Public Act 097-0415
 
HB3334 EnrolledLRB097 10851 JDS 51355 b

    AN ACT concerning public employee benefits.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 5. The Illinois Pension Code is amended by changing
Sections 7-139, 7-146, and 7-150 as follows:
 
    (40 ILCS 5/7-139)  (from Ch. 108 1/2, par. 7-139)
    Sec. 7-139. Credits and creditable service to employees.
    (a) Each participating employee shall be granted credits
and creditable service, for purposes of determining the amount
of any annuity or benefit to which he or a beneficiary is
entitled, as follows:
        1. For prior service: Each participating employee who
    is an employee of a participating municipality or
    participating instrumentality on the effective date shall
    be granted creditable service, but no credits under
    paragraph 2 of this subsection (a), for periods of prior
    service for which credit has not been received under any
    other pension fund or retirement system established under
    this Code, as follows:
        If the effective date of participation for the
    participating municipality or participating
    instrumentality is on or before January 1, 1998, creditable
    service shall be granted for the entire period of prior
    service with that employer without any employee
    contribution.
        If the effective date of participation for the
    participating municipality or participating
    instrumentality is after January 1, 1998, creditable
    service shall be granted for the last 20% of the period of
    prior service with that employer, but no more than 5 years,
    without any employee contribution. A participating
    employee may establish creditable service for the
    remainder of the period of prior service with that employer
    by making an application in writing, accompanied by payment
    of an employee contribution in an amount determined by the
    Fund, based on the employee contribution rates in effect at
    the time of application for the creditable service and the
    employee's salary rate on the effective date of
    participation for that employer, plus interest at the
    effective rate from the date of the prior service to the
    date of payment. Application for this creditable service
    may be made at any time while the employee is still in
    service.
        A municipality that (i) has at least 35 employees; (ii)
    is located in a county with at least 2,000,000 inhabitants;
    and (iii) maintains an independent defined benefit pension
    plan for the benefit of its eligible employees may restrict
    creditable service in whole or in part for periods of prior
    service with the employer if the governing body of the
    municipality adopts an irrevocable resolution to restrict
    that creditable service and files the resolution with the
    board before the municipality's effective date of
    participation.
        Any person who has withdrawn from the service of a
    participating municipality or participating
    instrumentality prior to the effective date, who reenters
    the service of the same municipality or participating
    instrumentality after the effective date and becomes a
    participating employee is entitled to creditable service
    for prior service as otherwise provided in this subdivision
    (a)(1) only if he or she renders 2 years of service as a
    participating employee after the effective date.
    Application for such service must be made while in a
    participating status. The salary rate to be used in the
    calculation of the required employee contribution, if any,
    shall be the employee's salary rate at the time of first
    reentering service with the employer after the employer's
    effective date of participation.
        2. For current service, each participating employee
    shall be credited with:
            a. Additional credits of amounts equal to each
        payment of additional contributions received from him
        under Section 7-173, as of the date the corresponding
        payment of earnings is payable to him.
            b. Normal credits of amounts equal to each payment
        of normal contributions received from him, as of the
        date the corresponding payment of earnings is payable
        to him, and normal contributions made for the purpose
        of establishing out-of-state service credits as
        permitted under the conditions set forth in paragraph 6
        of this subsection (a).
            c. Municipality credits in an amount equal to 1.4
        times the normal credits, except those established by
        out-of-state service credits, as of the date of
        computation of any benefit if these credits would
        increase the benefit.
            d. Survivor credits equal to each payment of
        survivor contributions received from the participating
        employee as of the date the corresponding payment of
        earnings is payable, and survivor contributions made
        for the purpose of establishing out-of-state service
        credits.
        3. For periods of temporary and total and permanent
    disability benefits, each employee receiving disability
    benefits shall be granted creditable service for the period
    during which disability benefits are payable. Normal and
    survivor credits, based upon the rate of earnings applied
    for disability benefits, shall also be granted if such
    credits would result in a higher benefit to any such
    employee or his beneficiary.
