103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB1582 Introduced 2/8/2023, by Sen. Doris Turner SYNOPSIS AS INTRODUCED: 40 ILCS 5/3-110.15 new 40 ILCS 5/7-139 from Ch. 108 1/2, par. 7-139 30 ILCS 805/8.47 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. LRB103 28419 RPS 54799 b STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB1582 Introduced 2/8/2023, by Sen. Doris Turner SYNOPSIS AS INTRODUCED: 40 ILCS 5/3-110.15 new 40 ILCS 5/7-139 from Ch. 108 1/2, par. 7-139 30 ILCS 805/8.47 new 40 ILCS 5/3-110.15 new 40 ILCS 5/7-139 from Ch. 108 1/2, par. 7-139 30 ILCS 805/8.47 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. LRB103 28419 RPS 54799 b LRB103 28419 RPS 54799 b STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB1582 Introduced 2/8/2023, by Sen. Doris Turner SYNOPSIS AS INTRODUCED: 40 ILCS 5/3-110.15 new 40 ILCS 5/7-139 from Ch. 108 1/2, par. 7-139 30 ILCS 805/8.47 new 40 ILCS 5/3-110.15 new 40 ILCS 5/7-139 from Ch. 108 1/2, par. 7-139 30 ILCS 805/8.47 new 40 ILCS 5/3-110.15 new 40 ILCS 5/7-139 from Ch. 108 1/2, par. 7-139 30 ILCS 805/8.47 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. LRB103 28419 RPS 54799 b LRB103 28419 RPS 54799 b LRB103 28419 RPS 54799 b STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY A BILL FOR SB1582LRB103 28419 RPS 54799 b SB1582 LRB103 28419 RPS 54799 b SB1582 LRB103 28419 RPS 54799 b 1 AN ACT concerning public employee benefits. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. The Illinois Pension Code is amended by 5 changing Section 7-139 and by adding Section 3-110.15 as 6 follows: 7 (40 ILCS 5/3-110.15 new) 8 Sec. 3-110.15. Transfer to IMRF. 9 (a) Within 6 months after the effective date of this 10 amendatory Act of the 103rd General Assembly, an active member 11 of the Illinois Municipal Retirement Fund established under 12 Article 7 of this Code may apply for transfer to the Illinois 13 Municipal Retirement Fund of his or her credits and creditable 14 service accumulated in a police pension fund under this 15 Article. The creditable service shall be transferred only upon 16 payment by the police pension fund to the Illinois Municipal 17 Retirement Fund of an amount equal to: 18 (1) the amounts accumulated to the credit of the 19 applicant for the service to be transferred, including 20 interest; 21 (2) an amount representing employer contributions; and 22 (3) any interest paid by the applicant to reinstate 23 such service. 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB1582 Introduced 2/8/2023, by Sen. Doris Turner SYNOPSIS AS INTRODUCED: 40 ILCS 5/3-110.15 new 40 ILCS 5/7-139 from Ch. 108 1/2, par. 7-139 30 ILCS 805/8.47 new 40 ILCS 5/3-110.15 new 40 ILCS 5/7-139 from Ch. 108 1/2, par. 7-139 30 ILCS 805/8.47 new 40 ILCS 5/3-110.15 new 40 ILCS 5/7-139 from Ch. 108 1/2, par. 7-139 30 ILCS 805/8.47 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. LRB103 28419 RPS 54799 b LRB103 28419 RPS 54799 b LRB103 28419 RPS 54799 b STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY A BILL FOR 40 ILCS 5/3-110.15 new 40 ILCS 5/7-139 from Ch. 108 1/2, par. 7-139 30 ILCS 805/8.47 new LRB103 28419 RPS 54799 b STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY SB1582 LRB103 28419 RPS 54799 b SB1582- 2 -LRB103 28419 RPS 54799 b SB1582 - 2 - LRB103 28419 RPS 54799 b SB1582 - 2 - LRB103 28419 RPS 54799 b 1 Participation in the police pension fund as to any credits 2 transferred under this Section shall terminate on the date of 3 transfer. 4 (b) Notwithstanding any other provision of this Code, any 5 person applying to transfer service under this Section may 6 reinstate credits and creditable service terminated upon 7 receipt of a refund by paying to the police pension fund the 8 amount of the refund plus interest thereon at the actuarially 9 assumed rate of interest to the date of payment. Such payment 10 must be made within 90 days after notification by the police 11 pension fund of the cost of such reinstatement. 12 (40 ILCS 5/7-139) (from Ch. 108 1/2, par. 7-139) 13 Sec. 7-139. Credits and creditable service to employees. 14 (a) Each participating employee shall be granted credits 15 and creditable service, for purposes of determining the amount 16 of any annuity or benefit to which he or a beneficiary is 17 entitled, as follows: 18 1. For prior service: Each participating employee who 19 is an employee of a participating municipality or 20 participating instrumentality on the effective date shall 21 be granted creditable service, but no credits under 22 paragraph 2 of this subsection (a), for periods of prior 23 service for which credit has not been received under any 24 other pension fund or retirement system established under 25 this Code, as follows: SB1582 - 2 - LRB103 28419 RPS 54799 b SB1582- 3 -LRB103 28419 RPS 54799 b SB1582 - 3 - LRB103 28419 RPS 54799 b SB1582 - 3 - LRB103 28419 RPS 54799 b 1 If the effective date of participation for the 2 participating municipality or participating 3 instrumentality is on or before January 1, 1998, 4 creditable service shall be granted for the entire period 5 of prior service with that employer without any employee 6 contribution. 