State of Illinois
91st General Assembly
Legislation

   [ Search ]   [ Legislation ]
[ Home ]   [ Back ]   [ Bottom ]



91_SB0086

 
                                               LRB9101525EGfg

 1        AN  ACT  to  amend  the Illinois Pension Code by changing
 2    Section 3-110 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 3-110 as follows:

 7        (40 ILCS 5/3-110) (from Ch. 108 1/2, par. 3-110)
 8        Sec. 3-110.  Creditable service.
 9        (a)  "Creditable service" is the time served by a  police
10    officer  as  a member of a regularly constituted police force
11    of a municipality. In computing creditable service  furloughs
12    without  pay  exceeding 30 days shall not be counted, but all
13    leaves of absence for  illness  or  accident,  regardless  of
14    length,  and all periods of disability retirement for which a
15    police officer has received no  disability  pension  payments
16    under this Article shall be counted.
17        (b)  Creditable  service  includes all periods of service
18    in the military, naval or air forces  of  the  United  States
19    entered   upon   while   an   active   police  officer  of  a
20    municipality, provided that upon  applying  for  a  permanent
21    pension,  and  in accordance with the rules of the board, the
22    police officer pays into the  fund  the  amount  the  officer
23    would  have  contributed  if  he  or  she  had been a regular
24    contributor during  such  period,  to  the  extent  that  the
25    municipality  which  the  police  officer served has not made
26    such contributions in the officer's behalf.  The total amount
27    of such creditable service shall not exceed 5  years,  except
28    that  any  police officer who on July 1, 1973 had more than 5
29    years of such creditable  service  shall  receive  the  total
30    amount thereof.
31        (b-1)  In  addition to any creditable service established
 
                            -2-                LRB9101525EGfg
 1    under subsection (b), creditable service may be  granted  for
 2    up  to 24 months of service in the armed forces of the United
 3    States that was not immediately preceded by employment  as  a
 4    police  officer.   In order to receive creditable service for
 5    military  service  under  this  subsection  (b-1),  a  police
 6    officer must (1) apply to the Fund  in  writing  and  provide
 7    evidence  of the military service that is satisfactory to the
 8    Board and (2) make contributions to the Fund equal to (i) the
 9    employee contributions that would have been required had  the
10    service  been  rendered  as  a  member,  plus  (ii) an amount
11    determined by the board to be equal to the employer's  normal
12    cost  of the benefits accrued for that military service, plus
13    (iii) interest on items (i) and (ii) from the date  of  first
14    membership in the Fund to the date of payment.  If payment is
15    made during the 6-month period that begins 3 months after the
16    effective  date  of  this  amendatory Act of the 91st General
17    Assembly, the required interest shall be at the rate of  2.5%
18    per   year,  compounded  annually;  otherwise,  the  required
19    interest shall be calculated at the  rate  of  6%  per  year,
20    compounded annually.
21        (c)  Creditable service also includes service rendered by
22    a  police  officer  while  on  leave of absence from a police
23    department to serve as an executive of an organization  whose
24    membership  consists  of  members  of  a  police  department,
25    subject  to the following conditions:  (i) the police officer
26    is a participant of a fund  established  under  this  Article
27    with  at  least 10 years of service as a police officer; (ii)
28    the police officer received no credit for such service  under
29    any  other  retirement  system,  pension fund, or annuity and
30    benefit fund included in this Code;  (iii)  pursuant  to  the
31    rules  of  the  board the police officer pays to the fund the
32    amount he or she would have contributed had the officer  been
33    an  active  member  of  the  police  department; and (iv) the
34    organization pays a contribution equal to the  municipality's
 
