Bill Text: IL HB3070 | 2017-2018 | 100th General Assembly | Chaptered


Bill Title: Amends the Illinois Municipal Retirement Fund (IMRF) Article of the Illinois Pension Code. With respect to establishing certain types of service credit in the Fund, provides that application and payment must be received by the Board while the applicant is an active participant, except that one payment will be permitted after termination of participation. Effective immediately.

Spectrum: Partisan Bill (Democrat 5-0)

Status: (Passed) 2017-08-18 - Public Act . . . . . . . . . 100-0148 [HB3070 Detail]

Download: Illinois-2017-HB3070-Chaptered.html



Public Act 100-0148
HB3070 EnrolledLRB100 09046 RPS 19195 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, 7-139.2, 7-142.1, 7-145.1, and 7-169 as
follows:
(40 ILCS 5/7-139) (from Ch. 108 1/2, par. 7-139)
(Text of Section WITHOUT the changes made by P.A. 98-599,
which has been held unconstitutional)
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.
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 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 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. (Blank).
11. For service transferred from an Article 3 system
under Section 3-110.3: Credits and creditable service
shall be granted for service under Article 3 of this Act as
provided in Section 3-110.3, to any active member of this
Fund, upon transfer of such credits pursuant to Section
3-110.3. If the board determines that the amount
transferred is less than the true cost to the Fund of
allowing that creditable service to be established, then in
order to establish that creditable service, the member must
pay to the Fund an additional contribution equal to the
difference, as determined by the board in accordance with
the rules and procedures adopted under this paragraph. If
the member does not make the full additional payment as
required by this paragraph prior to termination of his
participation with that employer, then his or her
creditable service shall be reduced by an amount equal to
the difference between the amount transferred under
Section 3-110.3, including any payments made by the member
under this paragraph prior to termination, and the true
cost to the Fund of allowing that creditable service to be
established, as determined by the board in accordance with
the rules and procedures adopted under this paragraph.
The board shall establish by rule the manner of making
the calculation required under this paragraph 11, taking
into account the appropriate actuarial assumptions; the
member's service, age, and salary history, and any other
factors that the board determines to be relevant.
12. For omitted service: Any employee who was employed
by a participating employer in a position that required
participation, but who was not enrolled in the Fund, may
establish such credits under the following conditions:
a. Application for such credits is received by the
Board while the employee is an active participant of
the Fund or a reciprocal retirement system.
b. Eligibility for participation and earnings are
verified by the Authorized Agent of the participating
employer for which the service was rendered.
Creditable service under this paragraph shall be
granted upon payment of the employee contributions that
would have been required had he participated, which shall
be calculated by the Fund using the member contribution
rate in effect during the period that the service was
rendered.
(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. Payments made to establish service credit under paragraph
1, 4, 5, 5.1, 6, 7, or 12 of subsection (a) of this Section must
be received by the Board while the applicant is an active
participant in the Fund or a reciprocal retirement system,
except that an applicant may make one payment after termination
of active participation in the Fund or a reciprocal retirement
system.
(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. 97-415, eff. 8-16-11; 98-439, eff. 8-16-13;
98-932, eff. 8-15-14.)
(40 ILCS 5/7-139.2) (from Ch. 108 1/2, par. 7-139.2)
Sec. 7-139.2. Validation of service credits. An active
member of the General Assembly having no service credits or
creditable service in the Fund, may establish service credit
and creditable service for periods during which he was an
employee of a municipality in an elective office and could have
elected to participate in the Fund but did not so elect.
Service credits and creditable service may be established by
payment to the Fund of an amount equal to the contributions he
would have made if he had elected to participate plus interest
to the date of payment, together with the applicable
municipality credits including interest, but the total period
of such creditable service that may be validated shall not
exceed 8 years. Payments made to establish such service credit
must be received by the Board while the member is an active
participant in the General Assembly Retirement System, except
that one payment will be permitted after the member terminates
such service.
(Source: P.A. 81-1536.)
(40 ILCS 5/7-142.1) (from Ch. 108 1/2, par. 7-142.1)
Sec. 7-142.1. Sheriff's law enforcement employees.