7 If the effective date of participation for the 8 participating municipality or participating 9 instrumentality is after January 1, 1998, creditable 10 service shall be granted for the last 20% of the period of 11 prior service with that employer, but no more than 5 12 years, without any employee contribution. A participating 13 employee may establish creditable service for the 14 remainder of the period of prior service with that 15 employer by making an application in writing, accompanied 16 by payment of an employee contribution in an amount 17 determined by the Fund, based on the employee contribution 18 rates in effect at the time of application for the 19 creditable service and the employee's salary rate on the 20 effective date of participation for that employer, plus 21 interest at the effective rate from the date of the prior 22 service to the date of payment. Application for this 23 creditable service may be made at any time while the 24 employee is still in service. 25 A municipality that (i) has at least 35 employees; 26 (ii) is located in a county with at least 2,000,000 SB1582 - 3 - LRB103 28419 RPS 54799 b SB1582- 4 -LRB103 28419 RPS 54799 b SB1582 - 4 - LRB103 28419 RPS 54799 b SB1582 - 4 - LRB103 28419 RPS 54799 b 1 inhabitants; and (iii) maintains an independent defined 2 benefit pension plan for the benefit of its eligible 3 employees may restrict creditable service in whole or in 4 part for periods of prior service with the employer if the 5 governing body of the municipality adopts an irrevocable 6 resolution to restrict that creditable service and files 7 the resolution with the board before the municipality's 8 effective date of participation. 9 Any person who has withdrawn from the service of a 10 participating municipality or participating 11 instrumentality prior to the effective date, who reenters 12 the service of the same municipality or participating 13 instrumentality after the effective date and becomes a 14 participating employee is entitled to creditable service 15 for prior service as otherwise provided in this 16 subdivision (a)(1) only if he or she renders 2 years of 17 service as a participating employee after the effective 18 date. Application for such service must be made while in a 19 participating status. The salary rate to be used in the 20 calculation of the required employee contribution, if any, 21 shall be the employee's salary rate at the time of first 22 reentering service with the employer after the employer's 23 effective date of participation. 24 2. For current service, each participating employee 25 shall be credited with: 26 a. Additional credits of amounts equal to each SB1582 - 4 - LRB103 28419 RPS 54799 b SB1582- 5 -LRB103 28419 RPS 54799 b SB1582 - 5 - LRB103 28419 RPS 54799 b SB1582 - 5 - LRB103 28419 RPS 54799 b 1 payment of additional contributions received from him 2 under Section 7-173, as of the date the corresponding 3 payment of earnings is payable to him. 4 b. Normal credits of amounts equal to each payment 5 of normal contributions received from him, as of the 6 date the corresponding payment of earnings is payable 7 to him, and normal contributions made for the purpose 8 of establishing out-of-state service credits as 9 permitted under the conditions set forth in paragraph 10 6 of this subsection (a). 11 c. Municipality credits in an amount equal to 1.4 12 times the normal credits, except those established by 13 out-of-state service credits, as of the date of 14 computation of any benefit if these credits would 15 increase the benefit. 16 d. Survivor credits equal to each payment of 17 survivor contributions received from the participating 18 employee as of the date the corresponding payment of 19 earnings is payable, and survivor contributions made 20 for the purpose of establishing out-of-state service 21 credits. 22 3. For periods of temporary and total and permanent 23 disability benefits, each employee receiving disability 24 benefits shall be granted creditable service for the 25 period during which disability benefits are payable. 26 Normal and survivor credits, based upon the rate of SB1582 - 5 - LRB103 28419 RPS 54799 b SB1582- 6 -LRB103 28419 RPS 54799 b SB1582 - 6 - LRB103 28419 RPS 54799 b SB1582 - 6 - LRB103 28419 RPS 54799 b 1 earnings applied for disability benefits, shall also be 2 granted if such credits would result in a higher benefit 3 to any such employee or his beneficiary. 