093_HB2434enr

 
HB2434 Enrolled                      LRB093 06293 EFG 06411 b

 1        AN ACT in relation to public employee benefits.

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

 4        Section  5.  The  Illinois  Pension  Code  is  amended by
 5    changing Sections 13-401, 13-402, and 13-403 as follows:

 6        (40 ILCS 5/13-401) (from Ch. 108 1/2, par. 13-401)
 7        Sec. 13-401.  Term of service.
 8        (a)  In computing the  term  of  service,  the  following
 9    periods  of  time  shall be counted as periods of service for
10    annuity purposes only:
11             (1)  the time during  which  the  employee  performs
12        services required by the Employer.
13             (2)  approved  vacations  or  leaves of absence with
14        whole or part pay.
15             (3)  any period for which the  employee  receives  a
16        disability benefit payable under this Article.
17             (4)  leaves  of  absence  for  military  service  as
18        provided  in  Section  13-403(a), and military service as
19        provided in Section 13-403(b).
20        (b)  In computing the term of service  for  the  ordinary
21    disability  benefit,  the  following periods of time shall be
22    counted as periods of service:
23             (1)  the time during  which  the  employee  performs
24        services required by the Employer.
25             (2)  approved  vacations  or  leaves of absence with
26        whole or part pay.
27             (3)  any period for which the  employee  receives  a
28        duty disability benefit under this Article.
29        (c)  Any  employee  who  first  enters service before the
30    effective date of this amendatory Act of 1997 may, during any
31    period of approved leave of absence without pay, continue  to
 
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 1    make  contributions for the retirement and surviving spouse's
 2    annuities for a total period not to exceed  one  year  during
 3    the  employee's  entire  aggregate service with the Employer.
 4    Upon making these contributions, the employee  shall  receive
 5    credit  in  terms of length of service for the retirement and
 6    surviving   spouse's   annuities.    Concurrent    Employer's
 7    contributions shall be provided by the District.
 8        (d)  An  employee  may  establish  credit  for periods of
 9    approved leave of absence without pay, not to exceed a  total
10    of  one year during the employee's aggregate service with the
11    employer.  To establish this credit, the employee must either
12    continue to remain on approved leave of  absence,  return  to
13    service  with the employer, or in the case of an employee who
14    first enters service on or after the effective date  of  this
15    amendatory  Act  of 1997, return to service with the employer
16    for at least one calendar year.  The employee must pay to the
17    Fund the corresponding employee contributions, plus  interest
18    at the annual rate from time to time determined by the Board,
19    compounded  annually  from the date of service to the date of
20    payment.  The corresponding employer contributions  shall  be
21    provided   by   the   District.   Upon  making  the  required
22    contributions, the employee shall receive credit in terms  of
23    length  of  service for the retirement and surviving spouse's
24    annuity in proportion to the number of pay periods or portion
25    thereof for which contributions were made relative to 26  pay
26    periods.
27        (e)  Overtime  or  extra service shall not be included in
28    computing any service.  Not more than  one  year  of  service
29    credit  shall  be  allowed  for  service  rendered during any
30    calendar year.
31    (Source: P.A. 90-12, eff. 6-13-97.)

32        (40 ILCS 5/13-402) (from Ch. 108 1/2, par. 13-402)
33        Sec. 13-402.  Length of  service.   For  the  purpose  of
 
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 1    computing  the  length of service for the retirement annuity,
 2    surviving  spouse's  annuity,  and   child's   annuity,   and
 3    calculating  the  minimum  service requirement for payment of
 4    military service under  subsection  (b)  of  Section  13-403,
 5    service of 120 days in any one calendar year shall constitute
 6    one  year  of  service  and  service  for any fractional part
 7    thereof shall constitute an equal fractional part of one year
 8    of service unless specifically provided otherwise.   For  all
 9    other  purposes under this Article, including but not limited
10    to  the   optional   plans   of   additional   benefits   and
11    contributions  provided  under  Sections 13-304 and 13-314 of
12    this Article,  26  pay  periods  of  service  during  any  12
13    consecutive  months  shall  constitute a year of service, and
14    service rendered for 50% or more of a single pay period shall
15    constitute service for the full pay period.  Service of  less
16    than 50% of a single pay period shall not be counted.
17    (Source: P.A. 90-12, eff. 6-13-97.)