(a) In lieu of the retirement annuity provided by
subparagraph 1 of paragraph (a) of Section 7-142:
Any sheriff's law enforcement employee who has 20 or more
years of service in that capacity and who terminates service
prior to January 1, 1988 shall be entitled at his option to
receive a monthly retirement annuity for his service as a
sheriff's law enforcement employee computed by multiplying 2%
for each year of such service up to 10 years, 2 1/4% for each
year of such service above 10 years and up to 20 years, and 2
1/2% for each year of such service above 20 years, by his
annual final rate of earnings and dividing by 12.
Any sheriff's law enforcement employee who has 20 or more
years of service in that capacity and who terminates service on
or after January 1, 1988 and before July 1, 2004 shall be
entitled at his option to receive a monthly retirement annuity
for his service as a sheriff's law enforcement employee
computed by multiplying 2.5% for each year of such service up
to 20 years, 2% for each year of such service above 20 years
and up to 30 years, and 1% for each year of such service above
30 years, by his annual final rate of earnings and dividing by
12.
Any sheriff's law enforcement employee who has 20 or more
years of service in that capacity and who terminates service on
or after July 1, 2004 shall be entitled at his or her option to
receive a monthly retirement annuity for service as a sheriff's
law enforcement employee computed by multiplying 2.5% for each
year of such service by his annual final rate of earnings and
dividing by 12.
If a sheriff's law enforcement employee has service in any
other capacity, his retirement annuity for service as a
sheriff's law enforcement employee may be computed under this
Section and the retirement annuity for his other service under
Section 7-142.
In no case shall the total monthly retirement annuity for
persons who retire before July 1, 2004 exceed 75% of the
monthly final rate of earnings. In no case shall the total
monthly retirement annuity for persons who retire on or after
July 1, 2004 exceed 80% of the monthly final rate of earnings.
(b) Whenever continued group insurance coverage is elected
in accordance with the provisions of Section 367h of the
Illinois Insurance Code, as now or hereafter amended, the total
monthly premium for such continued group insurance coverage or
such portion thereof as is not paid by the municipality shall,
upon request of the person electing such continued group
insurance coverage, be deducted from any monthly pension
benefit otherwise payable to such person pursuant to this
Section, to be remitted by the Fund to the insurance company or
other entity providing the group insurance coverage.
(c) A sheriff's law enforcement employee who began service
in that capacity prior to the effective date of this amendatory
Act of the 97th General Assembly and who has service in any
other capacity may convert up to 10 years of that service into
service as a sheriff's law enforcement employee by paying to
the Fund an amount equal to (1) the additional employee
contribution required under Section 7-173.1, plus (2) the
additional employer contribution required under Section 7-172,
plus (3) interest on items (1) and (2) at the prescribed rate
from the date of the service to the date of payment.
Application must be received by the Board while the employee is
an active participant in the Fund. Payment must be received
while the member is an active participant, except that one
payment will be permitted after termination of participation.
(d) The changes to subsections (a) and (b) of this Section
made by this amendatory Act of the 94th General Assembly apply
only to persons in service on or after July 1, 2004. In the
case of such a person who begins to receive a retirement
annuity before the effective date of this amendatory Act of the
94th General Assembly, the annuity shall be recalculated
prospectively to reflect those changes, with the resulting
increase beginning to accrue on the first annuity payment date
following the effective date of this amendatory Act.
(e) Any elected county officer who was entitled to receive
a stipend from the State on or after July 1, 2009 and on or
before June 30, 2010 may establish earnings credit for the
amount of stipend not received, if the elected county official
applies in writing to the fund within 6 months after the
effective date of this amendatory Act of the 96th General
Assembly and pays to the fund an amount equal to (i) employee
contributions on the amount of stipend not received, (ii)
employer contributions determined by the Board equal to the
employer's normal cost of the benefit on the amount of stipend
not received, plus (iii) interest on items (i) and (ii) at the
actuarially assumed rate.
(f) Notwithstanding any other provision of this Article,
the provisions of this subsection (f) apply to a person who
first becomes a sheriff's law enforcement employee under this
Article on or after January 1, 2011.
