Sen. Don Harmon

Filed: 2/17/2012

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 3357

2    AMENDMENT NO. ______. Amend Senate Bill 3357 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Illinois Pension Code is amended by
5changing Sections 1-160, 3-106, 3-124.1, 4-106, 4-117, and
67-144 and by adding Sections 3-124.3, 4-117.2, and 7-144.1 as
7follows:
 
8    (40 ILCS 5/1-160)
9    Sec. 1-160. Provisions applicable to new hires.
10    (a) The provisions of this Section apply to a person who,
11on or after January 1, 2011, first becomes a member or a
12participant under any reciprocal retirement system or pension
13fund established under this Code, other than a retirement
14system or pension fund established under Article 2, 3, 4, 5, 6,
15or 18 of this Code, notwithstanding any other provision of this
16Code to the contrary, but do not apply to any self-managed plan

 

 

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1established under this Code, to any person with respect to
2service as a sheriff's law enforcement employee under Article
37, or to any participant of the retirement plan established
4under Section 22-101.
5    (b) "Final average salary" means the average monthly (or
6annual) salary obtained by dividing the total salary or
7earnings calculated under the Article applicable to the member
8or participant during the 96 consecutive months (or 8
9consecutive years) of service within the last 120 months (or 10
10years) of service in which the total salary or earnings
11calculated under the applicable Article was the highest by the
12number of months (or years) of service in that period. For the
13purposes of a person who first becomes a member or participant
14of any retirement system or pension fund to which this Section
15applies on or after January 1, 2011, in this Code, "final
16average salary" shall be substituted for the following:
17        (1) In Articles 7 (except for service as sheriff's law
18    enforcement employees) and 15, "final rate of earnings".
19        (2) In Articles 8, 9, 10, 11, and 12, "highest average
20    annual salary for any 4 consecutive years within the last
21    10 years of service immediately preceding the date of
22    withdrawal".
23        (3) In Article 13, "average final salary".
24        (4) In Article 14, "final average compensation".
25        (5) In Article 17, "average salary".
26        (6) In Section 22-207, "wages or salary received by him

 

 

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1    at the date of retirement or discharge".
2    (b-5) Beginning on January 1, 2011, for all purposes under
3this Code (including without limitation the calculation of
4benefits and employee contributions), the annual earnings,
5salary, or wages (based on the plan year) of a member or
6participant to whom this Section applies shall not exceed
7$106,800; however, that amount shall annually thereafter be
8increased by the lesser of (i) 3% of that amount, including all
9previous adjustments, or (ii) one-half the annual unadjusted
10percentage increase (but not less than zero) in the consumer
11price index-u for the 12 months ending with the September
12preceding each November 1, including all previous adjustments.
13    For the purposes of this Section, "consumer price index-u"
14means the index published by the Bureau of Labor Statistics of
15the United States Department of Labor that measures the average
16change in prices of goods and services purchased by all urban
17consumers, United States city average, all items, 1982-84 =
18100. The new amount resulting from each annual adjustment shall
19be determined by the Public Pension Division of the Department
20of Insurance and made available to the boards of the retirement
21systems and pension funds by November 1 of each year.
22    (c) A member or participant is entitled to a retirement
23annuity upon written application if he or she has attained age
2467 and has at least 10 years of service credit and is otherwise
25eligible under the requirements of the applicable Article.
26    A member or participant who has attained age 62 and has at

 

 

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1least 10 years of service credit and is otherwise eligible
2under the requirements of the applicable Article may elect to
3receive the lower retirement annuity provided in subsection (d)
4of this Section.
5    (d) The retirement annuity of a member or participant who
6is retiring after attaining age 62 with at least 10 years of
7service credit shall be reduced by one-half of 1% for each full
8month that the member's age is under age 67.
9    (e) Any retirement annuity or supplemental annuity shall be
10subject to annual increases on the January 1 occurring either
11on or after the attainment of age 67 or the first anniversary
12of the annuity start date, whichever is later. Each annual
13increase shall be calculated at 3% or one-half the annual
14unadjusted percentage increase (but not less than zero) in the
15consumer price index-u for the 12 months ending with the
16September preceding each November 1, whichever is less, of the
17originally granted retirement annuity. If the annual
18unadjusted percentage change in the consumer price index-u for
19the 12 months ending with the September preceding each November
201 is zero or there is a decrease, then the annuity shall not be
21increased.
22    (f) The initial survivor's or widow's annuity of an
23otherwise eligible survivor or widow of a retired member or
24participant who first became a member or participant on or
25after January 1, 2011 shall be in the amount of 66 2/3% of the
26retired member's or participant's retirement annuity at the

