Illinois General Assembly - Full Text of SB2211
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Full Text of SB2211  102nd General Assembly




State of Illinois
2021 and 2022


Introduced 2/26/2021, by Sen. Jason Plummer


40 ILCS 5/7-139  from Ch. 108 1/2, par. 7-139

    Amends the Illinois Municipal Retirement Fund (IMRF) Article of the Illinois Pension Code. Provides that a current or former elected or appointed official of a participating municipality who first becomes a participating employee on or after the effective date of the amendatory Act may establish credit for no more than 30 days of service as an official of that municipality under a provision concerning retroactive service. Effective immediately.

LRB102 11538 RPS 16872 b






SB2211LRB102 11538 RPS 16872 b

1    AN ACT concerning public employee benefits.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 5. The Illinois Pension Code is amended by
5changing Section 7-139 as follows:
6    (40 ILCS 5/7-139)  (from Ch. 108 1/2, par. 7-139)
7    Sec. 7-139. Credits and creditable service to employees.
8    (a) Each participating employee shall be granted credits
9and creditable service, for purposes of determining the amount
10of any annuity or benefit to which he or a beneficiary is
11entitled, as follows:
12        1. For prior service: Each participating employee who
13    is an employee of a participating municipality or
14    participating instrumentality on the effective date shall
15    be granted creditable service, but no credits under
16    paragraph 2 of this subsection (a), for periods of prior
17    service for which credit has not been received under any
18    other pension fund or retirement system established under
19    this Code, as follows:
20        If the effective date of participation for the
21    participating municipality or participating
22    instrumentality is on or before January 1, 1998,
23    creditable service shall be granted for the entire period



SB2211- 2 -LRB102 11538 RPS 16872 b

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



SB2211- 3 -LRB102 11538 RPS 16872 b

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



SB2211- 4 -LRB102 11538 RPS 16872 b

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



SB2211- 5 -LRB102 11538 RPS 16872 b

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



SB2211- 6 -LRB102 11538 RPS 16872 b

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



SB2211- 7 -LRB102 11538 RPS 16872 b

1    service and no additional death and no disability benefits
2    are payable for death or disability during such period.
3        Any participating employee who left his employment
4    with a municipality or participating instrumentality to
5    serve in the armed forces of the United States and who
6    again became a participating employee within 90 days after
7    completion of full time active duty by entering the
8    service of a different municipality or participating
9    instrumentality, which has elected to allow creditable
10    service for periods of military service under the
11    preceding paragraph, shall also be allowed creditable
12    service for his period of military service on the same
13    terms that would apply if he had been employed, before
14    entering military service, by the municipality or
15    instrumentality which employed him after he left the
16    military service and the employer costs arising in
17    relation to such grant of creditable service shall be
18    charged to and paid by that municipality or
19    instrumentality.
20        Notwithstanding the foregoing, any participating
21    employee shall be entitled to creditable service as
22    required by any federal law relating to re-employment
23    rights of persons who served in the United States Armed
24    Services. Such creditable service shall be granted upon
25    payment by the member of an amount equal to the employee
26    contributions which would have been required had the



SB2211- 8 -LRB102 11538 RPS 16872 b

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



SB2211- 9 -LRB102 11538 RPS 16872 b

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



SB2211- 10 -LRB102 11538 RPS 16872 b

1    current or former elected or appointed official of a
2    participating municipality may establish credit under this
3    paragraph 7 for more than 50 months of service as an
4    official of that municipality, if the excess over 50
5    months is approved by resolution of the governing body of
6    the affected municipality filed with the Fund before
7    January 1, 2002.
8        A current or former elected or appointed official of a
9    participating municipality who first becomes a
10    participating employee under this Article on or after the
11    effective date of this amendatory Act of the 102nd General
12    Assembly may establish credit under this paragraph 7 for
13    no more than 30 days of service as an official of that
14    municipality.
15        Any employee who is a participating employee on or
16    after September 24, 1981 and who was excluded from
17    participation by the age restrictions removed by Public
18    Act 82-596 may receive creditable service for the period,
19    on or after January 1, 1979, excluded by the age
20    restriction and, in addition, if the governing body of the
21    participating municipality or participating
22    instrumentality elects to allow creditable service for all
23    employees excluded by the age restriction prior to January
24    1, 1979, for service during the period prior to that date
25    excluded by the age restriction. Any employee who was
26    excluded from participation by the age restriction removed



