB097 13613 JDS 59696 a

1board of education or other employer as permitted under Section
216-118 or 16-150.1 is not a "teacher" for purposes of this
3Article. A person who has received a single-sum retirement
4benefit under Section 16-136.4 of this Article is not a
5"teacher" for purposes of this Article.
6    A person who is a teacher as described in item (8) of this
7Section may establish service credit for similar employment
8prior to becoming certified as a teacher if he or she (i) is
9certified as a teacher on or before the effective date of this
10amendatory Act of the 94th General Assembly, (ii) applies in
11writing to the system within 6 months after the effective date
12of this amendatory Act of the 94th General Assembly, and (iii)
13pays to the system contributions equal to the normal costs
14calculated from the date of first full-time employment as
15described in item (8) to the date of payment, compounded
16annually at the rate of 8.5% per year for periods before the
17effective date of this amendatory Act of the 94th General
18Assembly and for subsequent periods at a rate equal to the
19System's actuarially assumed rate of return on investments.
20However, credit shall not be granted under this paragraph for
21any such prior employment for which the applicant received
22credit under any other provision of this Code.
23(Source: P.A. 93-320, eff. 7-23-03; 94-1111, eff. 2-27-07.)
 
24    (40 ILCS 5/17-134)  (from Ch. 108 1/2, par. 17-134)
25    Sec. 17-134. Contributions for leaves of absence; military

 

 

09700HB3813sam001- 53 -LRB097 13613 JDS 59696 a

1service; computing service. In computing service for pension
2purposes the following periods of service shall stand in lieu
3of a like number of years of teaching service upon payment
4therefor in the manner hereinafter provided: (a) time spent on
5a leave of absence granted by the employer; (b) service with
6teacher or labor organizations based upon special leaves of
7absence therefor granted by an Employer; (c) a maximum of 5
8years spent in the military service of the United States, of
9which up to 2 years may have been served outside the pension
10period; (d) unused sick days at termination of service to a
11maximum of 244 days; (e) time lost due to layoff and
12curtailment of the school term from June 6 through June 21,
131976; and (f) time spent after June 30, 1982 as a member of the
14Board of Education, if required to resign from an
15administrative or teaching position in order to qualify as a
16member of the Board of Education.
17        (1) For time spent on or after September 6, 1948 on
18    sabbatical leaves of absence or sick leaves, for which
19    salaries are paid, an Employer shall make payroll
20    deductions at the applicable rates in effect during such
21    periods.
22        (2) For time spent on a leave of absence granted by the
23    employer for which no salaries are paid, teachers desiring
24    credit therefor shall pay the required contributions at the
25    rates in effect during such periods as though they were in
26    teaching service. If an Employer pays salary for vacations

 

 

09700HB3813sam001- 54 -LRB097 13613 JDS 59696 a

1    which occur during a teacher's sick leave or maternity or
2    paternity leave without salary, vacation pay for which the
3    teacher would have qualified while in active service shall
4    be considered part of the teacher's total salary for
5    pension purposes. No more than 36 months of leave credit
6    may be allowed any person during the entire term of
7    service. Sabbatical leave credit shall be limited to the
8    time the person on leave without salary under an Employer's
9    rules is allowed to engage in an activity for which he
10    receives salary or compensation.
11        (3) For time spent prior to September 6, 1948, on
12    sabbatical leaves of absence or sick leaves for which
13    salaries were paid, teachers desiring service credit
14    therefor shall pay the required contributions at the
15    maximum applicable rates in effect during such periods.
16        (4) For service with teacher or labor organizations
17    authorized by special leaves of absence, for which no
18    payroll deductions are made by an Employer, teachers
19    desiring service credit therefor shall contribute to the
20    Fund upon the basis of the actual salary received from such
21    organizations at the percentage rates in effect during such
22    periods for certified positions with such Employer. To the
23    extent the actual salary exceeds the regular salary, which
24    shall be defined as the salary rate, as calculated by the
25    Board, in effect for the teacher's regular position in
26    teaching service on September 1, 1983 or on the effective

 

 