A sheriff's law enforcement employee age 55 or more who has
10 or more years of service in that capacity shall be entitled
at his option to receive a monthly retirement annuity for his
or her service as a sheriff's law enforcement employee computed
by multiplying 2.5% for each year of such service by his or her
final rate of earnings.
The retirement annuity of a sheriff's law enforcement
employee who is retiring after attaining age 50 with 10 or more
years of creditable service shall be reduced by one-half of 1%
for each month that the sheriff's law enforcement employee's
age is under age 55.
The maximum retirement annuity under this subsection (f)
shall be 75% of final rate of earnings.
For the purposes of this subsection (f), "final rate of
earnings" means the average monthly earnings obtained by
dividing the total salary of the sheriff's law enforcement
employee during the 96 consecutive months of service within the
last 120 months of service in which the total earnings was the
highest by the number of months of service in that period.
Notwithstanding any other provision of this Article,
beginning on January 1, 2011, for all purposes under this Code
(including without limitation the calculation of benefits and
employee contributions), the annual earnings of a sheriff's law
enforcement employee to whom this Section applies shall not
include overtime and shall not exceed $106,800; however, that
amount shall annually thereafter be increased by the lesser of
(i) 3% of that amount, including all previous adjustments, or
(ii) one-half the annual unadjusted percentage increase (but
not less than zero) in the consumer price index-u for the 12
months ending with the September preceding each November 1,
including all previous adjustments.
(g) Notwithstanding any other provision of this Article,
the monthly annuity of a person who first becomes a sheriff's
law enforcement employee under this Article on or after January
1, 2011 shall be increased on the January 1 occurring either on
or after the attainment of age 60 or the first anniversary of
the annuity start date, whichever is later. Each annual
increase shall be calculated at 3% or one-half the annual
unadjusted percentage increase (but not less than zero) in the
consumer price index-u for the 12 months ending with the
September preceding each November 1, whichever is less, of the
originally granted retirement annuity. If the annual
unadjusted percentage change in the consumer price index-u for
a 12-month period ending in September is zero or, when compared
with the preceding period, decreases, then the annuity shall
not be increased.
(h) Notwithstanding any other provision of this Article,
for a person who first becomes a sheriff's law enforcement
employee under this Article on or after January 1, 2011, the
annuity to which the surviving spouse, children, or parents are
entitled under this subsection (h) shall be in the amount of 66
2/3% of the sheriff's law enforcement employee's earned annuity
at the date of death.
(i) Notwithstanding any other provision of this Article,
the monthly annuity of a survivor of a person who first becomes
a sheriff's law enforcement employee under this Article on or
after January 1, 2011 shall be increased on the January 1 after
attainment of age 60 by the recipient of the survivor's annuity
and each January 1 thereafter by 3% or one-half the annual
unadjusted percentage increase in the consumer price index-u
for the 12 months ending with the September preceding each
November 1, whichever is less, of the originally granted
pension. If the annual unadjusted percentage change in the
consumer price index-u for a 12-month period ending in
September is zero or, when compared with the preceding period,
decreases, then the annuity shall not be increased.
(j) For the purposes of this Section, "consumer price
index-u" means the index published by the Bureau of Labor
Statistics of the United States Department of Labor that
measures the average change in prices of goods and services
purchased by all urban consumers, United States city average,
all items, 1982-84 = 100. The new amount resulting from each
annual adjustment shall be determined by the Public Pension
Division of the Department of Insurance and made available to
the boards of the pension funds.
(Source: P.A. 96-961, eff. 7-2-10; 96-1495, eff. 1-1-11;
97-272, eff. 8-8-11; 97-609, eff. 8-26-11.)
(40 ILCS 5/7-145.1)
Sec. 7-145.1. Alternative annuity for county officers.
(a) The benefits provided in this Section and Section
7-145.2 are available only if, prior to the effective date of
this amendatory Act of the 97th General Assembly, the county
board has filed with the Board of the Fund a resolution or
ordinance expressly consenting to the availability of these
benefits for its elected county officers. The county board's
consent is irrevocable with respect to persons participating in
the program, but may be revoked at any time with respect to
persons who have not paid an additional optional contribution
under this Section before the date of revocation.
