Illinois 96th Regular Session Status: Passed Senate

SB 552 — PUBLIC EMPLOYEE BENEFITS-TECH

Last action — Session Sine Die

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  1. ✓
    Introduced
  2. ✓
    In Committee
  3. 3
    Passed Senate
  4. 4
    Passed House
  5. 5
    To Executive
  6. 6
    Enacted

This bill died with 96th Regular Session. It reached “Passed Senate” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.

This bill is no longer active — its legislative session has ended, so there is no live prognosis. It would have to be reintroduced in the current session to move again.

Summary

Amends the Illinois Pension Code. Makes a technical change in a Section concerning deferred compensation.

Bill Text

What changed in the latest version

312 added · 39 removed

Plain-language change summary

The recent amendments to SB 552 clarify how time served by police officers is calculated for creditable service towards their pensions. Notably, the updates now allow up to three years of creditable service for police officers who have received a disability pension, as long as they return to active duty and make necessary contributions. This change is significant because it provides greater support for officers recovering from disabilities, ensuring they can count their time on disability toward their pension benefits.

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*LRB09606605AMC16689b* SB0552 96TH GENERAL ASSEMBLY State of Illinois and 2010 SB0552 Introduced 2/6/2009, by Sen.
SB0552 Engrossed LRB096 06605 AMC 16689 b AN ACT concerning public employee benefits.
John J.
Cullerton SYNOPSIS AS INTRODUCED:
ILCS 5/24-101 from Ch.
108 1/2, par.
24-101 Amends the Illinois Pension Code.
Makes a technical change in a Section concerning deferred compensation.
LRB096 06605 AMC 16689 b PENSION IMPACT NOTE ACT MAY APPLY A BILL FOR SB0552 LRB096 06605 AMC 16689 b AN ACT concerning public employee benefits.
The Illinois Pension Code is amended by changing Section 24-101 as follows:
The Illinois Pension Code is amended by changing Sections 3-110 and 5-212 and by adding Section 5-214.3 as follows:
(40 ILCS 5/24-101) (from Ch.
(40 ILCS 5/3-110) (from Ch.
24-101) Sec.
3-110) Sec.
24-101.
3-110.
Notwithstanding any law to the the contrary, the State of Illinois or any unit of local government or school district may enter into a written contract with any of its employees to defer a part of their gross compensation and may invest such funds in any such manner as prescribed by the deferred compensation program adopted by it under this Article.
Creditable service.
Compensation deferred pursuant to a deferred compensation program adopted under this Article shall not exceed the amount of compensation allowed to be deferred without being subject to income tax in the year in which it is earned, pursuant to Section 457 of the United States Internal Revenue Code or laws supplementary or amendatory thereto.
(a) "Creditable service" is the time served by a police officer as a member of a regularly constituted police force of a municipality.
It is hereby declared to be in the public interest to provide public employees with a plan for the deferral of compensation and the accrual of income and gain thereon if such deferred compensation be invested, and to encourage the continued service of public employees by making available such SB0552 - 2 - LRB096 06605 AMC 16689 b benefits to them.
In computing creditable service furloughs without pay exceeding 30 days shall not be counted, but all leaves of absence for illness or accident, regardless of length, and all periods of disability retirement for which a police officer has received no disability pension payments under this Article shall be counted.
(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 SB0552 Engrossed - 2 - LRB096 06605 AMC 16689 b specified in Section 3-125.1 and the salary upon which the disability pension is based.
These contributions may be paid at any time prior to the commencement of a retirement pension.
The police officer may, but need not, elect to have the contributions deducted from the disability pension or to pay them in installments on a schedule approved by the board.
If not deducted from the disability pension, the contributions shall include interest at the rate of 6% per year, compounded annually, from the date for which service credit is being established to the date of payment.
If contributions are paid under this subsection (a-5) in excess of those needed to establish the credit, the excess shall be refunded.
This subsection (a-5) applies to persons receiving a disability pension under Section 3-114.1, 3-114.2, 3-114.3, or 3-114.6 on the effective date of this amendatory Act of the 91st General Assembly, as well as persons who begin to receive such a disability pension after that date.
(b) Creditable service includes all periods of service in the military, naval or air forces of the United States entered upon while an active police officer of a municipality, provided that upon applying for a permanent pension, and in accordance with the rules of the board, the police officer pays into the fund the amount the officer would have contributed if he or she had been a regular contributor during such period, to the extent that the municipality which the police officer served has not made such contributions in the officer's behalf.
The SB0552 Engrossed - 3 - LRB096 06605 AMC 16689 b total amount of such creditable service shall not exceed 5 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.
(b-5) Creditable service includes all periods of service in the military, naval, or air forces of the United States entered upon before beginning service as an active police officer of a municipality, provided that, in accordance with the rules of the board, the police officer pays into the fund the amount the police officer would have contributed if he or she had been a regular contributor during such period, plus an amount determined by the Board to be equal to the municipality's normal cost of the benefit, plus interest at the actuarially assumed rate calculated from the date the employee last became a police officer under this Article.
