Bill Text: IL HB3606 | 2009-2010 | 96th General Assembly | Enrolled

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Bill Title: Amends the IMRF Article of the Illinois Pension Code. In the provisions allowing certain annuitants to hold elective office without participating in the Fund or losing their retirement annuities, allows a separate election for each term of office and requires that the person waive his or her salary or stipend for that elective office. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Passed) 2009-08-28 - Public Act . . . . . . . . . 96-0775 [HB3606 Detail]

Download: Illinois-2009-HB3606-Enrolled.html

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AN ACT in relation to 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 2-121, 3-109, 4-109.1, 7-141.1, and 14-104 as follows:
(40 ILCS 5/2-121) (from Ch. 108 1/2, par. 2-121)
Sec. 2-121. Survivor's annuity - conditions for payment.
(a) A survivor's annuity shall be payable to a surviving
spouse or eligible child (1) upon the death in service of a
participant with at least 2 years of service credit, or (2)
upon the death of an annuitant in receipt of a retirement
annuity, or (3) upon the death of a participant who terminated
service with at least 4 years of service credit.
The change in this subsection (a) made by this amendatory
Act of 1995 applies to survivors of participants who die on or
after December 1, 1994, without regard to whether or not the
participant was in service on or after the effective date of
this amendatory Act of 1995.
(b) To be eligible for the survivor's annuity, the spouse
and the participant or annuitant must have been married for a
continuous period of at least one year immediately preceding
the date of death, but need not have been married on the day of
the participant's last termination of service, regardless of

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whether such termination occurred prior to the effective date
of this amendatory Act of 1985.
(c) The annuity shall be payable beginning on the date of a
participant's death, or the first of the month following an
annuitant's death, if the spouse is then age 50 or over, or
beginning at age 50 if the spouse is then under age 50. If an
eligible child or children of the participant or annuitant (or
a child or children of the eligible spouse meeting the criteria
of item (1), (2), or (3) of subsection (d) of this Section)
also survive, and the child or children are under the care of
the eligible spouse, the annuity shall begin as of the date of
a participant's death, or the first of the month following an
annuitant's death, without regard to the spouse's age.
The change to this subsection made by this amendatory Act
of 1998 (relating to children of an eligible spouse) applies to
the eligible spouse of a participant or annuitant who dies on
or after the effective date of this amendatory Act, without
regard to whether the participant or annuitant is in service on
or after that effective date.
(c-5) Upon the death in service of a participant during the
90th General Assembly, the survivor's annuity shall be payable
prior to age 50, notwithstanding subsection (c) of this
Section, provided that the deceased participant had at least 6
years of service. This subsection (c-5) applies to the eligible
spouse of a deceased participant without regard to whether the
deceased participant was in service on or after the effective

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date of this amendatory Act of the 96th General Assembly, and
retroactive benefits may be paid for periods of eligibility
after February 28, 2009.
(d) For the purposes of this Section and Section 2-121.1,
"eligible child" means a child of the deceased participant or
annuitant who is at least one of the following:
(1) unmarried and under the age of 18;
(2) unmarried, a full-time student, and under the age
of 22;
(3) dependent by reason of physical or mental
disability.
The inclusion of unmarried students under age 22 in the
calculation of survivor's annuities by this amendatory Act of
1991 shall apply to all eligible students beginning January 1,
1992, without regard to whether the deceased participant or
annuitant was in service on or after the effective date of this
amendatory Act of 1991.
(e) Remarriage of a surviving spouse prior to attainment of
age 55 shall disqualify the surviving spouse from the receipt
of a survivor's annuity, if the remarriage occurs before the
effective date of this amendatory Act of the 91st General
Assembly.
The changes made to this subsection by this amendatory Act
of the 91st General Assembly (pertaining to remarriage prior to
age 55) apply without regard to whether the deceased
participant or annuitant was in service on or after the