        4. For authorized leave of absence without pay: A
    participating employee shall be granted credits and
    creditable service for periods of authorized leave of
    absence without pay under the following conditions:
            a. An application for credits and creditable
        service is submitted to the board while the employee is
        in a status of active employment, and within 2 years
        after termination of the leave of absence period for
        which credits and creditable service are sought.
            b. Not more than 12 complete months of creditable
        service for authorized leave of absence without pay
        shall be counted for purposes of determining any
        benefits payable under this Article.
            c. Credits and creditable service shall be granted
        for leave of absence only if such leave is approved by
        the governing body of the municipality, including
        approval of the estimated cost thereof to the
        municipality as determined by the fund, and employee
        contributions, plus interest at the effective rate
        applicable for each year from the end of the period of
        leave to date of payment, have been paid to the fund in
        accordance with Section 7-173. The contributions shall
        be computed upon the assumption earnings continued
        during the period of leave at the rate in effect when
        the leave began.
            d. Benefits under the provisions of Sections
        7-141, 7-146, 7-150 and 7-163 shall become payable to
        employees on authorized leave of absence, or their
        designated beneficiary, only if such leave of absence
        is creditable hereunder, and if the employee has at
        least one year of creditable service other than the
        service granted for leave of absence. Any employee
        contributions due may be deducted from any benefits
        payable.
            e. No credits or creditable service shall be
        allowed for leave of absence without pay during any
        period of prior service.
        5. For military service: The governing body of a
    municipality or participating instrumentality may elect to
    allow creditable service to participating employees who
    leave their employment to serve in the armed forces of the
    United States for all periods of such service, provided
    that the person returns to active employment within 90 days
    after completion of full time active duty, but no
    creditable service shall be allowed such person for any
    period that can be used in the computation of a pension or
    any other pay or benefit, other than pay for active duty,
    for service in any branch of the armed forces of the United
    States. If necessary to the computation of any benefit, the
    board shall establish municipality credits for
    participating employees under this paragraph on the
    assumption that the employee received earnings at the rate
    received at the time he left the employment to enter the
    armed forces. A participating employee in the armed forces
    shall not be considered an employee during such period of
    service and no additional death and no disability benefits
    are payable for death or disability during such period.
        Any participating employee who left his employment
    with a municipality or participating instrumentality to
    serve in the armed forces of the United States and who
    again became a participating employee within 90 days after
    completion of full time active duty by entering the service
    of a different municipality or participating
    instrumentality, which has elected to allow creditable
    service for periods of military service under the preceding
    paragraph, shall also be allowed creditable service for his
    period of military service on the same terms that would
    apply if he had been employed, before entering military
    service, by the municipality or instrumentality which
    employed him after he left the military service and the
    employer costs arising in relation to such grant of
    creditable service shall be charged to and paid by that
    municipality or instrumentality.
        Notwithstanding the foregoing, any participating
    employee shall be entitled to creditable service as
    required by any federal law relating to re-employment
    rights of persons who served in the United States Armed
    Services. Such creditable service shall be granted upon
    payment by the member of an amount equal to the employee
    contributions which would have been required had the
    employee continued in service at the same rate of earnings
    during the military leave period, plus interest at the
    effective rate.
        5.1. In addition to any creditable service established
    under paragraph 5 of this subsection (a), creditable
    service may be granted for up to 48 months of service in
    the armed forces of the United States.
        In order to receive creditable service for military
    service under this paragraph 5.1, a participating employee
    must (1) apply to the Fund in writing and provide evidence
    of the military service that is satisfactory to the Board;
    (2) obtain the written approval of the current employer;
    and (3) make contributions to the Fund equal to (i) the
    employee contributions that would have been required had
    the service been rendered as a member, plus (ii) an amount
    determined by the board to be equal to the employer's
    normal cost of the benefits accrued for that military
    service, plus (iii) interest on items (i) and (ii) from the
    date of first membership in the Fund to the date of
    payment. The required interest shall be calculated at the
    regular interest rate.
        The changes made to this paragraph 5.1 by Public Acts
    95-483 and 95-486 apply only to participating employees in
    service on or after August 28, 2007 (the effective date of
    those Public Acts).
