State of Illinois
91st General Assembly

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 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 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
 9    and  creditable  service,  for  purposes  of  determining the
10    amount of any annuity or benefit to which he or a beneficiary
11    is entitled, as follows:
12             1.  For prior service: Each  participating  employee
13        who  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
24        of prior service with that employer without any  employee
25        contribution.
26             If  the  effective  date  of  participation  for the
27        participating     municipality      or      participating
28        instrumentality  is  after  January  1,  1998, creditable
29        service shall be granted for the last 20% of  the  period
30        of  prior  service with that employer, but no more than 5
31        years,   without   any    employee    contribution.     A
                            -2-                LRB9113522EGfg
 1        participating  employee  may establish creditable service
 2        for the remainder of the period  of  prior  service  with
 3        that  employer  by  making  an  application  in  writing,
 4        accompanied  by payment of an employee contribution in an
 5        amount determined by the  Fund,  based  on  the  employee
 6        contribution  rates  in effect at the time of application
 7        for the creditable service and the employee's salary rate
 8        on the effective date of participation for that employer,
 9        plus interest at the effective rate from the date of  the
10        prior  service  to  the date of payment.  Application for
11        this creditable service may be made at any time while the
12        employee is still in service.
13             Any person who has withdrawn from the service  of  a
14        participating      municipality      or     participating
15        instrumentality prior to the effective date, who reenters
16        the service of the  same  municipality  or  participating
17        instrumentality  after  the  effective date and becomes a
18        participating employee is entitled to creditable  service
19        for   prior   service   as  otherwise  provided  in  this
20        subdivision (a)(1) only if he or she renders 2  years  of
21        service  as  a participating employee after the effective
22        date.  Application for such service must be made while in
23        a participating status.  The salary rate to  be  used  in
24        the calculation of the required employee contribution, if
25        any,  shall  be the employee's salary rate at the time of
26        first reentering service  with  the  employer  after  the
27        employer's effective date of participation.
28             2.  For current service, each participating employee
29        shall be credited with:
30                  a.  Additional credits of amounts equal to each
31             payment  of  additional  contributions received from
32             him  under  Section  7-173,  as  of  the  date   the
33             corresponding payment of earnings is payable to him.
34                  b.  Normal  credits  of  amounts  equal to each
                            -3-                LRB9113522EGfg
 1             payment of normal contributions received  from  him,
 2             as of the date the corresponding payment of earnings
 3             is payable to him, and normal contributions made for
 4             the  purpose  of  establishing  out-of-state service
 5             credits as permitted under the conditions set  forth
 6             in paragraph 6 of this subsection (a).
 7                  c.  Municipality  credits in an amount equal to
 8             1.4  times  the   normal   credits,   except   those
 9             established  by  out-of-state service credits, as of
10             the date of computation  of  any  benefit  if  these
11             credits would increase the benefit.
12                  d.  Survivor  credits  equal to each payment of
13             survivor    contributions    received    from    the
14             participating  employee   as   of   the   date   the
15             corresponding  payment  of  earnings is payable, and
16             survivor  contributions  made  for  the  purpose  of
17             establishing out-of-state service 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
27        participating  employee  shall  be  granted  credits  and
28        creditable  service  for  periods  of authorized leave of
29        absence without pay under the following conditions:
30                  a.  An application for credits  and  creditable
31             service is submitted to the board while the employee
32             is  in  a  status of active employment, and within 2
33             years after termination  of  the  leave  of  absence
34             period  for which credits and creditable service are
                            -4-                LRB9113522EGfg
 1             sought.
 2                  b.  Not  more  than  12  complete   months   of
 3             creditable  service  for authorized leave of absence
 4             without  pay  shall  be  counted  for  purposes   of
 5             determining any benefits payable under this Article.
 6                  c.  Credits  and  creditable  service  shall be
 7             granted for leave of absence only if such  leave  is
 8             approved  by the governing body of the municipality,
 9             including approval of the estimated cost thereof  to
10             the  municipality  as  determined  by  the fund, and
11             employee  contributions,  plus   interest   at   the
12             effective rate applicable for each year from the end
13             of the period of leave to date of payment, have been
14             paid  to  the fund in accordance with Section 7-173.