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effective date of this amendatory Act.
(Source: P.A. 95-279, eff. 1-1-08.)
(40 ILCS 5/3-109) (from Ch. 108 1/2, par. 3-109)
Sec. 3-109. Persons excluded.
(a) The following persons shall not be eligible to
participate in a fund created under this Article:
(1) part-time police officers, special police
officers, night watchmen, temporary employees, traffic
guards or so-called auxiliary police officers specially
appointed to aid or direct traffic at or near schools or
public functions, or to aid in civil defense, municipal
parking lot attendants, clerks or other civilian employees
of a police department who perform clerical duties
exclusively;
(2) any police officer who fails to pay the
contributions required under Section 3-125.1, computed (i)
for funds established prior to August 5, 1963, from the
date the municipality established the fund or the date of a
police officer's first appointment (including an
appointment on probation), whichever is later, or (ii) for
funds established after August 5, 1963, from the date, as
determined from the statistics or census provided in
Section 3-103, the municipality became subject to this
Article by attaining the minimum population or by
referendum, or the date of a police officer's first

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appointment (including an appointment on probation),
whichever is later, and continuing during his or her entire
service as a police officer; and
(3) any person who has elected under Section 3-109.1 to
participate in the Illinois Municipal Retirement Fund
rather than in a fund established under this Article,
without regard to whether the person continues to be
employed as chief of police or is employed in some other
rank or capacity within the police department, unless the
person has lawfully rescinded that election.
(b) A police officer who is reappointed shall, before being
declared eligible to participate in the pension fund, repay to
the fund as required by Section 3-124 any refund received
thereunder.
(c) Any person otherwise qualified to participate who was
excluded from participation by reason of the age restriction
removed by Public Act 79-1165 may elect to participate by
making a written application to the Board before January 1,
1990. Persons so electing shall begin participation on the
first day of the month following the date of application. Such
persons may also elect to establish creditable service for
periods of employment as a police officer during which they did
not participate by paying into the police pension fund, before
January 1, 1990, the amount that the person would have
contributed had deductions from salary been made for such
purpose at the time such service was rendered, together with

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interest thereon at 6% per annum from the time such service was
rendered until the date the payment is made.
(d) A person otherwise qualified to participate who was
excluded from participation by reason of the fitness
requirement removed by this amendatory Act of 1995 may elect to
participate by making a written application to the Board before
July 1, 1996. Persons so electing shall begin participation on
the first day of the month following the month in which the
application is received by the Board. These persons may also
elect to establish creditable service for periods of employment
as a police officer during which they did not participate by
paying into the police pension fund, before January 1, 1997,
the amount that the person would have contributed had
deductions from salary been made for this purpose at the time
the service was rendered, together with interest thereon at 6%
per annum, compounded annually, from the time the service was
rendered until the date of payment.
(e) A person employed by the Village of Shiloh who is
otherwise qualified to participate and was excluded from
participation by reason of his or her failure to make written
application to the Board within 3 months after receiving his or
her first appointment or reappointment as required under
Section 3-106 may elect to participate by making a written
application to the Board before July 1, 2008. Persons so
electing shall begin participation on the first day of the
month following the month in which the application is received

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by the Board. These persons may also elect to establish
creditable service for periods of employment as a police
officer during which they did not participate by paying into
the police pension fund, before January 1, 2009, the amount
that the person would have contributed had deductions from
salary been made for this purpose at the time the service was
rendered, together with interest thereon at 6% per annum,
compounded annually, from the time the service was rendered
until the date of payment. The Village of Shiloh must pay to
the System the corresponding employer contributions, plus
interest.
(f) A person who has entered into a personal services
contract to perform police duties for the Village of
Bartonville on or before the effective date of this amendatory
Act of the 96th General Assembly may be appointed as an officer
in the Village of Bartonville within 6 months after the
effective date of this amendatory Act, but shall be excluded
from participating under this Article.
(Source: P.A. 95-483, eff. 8-28-07.)
(40 ILCS 5/4-109.1) (from Ch. 108 1/2, par. 4-109.1)
Sec. 4-109.1. Increase in pension.
(a) Except as provided in subsection (e), the monthly
pension of a firefighter who retires after July 1, 1971 and
prior to January 1, 1986, shall, upon either the first of the
month following the first anniversary of the date of retirement