18        (40 ILCS 5/13-403) (from Ch. 108 1/2, par. 13-403)
19        Sec. 13-403.  Military service.
20        (a)  Any employee who, after commencement of service with
21    the Employer, enlisted, was inducted or was otherwise ordered
22    to serve in the military forces of the United States pursuant
23    to any law, shall receive full service credit for the various
24    purposes  of  this Article as though the employee were in the
25    active service of the Employer during the period of  military
26    service provided that:
27             (1)  beginning  July  1,  1963,  such service credit
28        shall be granted only for military service for which  the
29        employee  is  inducted  or  called  into military service
30        pursuant to a call of a duly constituted authority  or  a
31        law of the United States declaring a national emergency;
32             (2)  the  employee  returns  to  the  employ  of the
33        Employer within 90 days  after  the  termination  of  the
 
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 1        national emergency; and
 2             (3)  the  total  service  credit  for  such military
 3        service shall not exceed 5 years except that any employee
 4        who on July 1, 1963 had accrued more than 5 years of such
 5        credit shall be entitled to the total amount thereof.
 6        (b)  For a ten-year period following the  effective  date
 7    of  this  amendatory  Act  of  the  93rd  General Assembly, a
 8    contributing employee or  commissioner  meeting  the  minimum
 9    service  requirements  provided  under  this  subsection  may
10    establish  additional  service credit for a period of up to 2
11    years of active military service in the United  States  Armed
12    Forces  for which he or she does not qualify for credit under
13    subsection  (a),  provided  that  (1)  the  person  was   not
14    dishonorably  discharged  from  the military service, and (2)
15    the amount of service credit established by the person  under
16    this subsection (b), when added to the amount of any military
17    service  credit  granted  to the person under subsection (a),
18    shall not exceed 5 years.
19        The  minimum  service  requirement  for  a   contributing
20    employee  is  10  years  of  service  credit  as  provided in
21    Sections 13-401 and 13-402 of this Article and  exclusive  of
22    Article   20.    The   minimum   service  requirement  for  a
23    contributing commissioner is 5 years  of  service  credit  as
24    provided  in  Sections  13-401 and 13-402 of this Article and
25    exclusive of Article 20.
26        In order to establish military service credit under  this
27    subsection   (b),   the   applicant  must  submit  a  written
28    application to the Fund, including the applicant's  discharge
29    papers  from  military  service,  and  pay  to  the  Fund (i)
30    employee contributions at the rates provided in this Article,
31    based upon  the  person's  salary  on  the  last  date  as  a
32    participating  employee  prior  to the military service or on
33    the first date as a participating employee after the military
34    service, whichever is greater, plus (ii) the  current  amount
 
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 1    determined  by the board to be equal to the employer's normal
 2    cost of the benefits accrued for such military service,  plus
 3    (iii) regular interest of 3% compounded annually on items (i)
 4    and   (ii)   from   the  date  of  entry  or  re-entry  as  a
 5    participating employee following the military service to  the
 6    date  of  payment.  Contributions must be paid in full before
 7    the  credit  is  granted.   Credit  established  under   this
 8    subsection may be used for pension purposes only.
 9        Notwithstanding  any  other  provision of this Section, a
10    person  may  not  establish  creditable  service  under  this
11    Section for any period for which the person  receives  credit
12    under any other public employee retirement system, unless the
13    credit   under   that   other   retirement  system  has  been
14    irrevocably relinquished.
15    (Source: P.A. 87-794.)

16        Section 90.  The State Mandates Act is amended by  adding
17    Section 8.27 as follows:

18        (30 ILCS 805/8.27 new)
19        Sec.  8.27.  Exempt  mandate.  Notwithstanding Sections 6
20    and 8 of this Act, no reimbursement by the State is  required
21    for  the  implementation  of  any  mandate  created  by  this
22    amendatory Act of the 93rd General Assembly.

23        Section  99.  Effective date.  This Act takes effect upon
24    becoming law.