15             The  contributions  shall  be  computed   upon   the
16             assumption  earnings  continued during the period of
17             leave at the rate in effect when the leave began.
18                  d.  Benefits under the provisions  of  Sections
19             7-141,  7-146,  7-150 and 7-163 shall become payable
20             to employees on  authorized  leave  of  absence,  or
21             their  designated beneficiary, only if such leave of
22             absence is creditable hereunder, and if the employee
23             has at least one year of  creditable  service  other
24             than  the  service granted for leave of absence. Any
25             employee contributions due may be deducted from  any
26             benefits payable.
27                  e.  No  credits  or creditable service shall be
28             allowed for leave of absence without pay during  any
29             period of prior service.
30             5.  For  military  service:  The governing body of a
31        municipality or participating instrumentality  may  elect
32        to  allow  creditable  service to participating employees
33        who leave their employment to serve in the  armed  forces
34        of  the  United  States  for all periods of such service,
                            -5-                LRB9113522EGfg
 1        provided that the person  returns  to  active  employment
 2        within 90 days after completion of full time active duty,
 3        but  no  creditable  service shall be allowed such person
 4        for any period that can be used in the computation  of  a
 5        pension  or  any other pay or benefit, other than pay for
 6        active duty, for service  in  any  branch  of  the  armed
 7        forces  of  the  United  States.   If  necessary  to  the
 8        computation  of  any  benefit,  the board shall establish
 9        municipality credits for  participating  employees  under
10        this  paragraph  on  the  assumption  that  the  employee
11        received  earnings  at  the  rate received at the time he
12        left  the  employment  to  enter  the  armed  forces.   A
13        participating employee in the armed forces shall  not  be
14        considered  an employee during such period of service and
15        no  additional  death  and  no  disability  benefits  are
16        payable for death or disability during such period.
17             Any participating employee who left  his  employment
18        with  a  municipality or participating instrumentality to
19        serve in the armed forces of the United  States  and  who
20        again  became  a  participating  employee  within 90 days
21        after completion of full time active duty by entering the
22        service of  a  different  municipality  or  participating
23        instrumentality,  which  has  elected to allow creditable
24        service  for  periods  of  military  service  under   the
25        preceding  paragraph,  shall  also  be allowed creditable
26        service for his period of military service  on  the  same
27        terms  that  would  apply if he had been employed, before
28        entering  military  service,  by  the   municipality   or
29        instrumentality  which  employed  him  after  he left the
30        military  service  and  the  employer  costs  arising  in
31        relation to such grant of  creditable  service  shall  be
32        charged   to   and   paid   by   that   municipality   or
33        instrumentality.
34             Notwithstanding  the  foregoing,  any  participating
                            -6-                LRB9113522EGfg
 1        employee  shall  be  entitled  to  creditable  service as
 2        required by any federal  law  relating  to  re-employment
 3        rights  of  persons who served in the United States Armed
 4        Services.  Such creditable service shall be granted  upon
 5        payment  by the member of an amount equal to the employee
 6        contributions which would  have  been  required  had  the
 7        employee  continued  in  service  at  the  same  rate  of
 8        earnings  during the military leave period, plus interest
 9        at the effective rate.
10             5.1.  In  addition   to   any   creditable   service
11        established  under  paragraph  5  of this subsection (a),
12        creditable service may be granted for up to 24 months  of
13        service in the armed forces of the United States.
14             In  order to receive creditable service for military
15        service  under  this  paragraph  5.1,   a   participating
16        employee  must  (1)  apply  to  the  Fund  in writing and
17        provide  evidence  of  the  military  service   that   is
18        satisfactory   to  the  Board;  (2)  obtain  the  written
19        approval  of  the  current   employer;   and   (3)   make
20        contributions  to  the  Fund  equal  to  (i) the employee
21        contributions that  would  have  been  required  had  the
22        service  been  rendered  as a member, plus (ii) an amount
23        determined by the board to be  equal  to  the  employer's
24        normal  cost  of  the  benefits accrued for that military
25        service, plus (iii) interest on items (i) and  (ii)  from
26        the  date  of first membership in the Fund to the date of
27        payment.  If payment is made during  the  6-month  period
28        that  begins  3  months  after the effective date of this
29        amendatory Act of 1997, the required interest shall be at
30        the  rate  of  2.5%  per   year,   compounded   annually;
31        otherwise,  the  required interest shall be calculated at
32        the regular interest rate.