        6. For out-of-state service: Creditable service shall
    be granted for service rendered to an out-of-state local
    governmental body under the following conditions: The
    employee had participated and has irrevocably forfeited
    all rights to benefits in the out-of-state public employees
    pension system; the governing body of his participating
    municipality or instrumentality authorizes the employee to
    establish such service; the employee has 2 years current
    service with this municipality or participating
    instrumentality; the employee makes a payment of
    contributions, which shall be computed at 8% (normal) plus
    2% (survivor) times length of service purchased times the
    average rate of earnings for the first 2 years of service
    with the municipality or participating instrumentality
    whose governing body authorizes the service established
    plus interest at the effective rate on the date such
    credits are established, payable from the date the employee
    completes the required 2 years of current service to date
    of payment. In no case shall more than 120 months of
    creditable service be granted under this provision.
        7. For retroactive service: Any employee who could have
    but did not elect to become a participating employee, or
    who should have been a participant in the Municipal Public
    Utilities Annuity and Benefit Fund before that fund was
    superseded, may receive creditable service for the period
    of service not to exceed 50 months; however, a current or
    former elected or appointed official of a participating
    municipality may establish credit under this paragraph 7
    for more than 50 months of service as an official of that
    municipality, if the excess over 50 months is approved by
    resolution of the governing body of the affected
    municipality filed with the Fund before January 1, 2002.
        Any employee who is a participating employee on or
    after September 24, 1981 and who was excluded from
    participation by the age restrictions removed by Public Act
    82-596 may receive creditable service for the period, on or
    after January 1, 1979, excluded by the age restriction and,
    in addition, if the governing body of the participating
    municipality or participating instrumentality elects to
    allow creditable service for all employees excluded by the
    age restriction prior to January 1, 1979, for service
    during the period prior to that date excluded by the age
    restriction. Any employee who was excluded from
    participation by the age restriction removed by Public Act
    82-596 and who is not a participating employee on or after
    September 24, 1981 may receive creditable service for
    service after January 1, 1979. Creditable service under
    this paragraph shall be granted upon payment of the
    employee contributions which would have been required had
    he participated, with interest at the effective rate for
    each year from the end of the period of service established
    to date of payment.
        8. For accumulated unused sick leave: A participating
    employee who is applying for a retirement annuity shall be
    entitled to creditable service for that portion of the
    employee's accumulated unused sick leave for which payment
    is not received, as follows:
            a. Sick leave days shall be limited to those
        accumulated under a sick leave plan established by a
        participating municipality or participating
        instrumentality which is available to all employees or
        a class of employees.
            b. Except as provided in item b-1, only sick leave
        days accumulated with a participating municipality or
        participating instrumentality with which the employee
        was in service within 60 days of the effective date of
        his retirement annuity shall be credited; If the
        employee was in service with more than one employer
        during this period only the sick leave days with the
        employer with which the employee has the greatest
        number of unpaid sick leave days shall be considered.
            b-1. If the employee was in the service of more
        than one employer as defined in item (2) of paragraph
        (a) of subsection (A) of Section 7-132, then the sick
        leave days from all such employers shall be credited,
        as long as the creditable service attributed to those
        sick leave days does not exceed the limitation in item
        f of this paragraph 8. In calculating the creditable
        service under this item b-1, the sick leave days from
        the last employer shall be considered first, then the
        remaining sick leave days shall be considered until
        there are no more days or the maximum creditable sick
        leave threshold under item f of this paragraph 8 has
        been reached.
            c. The creditable service granted shall be
        considered solely for the purpose of computing the
        amount of the retirement annuity and shall not be used
        to establish any minimum service period required by any
        provision of the Illinois Pension Code, the effective
        date of the retirement annuity, or the final rate of
        earnings.
            d. The creditable service shall be at the rate of
        1/20 of a month for each full sick day, provided that
        no more than 12 months may be credited under this
        subdivision 8.
            e. Employee contributions shall not be required
        for creditable service under this subdivision 8.
            f. Each participating municipality and
        participating instrumentality with which an employee
        has service within 60 days of the effective date of his
        retirement annuity shall certify to the board the
        number of accumulated unpaid sick leave days credited
        to the employee at the time of termination of service.