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if 60 years of age or over at retirement date, or upon the
first day of the month following attainment of age 60 if it
occurs after the first anniversary of retirement, be increased
by 2% of the originally granted monthly pension and by an
additional 2% in each January thereafter. Effective January
1976, the rate of the annual increase shall be 3% of the
originally granted monthly pension.
(b) The monthly pension of a firefighter who retired from
service with 20 or more years of service, on or before July 1,
1971, shall be increased, in January of the year following the
year of attaining age 65 or in January 1972, if then over age
65, by 2% of the originally granted monthly pension, for each
year the firefighter received pension payments. In each January
thereafter, he or she shall receive an additional increase of
2% of the original monthly pension. Effective January 1976, the
rate of the annual increase shall be 3%.
(c) The monthly pension of a firefighter who is receiving a
disability pension under this Article shall be increased, in
January of the year following the year the firefighter attains
age 60, or in January 1974, if then over age 60, by 2% of the
originally granted monthly pension for each year he or she
received pension payments. In each January thereafter, the
firefighter shall receive an additional increase of 2% of the
original monthly pension. Effective January 1976, the rate of
the annual increase shall be 3%.
(c-1) On January 1, 1998, every child's disability benefit

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payable on that date under Section 4-110 or 4-110.1 shall be
increased by an amount equal to 1/12 of 3% of the amount of the
benefit, multiplied by the number of months for which the
benefit has been payable. On each January 1 thereafter, every
child's disability benefit payable under Section 4-110 or
4-110.1 shall be increased by 3% of the amount of the benefit
then being paid, including any previous increases received
under this Article. These increases are not subject to any
limitation on the maximum benefit amount included in Section
4-110 or 4-110.1.
(c-2) On July 1, 2004, every pension payable to or on
behalf of a minor or disabled surviving child that is payable
on that date under Section 4-114 shall be increased by an
amount equal to 1/12 of 3% of the amount of the pension,
multiplied by the number of months for which the benefit has
been payable. On July 1, 2005, July 1, 2006, July 1, 2007, and
July 1, 2008, every pension payable to or on behalf of a minor
or disabled surviving child that is payable under Section 4-114
shall be increased by 3% of the amount of the pension then
being paid, including any previous increases received under
this Article. These increases are not subject to any limitation
on the maximum benefit amount included in Section 4-114.
(d) The monthly pension of a firefighter who retires after
January 1, 1986, shall, upon either the first of the month
following the first anniversary of the date of retirement if 55
years of age or over, or upon the first day of the month

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following attainment of age 55 if it occurs after the first
anniversary of retirement, be increased by 1/12 of 3% of the
originally granted monthly pension for each full month that has
elapsed since the pension began, and by an additional 3% in
each January thereafter.
The changes made to this subsection (d) by this amendatory
Act of the 91st General Assembly apply to all initial increases
that become payable under this subsection on or after January
1, 1999. All initial increases that became payable under this
subsection on or after January 1, 1999 and before the effective
date of this amendatory Act shall be recalculated and the
additional amount accruing for that period, if any, shall be
payable to the pensioner in a lump sum.
(e) Notwithstanding the provisions of subsection (a), upon
the first day of the month following (1) the first anniversary
of the date of retirement, or (2) the attainment of age 55, or
(3) July 1, 1987, whichever occurs latest, the monthly pension
of a firefighter who retired on or after January 1, 1977 and on
or before January 1, 1986 and did not receive an increase under
subsection (a) before July 1, 1987, shall be increased by 3% of
the originally granted monthly pension for each full year that
has elapsed since the pension began, and by an additional 3% in
each January thereafter. The increases provided under this
subsection are in lieu of the increases provided in subsection
(a).
(f) In July 2009, the monthly pension of a firefighter who

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retired before July 1, 1977 shall be recalculated and increased
to reflect the amount that the firefighter would have received
in July 2009 had the firefighter been receiving a 3% compounded
increase for each year he or she received pension payments
after January 1, 1986, plus any increases in pension received
for each year prior to January 1, 1986. In each January
thereafter, he or she shall receive an additional increase of
3% of the amount of the pension then being paid. The changes
made to this Section by this amendatory Act of the 96th General
Assembly apply without regard to whether the firefighter was in
service on or after its effective date.
(Source: P.A. 93-689, eff. 7-1-04.)
(40 ILCS 5/7-141.1)
Sec. 7-141.1. Early retirement incentive.
(a) The General Assembly finds and declares that:
(1) Units of local government across the State have
been functioning under a financial crisis.
(2) This financial crisis is expected to continue.
(3) Units of local government must depend on additional
sources of revenue and, when those sources are not
forthcoming, must establish cost-saving programs.
(4) An early retirement incentive designed
specifically to target highly-paid senior employees could
result in significant annual cost savings.
(5) The early retirement incentive should be made

