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91_HB1081
LRB9102047EGfg
1 AN ACT to amend the Illinois Pension Code by adding
2 Section 3-111.2 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 adding
6 Section 3-111.2 as follows:
7 (40 ILCS 5/3-111.2 new)
8 Sec. 3-111.2. Early retirement incentives.
9 (a) To be eligible for the benefits provided in this
10 Section, a person must:
11 (1) on March 1, 2000, be (i) in active payroll
12 status as a police officer with a municipality under this
13 Article, (ii) on layoff status from such a position with
14 a right of re-employment or recall to service, or (iii)
15 on disability or leave of absence from such a position,
16 but only if the member has not been receiving a
17 disability benefit under this Article for a continuous
18 period of 2 years or more as of the date of application;
19 (2) have not retired under this Article;
20 (3) file with the Board on or before March 1, 2000,
21 a written application requesting the benefits provided in
22 this Section;
23 (4) establish eligibility to receive a retirement
24 pension under this Article (for which purpose any age
25 enhancement or creditable service received under this
26 Section may be used) and elect to receive the retirement
27 pension beginning no earlier than May 1, 2000 and no
28 later than September 1, 2000 (September 1, 2001 if
29 retirement is delayed under subsection (e) of this
30 Section);
31 (5) have attained age 50 (without the use of any
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1 age enhancement received under this Section) by the
2 effective date of the retirement pension.
3 (b) An eligible person may establish up to 5 years of
4 creditable service under this Article, in increments of one
5 month, by making the contributions specified in subsection
6 (c). In addition, for each month of creditable service
7 established under this Section, a person's age at retirement
8 shall be deemed to be one month older than it actually is.
9 Except as otherwise specified in this Section, the
10 creditable service and age enhancement established under this
11 Section may be used for all purposes under this Article,
12 including establishing eligibility for the automatic annual
13 increase under Section 3-111.1.
14 (c) For all creditable service established under this
15 Section, the municipality must pay to the fund an employer
16 contribution consisting of 9% of the officer's annual salary
17 on March 1, 2000 for each year of creditable service granted
18 under this Section.
19 The employer contribution shall be paid to the fund in
20 one of the following ways: (i) in a single sum at the time
21 of the member's retirement, (ii) in equal quarterly
22 installments over a period of 5 years from the date of
23 retirement, or (iii) subject to the approval of the Board of
24 the fund, in unequal installments over a period of no more
25 than 10 years from the date of retirement, as provided in a
26 payment plan designed by the fund to accommodate the needs of
27 the employer. The employer's failure to make the required
28 contributions in a timely manner does not affect the payment
29 of the retirement pension.
30 For all creditable service established under this
31 Section, the police officer must pay to the fund an employee
32 contribution consisting of 4% of the officer's annual salary
33 on March 1, 2000 for each year of creditable service granted
34 under this Section. The officer may elect either to pay the
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1 employee contribution in full before the retirement pension
2 commences or to have it deducted from the retirement pension
3 in 12 monthly installments.
4 (d) Notwithstanding Section 3-124.1, an annuitant who
5 has received any age enhancement or creditable service under
6 this Section and reenters service under this Article thereby
7 forfeits the age enhancement and creditable service and is
8 entitled to a refund of the contributions made under this
9 Section.
10 (e) If the number of officers of a municipality that
11 actually apply for early retirement under this Section
12 exceeds 15% of those eligible, the employer may require that,
13 for the number of applicants in excess of that 15%, the
14 starting date of the retirement pension enhanced under this
15 Section may not be earlier than June 1, 2001. The right to
16 have the retirement pension begin before that date shall be
17 allocated among the applicants on the basis of seniority in
18 the service of that employer.
19 This delay applies only to persons who are applying for
20 early retirement incentives under this Section and does not
21 prevent a person whose application for early retirement
22 incentives has been withdrawn from receiving a retirement
23 pension on the earliest date upon which the person is
24 otherwise eligible under this Article.
25 Section 90. The State Mandates Act is amended by adding
26 Section 8.23 as follows:
27 (30 ILCS 805/8.23 new)
28 Sec. 8.23. Exempt mandate. Notwithstanding Sections 6
29 and 8 of this Act, no reimbursement by the State is required
30 for the implementation of any mandate created by this
31 amendatory Act of the 91st General Assembly.
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1 Section 99. Effective date. This Act takes effect upon
2 becoming law.