09700HB3813sam001- 55 -LRB097 13613 JDS 59696 a

1    date of the leave with the organization, whichever is
2    later, the organization shall pay to the Fund the
3    employer's normal cost as set by the Board on the
4    increment. Notwithstanding any other provision of this
5    subdivision (4), teachers are only eligible for credit for
6    service under this subdivision (4) if the special leave of
7    absence begins before the effective date of this amendatory
8    Act of the 97th General Assembly.
9        (5) For time spent in the military service, teachers
10    entitled to and desiring credit therefor shall contribute
11    the amount required for each year of service or fraction
12    thereof at the rates in force (a) at the date of
13    appointment, or (b) on return to teaching service as a
14    regularly certified teacher, as the case may be; provided
15    such rates shall not be less than $450 per year of service.
16    These conditions shall apply unless an Employer elects to
17    and does pay into the Fund the amount which would have been
18    due from such person had he been employed as a teacher
19    during such time. In the case of credit for military
20    service not during the pension period, the teacher must
21    also pay to the Fund an amount determined by the Board to
22    be equal to the employer's normal cost of the benefits
23    accrued from such service, plus interest thereon at 5% per
24    year, compounded annually, from the date of appointment to
25    the date of payment.
26        The changes to this Section made by Public Act 87-795

 

 

09700HB3813sam001- 56 -LRB097 13613 JDS 59696 a

1    shall apply not only to persons who on or after its
2    effective date are in service under the Fund, but also to
3    persons whose status as a teacher terminated prior to that
4    date, whether or not the person is an annuitant on that
5    date. In the case of an annuitant who applies for credit
6    allowable under this Section for a period of military
7    service that did not immediately follow employment, and who
8    has made the required contributions for such credit, the
9    annuity shall be recalculated to include the additional
10    service credit, with the increase taking effect on the date
11    the Fund received written notification of the annuitant's
12    intent to purchase the credit, if payment of all the
13    required contributions is made within 60 days of such
14    notice, or else on the first annuity payment date following
15    the date of payment of the required contributions. In
16    calculating the automatic annual increase for an annuity
17    that has been recalculated under this Section, the increase
18    attributable to the additional service allowable under
19    this amendatory Act of 1991 shall be included in the
20    calculation of automatic annual increases accruing after
21    the effective date of the recalculation.
22        The total credit for military service shall not exceed
23    5 years, except that any teacher who on July 1, 1963, had
24    validated credit for more than 5 years of military service
25    shall be entitled to the total amount of such credit.
26        (6) A maximum of 244 unused sick days credited to his

 

 

09700HB3813sam001- 57 -LRB097 13613 JDS 59696 a

1    account by an Employer on the date of termination of
2    employment. Members, upon verification of unused sick
3    days, may add this service time to total creditable
4    service.
5        (7) In all cases where time spent on leave is
6    creditable and no payroll deductions therefor are made by
7    an Employer, persons desiring service credit shall make the
8    required contributions directly to the Fund.
9        (8) For time lost without pay due to layoff and
10    curtailment of the school term from June 6 through June 21,
11    1976, as provided in item (e) of the first paragraph of
12    this Section, persons who were contributors on the days
13    immediately preceding such layoff shall receive credit
14    upon paying to the Fund a contribution based on the rates
15    of compensation and employee contributions in effect at the
16    time of such layoff, together with an additional amount
17    equal to 12.2% of the compensation computed for such period
18    of layoff, plus interest on the entire amount at 5% per
19    annum from January 1, 1978 to the date of payment. If such
20    contribution is paid, salary for pension purposes for any
21    year in which such a layoff occurred shall include the
22    compensation recognized for purposes of computing that
23    contribution.
24        (9) For time spent after June 30, 1982, as a
25    nonsalaried member of the Board of Education, if required
26    to resign from an administrative or teaching position in

 

 

09700HB3813sam001- 58 -LRB097 13613 JDS 59696 a

1    order to qualify as a member of the Board of Education, an
2    administrator or teacher desiring credit therefor shall
3    pay the required contributions at the rates and salaries in
4    effect during such periods as though the member were in
5    service.
6    Effective September 1, 1974, the interest charged for
7validation of service described in paragraphs (2) through (5)
8of this Section shall be compounded annually at a rate of 5%
9commencing one year after the termination of the leave or
10return to service.
11(Source: P.A. 92-599, eff. 6-28-02.)
 
12    Section 97. Retroactive repeal. This amendatory Act of the
1397th General Assembly hereby repeals and declares void ab
14initio the last paragraph of Section 16-106 of the Illinois
15Pension Code as contained in Public Act 94-1111 as that
16paragraph furnishes no vested rights because it violates
17multiple provisions of the 1970 Illinois Constitution,
18including, but not limited to, Article VIII, Section 1. Upon
19receipt of an application within 6 months after the effective
20date of this amendatory Act of the 97th General Assembly, the
21System shall immediately refund any contributions made by or on
22behalf of a person to receive service credit pursuant to the
23text set forth in Public Act 94-1111, as well as any amount
24determined by the Board to be equal to the investment earned by
25the System on those contributions since their receipt.
 

 

 

09700HB3813sam001- 59 -LRB097 13613 JDS 59696 a

1    Section 99. Effective date. This Act takes effect upon
2becoming law.".