State of Illinois
90th General Assembly

   [ Search ]   [ Legislation ]   [ Bill Summary ]
[ Home ]   [ Back ]   [ Bottom ]


      40 ILCS 5/7-139           from Ch. 108 1/2, par. 7-139
      30 ILCS 805/8.21 new
          Amends the  Illinois  Municipal  Retirement  Fund  (IMRF)
      Article  of the Pension Code.  Allows members and retirees to
      receive up to 24 months of credit for  military  service  not
      preceded  by  employment  upon  payment  of the corresponding
      employee  and  employer  contributions.   Requires   employer
      approval.    Amends   the   State  Mandates  Act  to  require
      implementation without reimbursement.  Effective immediately.
 1        AN ACT to amend the Illinois  Pension  Code  by  changing
 2    Section 7-139 and to amend the State Mandates Act.
 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 7-139 as follows:
 7        (40 ILCS 5/7-139) (from Ch. 108 1/2, par. 7-139)
 8        Sec. 7-139.  Credits and creditable service to employees.
 9        (a)  Each participating employee shall be granted credits
10    and  creditable  service,  for  purposes  of  determining the
11    amount of any annuity or benefit to which he or a beneficiary
12    is entitled, as follows:
13        1.  For prior service: Each participating employee who is
14    an employee of a participating municipality or  participating
15    instrumentality  on  the  effective  date  shall  be  granted
16    creditable  service, but no credits under paragraph 2 of this
17    subsection (a), for his entire period of prior service.
18        Any person who  has  withdrawn  from  the  service  of  a
19    participating  municipality  or participating instrumentality
20    prior to the effective date, who reenters service of the same
21    municipality  or  participating  instrumentality  after   the
22    effective  date  and  becomes  a  participating  employee  is
23    entitled  to  creditable  service  for  prior  service  if he
24    renders 2 years of service as a participating employee  after
25    the  effective  date provided application for such service is
26    made while in a participating status.
27        2.  For  current  service,  each  participating  employee
28    shall be credited with:
29             a.  Additional credits  of  amounts  equal  to  each
30        payment  of  additional  contributions  received from him
31        under Section 7-173, as of  the  date  the  corresponding
                            -2-                LRB9001567EGfg
 1        payment of earnings is payable to him.
 2             b.  Normal  credits of amounts equal to each payment
 3        of normal contributions received from him, as of the date
 4        the corresponding payment of earnings is payable to  him,
 5        and   normal   contributions  made  for  the  purpose  of
 6        establishing out-of-state service  credits  as  permitted
 7        under  the  conditions  set  forth in paragraph 6 of this
 8        subsection (a).
 9             c.  Municipality credits in an amount equal  to  1.4
10        times  the  normal  credits,  except those established by
11        out-of-state  service  credits,  as  of   the   date   of
12        computation   of  any  benefit  if  these  credits  would
13        increase the benefit.
14             d.  Survivor  credits  equal  to  each  payment   of
15        survivor  contributions  received  from the participating
16        employee as of the  date  the  corresponding  payment  of
17        earnings  is payable, and survivor contributions made for
18        the purpose of establishing out-of-state service credits.
19        3.  For periods of  temporary  and  total  and  permanent
20    disability   benefits,  each  employee  receiving  disability
21    benefits shall be granted creditable service for  the  period
22    during  which  disability  benefits  are payable.  Normal and
23    survivor credits, based upon the rate of earnings applied for
24    disability benefits, shall also be granted  if  such  credits
25    would  result in a higher benefit to any such employee or his
26    beneficiary.
27        4.  For authorized  leave  of  absence  without  pay:   A
28    participating   employee   shall   be   granted  credits  and
29    creditable service for periods of authorized leave of absence
30    without pay under the following conditions:
31             a.  An  application  for  credits   and   creditable
32        service  is  shall  be  submitted  to the board while the
33        employee is in a status of active employment, and  within
34        2  years after termination of the leave of absence period
                            -3-                LRB9001567EGfg
 1        for which credits and creditable service are sought.
 2             b.  Not more than 12 complete months  of  creditable
 3        service for authorized leave of absence without pay shall
 4        be  counted  for  purposes  of  determining  any benefits
 5        payable under this Article.