33             6.  For  out-of-state  service:  Creditable  service
34        shall be granted for service rendered to an  out-of-state
                            -7-                LRB9113522EGfg
 1        local  governmental  body under the following conditions:
 2        The  employee  had  participated  and   has   irrevocably
 3        forfeited  all  rights  to  benefits  in the out-of-state
 4        public employees pension system; the  governing  body  of
 5        his   participating   municipality   or   instrumentality
 6        authorizes  the  employee  to establish such service; the
 7        employee  has  2  years   current   service   with   this
 8        municipality   or   participating   instrumentality;  the
 9        employee makes a payment of contributions, which shall be
10        computed at 8% (normal) plus 2% (survivor)  times  length
11        of  service  purchased times the average rate of earnings
12        for the first 2 years of service with the municipality or
13        participating  instrumentality   whose   governing   body
14        authorizes  the  service established plus interest at the
15        effective rate on the date such credits are  established,
16        payable from the date the employee completes the required
17        2  years  of  current  service to date of payment.  In no
18        case shall more than 120 months of creditable service  be
19        granted under this provision.
20             7.  For retroactive service:  Any employee who could
21        have   but  did  not  elect  to  become  a  participating
22        employee, or who should have been a  participant  in  the
23        Municipal  Public  Utilities  Annuity  and  Benefit  Fund
24        before  that  fund was superseded, may receive creditable
25        service for the period during which he or she could  have
26        participated  but  did  not.  of service not to exceed 50
27        months; however, a current or former county board  member
28        may establish credit under this paragraph 7 for more than
29        50  months  of service as a member of the county board if
30        the excess over 50 months is approved  by  resolution  of
31        the  affected  county  board  filed  with the Fund before
32        January 1, 1999.
33             Any employee who is a participating employee  on  or
34        after  September  24,  1981  and  who  was  excluded from
                            -8-                LRB9113522EGfg
 1        participation by the age restrictions removed  by  Public
 2        Act 82-596 may receive creditable service for the period,
 3        on  or  after  January  1,  1979,  excluded  by  the  age
 4        restriction  and,  in  addition, if the governing body of
 5        the   participating   municipality    or    participating
 6        instrumentality  elects  to  allow creditable service for
 7        all employees excluded by the age  restriction  prior  to
 8        January  1,  1979, for service during the period prior to
 9        that date excluded by the age restriction.  Any  employee
10        who   was   excluded   from   participation  by  the  age
11        restriction removed by Public Act 82-596 and who is not a
12        participating employee on or after September 24, 1981 may
13        receive creditable service for service after  January  1,
14        1979.  Creditable  service  under this paragraph shall be
15        granted upon payment of the employee contributions  which
16        would  have  been  required  had  he  participated,  with
17        interest at the effective rate for each year from the end
18        of the period of service established to date of payment.
19             8.  For    accumulated   unused   sick   leave:    A
20        participating employee who is applying for  a  retirement
21        annuity  shall be entitled to creditable service for that
22        portion of the employee's accumulated unused  sick  leave
23        for which payment is not received, as follows:
24                  a.  Sick  leave  days shall be limited to those
25             accumulated under a sick leave plan established by a
26             participating    municipality    or    participating
27             instrumentality which is available to all  employees
28             or a class of employees.
29                  b.  Only  sick  leave  days  accumulated with a
30             participating    municipality    or    participating
31             instrumentality  with  which  the  employee  was  in
32             service within 60 days of the effective date of  his
33             retirement   annuity   shall  be  credited;  If  the
34             employee was in service with more than one  employer
                            -9-                LRB9113522EGfg
 1             during this period only the sick leave days with the
 2             employer  with  which  the employee has the greatest
 3             number  of  unpaid  sick   leave   days   shall   be
 4             considered.
