HB 4603 — PENCD-IMRF-TRANSFER FROM ART 3

HB4603 EngrossedEnrolled LRB095 15341 AMC 41329 b AN ACT concerning public employee benefits.

(a-5) Up to 3 years of time during which the police officer receives a disability pension under Section 3-114.1, 3-114.2, 3-114.3, or 3-114.6 shall be counted as creditable service, provided that (i) the police officer returns to active service after the disability for a period at least equal to the period for which credit is to be established and (ii) the police officer makes contributions to the fund based on the rates specified in Section 3-125.1 and the salary upon which the HB4603 EngrossedEnrolled - 2 - LRB095 15341 AMC 41329 b disability pension is based.

The total amount of such creditable service shall not exceed 5 HB4603 EngrossedEnrolled - 3 - LRB095 15341 AMC 41329 b years, except that any police officer who on July 1, 1973 had more than 5 years of such creditable service shall receive the total amount thereof.

HB4603 EngrossedEnrolled - 4 - LRB095 15341 AMC 41329 b (2) If the board of the pension fund to which creditable service and related contributions are transferred under Section 3-110.7 or 7-139.9 determines that the amount transferred is less than the true cost to the pension fund of allowing that creditable service to be established, then in order to establish that creditable service the police officer must pay to the pension fund, within the payment period specified in paragraph (3) of this subsection, an additional contribution equal to the difference, as determined by the board in accordance with the rules and procedures adopted under paragraph (6) of this subsection.

(4) If the police officer dies in service before payment in full has been made and before the expiration of the 5-year payment period, the surviving spouse of the officer may elect to pay the unpaid amount on the officer’s behalf within 6 months after the date of death, in which case the creditable service shall be granted as though the HB4603 EngrossedEnrolled - 5 - LRB095 15341 AMC 41329 b deceased police officer had paid the remaining balance on the day before the date of death.

Transferred credit that is not granted due to failure HB4603 EngrossedEnrolled - 6 - LRB095 15341 AMC 41329 b to pay the additional contribution within the required time is lost;

(2) If the board of the pension fund to which HB4603 EngrossedEnrolled - 7 - LRB095 15341 AMC 41329 b creditable service and related contributions are transferred under Section 7-139.11 determines that the amount transferred is less than the true cost to the pension fund of allowing that creditable service to be established, then the amount of creditable service the police officer may establish under this subsection (e) shall be reduced by an amount equal to the difference, as determined by the board in accordance with the rules and procedures adopted under paragraph (3) of this subsection.

HB4603 EngrossedEnrolled - 8 - LRB095 15341 AMC 41329 b (4) Until January 1, 2010, a police officer who transferred service from the Fund established under Article 7 of this Code under the provisions of Public Act 94-356 may establish additional credit, but only for the amount of the service credit reduction in that transfer, as calculated under paragraph (3) of this subsection (e).

(a) Each participating employee shall be granted credits and creditable service, for purposes of determining the amount HB4603 EngrossedEnrolled - 9 - LRB095 15341 AMC 41329 b of any annuity or benefit to which he or a beneficiary is entitled, as follows:

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 HB4603 EngrossedEnrolled - 10 - LRB095 15341 AMC 41329 b 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.

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 HB4603 EngrossedEnrolled - 11 - LRB095 15341 AMC 41329 b participating employee after the effective date.

Survivor credits equal to each payment of HB4603 EngrossedEnrolled - 12 - LRB095 15341 AMC 41329 b 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.

HB4603 EngrossedEnrolled - 13 - LRB095 15341 AMC 41329 b c.

The governing body of a municipality or participating instrumentality may elect to HB4603 EngrossedEnrolled - 14 - LRB095 15341 AMC 41329 b 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.

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 HB4603 EngrossedEnrolled - 15 - LRB095 15341 AMC 41329 b 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.

HB4603 EngrossedEnrolled - 16 - LRB095 15341 AMC 41329 b (2) obtain the written approval of the current employer;

the employee makes a payment of contributions, which shall be computed at 8% (normal) plus HB4603 EngrossedEnrolled - 17 - LRB095 15341 AMC 41329 b 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.

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, HB4603 EngrossedEnrolled - 18 - LRB095 15341 AMC 41329 b 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.

Only sick leave days accumulated with a HB4603 EngrossedEnrolled - 19 - LRB095 15341 AMC 41329 b 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;

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 HB4603 EngrossedEnrolled - 20 - LRB095 15341 AMC 41329 b to the employee at the time of termination of service.

If the amount by which (1) the employer and employee contributions that would have been required if he HB4603 EngrossedEnrolled - 21 - LRB095 15341 AMC 41329 b 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.

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 HB4603 EngrossedEnrolled - 22 - LRB095 15341 AMC 41329 b 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.

HB4603 EngrossedEnrolled - 23 - LRB095 15341 AMC 41329 b 3.

revised 11-9-07.) HB4603 EngrossedEnrolled - 24 - LRB095 15341 AMC 41329 b Section 90.