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available only to those units of local government that
determine that an early retirement incentive is in their
best interest.
(6) A unit of local government adopting a program of
early retirement incentives under this Section is
encouraged to implement personnel procedures to prohibit,
for at least 5 years, the rehiring (whether on payroll or
by independent contract) of employees who receive early
retirement incentives.
(7) A unit of local government adopting a program of
early retirement incentives under this Section is also
encouraged to replace as few of the participating employees
as possible and to hire replacement employees for salaries
totaling no more than 80% of the total salaries formerly
paid to the employees who participate in the early
retirement program.
It is the primary purpose of this Section to encourage
units of local government that can realize true cost savings,
or have determined that an early retirement program is in their
best interest, to implement an early retirement program.
(b) Until the effective date of this amendatory Act of
1997, this Section does not apply to any employer that is a
city, village, or incorporated town, nor to the employees of
any such employer. Beginning on the effective date of this
amendatory Act of 1997, any employer under this Article,
including an employer that is a city, village, or incorporated

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town, may establish an early retirement incentive program for
its employees under this Section. The decision of a city,
village, or incorporated town to consider or establish an early
retirement program is at the sole discretion of that city,
village, or incorporated town, and nothing in this amendatory
Act of 1997 limits or otherwise diminishes this discretion.
Nothing contained in this Section shall be construed to require
a city, village, or incorporated town to establish an early
retirement program and no city, village, or incorporated town
may be compelled to implement such a program.
The benefits provided in this Section are available only to
members employed by a participating employer that has filed
with the Board of the Fund a resolution or ordinance expressly
providing for the creation of an early retirement incentive
program under this Section for its employees and specifying the
effective date of the early retirement incentive program.
Subject to the limitation in subsection (h), an employer may
adopt a resolution or ordinance providing a program of early
retirement incentives under this Section at any time.
The resolution or ordinance shall be in substantially the
following form:
RESOLUTION (ORDINANCE) NO. ....
A RESOLUTION (ORDINANCE) ADOPTING AN EARLY
RETIREMENT INCENTIVE PROGRAM FOR EMPLOYEES
IN THE ILLINOIS MUNICIPAL RETIREMENT FUND

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WHEREAS, Section 7-141.1 of the Illinois Pension Code
provides that a participating employer may elect to adopt an
early retirement incentive program offered by the Illinois
Municipal Retirement Fund by adopting a resolution or
ordinance; and
WHEREAS, The goal of adopting an early retirement program
is to realize a substantial savings in personnel costs by
offering early retirement incentives to employees who have
accumulated many years of service credit; and
WHEREAS, Implementation of the early retirement program
will provide a budgeting tool to aid in controlling payroll
costs; and
WHEREAS, The (name of governing body) has determined that
the adoption of an early retirement incentive program is in the
best interests of the (name of participating employer);
therefore be it
RESOLVED (ORDAINED) by the (name of governing body) of
(name of participating employer) that:
(1) The (name of participating employer) does hereby adopt
the Illinois Municipal Retirement Fund early retirement
incentive program as provided in Section 7-141.1 of the
Illinois Pension Code. The early retirement incentive program
shall take effect on (date).
(2) In order to help achieve a true cost savings, a person
who retires under the early retirement incentive program shall
lose those incentives if he or she later accepts employment

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with any IMRF employer in a position for which participation in
IMRF is required or is elected by the employee.
(3) In order to utilize an early retirement incentive as a
budgeting tool, the (name of participating employer) will use
its best efforts either to limit the number of employees who
replace the employees who retire under the early retirement
program or to limit the salaries paid to the employees who
replace the employees who retire under the early retirement
program.
(4) The effective date of each employee's retirement under
this early retirement program shall be set by (name of
employer) and shall be no earlier than the effective date of
the program and no later than one year after that effective
date; except that the employee may require that the retirement
date set by the employer be no later than the June 30 next
occurring after the effective date of the program and no
earlier than the date upon which the employee qualifies for
retirement.
(5) To be eligible for the early retirement incentive under
this Section, the employee must have attained age 50 and have
at least 20 years of creditable service by his or her
retirement date.
(6) The (clerk or secretary) shall promptly file a
certified copy of this resolution (ordinance) with the Board of
Trustees of the Illinois Municipal Retirement Fund.
CERTIFICATION