 5                  c.  The  creditable  service  granted  shall be
 6             considered solely for the purpose of  computing  the
 7             amount  of  the  retirement annuity and shall not be
 8             used  to  establish  any  minimum   service   period
 9             required  by  any  provision of the Illinois Pension
10             Code, the effective date of the retirement  annuity,
11             or the final rate of earnings.
12                  d.  The creditable service shall be at the rate
13             of  1/20 of a month for each full sick day, provided
14             that no more than 12 months may  be  credited  under
15             this subdivision 8.
16                  e.  Employee   contributions   shall   not   be
17             required   for   creditable   service   under   this
18             subdivision 8.
19                  f.  Each    participating    municipality   and
20             participating instrumentality with which an employee
21             has service within 60 days of the effective date  of
22             his  retirement  annuity  shall certify to the board
23             the number of accumulated  unpaid  sick  leave  days
24             credited  to the employee at the time of termination
25             of service.
26             9.  For service  transferred  from  another  system:
27        Credits  and  creditable  service  shall  be  granted for
28        service under Article 3, 4, 5, 14 or 16 of this  Act,  to
29        any  active  member  of  this  Fund,  and to any inactive
30        member who has been a county sheriff,  upon  transfer  of
31        such credits pursuant to Section 3-110.3, 4-108.3, 5-235,
32        14-105.6  or  16-131.4,  and payment by the member of the
33        amount  by  which   (1)   the   employer   and   employee
34        contributions  that  would  have  been required if he had
                            -10-               LRB9113522EGfg
 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
 7        amount actually transferred to the Fund. Such transferred
 8        service shall be deemed to be service as a sheriff's  law
 9        enforcement employee for the purposes of Section 7-142.1.
10        (b)  Creditable service - amount:
11             1.  One month of creditable service shall be allowed
12        for  each  month  for which a participating employee made
13        contributions as required under  Section  7-173,  or  for
14        which  creditable service is otherwise granted hereunder.
15        Not more than 1 month of service shall  be  credited  and
16        counted for 1 calendar month, and not more than 1 year of
17        service  shall  be  credited and counted for any calendar
18        year.  A calendar month means a nominal  month  beginning
19        on  the  first  day  thereof, and a calendar year means a
20        year beginning January 1 and ending December 31.
21             2.  A seasonal employee shall be given 12 months  of
22        creditable  service if he renders the number of months of
23        service normally required by the position in  a  12-month
24        period  and he remains in service for the entire 12-month
25        period.  Otherwise a fractional year of  service  in  the
26        number of months of service rendered shall be credited.
27             3.  An   intermittent   employee   shall   be  given
28        creditable service for  only  those  months  in  which  a
29        contribution is made under Section 7-173.
30        (c)  No   application   for   correction  of  credits  or
31    creditable service  shall  be  considered  unless  the  board
32    receives   an   application  for  correction  while  (1)  the
33    applicant  is  a  participating  employee   and   in   active
34    employment    with    a    participating    municipality   or
                            -11-               LRB9113522EGfg
 1    instrumentality, or  (2)  while  the  applicant  is  actively
 2    participating in a pension fund or retirement system which is
 3    a   participating   system   under   the  Retirement  Systems
 4    Reciprocal Act.  A participating employee or other  applicant
 5    shall not be entitled to credits or creditable service unless
 6    the required employee contributions are made in a lump sum or
 7    in installments made in accordance with board rule.
 8        (d)  Upon  the granting of a retirement, surviving spouse
 9    or child annuity, a death benefit or a separation benefit, on
10    account of any employee, all individual  accumulated  credits
11    shall  thereupon terminate. Upon the withdrawal of additional
12    contributions, the credits applicable thereto shall thereupon
13    terminate.
14    (Source: P.A. 90-448, eff. 8-16-97.)

15        Section 90.  The State Mandates Act is amended by  adding
16    Section 8.24 as follows:

17        (30 ILCS 805/8.24 new)
18        Sec.  8.24.  Exempt  mandate.  Notwithstanding Sections 6
19    and 8 of this Act, no reimbursement by the State is  required
20    for  the  implementation  of  any  mandate  created  by  this
21    amendatory Act of the 91st General Assembly.

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

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