SB2211- 11 -LRB102 11538 RPS 16872 b

1    by Public Act 82-596 and who is not a participating
2    employee on or after September 24, 1981 may receive
3    creditable service for service after January 1, 1979.
4    Creditable service under this paragraph shall be granted
5    upon payment of the employee contributions which would
6    have been required had he participated, with interest at
7    the effective rate for each year from the end of the period
8    of service established to date of payment.
9        8. For accumulated unused sick leave: A participating
10    employee who is applying for a retirement annuity shall be
11    entitled to creditable service for that portion of the
12    employee's accumulated unused sick leave for which payment
13    is not received, as follows:
14            a. Sick leave days shall be limited to those
15        accumulated under a sick leave plan established by a
16        participating municipality or participating
17        instrumentality which is available to all employees or
18        a class of employees.
19            b. Except as provided in item b-1, only sick leave
20        days accumulated with a participating municipality or
21        participating instrumentality with which the employee
22        was in service within 60 days of the effective date of
23        his retirement annuity shall be credited; If the
24        employee was in service with more than one employer
25        during this period only the sick leave days with the
26        employer with which the employee has the greatest



SB2211- 12 -LRB102 11538 RPS 16872 b

1        number of unpaid sick leave days shall be considered.
2            b-1. If the employee was in the service of more
3        than one employer as defined in item (2) of paragraph
4        (a) of subsection (A) of Section 7-132, then the sick
5        leave days from all such employers shall be credited,
6        as long as the creditable service attributed to those
7        sick leave days does not exceed the limitation in item
8        d of this paragraph 8. If the employee was in the
9        service of more than one employer described in
10        paragraph (c) of subsection (B) of Section 7-132 on or
11        after the effective date of this amendatory Act of the
12        101st General Assembly, then the sick leave days from
13        all such employers, except for employers from which
14        the employee terminated service before the effective
15        date of this amendatory Act of the 101st General
16        Assembly, shall be credited, as long as the creditable
17        service attributed to those sick leave days does not
18        exceed the limitation in item d of this paragraph 8. In
19        calculating the creditable service under this item
20        b-1, the sick leave days from the last employer shall
21        be considered first, then the remaining sick leave
22        days shall be considered until there are no more days
23        or the maximum creditable sick leave threshold under
24        item d of this paragraph 8 has been reached.
25            c. The creditable service granted shall be
26        considered solely for the purpose of computing the



SB2211- 13 -LRB102 11538 RPS 16872 b

1        amount of the retirement annuity and shall not be used
2        to establish any minimum service period required by
3        any provision of the Illinois Pension Code, the
4        effective date of the retirement annuity, or the final
5        rate of earnings.
6            d. The creditable service shall be at the rate of
7        1/20 of a month for each full sick day, provided that
8        no more than 12 months may be credited under this
9        subdivision 8.
10            e. Employee contributions shall not be required
11        for creditable service under this subdivision 8.
12            f. Each participating municipality and
13        participating instrumentality with which an employee
14        has service within 60 days of the effective date of his
15        retirement annuity shall certify to the board the
16        number of accumulated unpaid sick leave days credited
17        to the employee at the time of termination of service.
18        9. For service transferred from another system:
19    Credits and creditable service shall be granted for
20    service under Article 4, 5, 8, 14, or 16 of this Act, to
21    any active member of this Fund, and to any inactive member
22    who has been a county sheriff, upon transfer of such
23    credits pursuant to Section 4-108.3, 5-235, 8-226.7,
24    14-105.6, or 16-131.4, and payment by the member of the
25    amount by which (1) the employer and employee
26    contributions that would have been required if he had