 6             c.  Credits and creditable service shall be  granted
 7        for  leave  of  absence only if such leave is approved by
 8        the  governing  body  of  the   municipality,   including
 9        approval   of   the   estimated   cost   thereof  to  the
10        municipality as determined  by  the  fund,  and  employee
11        contributions,   plus  interest  at  the  effective  rate
12        applicable for each year from the end of  the  period  of
13        leave  to  date of payment, have been paid to the fund in
14        accordance with Section 7-173.  The  contributions  shall
15        be computed upon the assumption earnings continued during
16        the  period of leave at the rate in effect when the leave
17        began.
18             d.  Benefits under the provisions of Sections 7-141,
19        7-146, 7-150 and 7-163 shall become payable to  employees
20        on  authorized  leave  of  absence,  or  their designated
21        beneficiary, only if such leave of absence is  creditable
22        hereunder,  and  if the employee has at least one year of
23        creditable service other than  the  service  granted  for
24        leave  of  absence. Any employee contributions due may be
25        deducted from any benefits payable.
26             e.  No  credits  or  creditable  service  shall   be
27        allowed  for  leave  of  absence  without  pay during any
28        period of prior service.
29        5.  For  military  service:  The  governing  body  of   a
30    municipality  or  participating  instrumentality may elect to
31    allow creditable service to participating employees who leave
32    their employment to serve in the armed forces of  the  United
33    States  for  all  periods  of such service, provided that the
34    such person returns to active employment within 90 days after
                            -4-                LRB9001567EGfg
 1    completion of  full  time  active  duty,  but  no  creditable
 2    service  shall be allowed such person for any period that can
 3    be used in the computation of a pension or any other  pay  or
 4    benefit,  other  than pay for active duty, for service in any
 5    branch  of  the  armed  forces  of  the  United  States.   If
 6    necessary to the computation of any benefit, the board  shall
 7    establish  municipality  credits  for participating employees
 8    under this paragraph on  the  assumption  that  the  employee
 9    received  earnings  at  the rate received at the time he left
10    the employment to enter the armed  forces.   A  participating
11    employee  in  the  armed  forces  shall  not be considered an
12    employee during such period  of  service  and  no  additional
13    death  and  no  disability  benefits are payable for death or
14    disability during such period.
15        Any participating employee who left his employment with a
16    municipality or participating instrumentality to serve in the
17    armed forces of the United States  and  who  again  became  a
18    participating  employee  within  90  days after completion of
19    full time active duty by entering the service of a  different
20    municipality  or  participating  instrumentality,  which  has
21    elected  to  allow creditable service for periods of military
22    service under the preceding paragraph, shall also be  allowed
23    creditable  service for his period of military service on the
24    same terms that would apply if he had been  employed,  before
25    entering   military   service,   by   the   municipality   or
26    instrumentality which employed him after he left the military
27    service  and  the  employer costs arising in relation to such
28    grant of creditable service shall be charged to and  paid  by
29    that municipality or instrumentality.
30        Notwithstanding the foregoing, any participating employee
31    shall  be  entitled  to creditable service as required by any
32    federal law relating to re-employment rights of  persons  who
33    served  in the United States Armed Services.  Such creditable
34    service shall be granted upon payment by  the  member  of  an
                            -5-                LRB9001567EGfg
 1    amount  equal  to the employee contributions which would have
 2    been required had the employee continued in  service  at  the
 3    same  rate of earnings during the military leave period, plus
 4    interest at the effective rate.
 5        5.1.  In addition to any creditable  service  established
 6    under  paragraph 5 of this subsection (a), creditable service
 7    may be granted for up to 24 months of service  in  the  armed
 8    forces of the United States.
 9        In  order  to  receive  creditable  service  for military
10    service under this paragraph 5.1, a participating employee or
11    annuitant must (1) apply to the Fund in writing  and  provide
12    evidence  of the military service that is satisfactory to the
13    Board;  (2)  obtain  the  written  approval  of  the  current
14    employer or, in the case of an annuitant, any former employer
15    under which the annuitant participated in the Fund;  and  (3)
16    make  contributions  to  the  Fund  equal to (i) the employee
17    contributions that would have been required had  the  service
18    been  rendered as a member, plus (ii) an amount determined by
19    the board to be equal to the employer's normal  cost  of  the
20    benefits  accrued  for  that  military  service,  plus  (iii)
21    interest  on  items  (i)  and  (ii)  from  the  date of first
22    membership in the Fund to the date of payment.  If payment is
23    made during the 6-month period that begins 3 months after the
24    effective date of this amendatory Act of 1997,  the  required
25    interest  shall  be  at the rate of 2.5% per year, compounded
26    annually;  otherwise,  the   required   interest   shall   be
27    calculated at the regular interest rate.