 

 

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1date of death. In the case of the death of a member or
2participant who has not retired and who first became a member
3or participant on or after January 1, 2011, eligibility for a
4survivor's or widow's annuity shall be determined by the
5applicable Article of this Code. The initial benefit shall be
666 2/3% of the earned annuity without a reduction due to age. A
7child's annuity of an otherwise eligible child shall be in the
8amount prescribed under each Article if applicable. Any
9survivor's or widow's annuity shall be increased (1) on each
10January 1 occurring on or after the commencement of the annuity
11if the deceased member died while receiving a retirement
12annuity or (2) in other cases, on each January 1 occurring
13after the first anniversary of the commencement of the annuity.
14Each annual increase shall be calculated at 3% or one-half the
15annual unadjusted percentage increase (but not less than zero)
16in the consumer price index-u for the 12 months ending with the
17September preceding each November 1, whichever is less, of the
18originally granted survivor's annuity. If the annual
19unadjusted percentage change in the consumer price index-u for
20the 12 months ending with the September preceding each November
211 is zero or there is a decrease, then the annuity shall not be
22increased.
23    (g) The benefits in Section 14-110 apply only if the person
24is a State policeman, a fire fighter in the fire protection
25service of a department, or a security employee of the
26Department of Corrections or the Department of Juvenile

 

 

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1Justice, as those terms are defined in subsection (b) of
2Section 14-110. A person who meets the requirements of this
3Section is entitled to an annuity calculated under the
4provisions of Section 14-110, in lieu of the regular or minimum
5retirement annuity, only if the person has withdrawn from
6service with not less than 20 years of eligible creditable
7service and has attained age 60, regardless of whether the
8attainment of age 60 occurs while the person is still in
9service.
10    (h) If a person who first becomes a member or a participant
11of a retirement system or pension fund subject to this Section
12on or after January 1, 2011 is receiving a retirement annuity
13or retirement pension under that system or fund and becomes a
14member or participant under any other system or fund created by
15this Code and is employed on a full-time basis, except for
16those members or participants exempted from the provisions of
17this Section under subsection (a) of this Section, then the
18person's retirement annuity or retirement pension under that
19system or fund shall be suspended during that employment. Upon
20termination of that employment, the person's retirement
21annuity or retirement pension payments shall resume and be
22recalculated if recalculation is provided for under the
23applicable Article of this Code.
24    If a person who first becomes a member of a retirement
25system or pension fund subject to this Section on or after
26January 1, 2012 and is receiving a retirement annuity or

 

 

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1retirement pension under that system or fund and accepts on a
2contractual basis a position to provide services to a
3governmental entity from which he or she has retired, then that
4person's annuity or retirement pension earned as an active
5employee of the employer shall be suspended during that
6contractual service. A person receiving an annuity or
7retirement pension under this Code shall notify the pension
8fund or retirement system from which he or she is receiving an
9annuity or retirement pension, as well as his or her
10contractual employer, of his or her retirement status before
11accepting contractual employment. A person who fails to submit
12such notification shall be guilty of a Class A misdemeanor and
13required to pay a fine of $1,000. Upon termination of that
14contractual employment, the person's retirement annuity or
15retirement pension payments shall resume and, if appropriate,
16be recalculated under the applicable provisions of this Code.
17    This subsection (h) shall not affect any person receiving a
18retirement annuity under the fund created by Article 7 of this
19Code who accepts a position described in Section 7-144.1 of
20this Code.
21    (i) Notwithstanding any other provision of this Section, a
22person who first becomes a participant of the retirement system
23established under Article 15 on or after January 1, 2011 shall
24have the option to enroll in the self-managed plan created
25under Section 15-158.2 of this Code.
26    (j) In the case of a conflict between the provisions of

 

 

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1this Section and any other provision of this Code, the
2provisions of this Section shall control.
3(Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11;
497-609, eff. 1-1-12.)
 
