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90_SB0221
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.
LRB9001567EGfg
LRB9001567EGfg
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18 Any person who has withdrawn from the service of a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
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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
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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
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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
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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
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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
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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.
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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
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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
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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.