SB2211- 14 -LRB102 11538 RPS 16872 b

1    participated in this Fund as a sheriff's law enforcement
2    employee during the period for which credit is being
3    transferred, plus interest thereon at the effective rate
4    for each year, compounded annually, from the date of
5    termination of the service for which credit is being
6    transferred to the date of payment, exceeds (2) the amount
7    actually transferred to the Fund. Such transferred service
8    shall be deemed to be service as a sheriff's law
9    enforcement employee for the purposes of Section 7-142.1.
10        10. (Blank).
11        11. For service transferred from an Article 3 system
12    under Section 3-110.3: Credits and creditable service
13    shall be granted for service under Article 3 of this Act as
14    provided in Section 3-110.3, to any active member of this
15    Fund, upon transfer of such credits pursuant to Section
16    3-110.3. If the board determines that the amount
17    transferred is less than the true cost to the Fund of
18    allowing that creditable service to be established, then
19    in order to establish that creditable service, the member
20    must pay to the Fund an additional contribution equal to
21    the difference, as determined by the board in accordance
22    with the rules and procedures adopted under this
23    paragraph. If the member does not make the full additional
24    payment as required by this paragraph prior to termination
25    of his participation with that employer, then his or her
26    creditable service shall be reduced by an amount equal to



SB2211- 15 -LRB102 11538 RPS 16872 b

1    the difference between the amount transferred under
2    Section 3-110.3, including any payments made by the member
3    under this paragraph prior to termination, and the true
4    cost to the Fund of allowing that creditable service to be
5    established, as determined by the board in accordance with
6    the rules and procedures adopted under this paragraph.
7        The board shall establish by rule the manner of making
8    the calculation required under this paragraph 11, taking
9    into account the appropriate actuarial assumptions; the
10    member's service, age, and salary history, and any other
11    factors that the board determines to be relevant.
12        12. For omitted service: Any employee who was employed
13    by a participating employer in a position that required
14    participation, but who was not enrolled in the Fund, may
15    establish such credits under the following conditions:
16            a. Application for such credits is received by the
17        Board while the employee is an active participant of
18        the Fund or a reciprocal retirement system.
19            b. Eligibility for participation and earnings are
20        verified by the Authorized Agent of the participating
21        employer for which the service was rendered.
22        Creditable service under this paragraph shall be
23    granted upon payment of the employee contributions that
24    would have been required had he participated, which shall
25    be calculated by the Fund using the member contribution
26    rate in effect during the period that the service was



SB2211- 16 -LRB102 11538 RPS 16872 b

1    rendered.
2    (b) Creditable service - amount:
3        1. One month of creditable service shall be allowed
4    for each month for which a participating employee made
5    contributions as required under Section 7-173, or for
6    which creditable service is otherwise granted hereunder.
7    Not more than 1 month of service shall be credited and
8    counted for 1 calendar month, and not more than 1 year of
9    service shall be credited and counted for any calendar
10    year. A calendar month means a nominal month beginning on
11    the first day thereof, and a calendar year means a year
12    beginning January 1 and ending December 31.
13        2. A seasonal employee shall be given 12 months of
14    creditable service if he renders the number of months of
15    service normally required by the position in a 12-month
16    period and he remains in service for the entire 12-month
17    period. Otherwise a fractional year of service in the
18    number of months of service rendered shall be credited.
19        3. An intermittent employee shall be given creditable
20    service for only those months in which a contribution is
21    made under Section 7-173.
22    (c) No application for correction of credits or creditable
23service shall be considered unless the board receives an
24application for correction while (1) the applicant is a
25participating employee and in active employment with a
26participating municipality or instrumentality, or (2) while



SB2211- 17 -LRB102 11538 RPS 16872 b

1the applicant is actively participating in a pension fund or
2retirement system which is a participating system under the
3Retirement Systems Reciprocal Act. A participating employee or
4other applicant shall not be entitled to credits or creditable
5service unless the required employee contributions are made in
6a lump sum or in installments made in accordance with board
7rule. Payments made to establish service credit under
8paragraph 1, 4, 5, 5.1, 6, 7, or 12 of subsection (a) of this
9Section must be received by the Board while the applicant is an
10active participant in the Fund or a reciprocal retirement
11system, except that an applicant may make one payment after
12termination of active participation in the Fund or a
13reciprocal retirement system.
14    (d) Upon the granting of a retirement, surviving spouse or
15child annuity, a death benefit or a separation benefit, on
16account of any employee, all individual accumulated credits
17shall thereupon terminate. Upon the withdrawal of additional
18contributions, the credits applicable thereto shall thereupon
19terminate. Terminated credits shall not be applied to increase
20the benefits any remaining employee would otherwise receive
21under this Article.
22(Source: P.A. 100-148, eff. 8-18-17; 101-492, eff. 8-23-19.)
23    Section 99. Effective date. This Act takes effect upon
24becoming law.