The total amount of such creditable service shall not exceed 2 years.
(c) Creditable service also includes service rendered by a police officer while on leave of absence from a police department to serve as an executive of an organization whose membership consists of members of a police department, subject to the following conditions:
(i) the police officer is a participant of a fund established under this Article with at least 10 years of service as a police officer;
(ii) the police officer received no credit for such service under any other retirement system, pension fund, or annuity and benefit fund included in this Code;
(iii) pursuant to the rules of the board SB0552 Engrossed - 4 - LRB096 06605 AMC 16689 b the police officer pays to the fund the amount he or she would have contributed had the officer been an active member of the police department;
and (iv) the organization pays a contribution equal to the municipality's normal cost for that period of service.
(d)(1) Creditable service also includes periods of service originally established in another police pension fund under this Article or in the Fund established under Article 7 of this Code for which (i) the contributions have been transferred under Section 3-110.7 or Section 7-139.9 and (ii) any additional contribution required under paragraph (2) of this subsection has been paid in full in accordance with the requirements of this subsection (d).
(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.
(3) Except as provided in paragraph (4), the additional SB0552 Engrossed - 5 - LRB096 06605 AMC 16689 b contribution must be paid to the board (i) within 5 years from the date of the transfer of contributions under Section 3-110.7 or 7-139.9 and (ii) before the police officer terminates service with the fund.
The additional contribution may be paid in a lump sum or in accordance with a schedule of installment payments authorized by the board.
(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 deceased police officer had paid the remaining balance on the day before the date of death.
(5) If the additional contribution is not paid in full within the required time, the creditable service shall not be granted and the police officer (or the officer's surviving spouse or estate) shall be entitled to receive a refund of (i) any partial payment of the additional contribution that has been made by the police officer and (ii) those portions of the amounts transferred under subdivision (a)(1) of Section 3-110.7 or subdivisions (a)(1) and (a)(3) of Section 7-139.9 that represent employee contributions paid by the police officer (but not the accumulated interest on those contributions) and SB0552 Engrossed - 6 - LRB096 06605 AMC 16689 b interest paid by the police officer to the prior pension fund in order to reinstate service terminated by acceptance of a refund.
At the time of paying a refund under this item (5), the pension fund shall also repay to the pension fund from which the contributions were transferred under Section 3-110.7 or 7-139.9 the amount originally transferred under subdivision (a)(2) of that Section, plus interest at the rate of 6% per year, compounded annually, from the date of the original transfer to the date of repayment.
Amounts repaid to the Article 7 fund under this provision shall be credited to the appropriate municipality.
Transferred credit that is not granted due to failure to pay the additional contribution within the required time is lost;
it may not be transferred to another pension fund and may not be reinstated in the pension fund from which it was transferred.
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(6) The Public Employee Pension Fund Division of the Department of Insurance shall establish by rule the manner of making the calculation required under paragraph (2) of this subsection, taking into account the appropriate actuarial assumptions;
the police officer's service, age, and salary history;
the level of funding of the pension fund to which the credits are being transferred;
and any other factors that the Division determines to be relevant.
The rules may require that all calculations made under SB0552 Engrossed - 7 - LRB096 06605 AMC 16689 b paragraph (2) be reported to the Division by the board performing the calculation, together with documentation of the creditable service to be transferred, the amounts of contributions and interest to be transferred, the manner in which the calculation was performed, the numbers relied upon in making the calculation, the results of the calculation, and any other information the Division may deem useful.
(e)(1) Creditable service also includes periods of service originally established in the Fund established under Article 7 of this Code for which the contributions have been transferred under Section 7-139.11.
(2) If the board of the pension fund to which 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.
(3) The Public Pension Division of the Department of Financial and Professional Regulation shall establish by rule the manner of making the calculation required under paragraph (2) of this subsection, taking into account the SB0552 Engrossed - 8 - LRB096 06605 AMC 16689 b appropriate actuarial assumptions;
the police officer's service, age, and salary history;
the level of funding of the pension fund to which the credits are being transferred;
and any other factors that the Division determines to be relevant.
The rules may require that all calculations made under paragraph (2) be reported to the Division by the board performing the calculation, together with documentation of the creditable service to be transferred, the amounts of contributions and interest to be transferred, the manner in which the calculation was performed, the numbers relied upon in making the calculation, the results of the calculation, and any other information the Division may deem useful.