5    (40 ILCS 5/3-106)  (from Ch. 108 1/2, par. 3-106)
6    Sec. 3-106. Police officer, officer. "Police officer" or
7"officer": Any person who (1) is appointed to the police force
8of a police department and sworn and commissioned to perform
9police duties; and (2) within 3 months after receiving his or
10her first appointment and, if reappointed, within 3 months
11thereafter, or as otherwise provided in Section 3-109, makes
12written application to the board to come under the provisions
13of this Article.
14    Police officers serving initial probationary periods, if
15otherwise eligible, shall be police officers within the meaning
16of this Section.
17    Any person employed as the chief of police, deputy chief of
18police, superintendent of a police department or deputy
19superintendent of a police department shall be a police officer
20within the meaning of this Section.
21    
22(Source: P.A. 89-52, eff. 6-30-95.)
 
23    (40 ILCS 5/3-124.1)  (from Ch. 108 1/2, par. 3-124.1)
24    Sec. 3-124.1. Re-entry into active service. If a police

 

 

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1officer who is receiving pension payments other than as
2provided in Section 3-109.3 or Section 3-124.3 re-enters active
3service, pension payment shall be suspended while he or she is
4in service. When he or she again retires, pension payments
5shall be resumed. If the police officer remains in service
6after re-entry for a period of less than 5 years, the pension
7shall be the same as upon first retirement. If the officer's
8service after re-entry is at least 5 years and the officer
9makes the required contributions during the period of re-entry,
10his or her pension shall be recomputed by taking into account
11the additional period of service and salary.
12(Source: P.A. 91-939, eff. 2-1-01.)
 
13    (40 ILCS 5/3-124.3 new)
14    Sec. 3-124.3. Pension payments during contractual return
15to active service.
16    (a) Notwithstanding any other provisions of this Code, if a
17police officer receiving pension payments accepts on a
18contractual basis a position to provide services to a
19municipality from which he or she has retired, then that police
20officer shall continue to receive the pension payments earned
21during active service, provided:
22        (1) he or she is at least age 55 and has at least 30
23    years of service;
24        (2) his or her annual salary during the period of
25    contractual service is not more than 50% of his or her

 

 

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1    salary from the last 12 months preceding retirement; and
2        (3) his or her salary did not increase by more than 10%
3    per year during the 2 years preceding retirement.
4    (b) The municipality shall pay to the pension fund an
5amount equal to 14% of the annual salary of the police officer
6during each calendar year, or portion thereof, that he or she
7is performing contractual service as described in subsection
8(a).
9    (c) Except as set forth in subsection (b) of this Section,
10no employer contribution shall be required from a municipality
11for any police officer providing contractual service as
12described in subsection (a) of this Section. No contribution
13shall be required pursuant to Section 3-125.1 from any police
14officer performing contractual service as described in
15subsection (a) of this Section.
16    (d) The period of contractual service described in
17subsection (a) of this Section shall not provide a basis for
18the recomputation of the police officer's pension.
 
19    (40 ILCS 5/4-106)  (from Ch. 108 1/2, par. 4-106)
20    Sec. 4-106. Firefighter, firefighters. "Firefighter,
21firefighters":
22    (a) In municipalities which have adopted Division 1 of
23Article 10 of the Illinois Municipal Code, any person employed
24in the municipality's fire service as a firefighter, fire
25engineer, marine engineer, fire pilot, bomb technician or scuba

 

 

