State of Illinois
90th General Assembly
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90_HB1827

      40 ILCS 5/14-104          from Ch. 108 1/2, par. 14-104
          Amends the State Employee Article of  the  Pension  Code.
      Authorizes   purchase   of  service  credit  for  periods  of
      authorized leave of absence not exceeding one year.  Requires
      the applicant to pay both employee and employer contributions
      plus interest.  Effective immediately.
                                                     LRB9004793EGfg
                                               LRB9004793EGfg
 1        AN ACT to amend the Illinois  Pension  Code  by  changing
 2    Section 14-104.
 3        Be  it  enacted  by  the People of the State of Illinois,
 4    represented in the General Assembly:
 5        Section 5.  The  Illinois  Pension  Code  is  amended  by
 6    changing Section 14-104 as follows:
 7        (40 ILCS 5/14-104) (from Ch. 108 1/2, par. 14-104)
 8        Sec.  14-104.  Service for which contributions permitted.
 9    Contributions provided for in this Section  shall  cover  the
10    period  of  service  granted,  and  be  based upon employee's
11    compensation and contribution rate in effect on the  date  he
12    last  became  a  member  of the System; provided that for all
13    employment prior to January 1,  1969  the  contribution  rate
14    shall be that in effect for a noncovered employee on the date
15    he  last  became  a  member  of  the  System.   Contributions
16    permitted  under  this Section shall include regular interest
17    from the date an employee last became a member of the  System
18    to date of payment.
19        These   contributions   must   be  paid  in  full  before
20    retirement either in a lump sum or in installment payments in
21    accordance with such rules as may be adopted by the board.
22        (a)  Any member may make  contributions  as  required  in
23    this  Section  for  any  period of service, subsequent to the
24    date of establishment, but prior to the date of membership.
25        (b)  Any employee who had been previously  excluded  from
26    membership  because  of  age at entry and subsequently became
27    eligible may elect to make contributions as required in  this
28    Section  for  the  period  of  service  during  which  he was
29    ineligible.
30        (c)  An employee of  the  Department  of  Insurance  who,
31    after  January  1,  1944  but  prior to becoming eligible for
                            -2-                LRB9004793EGfg
 1    membership, received salary from funds of insurance companies
 2    in the process of rehabilitation,  liquidation,  conservation
 3    or  dissolution,  may elect to make contributions as required
 4    in this Section for such service.
 5        (d)  Any employee who rendered service in a State  office
 6    to  which he was elected, or rendered service in the elective
 7    office of Clerk of the Appellate Court prior to the  date  he
 8    became  a  member, may make contributions for such service as
 9    required  in  this  Section.   Any  member  who   served   by
10    appointment  of  the  Governor under the Civil Administrative
11    Code of Illinois and did not participate in this  System  may
12    make  contributions  as  required  in  this  Section for such
13    service.
14        (e)  Any person employed by the United States  government
15    or any instrumentality or agency thereof from January 1, 1942
16    through  November  15,  1946 as the result of a transfer from
17    State service by executive order  of  the  President  of  the
18    United  States  shall  be  entitled  to  prior service credit
19    covering the period from January 1, 1942 through December 31,
20    1943 as provided  for  in  this  Article  and  to  membership
21    service  credit   for the period from January 1, 1944 through
22    November 15, 1946 by making  the  contributions  required  in
23    this  Section.   A  person so employed on January 1, 1944 but
24    whose employment began after January 1, 1942 may qualify  for
25    prior  service  and  membership service credit under the same
26    conditions.
27        (f)  An employee of the Department of Labor of the  State
28    of   Illinois  who  performed  services  for  and  under  the
29    supervision of that Department prior to January 1,  1944  but
30    who  was  compensated  for those services directly by federal
31    funds and not by a warrant of the Auditor of Public  Accounts
32    paid  by  the  State  Treasurer may establish credit for such
33    employment by  making  the  contributions  required  in  this
34    Section.  An employee of the Department of Agriculture of the
                            -3-                LRB9004793EGfg
 1    State of Illinois, who performed services for and  under  the
 2    supervision of that Department prior to June 1, 1963, but was
 3    compensated  for those services directly by federal funds and
 4    not paid by a warrant of the Auditor of Public Accounts  paid
 5    by  the  State  Treasurer,  and who did not contribute to any
 6    other public employee retirement system for such service, may
 7    establish  credit  for  such   employment   by   making   the
 8    contributions required in this Section.
 9        (g)  Any  employee  who  executed  a waiver of membership
10    within 60 days prior to January 1,  1944  may,  at  any  time
11    while  in  the service of a department, file with the board a
12    rescission of such waiver.   Upon  making  the  contributions
13    required  by  this  Section,  the member shall be granted the
14    creditable service that  would  have  been  received  if  the
15    waiver had not been executed.
16        (h)  Until May 1, 1990, an employee who was employed on a
17    full-time  basis  by  a  regional  planning commission for at
18    least 5 continuous years may establish creditable service for
19    such employment by making the  contributions  required  under
20    this  Section,  provided  that  any  credits  earned  by  the
21    employee  in  the  commission's  retirement  plan  have  been
22    terminated.
23        (i)  Any   person  who  rendered  full  time  contractual
24    services to the General Assembly as a member of a legislative
25    staff may establish service credit for up to 8 years of  such
26    services  by  making  the  contributions  required under this
27    Section, provided that application therefor is made not later
28    than July 1, 1991.
29        (j)  By paying the contributions otherwise required under
30    this Section, plus an amount determined by the  Board  to  be
31    equal  to  the  employer's  normal  cost  of the benefit plus
32    interest, an employee may  establish  service  credit  for  a
33    period  of up to 2 years spent in active military service for
34    which he does not qualify for credit  under  Section  14-105,
                            -4-                LRB9004793EGfg
 1    provided  that  (1)  he  was not dishonorably discharged from
 2    such military service, and (2) the amount of  service  credit
 3    established by a member under this subsection (j), when added
 4    to  the  amount  of  military  service  credit granted to the
 5    member under subsection (b)  of  Section  14-105,  shall  not
 6    exceed 5 years.
 7        (k)  An employee who was employed on a full-time basis by
 8    the   Illinois   State's   Attorneys   Association  Statewide
 9    Appellate Assistance Service LEAA-ILEC grant project prior to
10    the time that project became the State's Attorneys  Appellate
11    Service  Commission,  now the Office of the State's Attorneys
12    Appellate Prosecutor, an  agency  of  State  government,  may
13    establish  creditable  service  for  not  more than 60 months
14    service for such employment by making contributions  required
15    under this Section.
16        (l)  By paying the contributions otherwise required under
17    this  Section,  plus  an amount determined by the Board to be
18    equal to the employer's  normal  cost  of  the  benefit  plus
19    interest,  a  member may establish service credit for periods
20    of less than one year spent on authorized  leave  of  absence
21    from  service, provided that (1) the period of leave began on
22    or after January 1, 1992 and (2) any  credit  established  by
23    the  member  for  the  period  of  leave  in any other public
24    employee retirement system has been terminated.  A member may
25    establish service credit under this subsection for more  than
26    one  period  of  authorized leave, and in that case the total
27    period of service credit established by the member under this
28    subsection may exceed one year.
29    (Source: P.A. 86-273; 86-1488; 87-794; 87-895; 87-1265.)
30        Section 99. Effective date.  This Act takes  effect  upon
31    becoming law.

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