(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).
This credit may be established upon payment by the police officer 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 of the service been as an employee under this Article, plus interest thereon at the rate of 6% per year, compounded annually from the date of service to the date of transfer, less (2) SB0552 Engrossed - 9 - LRB096 06605 AMC 16689 b the total amount transferred from the Article 7 Fund, plus (3) interest on the difference at the rate of 6% per 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 7 terminating all transferred credits on the date of transfer.
82-145.)
94-356, eff.
7-29-05;
95-812, eff.
8-13-08.) (40 ILCS 5/5-212) (from Ch.
108 1/2, par.
5-212) Sec.
5-212.
Computation of service.
In computing the service rendered by a policeman prior to the effective date, the following periods shall be counted, in addition to all periods during where he performed the duties of his position, as periods of service for annuity purposes only:
all periods of (a) vacation;
(b) leave of absence with whole or part pay;
(c) leave of absence without pay on account of disability;
and (d) leave of absence during which the policeman was engaged in the military or naval service of the United States of America.
Service credit shall not be allowed for a policeman in receipt of a pension on account of disability from any pension fund superseded by this fund.
In computing the service rendered by a policeman on or after the effective date, the following periods shall be counted, in addition to all periods during which he performed the duties of his position, as periods of service for annuity SB0552 Engrossed - 10 - LRB096 06605 AMC 16689 b purposes only:
all periods of (a) vacation;
(b) leave of absence with whole or part pay;
(c) leave of absence during which the policeman was engaged in the military or naval service of the United States of America;
(d) time that the policeman was engaged in the military or naval service of the United States of America, during which he was passed over on any eligible list posted from an entrance examination, due to the fact that he was in such military or naval service at the time he was called for appointment to the Police Department, to be computed from the date he was passed over on any eligible list and would have been first sworn in as a policeman had he not been engaged in the military or naval service of the United States of America, until the date of his discharge from such military or naval service;
provided that such policeman shall pay into this Fund the same amount that would have been deducted from his salary had he been a policeman during the aforementioned portion of such military or naval service;
(e) disability for which the policeman receives any disability benefit;
(f) disability for which the policeman receives whole or part pay;
and (g) service for which credits and creditable service have been transferred to this Fund under Section 9-121.1, 14-105.1 or 15-134.3 of this Code;
and (h) periods of service in the military, naval, or air forces of the United States entered upon before beginning service as an active policeman of a municipality as provided in Section 5-214.3.
In computing service on or after the effective date for SB0552 Engrossed - 11 - LRB096 06605 AMC 16689 b ordinary disability benefit, all periods described in the preceding paragraph, except any such period for which a policeman receives ordinary disability benefit, shall be counted as periods of service.
In computing service for any of the purposes of this Article, no credit shall be given for any period during which a policeman was not rendering active service because of his discharge from the service, unless proceedings to test the legality of the discharge are filed in a court of competent jurisdiction within one year from the date of discharge and a final judgment is entered therein declaring the discharge illegal.
No overtime or extra service shall be included in computing service of a policeman and not more than one year or a fractional part thereof of service shall be allowed for service rendered during any calendar year.
In computing service for any of the purposes of this Article, credit shall be given for any periods during which a policeman who is a member of the General Assembly is on leave of absence or is otherwise authorized to be absent from duty to enable him or her to perform legislative duties, notwithstanding any reduction in salary for such periods and notwithstanding that the contributions paid by the policeman were based on a reduced salary rather than the full amount of salary attached to his or her career service rank.
(Source:
P.A.
92-52, eff.
7-12-01.) SB0552 Engrossed - 12 - LRB096 06605 AMC 16689 b (40 ILCS 5/5-214.3 new) Sec.
5-214.3.
Credit for military service.
A policeman may establish creditable service under this Article for all periods of service in the military, naval, or air forces of the United States entered upon before beginning service as an active policeman of a municipality, provided that the policeman pays into the fund the amount the policeman would have contributed if he or she had been a regular contributor during such period, plus an amount determined by the Board to be equal to the municipality's normal cost of the benefit, plus interest at the actuarially assumed rate calculated from the date the employee last became a policeman under this Article.
The total amount of such creditable service shall not exceed 2 years.
Section 90.
The State Mandates Act is amended by adding Section 8.33 as follows:
(30 ILCS 805/8.33 new) Sec.
8.33.
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 96th General Assembly.
Section 99.
Effective date.
This Act takes effect upon becoming law.
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Action History