An elected county officer may elect to establish
alternative credits for an alternative annuity by electing in
writing before the effective date of this amendatory Act of the
97th General Assembly to make additional optional
contributions in accordance with this Section and procedures
established by the board. These alternative credits are
available only for periods of service as an elected county
officer. The elected county officer may discontinue making the
additional optional contributions by notifying the Fund in
writing in accordance with this Section and procedures
established by the board.
Additional optional contributions for the alternative
annuity shall be as follows:
(1) For service as an elected county officer after the
option is elected, an additional contribution of 3% of
salary shall be contributed to the Fund on the same basis
and under the same conditions as contributions required
under Section 7-173.
(2) For service as an elected county officer before the
option is elected, an additional contribution of 3% of the
salary for the applicable period of service, plus interest
at the effective rate from the date of service to the date
of payment, plus any additional amount required by the
county board under paragraph (3). All payments for past
service must be paid in full before credit is given.
Payment must be received by the Board while the member is
an active participant, except that one payment will be
permitted after termination of participation.
(3) With respect to service as an elected county
officer before the option is elected, if payment is made
after the county board has filed with the Board of the Fund
a resolution or ordinance requiring an additional
contribution under this paragraph, then the contribution
required under paragraph (2) shall include an amount to be
determined by the Fund, equal to the actuarial present
value of the additional employer cost that would otherwise
result from the alternative credits being established for
that service. A county board's resolution or ordinance
requiring additional contributions under this paragraph
(3) is irrevocable. Payment must be received by the Board
while the member is an active participant, except that one
payment will be permitted after termination of
participation.
No additional optional contributions may be made for any
period of service for which credit has been previously
forfeited by acceptance of a refund, unless the refund is
repaid in full with interest at the effective rate from the
date of refund to the date of repayment.
(b) In lieu of the retirement annuity otherwise payable
under this Article, an elected county officer who (1) has
elected to participate in the Fund and make additional optional
contributions in accordance with this Section, (2) has held and
made additional optional contributions with respect to the same
elected county office for at least 8 years, and (3) has
attained age 55 with at least 8 years of service credit (or has
attained age 50 with at least 20 years of service as a
sheriff's law enforcement employee) may elect to have his
retirement annuity computed as follows: 3% of the participant's
salary for each of the first 8 years of service credit, plus 4%
of that salary for each of the next 4 years of service credit,
plus 5% of that salary for each year of service credit in
excess of 12 years, subject to a maximum of 80% of that salary.
This formula applies only to service in an elected county
office that the officer held for at least 8 years, and only to
service for which additional optional contributions have been
paid under this Section. If an elected county officer qualifies
to have this formula applied to service in more than one
elected county office, the qualifying service shall be
accumulated for purposes of determining the applicable accrual
percentages, but the salary used for each office shall be the
separate salary calculated for that office, as defined in
subsection (g).
To the extent that the elected county officer has service
credit that does not qualify for this formula, his retirement
annuity will first be determined in accordance with this
formula with respect to the service to which this formula
applies, and then in accordance with the remaining Sections of
this Article with respect to the service to which this formula
does not apply.
(c) In lieu of the disability benefits otherwise payable
under this Article, an elected county officer who (1) has
elected to participate in the Fund, and (2) has become
permanently disabled and as a consequence is unable to perform
the duties of his office, and (3) was making optional
contributions in accordance with this Section at the time the
disability was incurred, may elect to receive a disability
annuity calculated in accordance with the formula in subsection
(b). For the purposes of this subsection, an elected county
officer shall be considered permanently disabled only if: (i)
disability occurs while in service as an elected county officer
and is of such a nature as to prevent him from reasonably
performing the duties of his office at the time; and (ii) the
board has received a written certification by at least 2
licensed physicians appointed by it stating that the officer is
disabled and that the disability is likely to be permanent.
(d) Refunds of additional optional contributions shall be
made on the same basis and under the same conditions as
provided under Section 7-166, 7-167 and 7-168. Interest shall
be credited at the effective rate on the same basis and under
the same conditions as for other contributions.