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1diver; and in any of these positions where such person's duties
2also include those of a firefighter as classified by the Civil
3Service Commission of that city, and whose duty is to
4participate in the work of controlling and extinguishing fires
5at the location of any such fires.
6    (b) In municipalities which are subject to Division 2.1 of
7Article 10 of the Illinois Municipal Code, any person employed
8by a city in its fire service as a firefighter, fire engineer,
9marine engineer, fire pilot, bomb technician, or scuba diver;
10and, in any of these positions whose duties also include those
11of a firefighter and are certified in the same manner as a
12firefighter in that city.
13    (c) In municipalities which are subject to neither Division
141 nor Division 2.1 of Article 10 of the Illinois Municipal
15Code, any person who would have been included as a firefighter
16under sub-paragraph (a) or (b) above except that he served as a
17de facto and not as a de jure firefighter.
18    (d) Notwithstanding the other provisions of this Section,
19"firefighter" does not include any person who is actively
20participating in the State Universities Retirement System
21under subsection (h) of Section 15-107 with respect to the
22employment for which he or she is a participating employee in
23that System.
24    (e) This amendatory Act of 1977 does not affect persons
25covered by this Article prior to September 22, 1977.
26    (f) Any person employed by a municipality as the chief,

 

 

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1deputy chief, superintendent, deputy superintendent, fire
2marshal or assistant fire marshal of the fire department shall
3be a firefighter within the meaning of this Section.
4(Source: P.A. 90-576, eff. 3-31-98.)
 
5    (40 ILCS 5/4-117)  (from Ch. 108 1/2, par. 4-117)
6    Sec. 4-117. Reentry into active service.
7    (a) Except as set forth in Section 4-117.2, if If a
8firefighter receiving pension payments reenters active
9service, pension payments shall be suspended while he or she is
10in service. If the firefighter again retires or is discharged,
11his or her monthly pension shall be resumed in the same amount
12as was paid upon first retirement or discharge unless he or she
13remained in active service 3 or more years after re-entry in
14which case the monthly pension shall be based on the salary
15attached to the firefighter's rank at the date of last
16retirement.
17    (b) If a deferred pensioner re-enters active service, and
18again retires or is discharged from the fire service, his or
19her pension shall be based on the salary attached to the rank
20held in the fire service at the date of earlier retirement,
21unless the firefighter remains in active service for 3 or more
22years after re-entry, in which case the monthly pension shall
23be based on the salary attached to the firefighter's rank at
24the date of last retirement.
25    (c) If a pensioner or deferred pensioner re-enters or is

 

 

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1recalled to active service and is thereafter injured, and the
2injury is not related to an injury for which he or she was
3previously receiving a disability pension, the 3 year service
4requirement shall not apply in order for the firefighter to
5qualify for the increased pension based on the rate of pay at
6the time of the new injury.
7(Source: P.A. 83-1440.)
 
8    (40 ILCS 5/4-117.2 new)
9    Sec. 4-117.2. Pension payments during contractual return
10to active service.
11    (a) Notwithstanding any other provisions of this Code, if a
12firefighter receiving pension payments accepts on a
13contractual basis a position to provide services to a
14municipality from which he or she has retired, then that
15firefighter shall continue to receive the pension payments
16earned during active service, provided:
17        (1) he or she is at least age 55 and has at least 30
18    years of service;
19        (2) his or her annual salary during the period of
20    contractual service is not more than 50% of his or her
21    salary from the last 12 months preceding retirement; and
22        (3) his or her salary did not increase by more than 10%
23    per year during the 2 years preceding retirement.
24    (b) The municipality shall pay to the pension fund an
25amount equal to 14% of the annual salary of the firefighter

 

 

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1during each calendar year, or portion thereof, that he or she
2is performing contractual service as described in subsection
3(a).
4    (c) Except as set forth in subsection (b) of this Section,
5no employer contribution shall be required from a municipality
6for any firefighter providing contractual service as described
7in subsection (a) of this Section. No contribution shall be
8required pursuant to Section 4-118.1 from any firefighter
9performing contractual service as described in subsection (a)
10of this Section
11    (d) The period of contractual service described in
12subsection (a) of this Section shall not provide a basis for
13the recomputation of the firefighter's pension.
 