                            -3-                LRB9101525EGfg
 1    normal cost for that period of service.
 2        (d)(1)  Creditable   service  also  includes  periods  of
 3    service originally established in another police pension fund
 4    under this Article or in the Fund established under Article 7
 5    of this Code  for  which  (i)  the  contributions  have  been
 6    transferred under Section 3-110.7 or Section 7-139.9 and (ii)
 7    any  additional  contribution required under paragraph (2) of
 8    this subsection has been paid in full in accordance with  the
 9    requirements of this subsection (d).
10        (2)  If the board of the pension fund to which creditable
11    service  and  related  contributions  are  transferred  under
12    Section   3-110.7  or  7-139.9  determines  that  the  amount
13    transferred is less than the true cost to the pension fund of
14    allowing that creditable service to be established,  then  in
15    order to establish that creditable service the police officer
16    must  pay  to  the  pension  fund,  within the payment period
17    specified in paragraph (3) of this subsection, an  additional
18    contribution  equal  to  the difference, as determined by the
19    board in accordance with the  rules  and  procedures  adopted
20    under paragraph (6) of this subsection.
21        (3)  Except  as provided in paragraph (4), the additional
22    contribution must be paid to the board  (i)  within  5  years
23    from  the date of the transfer of contributions under Section
24    3-110.7  or  7-139.9  and  (ii)  before  the  police  officer
25    terminates   service   with   the   fund.    The   additional
26    contribution may be paid in a lump sum or in accordance  with
27    a schedule of installment payments authorized by the board.
28        (4)  If the police officer dies in service before payment
29    in full has been made and before the expiration of the 5-year
30    payment period, the surviving spouse of the officer may elect
31    to  pay  the  unpaid  amount on the officer's behalf within 6
32    months after the date of death, in which case the  creditable
33    service  shall  be  granted  as  though  the  deceased police
34    officer had paid the remaining balance on the day before  the
 
                            -4-                LRB9101525EGfg
 1    date of death.
 2        (5)  If  the  additional contribution is not paid in full
 3    within the required time, the creditable service shall not be
 4    granted and the police officer (or  the  officer's  surviving
 5    spouse  or  estate)  shall be entitled to receive a refund of
 6    (i) any partial payment of the additional  contribution  that
 7    has  been  made by the police officer and (ii) those portions
 8    of  the  amounts  transferred  under  subdivision  (a)(1)  of
 9    Section 3-110.7 or subdivisions (a)(1) and (a)(3) of  Section
10    7-139.9  that  represent  employee  contributions paid by the
11    police officer (but not the  accumulated  interest  on  those
12    contributions) and interest paid by the police officer to the
13    prior  pension  fund in order to reinstate service terminated
14    by acceptance of a refund.
15        Transferred credit that is not granted due to failure  to
16    pay  the  additional contribution within the required time is
17    lost; it may not be transferred to another pension  fund  and
18    may  not  be reinstated in the pension fund from which it was
19    transferred.
20        (6)  The Public Employee Pension  Fund  Division  of  the
21    Department of Insurance shall establish by rule the manner of
22    making  the  calculation required under paragraph (2) of this
23    subsection, taking into  account  the  appropriate  actuarial
24    assumptions;  the  police  officer's service, age, and salary
25    history; the level of funding of the pension  fund  to  which
26    the credits are being transferred; and any other factors that
27    the  Division  determines  to  be  relevant.   The  rules may
28    require that all calculations made  under  paragraph  (2)  be
29    reported   to  the  Division  by  the  board  performing  the
30    calculation, together with documentation  of  the  creditable
31    service  to  be transferred, the amounts of contributions and
32    interest  to  be  transferred,  the  manner  in   which   the
33    calculation  was performed, the numbers relied upon in making
34    the calculation, the results  of  the  calculation,  and  any
 
                            -5-                LRB9101525EGfg
 1    other information the Division may deem useful.
 2    (Source: P.A. 89-52, eff. 6-30-95; 90-460, eff. 8-17-97.)

 3        Section  90.  The State Mandates Act is amended by adding
 4    Section 8.23 as follows:

 5        (30 ILCS 805/8.23 new)
 6        Sec. 8.23. Exempt mandate.   Notwithstanding  Sections  6
 7    and  8 of this Act, no reimbursement by the State is required
 8    for  the  implementation  of  any  mandate  created  by  this
 9    amendatory Act of the 91st General Assembly.

10        Section 99. Effective date.  This Act takes  effect  upon
11    becoming law.

[ Top ]