If an elected county officer fails to hold that same
elected county office for at least 8 years, he or she shall be
entitled after leaving office to receive a refund of the
additional optional contributions made with respect to that
office, plus interest at the effective rate.
(e) The plan of optional alternative benefits and
contributions shall be available to persons who are elected
county officers and active contributors to the Fund on or after
November 15, 1994 and elected to establish alternative credit
before the effective date of this amendatory Act of the 97th
General Assembly. A person who was an elected county officer
and an active contributor to the Fund on November 15, 1994 but
is no longer an active contributor may apply to make additional
optional contributions under this Section at any time within 90
days after the effective date of this amendatory Act of 1997;
if the person is an annuitant, the resulting increase in
annuity shall begin to accrue on the first day of the month
following the month in which the required payment is received
by the Fund.
(f) For the purposes of this Section and Section 7-145.2,
the terms "elected county officer" and "elected county office"
include, but are not limited to: (1) the county clerk,
recorder, treasurer, coroner, assessor (if elected), auditor,
sheriff, and State's Attorney; members of the county board; and
the clerk of the circuit court; and (2) a person who has been
appointed to fill a vacancy in an office that is normally
filled by election on a countywide basis, for the duration of
his or her service in that office. The terms "elected county
officer" and "elected county office" do not include any officer
or office of a county that has not consented to the
availability of benefits under this Section and Section
7-145.2.
(g) For the purposes of this Section and Section 7-145.2,
the term "salary" means the final rate of earnings for the
elected county office held, calculated in a manner consistent
with Section 7-116, but for that office only. If an elected
county officer qualifies to have the formula in subsection (b)
applied to service in more than one elected county office, a
separate salary shall be calculated and applied with respect to
each such office.
(h) The changes to this Section made by this amendatory Act
of the 91st General Assembly apply to persons who first make an
additional optional contribution under this Section on or after
the effective date of this amendatory Act.
(i) Any elected county officer who was entitled to receive
a stipend from the State on or after July 1, 2009 and on or
before June 30, 2010 may establish earnings credit for the
amount of stipend not received, if the elected county official
applies in writing to the fund within 6 months after the
effective date of this amendatory Act of the 96th General
Assembly and pays to the fund an amount equal to (i) employee
contributions on the amount of stipend not received, (ii)
employer contributions determined by the Board equal to the
employer's normal cost of the benefit on the amount of stipend
not received, plus (iii) interest on items (i) and (ii) at the
actuarially assumed rate.
(Source: P.A. 96-961, eff. 7-2-10; 97-272, eff. 8-8-11; 97-609,
eff. 8-26-11.)
(40 ILCS 5/7-169) (from Ch. 108 1/2, par. 7-169)
Sec. 7-169. Separation benefits; repayments.
(a) If an employee who has received a separation benefit
subsequently becomes a participating employee, and renders at
least 2 years of contributing service from the date of such
re-entry, he may pay to the fund the amount of the separation
benefit, plus interest at the effective rate for each year from
the date of payment of the separation benefit to the date of
repayment. Upon payment his creditable service shall be
reinstated and the payment shall be credited to his account as
normal contributions. Application must be received by the Board
while the employee is an active participant in the Fund or a
reciprocal retirement system. Payment must be received while
the member is an active participant, except that one payment
will be permitted after termination of participation in the
Fund or a reciprocal retirement system.
(b) Beginning July 1, 2004, the requirement of returning
to service for at least 2 years does not apply to persons who
return to service as a sheriff's law enforcement employee. This
subsection applies only to persons in service on or after July
1, 2004. In the case of such a person who begins to receive a
retirement annuity before the effective date of this amendatory
Act of the 94th General Assembly, the annuity shall be
recalculated prospectively to reflect any credits reinstated
as a result of this subsection, with the resulting increase in
annuity beginning to accrue on the first annuity payment date
following the effective date of this amendatory Act, but not
earlier than the date the repayment is received by the Fund.
(Source: P.A. 94-712, eff. 6-1-06.)
Section 99. Effective date. This Act takes effect upon
becoming law.
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