4 4. For authorized leave of absence without pay: A 5 participating employee shall be granted credits and 6 creditable service for periods of authorized leave of 7 absence without pay under the following conditions: 8 a. An application for credits and creditable 9 service is submitted to the board while the employee 10 is in a status of active employment. 11 b. Not more than 12 complete months of creditable 12 service for authorized leave of absence without pay 13 shall be counted for purposes of determining any 14 benefits payable under this Article. 15 c. Credits and creditable service shall be granted 16 for leave of absence only if such leave is approved by 17 the governing body of the municipality, including 18 approval of the estimated cost thereof to the 19 municipality as determined by the fund, and employee 20 contributions, plus interest at the effective rate 21 applicable for each year from the end of the period of 22 leave to date of payment, have been paid to the fund in 23 accordance with Section 7-173. The contributions shall 24 be computed upon the assumption earnings continued 25 during the period of leave at the rate in effect when 26 the leave began. SB1582 - 6 - LRB103 28419 RPS 54799 b SB1582- 7 -LRB103 28419 RPS 54799 b SB1582 - 7 - LRB103 28419 RPS 54799 b SB1582 - 7 - LRB103 28419 RPS 54799 b 1 d. Benefits under the provisions of Sections 2 7-141, 7-146, 7-150 and 7-163 shall become payable to 3 employees on authorized leave of absence, or their 4 designated beneficiary, only if such leave of absence 5 is creditable hereunder, and if the employee has at 6 least one year of creditable service other than the 7 service granted for leave of absence. Any employee 8 contributions due may be deducted from any benefits 9 payable. 10 e. No credits or creditable service shall be 11 allowed for leave of absence without pay during any 12 period of prior service. 13 5. For military service: The governing body of a 14 municipality or participating instrumentality may elect to 15 allow creditable service to participating employees who 16 leave their employment to serve in the armed forces of the 17 United States for all periods of such service, provided 18 that the person returns to active employment within 90 19 days after completion of full time active duty, but no 20 creditable service shall be allowed such person for any 21 period that can be used in the computation of a pension or 22 any other pay or benefit, other than pay for active duty, 23 for service in any branch of the armed forces of the United 24 States. If necessary to the computation of any benefit, 25 the board shall establish municipality credits for 26 participating employees under this paragraph on the SB1582 - 7 - LRB103 28419 RPS 54799 b SB1582- 8 -LRB103 28419 RPS 54799 b SB1582 - 8 - LRB103 28419 RPS 54799 b SB1582 - 8 - LRB103 28419 RPS 54799 b 1 assumption that the employee received earnings at the rate 2 received at the time he left the employment to enter the 3 armed forces. A participating employee in the armed forces 4 shall not be considered an employee during such period of 5 service and no additional death and no disability benefits 6 are payable for death or disability during such period. 7 Any participating employee who left his employment 8 with a municipality or participating instrumentality to 9 serve in the armed forces of the United States and who 10 again became a participating employee within 90 days after 11 completion of full time active duty by entering the 12 service of a different municipality or participating 13 instrumentality, which has elected to allow creditable 14 service for periods of military service under the 15 preceding paragraph, shall also be allowed creditable 16 service for his period of military service on the same 17 terms that would apply if he had been employed, before 18 entering military service, by the municipality or 19 instrumentality which employed him after he left the 20 military service and the employer costs arising in 21 relation to such grant of creditable service shall be 22 charged to and paid by that municipality or 23 instrumentality. 24 Notwithstanding the foregoing, any participating 25 employee shall be entitled to creditable service as 26 required by any federal law relating to re-employment SB1582 - 8 - LRB103 28419 RPS 54799 b SB1582- 9 -LRB103 28419 RPS 54799 b SB1582 - 9 - LRB103 28419 RPS 54799 b SB1582 - 9 - LRB103 28419 RPS 54799 b 1 rights of persons who served in the United States Armed 2 Services. Such creditable service shall be granted upon 3 payment by the member of an amount equal to the employee 4 contributions which would have been required had the 5 employee continued in service at the same rate of earnings 6 during the military leave period, plus interest at the 7 effective rate. 8 5.1. In addition to any creditable service established 9 under paragraph 5 of this subsection (a), creditable 10 service may be granted for up to 48 months of service in 11 the armed forces of the United States. 