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I, (name), the (clerk or secretary) of the (name of
participating employer) of the County of (name), State of
Illinois, do hereby certify that I am the keeper of the books
and records of the (name of employer) and that the foregoing is
a true and correct copy of a resolution (ordinance) duly
adopted by the (governing body) at a meeting duly convened and
held on (date).
SEAL
(Signature of clerk or secretary)
(c) To be eligible for the benefits provided under an early
retirement incentive program adopted under this Section, a
member must:
(1) be a participating employee of this Fund who, on
the effective date of the program, (i) is in active payroll
status as an employee of a participating employer that has
filed the required ordinance or resolution with the Board,
(ii) is on layoff status from such a position with a right
of re-employment or recall to service, (iii) is on a leave
of absence from such a position, or (iv) is on disability
but has not been receiving benefits under Section 7-146 or
7-150 for a period of more than 2 years from the date of
application;
(2) have never previously received a retirement
annuity under this Article or under the Retirement Systems
Reciprocal Act using service credit established under this

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Article;
(3) (blank);
(4) have at least 20 years of creditable service in the
Fund by the date of retirement, without the use of any
creditable service established under this Section;
(5) have attained age 50 by the date of retirement,
without the use of any age enhancement received under this
Section; and
(6) be eligible to receive a retirement annuity under
this Article by the date of retirement, for which purpose
the age enhancement and creditable service established
under this Section may be considered.
(d) The employer shall determine the retirement date for
each employee participating in the early retirement program
adopted under this Section. The retirement date shall be no
earlier than the effective date of the program and no later
than one year after that effective date, except that the
employee may require that the retirement date set by the
employer be no later than the June 30 next occurring after the
effective date of the program and no earlier than the date upon
which the employee qualifies for retirement. The employer shall
give each employee participating in the early retirement
program at least 30 days written notice of the employee's
designated retirement date, unless the employee waives this
notice requirement.
(e) An eligible person may establish up to 5 years of

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creditable service under this Section. In addition, for each
period of creditable service established under this Section, a
person shall have his or her age at retirement deemed enhanced
by an equivalent period.
The creditable service established under this Section may
be used for all purposes under this Article and the Retirement
Systems Reciprocal Act, except for the computation of final
rate of earnings and the determination of earnings, salary, or
compensation under this or any other Article of the Code.
The age enhancement established under this Section may be
used for all purposes under this Article (including calculation
of the reduction imposed under subdivision (a)1b(iv) of Section
7-142), except for purposes of a reversionary annuity under
Section 7-145 and any distributions required because of age.
The age enhancement established under this Section may be used
in calculating a proportionate annuity payable by this Fund
under the Retirement Systems Reciprocal Act, but shall not be
used in determining benefits payable under other Articles of
this Code under the Retirement Systems Reciprocal Act.
(f) For all creditable service established under this
Section, the member must pay to the Fund an employee
contribution consisting of 4.5% of the member's highest annual
salary rate used in the determination of the final rate of
earnings for retirement annuity purposes for each year of
creditable service granted under this Section. For creditable
service established under this Section by a person who is a

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sheriff's law enforcement employee to be deemed service as a
sheriff's law enforcement employee, the employee contribution
shall be at the rate of 6.5% of highest annual salary per year
of creditable service granted. Contributions for fractions of a
year of service shall be prorated. Any amounts that are
disregarded in determining the final rate of earnings under
subdivision (d)(5) of Section 7-116 (the 125% rule) shall also
be disregarded in determining the required contribution under
this subsection (f).
The employee contribution shall be paid to the Fund as
follows: If the member is entitled to a lump sum payment for
accumulated vacation, sick leave, or personal leave upon
withdrawal from service, the employer shall deduct the employee
contribution from that lump sum and pay the deducted amount
directly to the Fund. If there is no such lump sum payment or
the required employee contribution exceeds the net amount of
the lump sum payment, then the remaining amount due, at the
option of the employee, may either be paid to the Fund before
the annuity commences or deducted from the retirement annuity
in 24 equal monthly installments.
(g) An annuitant who has received any age enhancement or
creditable service under this Section and thereafter accepts
employment with or enters into a personal services contract
with an employer under this Article thereby forfeits that age
enhancement and creditable service; except that this
restriction does not apply to (1) service in an elective

