Full Text of HB3656 96th General Assembly
HB3656enr 96TH GENERAL ASSEMBLY
|
|
|
HB3656 Enrolled |
|
LRB096 11614 AMC 22140 b |
|
| 1 |
| AN ACT concerning 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 changing | 5 |
| Section 3-110 as follows:
| 6 |
| (40 ILCS 5/3-110) (from Ch. 108 1/2, par. 3-110)
| 7 |
| Sec. 3-110. Creditable service.
| 8 |
| (a) "Creditable service" is the time served by a police | 9 |
| officer as a member
of a regularly constituted police force of | 10 |
| a municipality. In computing
creditable service furloughs | 11 |
| without pay exceeding 30 days shall not be
counted, but all | 12 |
| leaves of absence for illness or accident, regardless of
| 13 |
| length, and all periods of disability retirement for which a | 14 |
| police officer has
received no disability pension payments | 15 |
| under this Article shall be counted.
| 16 |
| (a-5) Up to 3 years of time during which the police officer | 17 |
| receives
a disability pension under Section 3-114.1, 3-114.2, | 18 |
| 3-114.3, or 3-114.6
shall be counted as creditable service, | 19 |
| provided that
(i) the police officer returns to active service | 20 |
| after the disability for a
period at least equal to the period | 21 |
| for which credit is to be established and
(ii) the police | 22 |
| officer makes contributions to the fund based on the rates
| 23 |
| specified in Section 3-125.1 and the salary upon which the |
|
|
|
HB3656 Enrolled |
- 2 - |
LRB096 11614 AMC 22140 b |
|
| 1 |
| disability pension
is based. These contributions may be paid at | 2 |
| any time prior to the
commencement of a retirement pension. The | 3 |
| police officer may, but need not,
elect to have the | 4 |
| contributions deducted from the disability pension or to
pay | 5 |
| them in installments on a schedule approved by the board. If | 6 |
| not
deducted from the disability pension, the contributions | 7 |
| shall include
interest at the rate of 6% per year, compounded | 8 |
| annually, from the date
for which service credit is being | 9 |
| established to the date of payment. If
contributions are paid | 10 |
| under this subsection (a-5) in excess of those
needed to | 11 |
| establish the credit, the excess shall be refunded. This
| 12 |
| subsection (a-5) applies to persons receiving a disability | 13 |
| pension under
Section 3-114.1, 3-114.2, 3-114.3, or 3-114.6 on | 14 |
| the effective date of this
amendatory Act of the 91st General | 15 |
| Assembly, as well as persons who begin to
receive such a | 16 |
| disability pension after that date.
| 17 |
| (b) Creditable service includes all periods of service in | 18 |
| the military,
naval or air forces of the United States entered | 19 |
| upon while an active police
officer of a municipality, provided | 20 |
| that upon applying for a permanent pension,
and in accordance | 21 |
| with the rules of the board, the police officer pays into the
| 22 |
| fund the amount the officer would have contributed if he or she | 23 |
| had been a
regular contributor during such period, to the | 24 |
| extent that the municipality
which the police officer served | 25 |
| has not made such contributions in the
officer's behalf. The | 26 |
| total amount of such creditable service shall not
exceed 5 |
|
|
|
HB3656 Enrolled |
- 3 - |
LRB096 11614 AMC 22140 b |
|
| 1 |
| years, except that any police officer who on July 1, 1973 had | 2 |
| more
than 5 years of such creditable service shall receive the | 3 |
| total amount thereof.
| 4 |
| (c) Creditable service also includes service rendered by a | 5 |
| police
officer while on leave of absence from a police | 6 |
| department to serve as an
executive of an organization whose | 7 |
| membership consists of members of a
police department, subject | 8 |
| to the following conditions: (i) the police
officer is a | 9 |
| participant of a fund established under this Article with at
| 10 |
| least 10 years of service as a police officer; (ii) the police | 11 |
| officer
received no credit for such service under any other | 12 |
| retirement system,
pension fund, or annuity and benefit fund | 13 |
| included in this Code; (iii)
pursuant to the rules of the board | 14 |
| the police officer pays to the fund the
amount he or she would | 15 |
| have contributed had the officer been an active
member of the | 16 |
| police department; and (iv) the organization pays a
| 17 |
| contribution equal to the municipality's normal cost for that
| 18 |
| period of service.
| 19 |
| (d)(1) Creditable service also includes periods of | 20 |
| service originally
established in another police pension | 21 |
| fund under this Article or in the Fund
established under | 22 |
| Article 7 of this Code for which (i) the contributions have
| 23 |
| been transferred under Section 3-110.7 or Section 7-139.9 | 24 |
| and (ii) any
additional contribution required under | 25 |
| paragraph (2) of this subsection has
been paid in full in | 26 |
| accordance with the requirements of this subsection (d).