        9. For service transferred from another system:
    Credits and creditable service shall be granted for service
    under Article 3, 4, 5, 8, 14, or 16 of this Act, to any
    active member of this Fund, and to any inactive member who
    has been a county sheriff, upon transfer of such credits
    pursuant to Section 3-110.3, 4-108.3, 5-235, 8-226.7,
    14-105.6, or 16-131.4, and payment by the member of the
    amount by which (1) the employer and employee contributions
    that would have been required if he had participated in
    this Fund as a sheriff's law enforcement employee during
    the period for which credit is being transferred, plus
    interest thereon at the effective rate for each year,
    compounded annually, from the date of termination of the
    service for which credit is being transferred to the date
    of payment, exceeds (2) the amount actually transferred to
    the Fund. Such transferred service shall be deemed to be
    service as a sheriff's law enforcement employee for the
    purposes of Section 7-142.1.
        10. For service transferred from an Article 3 system
    under Section 3-110.8: Credits and creditable service
    shall be granted for service under Article 3 of this Act as
    provided in Section 3-110.8, to any active member of this
    Fund upon transfer of such credits pursuant to Section
    3-110.8. If the amount by which (1) the employer and
    employee contributions that would have been required if he
    had participated in this Fund during the period for which
    credit is being transferred, plus interest thereon at the
    effective rate for each year, compounded annually, from the
    date of termination of the service for which credit is
    being transferred to the date of payment, exceeds (2) the
    amount actually transferred to the Fund, then the amount of
    creditable service established under this paragraph 10
    shall be reduced by a corresponding amount in accordance
    with the rules and procedures established under this
    paragraph 10.
        The board shall establish by rule the manner of making
    the calculation required under this paragraph 10, taking
    into account the appropriate actuarial assumptions; the
    member's service, age, and salary history; the level of
    funding of the employer; and any other factors that the
    board determines to be relevant.
        Until January 1, 2010, members who transferred service
    from an Article 3 system under the provisions of Public Act
    94-356 may establish additional credit in this Fund, but
    only up to the amount of the service credit reduction in
    that transfer, as calculated under the actuarial
    assumptions. This credit may be established upon payment by
    the member of an amount to be determined by the board,
    equal to (1) the amount that would have been contributed as
    employee and employer contributions had all the service
    been as an employee under this Article, plus interest
    thereon compounded annually from the date of service to the
    date of transfer, less (2) the total amount transferred
    from the Article 3 system, plus (3) interest on the
    difference at the effective rate for each year, compounded
    annually, from the date of the transfer to the date of
    payment. The additional service credit is allowed under
    this amendatory Act of the 95th General Assembly
    notwithstanding the provisions of Article 3 terminating
    all transferred credits on the date of transfer.
    (b) Creditable service - amount:
        1. One month of creditable service shall be allowed for
    each month for which a participating employee made
    contributions as required under Section 7-173, or for which
    creditable service is otherwise granted hereunder. Not
    more than 1 month of service shall be credited and counted
    for 1 calendar month, and not more than 1 year of service
    shall be credited and counted for any calendar year. A
    calendar month means a nominal month beginning on the first
    day thereof, and a calendar year means a year beginning
    January 1 and ending December 31.
        2. A seasonal employee shall be given 12 months of
    creditable service if he renders the number of months of
    service normally required by the position in a 12-month
    period and he remains in service for the entire 12-month
    period. Otherwise a fractional year of service in the
    number of months of service rendered shall be credited.
        3. An intermittent employee shall be given creditable
    service for only those months in which a contribution is
    made under Section 7-173.
    (c) No application for correction of credits or creditable
service shall be considered unless the board receives an
application for correction while (1) the applicant is a
participating employee and in active employment with a
participating municipality or instrumentality, or (2) while
the applicant is actively participating in a pension fund or
retirement system which is a participating system under the
Retirement Systems Reciprocal Act. A participating employee or
other applicant shall not be entitled to credits or creditable
service unless the required employee contributions are made in
a lump sum or in installments made in accordance with board
rule.
    (d) Upon the granting of a retirement, surviving spouse or
child annuity, a death benefit or a separation benefit, on
account of any employee, all individual accumulated credits
shall thereupon terminate. Upon the withdrawal of additional
contributions, the credits applicable thereto shall thereupon
terminate. Terminated credits shall not be applied to increase
the benefits any remaining employee would otherwise receive
under this Article.