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office, so long as the annuitant does not participate in this
Fund with respect to that office and (2) a person appointed as
an officer under subsection (f) of Section 3-109 of this Code.
A person forfeiting early retirement incentives under this
subsection (i) must repay to the Fund that portion of the
retirement annuity already received which is attributable to
the early retirement incentives that are being forfeited, (ii)
shall not be eligible to participate in any future early
retirement program adopted under this Section, and (iii) is
entitled to a refund of the employee contribution paid under
subsection (f). The Board shall deduct the required repayment
from the refund and may impose a reasonable payment schedule
for repaying the amount, if any, by which the required
repayment exceeds the refund amount.
(h) The additional unfunded liability accruing as a result
of the adoption of a program of early retirement incentives
under this Section by an employer shall be amortized over a
period of 10 years beginning on January 1 of the second
calendar year following the calendar year in which the latest
date for beginning to receive a retirement annuity under the
program (as determined by the employer under subsection (d) of
this Section) occurs; except that the employer may provide for
a shorter amortization period (of no less than 5 years) by
adopting an ordinance or resolution specifying the length of
the amortization period and submitting a certified copy of the
ordinance or resolution to the Fund no later than 6 months

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after the effective date of the program. An employer, at its
discretion, may accelerate payments to the Fund.
An employer may provide more than one early retirement
incentive program for its employees under this Section.
However, an employer that has provided an early retirement
incentive program for its employees under this Section may not
provide another early retirement incentive program under this
Section until the liability arising from the earlier program
has been fully paid to the Fund.
(Source: P.A. 94-456, eff. 8-4-05.)
(40 ILCS 5/14-104) (from Ch. 108 1/2, par. 14-104)
Sec. 14-104. Service for which contributions permitted.
Contributions provided for in this Section shall cover the
period of service granted. Except as otherwise provided in this
Section, the contributions shall be based upon the employee's
compensation and contribution rate in effect on the date he
last became a member of the System; provided that for all
employment prior to January 1, 1969 the contribution rate shall
be that in effect for a noncovered employee on the date he last
became a member of the System. Except as otherwise provided in
this Section, contributions permitted under this Section shall
include regular interest from the date an employee last became
a member of the System to the date of payment.
These contributions must be paid in full before retirement
either in a lump sum or in installment payments in accordance

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with such rules as may be adopted by the board.
(a) Any member may make contributions as required in this
Section for any period of service, subsequent to the date of
establishment, but prior to the date of membership.
(b) Any employee who had been previously excluded from
membership because of age at entry and subsequently became
eligible may elect to make contributions as required in this
Section for the period of service during which he was
ineligible.
(c) An employee of the Department of Insurance who, after
January 1, 1944 but prior to becoming eligible for membership,
received salary from funds of insurance companies in the
process of rehabilitation, liquidation, conservation or
dissolution, may elect to make contributions as required in
this Section for such service.
(d) Any employee who rendered service in a State office to
which he was elected, or rendered service in the elective
office of Clerk of the Appellate Court prior to the date he
became a member, may make contributions for such service as
required in this Section. Any member who served by appointment
of the Governor under the Civil Administrative Code of Illinois
and did not participate in this System may make contributions
as required in this Section for such service.
(e) Any person employed by the United States government or
any instrumentality or agency thereof from January 1, 1942
through November 15, 1946 as the result of a transfer from

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State service by executive order of the President of the United
States shall be entitled to prior service credit covering the
period from January 1, 1942 through December 31, 1943 as
provided for in this Article and to membership service credit
for the period from January 1, 1944 through November 15, 1946
by making the contributions required in this Section. A person
so employed on January 1, 1944 but whose employment began after
January 1, 1942 may qualify for prior service and membership
service credit under the same conditions.
(f) An employee of the Department of Labor of the State of
Illinois who performed services for and under the supervision
of that Department prior to January 1, 1944 but who was
compensated for those services directly by federal funds and
not by a warrant of the Auditor of Public Accounts paid by the
State Treasurer may establish credit for such employment by
making the contributions required in this Section. An employee
of the Department of Agriculture of the State of Illinois, who
performed services for and under the supervision of that
Department prior to June 1, 1963, but was compensated for those
services directly by federal funds and not paid by a warrant of
the Auditor of Public Accounts paid by the State Treasurer, and
who did not contribute to any other public employee retirement
system for such service, may establish credit for such
employment by making the contributions required in this
Section.
(g) Any employee who executed a waiver of membership within