|
|
|
|
HB3656 Enrolled |
- 4 - |
LRB096 11614 AMC 22140 b |
|
| 1 |
| (2) If the board of the pension fund to which | 2 |
| creditable service and
related
contributions are | 3 |
| transferred under Section 3-110.7 or 7-139.9 determines | 4 |
| that
the amount transferred is less than the true cost to | 5 |
| the pension fund of
allowing that creditable service to be | 6 |
| established, then in order to establish
that creditable | 7 |
| service the police officer must pay to the pension fund, | 8 |
| within
the payment period specified in paragraph (3) of | 9 |
| this subsection, an additional
contribution equal to the | 10 |
| difference, as determined by the board in accordance
with | 11 |
| the rules and procedures adopted under paragraph (6) of | 12 |
| this subsection. If the board of the pension fund to which | 13 |
| creditable service and
related
contributions are | 14 |
| transferred under Section 3-110.7 determines that
the | 15 |
| amount transferred is less than the true cost to the | 16 |
| pension fund of
allowing that creditable service to be | 17 |
| established, then the police officer may elect (A) to | 18 |
| establish
that creditable service by paying to the pension | 19 |
| fund, within
the payment period specified in paragraph (3) | 20 |
| of this subsection (d), an additional
contribution equal to | 21 |
| the difference, as determined by the board in accordance
| 22 |
| with the rules and procedures adopted under paragraph (6) | 23 |
| of this subsection (d) or (B) to have his or her creditable | 24 |
| service reduced by an amount equal to the difference | 25 |
| between the amount transferred under Section 3-110.7 and | 26 |
| the true cost to the pension fund of allowing that |
|
|
|
HB3656 Enrolled |
- 5 - |
LRB096 11614 AMC 22140 b |
|
| 1 |
| creditable service to be established, as determined by the | 2 |
| board in accordance with the rules and procedures adopted | 3 |
| under paragraph (6) of this subsection (d).
| 4 |
| (3) Except as provided in paragraph (4), the additional
| 5 |
| contribution that is required or elected under paragraph | 6 |
| (2) of this subsection (d) must be paid to the board (i) | 7 |
| within 5 years from the date of the
transfer of | 8 |
| contributions under Section 3-110.7 or 7-139.9 and (ii) | 9 |
| before the
police officer terminates service with the fund. | 10 |
| The additional contribution
may be paid in a lump sum or in | 11 |
| accordance with a schedule of installment
payments | 12 |
| authorized by the board.
| 13 |
| (4) If the police officer dies in service before | 14 |
| payment in full has been
made and before the expiration of | 15 |
| the 5-year payment period, the surviving
spouse of the | 16 |
| officer may elect to pay the unpaid amount on the officer's
| 17 |
| behalf within 6 months after the date of death, in which | 18 |
| case the creditable
service shall be granted as though the | 19 |
| deceased police officer had paid the
remaining balance on | 20 |
| the day before the date of death.
| 21 |
| (5) If the additional contribution that is required or | 22 |
| elected under paragraph (2) of this subsection (d) is not | 23 |
| paid in full within the
required time, the creditable | 24 |
| service shall not be granted and the
police officer (or the | 25 |
| officer's surviving spouse or estate) shall be entitled
to | 26 |
| receive a refund of (i) any partial payment of the |
|
|
|
HB3656 Enrolled |
- 6 - |
LRB096 11614 AMC 22140 b |
|
| 1 |
| additional contribution
that has been made by the police | 2 |
| officer and (ii) those portions of the amounts
transferred | 3 |
| under subdivision (a)(1) of Section 3-110.7 or | 4 |
| subdivisions (a)(1)
and (a)(3) of Section 7-139.9 that | 5 |
| represent employee contributions paid by the
police | 6 |
| officer (but not the accumulated interest on those | 7 |
| contributions) and
interest paid by the police officer to | 8 |
| the prior pension fund in order to
reinstate service | 9 |
| terminated by acceptance of a refund.
| 10 |
| At the time of paying a refund under this item (5), the | 11 |
| pension fund
shall also repay to the pension fund from | 12 |
| which the contributions were
transferred under Section | 13 |
| 3-110.7 or 7-139.9 the amount originally transferred
under | 14 |
| subdivision (a)(2) of that Section, plus interest at the | 15 |
| rate of 6% per
year, compounded annually, from the date of | 16 |
| the original transfer to the date
of repayment. Amounts | 17 |
| repaid to the Article 7 fund under this provision shall
be | 18 |
| credited to the appropriate municipality.
| 19 |
| Transferred credit that is not granted due to failure | 20 |
| to pay the additional
contribution within the required time | 21 |
| is lost; it may not be transferred to
another pension fund | 22 |
| and may not be reinstated in the pension fund from which
it | 23 |
| was transferred.