(Source: P.A. 95-483, eff. 8-28-07; 95-486, eff. 8-28-07;
95-504, eff. 8-28-07; 95-812, eff. 8-13-08; 95-876, eff.
8-21-08; 96-299, eff. 8-11-09.)
 
    (40 ILCS 5/7-146)  (from Ch. 108 1/2, par. 7-146)
    Sec. 7-146. Temporary disability benefits - Eligibility.
Temporary disability benefits shall be payable to
participating employees as hereinafter provided.
    (a) The participating employee shall be considered
temporarily disabled if:
        1. He is unable to perform the duties of any position
    which might reasonably be assigned to him by his employing
    municipality or instrumentality thereof or participating
    instrumentality due to mental or physical disability
    caused by bodily injury or disease, other than as a result
    of self-inflicted injury or addiction to narcotic drugs;
        2. The Board has received written certifications from
    at least one licensed and practicing physician and the
    governing body of the employing municipality or
    instrumentality thereof or participating instrumentality
    stating that the employee meets the conditions set forth in
    subparagraph 1 of this paragraph (a).
    (b) A temporary disability benefit shall be payable to a
temporarily disabled employee provided:
        1. He:
            (i) has at least one year of service immediately
        preceding at the date the temporary disability was
        incurred and has made contributions to the fund for at
        least the number of months of service normally required
        in his position during a 12-month period, or has at
        least 5 years of service credit, the last year of which
        immediately precedes such date; or
            (ii) had qualified under clause (i) above, but had
        an interruption in service with the same participating
        municipality or participating instrumentality of not
        more than 3 months in the 12 months preceding the date
        the temporary disability was incurred and was not paid
        a separation benefit; or
            (iii) had qualified under clause (i) above, but had
        an interruption after 20 or more years of creditable
        service, was not paid a separation benefit, and
        returned to service prior to the date the disability
        was incurred.
        Item (iii) of this subdivision shall apply to all
    employees whose disabilities were incurred on or after July
    1, 1985, and any such employee who becomes eligible for a
    disability benefit under item (iii) shall be entitled to
    receive a lump sum payment of any accumulated disability
    benefits which may accrue from the date the disability was
    incurred until the effective date of this amendatory Act of
    1987.
        Periods of qualified leave granted in compliance with
    the federal Family and Medical Leave Act shall be ignored
    for purposes of determining the number of consecutive
    months of employment under this subdivision (b)1.
        2. He has been temporarily disabled for at least 30
    days, except where a former temporary or permanent and
    total disability has reoccurred within 6 months after the
    employee has returned to service.
        3. He is receiving no earnings from a participating
    municipality or instrumentality thereof or participating
    instrumentality, except as allowed under subsection (f) of
    Section 7-152.
        4. He has not refused to submit to a reasonable
    physical examination by a physician appointed by the Board.
        5. His disability is not the result of a mental or
    physical condition which existed on the earliest date of
    service from which he has uninterrupted service, including
    prior service, at the date of his disability, provided that
    this limitation is not applicable if the date of disability
    is after December 31, 2001, nor is it applicable to a
    participating employee who: (i) on the date of disability
    has 5 years of creditable service, exclusive of creditable
    service for periods of disability; or (ii) received no
    medical treatment for the condition for the 3 years
    immediately prior to such earliest date of service.
        6. He is not separated from the service of the
    participating municipality or instrumentality thereof or
    participating instrumentality which employed him on the
    date his temporary disability was incurred; for the
    purposes of payment of temporary disability benefits, a
    participating employee, whose employment relationship is
    terminated by his employing municipality, shall be deemed
    not to be separated from the service of his employing
    municipality or participating instrumentality if he
    continues disabled by the same condition and so long as he
    is otherwise entitled to such disability benefit.
        7. He has not failed or refused to consent to and sign
    an authorization allowing the Board to receive copies of or
    to examine his medical and hospital records.
        8. He has not failed or refused to provide complete
    information regarding any other employment for
    compensation he has received since becoming disabled.
(Source: P.A. 92-424, eff. 8-17-01.)