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60 days prior to January 1, 1944 may, at any time while in the
service of a department, file with the board a rescission of
such waiver. Upon making the contributions required by this
Section, the member shall be granted the creditable service
that would have been received if the waiver had not been
executed.
(h) Until May 1, 1990, an employee who was employed on a
full-time basis by a regional planning commission for at least
5 continuous years may establish creditable service for such
employment by making the contributions required under this
Section, provided that any credits earned by the employee in
the commission's retirement plan have been terminated.
(i) Any person who rendered full time contractual services
to the General Assembly as a member of a legislative staff may
establish service credit for up to 8 years of such services by
making the contributions required under this Section, provided
that application therefor is made not later than July 1, 1991.
(j) By paying the contributions otherwise required under
this Section, plus an amount determined by the Board to be
equal to the employer's normal cost of the benefit plus
interest, but with all of the interest calculated from the date
the employee last became a member of the System or November 19,
1991, whichever is later, to the date of payment, an employee
may establish service credit for a period of up to 4 years
spent in active military service for which he does not qualify
for credit under Section 14-105, provided that (1) he was not

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dishonorably discharged from such military service, and (2) the
amount of service credit established by a member under this
subsection (j), when added to the amount of military service
credit granted to the member under subsection (b) of Section
14-105, shall not exceed 5 years. The change in the manner of
calculating interest under this subsection (j) made by this
amendatory Act of the 92nd General Assembly applies to credit
purchased by an employee on or after its effective date and
does not entitle any person to a refund of contributions or
interest already paid. In compliance with Section 14-152.1 of
this Act concerning new benefit increases, any new benefit
increase as a result of the changes to this subsection (j) made
by Public Act 95-483 is funded through the employee
contributions provided for in this subsection (j). Any new
benefit increase as a result of the changes made to this
subsection (j) by Public Act 95-483 is exempt from the
provisions of subsection (d) of Section 14-152.1.
(k) An employee who was employed on a full-time basis by
the Illinois State's Attorneys Association Statewide Appellate
Assistance Service LEAA-ILEC grant project prior to the time
that project became the State's Attorneys Appellate Service
Commission, now the Office of the State's Attorneys Appellate
Prosecutor, an agency of State government, may establish
creditable service for not more than 60 months service for such
employment by making contributions required under this
Section.

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(l) By paying the contributions otherwise required under
this Section, plus an amount determined by the Board to be
equal to the employer's normal cost of the benefit plus
interest, a member may establish service credit for periods of
less than one year spent on authorized leave of absence from
service, provided that (1) the period of leave began on or
after January 1, 1982 and (2) any credit established by the
member for the period of leave in any other public employee
retirement system has been terminated. A member may establish
service credit under this subsection for more than one period
of authorized leave, and in that case the total period of
service credit established by the member under this subsection
may exceed one year. In determining the contributions required
for establishing service credit under this subsection, the
interest shall be calculated from the beginning of the leave of
absence to the date of payment.
(l-5) By paying the contributions otherwise required under
this Section, plus an amount determined by the Board to be
equal to the employer's normal cost of the benefit plus
interest, a member may establish service credit for periods of
up to 2 years spent on authorized leave of absence from
service, provided that during that leave the member represented
or was employed as an officer or employee of a statewide labor
organization that represents members of this System. In
determining the contributions required for establishing
service credit under this subsection, the interest shall be