28        This  paragraph 5.1 applies to any person who on or after
29    its effective date is  a  participating  employee  under  the
30    Fund,  and also to any person whose status as a participating
31    employee terminated prior to that date, whether  or  not  the
32    person  is  an  annuitant  on  that  date.  In the case of an
33    annuitant  who  applies  for  credit  allowable  under   this
34    paragraph  and  makes the required contributions, the annuity
                            -6-                LRB9001567EGfg
 1    shall be  recalculated  to  include  the  additional  service
 2    credit,  with the increase taking effect on the date the Fund
 3    receives written notification of the  annuitant's  intent  to
 4    purchase   the   credit,  if  payment  of  all  the  required
 5    contributions is made within 60 days of that notice, or  else
 6    on  the  first  annuity  payment  date  following the date of
 7    payment of the required contributions.   In  calculating  the
 8    automatic  annual  increase  for  an  annuity  that  has been
 9    recalculated under this Section, the increase attributable to
10    the additional service allowable under this amendatory Act of
11    1997 shall be included in the calculation of automatic annual
12    increases  accruing  after  the   effective   date   of   the
13    recalculation.
14        6.  For out-of-state service: Creditable service shall be
15    granted   for  service  rendered  to  an  out-of-state  local
16    governmental  body  under  the  following   conditions:   The
17    employee  had  participated and has irrevocably forfeited all
18    rights to  benefits  in  the  out-of-state  public  employees
19    pension  system;  the  governing  body  of  his participating
20    municipality or instrumentality authorizes  the  employee  to
21    establish  such  service;  the  employee  has 2 years current
22    service   with    this    municipality    or    participating
23    instrumentality;    the   employee   makes   a   payment   of
24    contributions, which shall be computed at 8% (normal) plus 2%
25    (survivor)  times  length  of  service  purchased  times  the
26    average rate of earnings for the first  2  years  of  service
27    with  the municipality or participating instrumentality whose
28    governing  body  authorizes  the  service  established   plus
29    interest  at  the effective rate on the date such credits are
30    established, payable from the date the employee completes the
31    required 2 years of current service to date of  payment.   In
32    no  case  shall more than 120 months of creditable service be
33    granted under this provision.
34        7.  For retroactive service:  Any employee who could have
                            -7-                LRB9001567EGfg
 1    but did not elect to become a participating employee, or  who
 2    should  have  been  a  participant  in  the  Municipal Public
 3    Utilities Annuity and  Benefit  Fund  before  that  fund  was
 4    superseded,  may receive creditable service for the period of
 5    service not to exceed 50  months.   Any  employee  who  is  a
 6    participating employee on or after September 24, 1981 and who
 7    was  excluded  from  participation  by  the  age restrictions
 8    removed by Public Act 82-596 may receive  creditable  service
 9    for  the period, on or after January 1, 1979, excluded by the
10    age restriction and, in addition, if the  governing  body  of
11    the     participating     municipality    or    participating
12    instrumentality elects to allow creditable  service  for  all
13    employees excluded by the age restriction prior to January 1,
14    1979,  for  service  during  the  period  prior  to that date
15    excluded by  the  age  restriction.   Any  employee  who  was
16    excluded from participation by the age restriction removed by
17    Public  Act 82-596 and who is not a participating employee on
18    or after September 24, 1981 may  receive  creditable  service
19    for  service  after January 1, 1979. Creditable service under
20    this paragraph shall be granted upon payment of the  employee
21    contributions   which   would   have  been  required  had  he
22    participated, with interest at the effective  rate  for  each
23    year  from  the  end  of the period of service established to
24    date of payment.
25        8.  For accumulated unused sick leave:   A  participating
26    employee  who  is  applying for a retirement annuity shall be
27    entitled to  creditable  service  for  that  portion  of  the
28    employee's  his  accumulated  unused  sick  leave  for  which
29    payment is not received, as follows:
30             a.  Sick  leave  days  shall  be  limited  to  those
31        accumulated  under  a  sick  leave  plan established by a
32        participating     municipality      or      participating
33        instrumentality  which is available to all employees or a
34        class of employees.
                            -8-                LRB9001567EGfg
 1             b.  Only  sick  leave  days   accumulated   with   a
 2        participating      municipality      or     participating
 3        instrumentality with which the employee  was  in  service
 4        within  60  days  of the effective date of his retirement
 5        annuity shall be credited; If the employee was in service
 6        with more than one employer during this period  only  the
 7        sick leave days with the employer with which the employee
 8        has  the  greatest number of unpaid sick leave days shall
 9        be considered.