 
    (40 ILCS 5/7-150)  (from Ch. 108 1/2, par. 7-150)
    Sec. 7-150. Total and permanent disability benefits -
Eligibility. Total and permanent disability benefits shall be
payable to participating employees as hereinafter provided,
including those employees receiving disability benefit on July
1, 1962.
    (a) A participating employee shall be considered totally
and permanently disabled if:
        1. He is unable to engage in any gainful activity
    because of any medically determinable physical or mental
    impairment which can be expected to result in death or be
    of a long continued and indefinite duration, other than as
    a result of self-inflicted injury or addiction to narcotic
    drugs;
        2. The Board has received a written certification by at
    least 1 licensed and practicing physician stating that the
    employee meets the qualifications of subparagraph 1 of this
    paragraph (a).
    (b) A totally and permanently disabled employee is entitled
to a permanent disability benefit provided:
        1. He has exhausted his temporary disability benefits.
        2. He:
            (i) has at least one year of service immediately
        preceding the date the disability was incurred and has
        made contributions to the fund for at least the number
        of months of service normally required in his position
        during a 12 month period, or has at least 5 years of
        service credit, the last year of which immediately
        preceded the date the disability was incurred; or
            (ii) had qualified under clause (i) above, but had
        an interruption in service with the same participating
        municipality or participating instrumentality of not
        more than 3 months in the 12 months preceding the date
        the temporary disability was incurred and was not paid
        a separation benefit; or
            (iii) had qualified under clause (i) above, but had
        an interruption after 20 or more years of creditable
        service, was not paid a separation benefit, and
        returned to service prior to the date the disability
        was incurred.
        Item (iii) of this subdivision shall apply to all
    employees whose disabilities were incurred on or after July
    1, 1985, and any such employee who becomes eligible for a
    disability benefit under item (iii) shall be entitled to
    receive a lump sum payment of any accumulated disability
    benefits which may accrue from the date the disability was
    incurred until the effective date of this amendatory Act of
    1987.
        Periods of qualified leave granted in compliance with
    the federal Family and Medical Leave Act shall be ignored
    for purposes of determining the number of consecutive
    months of employment under this subdivision (b)2.
        3. He is receiving no earnings from a participating
    municipality or instrumentality thereof or participating
    instrumentality, except as allowed under subsection (f) of
    Section 7-152.
        4. He has not refused to submit to a reasonable
    physical examination by a physician appointed by the Board.
        5. His disability is not the result of a mental or
    physical condition which existed on the earliest date of
    service from which he has uninterrupted service, including
    prior service, at the date of his disability, provided that
    this limitation shall not be applicable to a participating
    employee who, without receiving a disability benefit,
    receives 5 years of creditable service.
        6. He is not separated from the service of his
    employing participating municipality or instrumentality
    thereof or participating instrumentality on the date his
    temporary disability was incurred; for the purposes of
    payment of total and permanent disability benefits, a
    participating employee, whose employment relationship is
    terminated by his employing municipality, shall be deemed
    not to be separated from the service of his employing
    municipality or participating instrumentality if he
    continues disabled by the same condition and so long as he
    is otherwise entitled to such disability benefit.
        7. He has not refused to apply for a disability benefit
    under the Federal Social Security Act at the request of the
    Board.
        8. He has not failed or refused to consent to and sign
    an authorization allowing the Board to receive copies of or
    to examine his medical and hospital records.
        9. He has not failed or refused to provide complete
    information regarding any other employment for
    compensation he has received since becoming disabled.
    (c) A participating employee shall remain eligible and may
make application for a total and permanent disability benefit
within 90 days after the termination of his temporary
disability benefits or within such longer period terminating at
the end of the period during which his employing municipality
is prevented from employing him by reason of any statutory
prohibition.
(Source: P.A. 90-766, eff. 8-14-98.)
 
    Section 90. The State Mandates Act is amended by adding
Section 8.35 as follows:
 
    (30 ILCS 805/8.35 new)
    Sec. 8.35. Exempt mandate. Notwithstanding Sections 6 and 8
of this Act, no reimbursement by the State is required for the
implementation of any mandate created by this amendatory Act of
the 97th General Assembly.
 
    Section 99. Effective date. This Act takes effect upon
becoming law.

Effective Date: 8/16/2011