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calculated from the beginning of the leave of absence to the
date of payment.
(m) Any person who rendered contractual services to a
member of the General Assembly as a worker in the member's
district office may establish creditable service for up to 3
years of those contractual services by making the contributions
required under this Section. The System shall determine a
full-time salary equivalent for the purpose of calculating the
required contribution. To establish credit under this
subsection, the applicant must apply to the System by March 1,
1998.
(n) Any person who rendered contractual services to a
member of the General Assembly as a worker providing
constituent services to persons in the member's district may
establish creditable service for up to 8 years of those
contractual services by making the contributions required
under this Section. The System shall determine a full-time
salary equivalent for the purpose of calculating the required
contribution. To establish credit under this subsection, the
applicant must apply to the System by March 1, 1998.
(o) A member who participated in the Illinois Legislative
Staff Internship Program may establish creditable service for
up to one year of that participation by making the contribution
required under this Section. The System shall determine a
full-time salary equivalent for the purpose of calculating the
required contribution. Credit may not be established under this

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subsection for any period for which service credit is
established under any other provision of this Code.
(p) By paying the contributions otherwise required under
this Section, plus an amount determined by the Board to be
equal to the employer's normal cost of the benefit plus
interest, a member may establish service credit for a period of
up to 8 years during which he or she was employed by the
Visually Handicapped Managers of Illinois in a vending program
operated under a contractual agreement with the Department of
Rehabilitation Services or its successor agency.
This subsection (p) applies without regard to whether the
person was in service on or after the effective date of this
amendatory Act of the 94th General Assembly. In the case of a
person who is receiving a retirement annuity on that effective
date, the increase, if any, shall begin to accrue on the first
annuity payment date following receipt by the System of the
contributions required under this subsection (p).
(q) By paying the required contributions under this
Section, plus an amount determined by the Board to be equal to
the employer's normal cost of the benefit plus interest, an
employee who was laid off but returned to State employment
under circumstances in which the employee is considered to have
been in continuous service for purposes of determining
seniority may establish creditable service for the period of
the layoff, provided that (1) the applicant applies for the
creditable service under this subsection (q) within 6 months

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after the effective date of this amendatory Act of the 94th
General Assembly, (2) the applicant does not receive credit for
that period under any other provision of this Code, (3) at the
time of the layoff, the applicant is not in an initial
probationary status consistent with the rules of the Department
of Central Management Services, and (4) the total amount of
creditable service established by the applicant under this
subsection (q) does not exceed 3 years. For service established
under this subsection (q), the required employee contribution
shall be based on the rate of compensation earned by the
employee on the date of returning to employment after the
layoff and the contribution rate then in effect, and the
required interest shall be calculated from the date of
returning to employment after the layoff to the date of
payment.
(r) A member who participated in the University of Illinois
Government Public Service Internship Program (GPSI) may
establish creditable service for up to 2 years of that
participation by making the contribution required under this
Section, plus an amount determined by the Board to be equal to
the employer's normal cost of the benefit plus interest. The
System shall determine a full-time salary equivalent for the
purpose of calculating the required contribution. Credit may
not be established under this subsection for any period for
which service credit is established under any other provision
of this Code.

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(s) A member who worked as a nurse under a contractual
agreement for the Department of Public Aid, or its successor
agency, the Department of Human Services, in the Client
Assessment Unit and was subsequently determined to be a State
employee by the United States Internal Revenue Service and the
Illinois Labor Relations Board may establish creditable
service for those contractual services by making the
contributions required under this Section. To establish credit
under this subsection, the applicant must apply to the System
by July 1, 2008.
The Department of Human Services shall pay an employer
contribution based upon an amount determined by the Board to be
equal to the employer's normal cost of the benefit, plus
interest.
In compliance with Section 14-152.1 added by Public Act
94-4, the cost of the benefits provided by Public Act 95-583
are offset by the required employee and employer contributions.
(t) Any person who rendered contractual services on a
full-time basis to the Illinois Institute of Natural Resources
and the Illinois Department of Energy and Natural Resources may
establish creditable service for up to 4 years of those
contractual services by making the contributions required
under this Section, plus an amount determined by the Board to
be equal to the employer's normal cost of the benefit plus
interest at the actuarially assumed rate from the first day of
the service for which credit is being established to the date

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of payment. To establish credit under this subsection (t), the
applicant must apply to the System within 6 months after the
effective date of this amendatory Act of the 96th General
Assembly.
(Source: P.A. 94-612, eff. 8-18-05; 94-1111, eff. 2-27-07;
95-483, eff. 8-28-07; 95-583, eff. 8-31-07; 95-652, eff.
10-11-07; 95-876, eff. 8-21-08.)
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.