10             c.  The  creditable   service   granted   shall   be
11        considered solely for the purpose of computing the amount
12        of  the  retirement  annuity  and  shall  not  be used to
13        establish any minimum  service  period  required  by  any
14        provision  of  the  Illinois  Pension Code, the effective
15        date of the retirement annuity,  or  the  final  rate  of
16        earnings.
17             d.  The  creditable  service shall be at the rate of
18        1/20 of a month for each full sick day, provided that  no
19        more   than   12   months  may  be  credited  under  this
20        subdivision 8.
21             e.  Employee contributions shall not be required for
22        creditable service under this subdivision 8.
23             f.  Each     participating     municipality      and
24        participating  instrumentality with which an employee has
25        service within 60 days  of  the  effective  date  of  his
26        retirement  annuity shall certify to the board the number
27        of accumulated unpaid sick leave  days  credited  to  the
28        employee at the time of termination of service.
29        9.  For service transferred from another system:  Credits
30    and  creditable  service  shall  be granted for service under
31    Article 3, 4, 5, 14 or 16 of this Act, to any  active  member
32    of  this  Fund,  and  to  any  inactive member who has been a
33    county sheriff, upon transfer of  such  credits  pursuant  to
34    Section  3-110.3,  4-108.3,  5-235, 14-105.6 or 16-131.4, and
                            -9-                LRB9001567EGfg
 1    payment by the member of the amount by which (1) the employer
 2    and employee contributions that would have been  required  if
 3    he   had  participated  in  this  Fund  as  a  sheriff's  law
 4    enforcement employee during the period for  which  credit  is
 5    being  transferred,  plus  interest  thereon at the effective
 6    rate for each year,  compounded annually, from  the  date  of
 7    termination   of  the  service  for  which  credit  is  being
 8    transferred to the date of payment, exceeds  (2)  the  amount
 9    actually  transferred  to  the Fund. Such transferred service
10    shall be deemed to be service as a sheriff's law  enforcement
11    employee for the purposes of Section 7-142.1.
12        (b)  Creditable  service  -  amount:  1.   One  month  of
13    creditable  service shall be allowed for each month for which
14    a participating employee made contributions as required under
15    Section 7-173, or for which creditable service  is  otherwise
16    granted hereunder.  Not more than 1 month of service shall be
17    credited  and counted for 1 calendar month, and not more than
18    1 year of service shall  be  credited  and  counted  for  any
19    calendar  year.   A  calendar  month  means  a  nominal month
20    beginning on the first day thereof, and a calendar year means
21    a year beginning January 1 and ending December 31.
22        2.  A seasonal employee  shall  be  given  12  months  of
23    creditable  service  if  he  renders  the number of months of
24    service normally required  by  the  position  in  a  12-month
25    period  and  he  remains  in  service for the entire 12-month
26    period.  Otherwise a fractional year of service in the number
27    of months of service rendered shall be credited.
28        3.  An intermittent employee shall  be  given  creditable
29    service for only those months in which a contribution is made
30    under Section 7-173.
31        (c)  No   application   for   correction  of  credits  or
32    creditable service  shall  be  considered  unless  the  board
33    receives   an   application  for  correction  while  (1)  the
34    applicant  is  a  participating  employee   and   in   active
                            -10-               LRB9001567EGfg
 1    employment    with    a    participating    municipality   or
 2    instrumentality, or  (2)  while  the  applicant  is  actively
 3    participating in a pension fund or retirement system which is
 4    a   participating   system   under   the  Retirement  Systems
 5    Reciprocal Act.  A participating employee or other  applicant
 6    shall not be entitled to credits or creditable service unless
 7    the required employee contributions are made in a lump sum or
 8    in installments made in accordance with board rule.
 9        (d)  Upon  the granting of a retirement, surviving spouse
10    or child annuity, a death benefit or a separation benefit, on
11    account of any employee, all individual  accumulated  credits
12    shall  thereupon terminate. Upon the withdrawal of additional
13    contributions, the credits applicable thereto shall thereupon
14    terminate.
15    (Source: P.A. 86-273; 86-1028; 87-740.)
16        Section 90.  The State Mandates Act is amended by  adding
17    Section 8.21 as follows:
18        (30 ILCS 805/8.21 new)
19        Sec.  8.21.  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 1997.
23        Section  99.  Effective date.  This Act takes effect upon
24    becoming law.

[ Top ]