14    (40 ILCS 5/7-144)  (from Ch. 108 1/2, par. 7-144)
15    Sec. 7-144. Retirement annuities-Suspended during
16employment.
17    (a) Except as set forth in Section 7-144.1, if If any
18person receiving any annuity again becomes an employee and
19receives earnings from employment in a position requiring him,
20or entitling him to elect, to become a participating employee,
21then the annuity payable to such employee shall be suspended as
22of the 1st day of the month coincidental with or next following
23the date upon which such person becomes such an employee. Upon
24proper qualification of the participating employee payment of
25such annuity may be resumed on the 1st day of the month

 

 

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1following such qualification and upon proper application
2therefor. The participating employee in such case shall be
3entitled to a supplemental annuity arising from service and
4credits earned subsequent to such re-entry as a participating
5employee.
6    (b) Supplemental annuities to persons who return to service
7for less than 48 months shall be computed under the provisions
8of Sections 7-141, 7-142 and 7-143. In determining whether an
9employee is eligible for an annuity which requires a minimum
10period of service, his entire period of service shall be taken
11into consideration but the supplemental annuity shall be based
12on earnings and service in the supplemental period only. The
13effective date of the suspended and supplemental annuity for
14the purpose of increases after retirement shall be considered
15to be the effective date of the suspended annuity.
16    (c) Supplemental annuities to persons who return to service
17for 48 months or more shall be a monthly amount determined as
18follows:
19        (1) An amount shall be computed under subparagraph b of
20    paragraph (1) of subsection (a) of Section 7-142,
21    considering all of the service credits of the employee;
22        (2) The actuarial value in monthly payments for life of
23    the annuity payments made before suspension shall be
24    determined and subtracted from the amount determined in (1)
25    above;
26        (3) The monthly amount of the suspended annuity, with

 

 

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1    any applicable increases after retirement computed from
2    the effective date to the date of reinstatement, shall be
3    subtracted from the amount determined in (2) above and the
4    remainder shall be the amount of the supplemental annuity
5    provided that this amount shall not be less than the amount
6    computed under subsection (b) of this Section.
7        (4) The suspended annuity shall be reinstated at an
8    amount including any increases after retirement from the
9    effective date to date of reinstatement.
10        (5) The effective date of the combined suspended and
11    supplemental annuities for the purposes of increases after
12    retirement shall be considered to be the effective date of
13    the supplemental annuity.
14(Source: P.A. 97-328, eff. 8-12-11; 97-609, eff. 1-1-12.)
 
15    (40 ILCS 5/7-144.1 new)
16    Sec. 7-144.1. Retirement annuities - Payable during
17contractual return to service.
18    (a) Notwithstanding any other provisions of this Code, if
19any person receiving a retirement annuity accepts on a
20contractual basis a position to provide services to a
21participating municipality or participating instrumentality
22from which he or she has retired, then that person shall
23continue to receive the retirement annuity earned as an active
24employee, provided:
25        (1) he or she is at least age 55 and has at least 30

 

 

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1    years of service;
2        (2) his or her annual earnings during the period of
3    contractual service are not more than 50% of his or her
4    earnings from the last 12 months preceding separation from
5    service of all participating municipalities and
6    instrumentalities thereof and participating
7    instrumentalities; and
8        (3) his or her earnings did not increase by more than
9    10% per year during the 2 years preceding separation from
10    service of all participating municipalities and
11    instrumentalities thereof and participating
12    instrumentalities.
13    (b) The participating municipality or participating
14instrumentality shall pay to the Fund an amount equal to 14% of
15the annual earnings of the person during each calendar year, or
16portion thereof, that he or she is performing contractual
17service as described in subsection (a).
18     (c) No contribution shall be required from a participating
19municipality or participating instrumentality pursuant to
20Section 7-172 for any person performing contractual service as
21described in subsection (a) of this Section. No contribution
22shall be required pursuant to Section 7-173 from any person
23performing contractual service as described in subsection (a)
24of this Section.
25    (d) No person shall be eligible for a supplemental annuity
26based on a period of contractual service described in

 

 

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1subsection (a) of this Section.".