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91_HB1145
LRB9104340EGfg
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. Periods of unpaid leave
17 during which a police officer who is a member of a reserve
18 component of the U.S. armed forces participates in reserve
19 duties shall be counted under this subsection, to the extent
20 that this does not result in a duplication of service credit.
21
22 (b) Creditable service includes all periods of service
23 in the military, naval or air forces of the United States
24 entered upon while an active police officer of a
25 municipality, provided that upon applying for a permanent
26 pension, and in accordance with the rules of the board, the
27 police officer pays into the fund the amount the officer
28 would have contributed if he or she had been a regular
29 contributor during such period, to the extent that the
30 municipality which the police officer served has not made
31 such contributions in the officer's behalf. The total amount
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1 of such creditable service shall not exceed 5 years, except
2 that any police officer who on July 1, 1973 had more than 5
3 years of such creditable service shall receive the total
4 amount thereof.
5 (c) Creditable service also includes service rendered by
6 a police officer while on leave of absence from a police
7 department to serve as an executive of an organization whose
8 membership consists of members of a police department,
9 subject to the following conditions: (i) the police officer
10 is a participant of a fund established under this Article
11 with at least 10 years of service as a police officer; (ii)
12 the police officer received no credit for such service under
13 any other retirement system, pension fund, or annuity and
14 benefit fund included in this Code; (iii) pursuant to the
15 rules of the board the police officer pays to the fund the
16 amount he or she would have contributed had the officer been
17 an active member of the police department; and (iv) the
18 organization pays a contribution equal to the municipality's
19 normal cost for that period of service.
20 (d)(1) Creditable service also includes periods of
21 service originally established in another police pension fund
22 under this Article or in the Fund established under Article 7
23 of this Code for which (i) the contributions have been
24 transferred under Section 3-110.7 or Section 7-139.9 and (ii)
25 any additional contribution required under paragraph (2) of
26 this subsection has been paid in full in accordance with the
27 requirements of this subsection (d).
28 (2) If the board of the pension fund to which
29 creditable service and related contributions are transferred
30 under Section 3-110.7 or 7-139.9 determines that the amount
31 transferred is less than the true cost to the pension fund of
32 allowing that creditable service to be established, then in
33 order to establish that creditable service the police officer
34 must pay to the pension fund, within the payment period
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1 specified in paragraph (3) of this subsection, an additional
2 contribution equal to the difference, as determined by the
3 board in accordance with the rules and procedures adopted
4 under paragraph (6) of this subsection.
5 (3) Except as provided in paragraph (4), the additional
6 contribution must be paid to the board (i) within 5 years
7 from the date of the transfer of contributions under Section
8 3-110.7 or 7-139.9 and (ii) before the police officer
9 terminates service with the fund. The additional
10 contribution may be paid in a lump sum or in accordance with
11 a schedule of installment payments authorized by the board.
12 (4) If the police officer dies in service before payment
13 in full has been made and before the expiration of the 5-year
14 payment period, the surviving spouse of the officer may elect
15 to pay the unpaid amount on the officer's behalf within 6
16 months after the date of death, in which case the creditable
17 service shall be granted as though the deceased police
18 officer had paid the remaining balance on the day before the
19 date of death.
20 (5) If the additional contribution is not paid in full
21 within the required time, the creditable service shall not be
22 granted and the police officer (or the officer's surviving
23 spouse or estate) shall be entitled to receive a refund of
24 (i) any partial payment of the additional contribution that
25 has been made by the police officer and (ii) those portions
26 of the amounts transferred under subdivision (a)(1) of
27 Section 3-110.7 or subdivisions (a)(1) and (a)(3) of Section
28 7-139.9 that represent employee contributions paid by the
29 police officer (but not the accumulated interest on those
30 contributions) and interest paid by the police officer to the
31 prior pension fund in order to reinstate service terminated
32 by acceptance of a refund.
33 Transferred credit that is not granted due to failure to
34 pay the additional contribution within the required time is
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1 lost; it may not be transferred to another pension fund and
2 may not be reinstated in the pension fund from which it was
3 transferred.
4 (6) The Public Employee Pension Fund Division of the
5 Department of Insurance shall establish by rule the manner of
6 making the calculation required under paragraph (2) of this
7 subsection, taking into account the appropriate actuarial
8 assumptions; the police officer's service, age, and salary
9 history; the level of funding of the pension fund to which
10 the credits are being transferred; and any other factors that
11 the Division determines to be relevant. The rules may
12 require that all calculations made under paragraph (2) be
13 reported to the Division by the board performing the
14 calculation, together with documentation of the creditable
15 service to be transferred, the amounts of contributions and
16 interest to be transferred, the manner in which the
17 calculation was performed, the numbers relied upon in making
18 the calculation, the results of the calculation, and any
19 other information the Division may deem useful.
20 (Source: P.A. 89-52, eff. 6-30-95; 90-460, eff. 8-17-97.)
21 Section 90. The State Mandates Act is amended by adding
22 Section 8.23 as follows:
23 (30 ILCS 805/8.23 new)
24 Sec. 8.23. Exempt mandate. Notwithstanding Sections 6
25 and 8 of this Act, no reimbursement by the State is required
26 for the implementation of any mandate created by this
27 amendatory Act of the 91st General Assembly.
28 Section 99. Effective date. This Act takes effect upon
29 becoming law.