| 24 |
| (6) The Public Employee Pension Fund Division of the | 25 |
| Department of
Insurance
shall establish by rule the manner | 26 |
| of making the calculation required under
paragraph (2) of |
|
|
|
HB3656 Enrolled |
- 7 - |
LRB096 11614 AMC 22140 b |
|
| 1 |
| this subsection, taking into account the appropriate | 2 |
| actuarial
assumptions; the police officer's service, age, | 3 |
| and salary history; the level
of funding of the pension | 4 |
| fund to which the credits are being transferred; and
any | 5 |
| other factors that the Division determines to be relevant. | 6 |
| The rules may
require that all calculations made under | 7 |
| paragraph (2) be reported to the
Division by the board | 8 |
| performing the calculation, together with documentation
of | 9 |
| the creditable service to be transferred, the amounts of | 10 |
| contributions and
interest to be transferred, the manner in | 11 |
| which the calculation was performed,
the numbers relied | 12 |
| upon in making the calculation, the results of the
| 13 |
| calculation, and any other information the Division may | 14 |
| deem useful.
| 15 |
| (e)(1) Creditable service also includes periods of | 16 |
| service originally
established in the Fund
established | 17 |
| under Article 7 of this Code for which the contributions | 18 |
| have
been transferred under Section 7-139.11.
| 19 |
| (2) If the board of the pension fund to which | 20 |
| creditable service and
related
contributions are | 21 |
| transferred under Section 7-139.11 determines that
the | 22 |
| amount transferred is less than the true cost to the | 23 |
| pension fund of
allowing that creditable service to be | 24 |
| established, then the amount of creditable service the | 25 |
| police officer may establish under this subsection (e) | 26 |
| shall be reduced by an amount equal to the difference, as |
|
|
|
HB3656 Enrolled |
- 8 - |
LRB096 11614 AMC 22140 b |
|
| 1 |
| determined by the board in accordance
with the rules and | 2 |
| procedures adopted under paragraph (3) of this subsection.
| 3 |
| (3) The Public Pension Division of the Department of
| 4 |
| Financial and Professional Regulation
shall establish by | 5 |
| rule the manner of making the calculation required under
| 6 |
| paragraph (2) of this subsection, taking into account the | 7 |
| appropriate actuarial
assumptions; the police officer's | 8 |
| service, age, and salary history; the level
of funding of | 9 |
| the pension fund to which the credits are being | 10 |
| transferred; and
any other factors that the Division | 11 |
| determines to be relevant. The rules may
require that all | 12 |
| calculations made under paragraph (2) be reported to the
| 13 |
| Division by the board performing the calculation, together | 14 |
| with documentation
of the creditable service to be | 15 |
| transferred, the amounts of contributions and
interest to | 16 |
| be transferred, the manner in which the calculation was | 17 |
| performed,
the numbers relied upon in making the | 18 |
| calculation, the results of the
calculation, and any other | 19 |
| information the Division may deem useful.
| 20 |
| (4) Until January 1, 2010, a police officer who | 21 |
| transferred service from the Fund established under | 22 |
| Article 7 of this Code under the provisions of Public Act | 23 |
| 94-356 may establish additional credit, but only for the | 24 |
| amount of the service credit reduction in that transfer, as | 25 |
| calculated under paragraph (3) of this subsection (e). This | 26 |
| credit may be established upon payment by the police |
|
|
|
HB3656 Enrolled |
- 9 - |
LRB096 11614 AMC 22140 b |
|
| 1 |
| officer of an amount to be determined by the board, equal | 2 |
| to (1) the amount that would have been contributed as | 3 |
| employee and employer contributions had all of the service | 4 |
| been as an employee under this Article, plus interest | 5 |
| thereon at the rate of 6% per year, compounded annually | 6 |
| from the date of service to the date of transfer, less (2) | 7 |
| the total amount transferred from the Article 7 Fund, plus | 8 |
| (3) interest on the difference at the rate of 6% per year, | 9 |
| compounded annually, from the date of the transfer to the | 10 |
| date of payment. The additional service credit is allowed | 11 |
| under this amendatory Act of the 95th General Assembly | 12 |
| notwithstanding the provisions of Article 7 terminating | 13 |
| all transferred credits on the date of transfer. | 14 |
| (Source: P.A. 94-356, eff. 7-29-05; 95-812, eff. 8-13-08.)
| 15 |
| Section 90. The State Mandates Act is amended by adding | 16 |
| Section 8.33 as follows: | 17 |
| (30 ILCS 805/8.33 new) | 18 |
| Sec. 8.33. Exempt mandate. Notwithstanding Sections 6 and 8 | 19 |
| of this Act, no reimbursement by the State is required for the | 20 |
| implementation of any mandate created by this amendatory Act of | 21 |
| the 96th General Assembly.
| 22 |
| Section 99. Effective date. This Act takes effect upon | 23 |
| becoming law.
|
|