Bill Text: IL SB2914 | 2021-2022 | 102nd General Assembly | Introduced

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Bill Title: Amends the Downstate Police and Illinois Municipal Retirement Fund (IMRF) Articles of the Illinois Pension Code. Provides that within 6 months after the effective date of the amendatory Act, an active IMRF member may apply for transfer of credits and creditable service under the Downstate Police Article to IMRF. Provides that the credits and creditable service shall be transferred upon payment by the police pension fund of an amount equal to the amounts accumulated to the credit of the applicant for the service to be transferred, including interest; an amount representing employer contributions; and any interest paid by the applicant to reinstate such service. Provides that a person applying to transfer service under the provisions may reinstate credits and creditable service terminated upon receipt of a refund by paying to the police pension fund the amount of the refund plus interest. Provides that if the board of trustees of IMRF determines that the amount transferred is less than the true cost to IMRF of allowing that creditable service to be established, then in order to establish that creditable service, the member must pay to IMRF an additional contribution equal to the difference. Makes conforming and other changes. Amends the State Mandates Act to require implementation without reimbursement by the State. Effective immediately.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2022-06-15 - Chief Sponsor Changed to Sen. Don Harmon [SB2914 Detail]

Download: Illinois-2021-SB2914-Introduced.html

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102ND GENERAL ASSEMBLY State of Illinois 2021 and 2022 SB2914 Introduced 10/13/2021, by Sen. Rachelle Crowe SYNOPSIS AS INTRODUCED:
40 ILCS 5/3-110.13 new
40 ILCS 5/7-139 from Ch. 108 1/2, par. 7-139
30 ILCS 805/8.45 new
Amends the Downstate Police and Illinois Municipal Retirement Fund (IMRF) Articles of the Illinois Pension Code. Provides that within 6 months after the effective date of the amendatory Act, an active IMRF member may apply for transfer of credits and creditable service under the Downstate Police Article to IMRF. Provides that the credits and creditable service shall be transferred upon payment by the police pension fund of an amount equal to the amounts accumulated to the credit of the applicant for the service to be transferred, including interest; an amount representing employer contributions; and any interest paid by the applicant to reinstate such service. Provides that a person applying to transfer service under the provisions may reinstate credits and creditable service terminated upon receipt of a refund by paying to the police pension fund the amount of the refund plus interest. Provides that if the board of trustees of IMRF determines that the amount transferred is less than the true cost to IMRF of allowing that creditable service to be established, then in order to establish that creditable service, the member must pay to IMRF an additional contribution equal to the difference. Makes conforming and other changes. Amends the State Mandates Act to require implementation without reimbursement by the State. Effective immediately.
LRB102 19614 RPS 28383 b
FISCAL NOTE ACT MAY APPLY PENSION IMPACT NOTE ACT MAY APPLY STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT
A BILL FOR
SB2914 LRB102 19614 RPS 28383 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 Section 7-139 and by adding Section 3-110.13 as
follows:
(40 ILCS 5/3-110.13 new)
Sec. 3-110.13. Transfer to IMRF.
(a) Within 6 months after the effective date of this
amendatory Act of the 102nd General Assembly, an active member
of the Illinois Municipal Retirement Fund established under
Article 7 of this Code may apply for transfer to the Illinois
Municipal Retirement Fund of his or her credits and creditable
service accumulated in a police pension fund under this
Article. The creditable service shall be transferred only upon
payment by the police pension fund to the Illinois Municipal
Retirement Fund of an amount equal to:
(1) the amounts accumulated to the credit of the
applicant for the service to be transferred, including
interest;
(2) an amount representing employer contributions; and
(3) any interest paid by the applicant to reinstate
such service.

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Participation in the police pension fund as to any credits
transferred under this Section shall terminate on the date of
transfer.
(b) Notwithstanding any other provision of this Code, any
person applying to transfer service under this Section may
reinstate credits and creditable service terminated upon
receipt of a refund by paying to the police pension fund the
amount of the refund plus interest thereon at the actuarially
assumed rate of interest to the date of payment. Such payment
must be made within 90 days after notification by the police
pension fund of the cost of such reinstatement.
(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:

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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

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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

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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

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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.

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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

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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

SB2914 - 9 - LRB102 19614 RPS 28383 b
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

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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,

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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.

SB2914 - 12 - LRB102 19614 RPS 28383 b
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

SB2914 - 13 - LRB102 19614 RPS 28383 b
(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
d of this paragraph 8. If the employee was in the
service of more than one employer described in
paragraph (c) of subsection (B) of Section 7-132 on or
after the effective date of this amendatory Act of the
101st General Assembly, then the sick leave days from
all such employers, except for employers from which
the employee terminated service before the effective
date of this amendatory Act of the 101st General
Assembly, shall be credited, as long as the creditable
service attributed to those sick leave days does not
exceed the limitation in item d 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 d 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

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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

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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 or 3-110.13: Credits and creditable
service shall be granted for service under Article 3 of
this Code Act as provided in Section 3-110.3 or 3-110.13,
to any active member of this Fund, upon transfer of such
credits pursuant to Section 3-110.3 or 3-110.13. 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 or
3-110.13, including any payments made by the member under

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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:

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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

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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. 100-148, eff. 8-18-17; 101-492, eff. 8-23-19.)
Section 90. The State Mandates Act is amended by adding
Section 8.45 as follows:
(30 ILCS 805/8.45 new)
Sec. 8.45. Exempt mandate. Notwithstanding Sections 6 and

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8 of this Act, no reimbursement by the State is required for
the implementation of any mandate created by this amendatory
Act of the 102nd General Assembly.
Section 99. Effective date. This Act takes effect upon
becoming law.