12 In order to receive creditable service for military 13 service under this paragraph 5.1, a participating employee 14 must (1) apply to the Fund in writing and provide evidence 15 of the military service that is satisfactory to the Board; 16 (2) obtain the written approval of the current employer; 17 and (3) make contributions to the Fund equal to (i) the 18 employee contributions that would have been required had 19 the service been rendered as a member, plus (ii) an amount 20 determined by the board to be equal to the employer's 21 normal cost of the benefits accrued for that military 22 service, plus (iii) interest on items (i) and (ii) from 23 the date of first membership in the Fund to the date of 24 payment. The required interest shall be calculated at the 25 regular interest rate. 26 The changes made to this paragraph 5.1 by Public Acts SB1582 - 9 - LRB103 28419 RPS 54799 b SB1582- 10 -LRB103 28419 RPS 54799 b SB1582 - 10 - LRB103 28419 RPS 54799 b SB1582 - 10 - LRB103 28419 RPS 54799 b 1 95-483 and 95-486 apply only to participating employees in 2 service on or after August 28, 2007 (the effective date of 3 those Public Acts). 4 6. For out-of-state service: Creditable service shall 5 be granted for service rendered to an out-of-state local 6 governmental body under the following conditions: The 7 employee had participated and has irrevocably forfeited 8 all rights to benefits in the out-of-state public 9 employees pension system; the governing body of his 10 participating municipality or instrumentality authorizes 11 the employee to establish such service; the employee has 2 12 years current service with this municipality or 13 participating instrumentality; the employee makes a 14 payment of contributions, which shall be computed at 8% 15 (normal) plus 2% (survivor) times length of service 16 purchased times the average rate of earnings for the first 17 2 years of service with the municipality or participating 18 instrumentality whose governing body authorizes the 19 service established plus interest at the effective rate on 20 the date such credits are established, payable from the 21 date the employee completes the required 2 years of 22 current service to date of payment. In no case shall more 23 than 120 months of creditable service be granted under 24 this provision. 25 7. For retroactive service: Any employee who could 26 have but did not elect to become a participating employee, SB1582 - 10 - LRB103 28419 RPS 54799 b SB1582- 11 -LRB103 28419 RPS 54799 b SB1582 - 11 - LRB103 28419 RPS 54799 b SB1582 - 11 - LRB103 28419 RPS 54799 b 1 or who should have been a participant in the Municipal 2 Public Utilities Annuity and Benefit Fund before that fund 3 was superseded, may receive creditable service for the 4 period of service not to exceed 50 months; however, a 5 current or former elected or appointed official of a 6 participating municipality may establish credit under this 7 paragraph 7 for more than 50 months of service as an 8 official of that municipality, if the excess over 50 9 months is approved by resolution of the governing body of 10 the affected municipality filed with the Fund before 11 January 1, 2002. 12 Any employee who is a participating employee on or 13 after September 24, 1981 and who was excluded from 14 participation by the age restrictions removed by Public 15 Act 82-596 may receive creditable service for the period, 16 on or after January 1, 1979, excluded by the age 17 restriction and, in addition, if the governing body of the 18 participating municipality or participating 19 instrumentality elects to allow creditable service for all 20 employees excluded by the age restriction prior to January 21 1, 1979, for service during the period prior to that date 22 excluded by the age restriction. Any employee who was 23 excluded from participation by the age restriction removed 24 by Public Act 82-596 and who is not a participating 25 employee on or after September 24, 1981 may receive 26 creditable service for service after January 1, 1979. SB1582 - 11 - LRB103 28419 RPS 54799 b SB1582- 12 -LRB103 28419 RPS 54799 b SB1582 - 12 - LRB103 28419 RPS 54799 b SB1582 - 12 - LRB103 28419 RPS 54799 b 1 Creditable service under this paragraph shall be granted 2 upon payment of the employee contributions which would 3 have been required had he participated, with interest at 4 the effective rate for each year from the end of the period 5 of service established to date of payment. 