  1. Session Sine Die

  2. Rule 19(a) / Re-referred to Rules Committee

  3. House Floor Amendment No. 1 Rule 19(a) / Re-referred to Rules Committee

  4. Final Action Deadline Extended-9(b) May 28, 2010

  5. Added Alternate Chief Co-Sponsor Rep. Rich Brauer

  6. House Floor Amendment No. 1 Rules Refers to Personnel and Pensions Committee

  7. Held on Calendar Order of Second Reading - Short Debate

  8. Recalled to Second Reading - Short Debate

  9. House Floor Amendment No. 1 Referred to Rules Committee

  10. House Floor Amendment No. 1 Filed with Clerk by Rep. Jack D. Franks

  11. Placed on Calendar Order of 3rd Reading - Short Debate

  12. Second Reading - Short Debate

  13. Added Alternate Chief Co-Sponsor Rep. Susana A. Mendoza

  14. Added Alternate Chief Co-Sponsor Rep. Daniel J. Burke

  15. Alternate Chief Sponsor Changed to Rep. Jack D. Franks

  16. Placed on Calendar 2nd Reading - Short Debate

  17. Do Pass / Short Debate Personnel and Pensions Committee; 006-001-000

  18. Assigned to Personnel and Pensions Committee

  19. Referred to Rules Committee

  20. First Reading

  21. Chief House Sponsor Rep. Daniel J. Burke

  22. Placed on Calendar Order of First Reading

  23. Arrived in House

  24. Third Reading - Passed; 059-000-000

  25. Placed on Calendar Order of 3rd Reading

  26. Senate Floor Amendment No. 1 Adopted; DeLeo

  27. Recalled to Second Reading

  28. Rule 2-10 Third Reading Deadline Established As May 31, 2009

  29. Senate Floor Amendment No. 1 Recommend Do Adopt Pensions and Investments; 007-000-000

  30. Senate Floor Amendment No. 1 Assignments Refers to Pensions and Investments

  31. Senate Floor Amendment No. 1 Referred to Assignments

  32. Senate Floor Amendment No. 1 Filed with Secretary by Sen. James A. DeLeo

  33. Chief Sponsor Changed to Sen. James A. DeLeo

  34. Placed on Calendar Order of 3rd Reading April 28, 2009

  35. Second Reading

  36. Rule 2-10 Third Reading Deadline Established As April 30, 2009

  37. Placed on Calendar Order of 2nd Reading March 17, 2009

  38. Do Pass Executive; 012-000-000

  39. Assigned to Executive

  40. Referred to Assignments

  41. First Reading

  42. Filed with Secretary by Sen. John J. Cullerton

Sponsors

  • James A. DeLeo · Cosponsor

Sponsorship breakdown

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0 sponsors · 1 co-sponsors · 182 not signed on

Sponsors (0)

None.

Co-sponsors (1)

  • James A. DeLeo

Not signed on (182)

182 members have not signed on to this bill.

Show all 182 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Votes

Third Reading

Passed 59 Yea · 0 Nay
Party YeaNayPresentNot Voting
Democrat 9000
Unaffiliated 49000
Republican 1000
Total 59000
% of votes cast 100%0%0%0%
How each member voted (59)
Member Party Vote
Hultgren — Yea
McCarter — Yea
Schoenberg — Yea
Demuzio — Yea
Hutchinson — Yea
Jacobs — Yea
Kotowski — Yea
Link — Yea
Munoz — Yea
Jones, J. — Yea
Luechtefeld — Yea
Brady — Yea
Sullivan — Yea
Millner — Yea
Noland — Yea
Silverstein — Yea
Cullerton — Yea
Steans — Yea
Trotter — Yea
Viverito — Yea
Wilhelmi — Yea
Clayborne — Yea
Cronin — Yea
Crotty — Yea
Dahl — Yea
DeLeo — Yea
Dillard — Yea
Duffy — Yea
Forby — Yea
Frerichs — Yea
Garrett — Yea
Haine — Yea
Hendon — Yea
Pankau — Yea
Radogno — Yea
Raoul — Yea
Righter — Yea
Risinger — Yea
Rutherford — Yea
Sandoval — Yea
Lauzen — Yea
Maloney — Yea
Althoff — Yea
Martinez — Yea
Bivins — Yea
Bomke — Yea
Bond — Yea
Burzynski — Yea
Meeks — Yea
David Koehler Democrat Yea
Don Harmon Democrat Yea
Emil Jones, III Democrat Yea
Eva-Dina Delgado Democrat Yea
Kimberly A. Lightford Democrat Yea
Lakesia Collins Democrat Yea
Laura M. Murphy Democrat Yea
Linda Holmes Democrat Yea
Mattie Hunter Democrat Yea
Dave Syverson Republican Yea

Official roll call →

Subjects

finance labor
Cross-referencing the record. Reading this bill against every other bill in the corpus by meaning, not keywords. Only the first open is slow. It’s instant for you after this. Matching · Ranking · Engrossing

Frequently asked questions

What does SB 552 do?
Amends the Illinois Pension Code. Makes a technical change in a Section concerning deferred compensation.
Who sponsors SB 552?
SB 552 is sponsored by James A. DeLeo.
What is the current status of SB 552?
This bill died with 96th Regular Session. It reached “Passed Senate” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
Where can I track SB 552?
Track SB 552 free on One Click Politics — get push/email alerts when it moves.

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