6 8. For accumulated unused sick leave: A participating 7 employee who is applying for a retirement annuity shall be 8 entitled to creditable service for that portion of the 9 employee's accumulated unused sick leave for which payment 10 is not received, as follows: 11 a. Sick leave days shall be limited to those 12 accumulated under a sick leave plan established by a 13 participating municipality or participating 14 instrumentality which is available to all employees or 15 a class of employees. 16 b. Except as provided in item b-1, only sick leave 17 days accumulated with a participating municipality or 18 participating instrumentality with which the employee 19 was in service within 60 days of the effective date of 20 his retirement annuity shall be credited; If the 21 employee was in service with more than one employer 22 during this period only the sick leave days with the 23 employer with which the employee has the greatest 24 number of unpaid sick leave days shall be considered. 25 b-1. If the employee was in the service of more 26 than one employer as defined in item (2) of paragraph SB1582 - 12 - LRB103 28419 RPS 54799 b SB1582- 13 -LRB103 28419 RPS 54799 b SB1582 - 13 - LRB103 28419 RPS 54799 b SB1582 - 13 - LRB103 28419 RPS 54799 b 1 (a) of subsection (A) of Section 7-132, then the sick 2 leave days from all such employers shall be credited, 3 as long as the creditable service attributed to those 4 sick leave days does not exceed the limitation in item 5 d of this paragraph 8. If the employee was in the 6 service of more than one employer described in 7 paragraph (c) of subsection (B) of Section 7-132 on or 8 after the effective date of this amendatory Act of the 9 101st General Assembly, then the sick leave days from 10 all such employers, except for employers from which 11 the employee terminated service before the effective 12 date of this amendatory Act of the 101st General 13 Assembly, shall be credited, as long as the creditable 14 service attributed to those sick leave days does not 15 exceed the limitation in item d of this paragraph 8. In 16 calculating the creditable service under this item 17 b-1, the sick leave days from the last employer shall 18 be considered first, then the remaining sick leave 19 days shall be considered until there are no more days 20 or the maximum creditable sick leave threshold under 21 item d of this paragraph 8 has been reached. 22 c. The creditable service granted shall be 23 considered solely for the purpose of computing the 24 amount of the retirement annuity and shall not be used 25 to establish any minimum service period required by 26 any provision of the Illinois Pension Code, the SB1582 - 13 - LRB103 28419 RPS 54799 b SB1582- 14 -LRB103 28419 RPS 54799 b SB1582 - 14 - LRB103 28419 RPS 54799 b SB1582 - 14 - LRB103 28419 RPS 54799 b 1 effective date of the retirement annuity, or the final 2 rate of earnings. 3 d. The creditable service shall be at the rate of 4 1/20 of a month for each full sick day, provided that 5 no more than 12 months may be credited under this 6 subdivision 8. 7 e. Employee contributions shall not be required 8 for creditable service under this subdivision 8. 9 f. Each participating municipality and 10 participating instrumentality with which an employee 11 has service within 60 days of the effective date of his 12 retirement annuity shall certify to the board the 13 number of accumulated unpaid sick leave days credited 14 to the employee at the time of termination of service. 15 9. For service transferred from another system: 16 Credits and creditable service shall be granted for 17 service under Article 4, 5, 8, 14, or 16 of this Act, to 18 any active member of this Fund, and to any inactive member 19 who has been a county sheriff, upon transfer of such 20 credits pursuant to Section 4-108.3, 5-235, 8-226.7, 21 14-105.6, or 16-131.4, and payment by the member of the 22 amount by which (1) the employer and employee 23 contributions that would have been required if he had 24 participated in this Fund as a sheriff's law enforcement 25 employee during the period for which credit is being 26 transferred, plus interest thereon at the effective rate SB1582 - 14 - LRB103 28419 RPS 54799 b SB1582- 15 -LRB103 28419 RPS 54799 b SB1582 - 15 - LRB103 28419 RPS 54799 b SB1582 - 15 - LRB103 28419 RPS 54799 b 1 for each year, compounded annually, from the date of 2 termination of the service for which credit is being 3 transferred to the date of payment, exceeds (2) the amount 4 actually transferred to the Fund. Such transferred service 5 shall be deemed to be service as a sheriff's law 6 enforcement employee for the purposes of Section 7-142.1. 7 10. (Blank). 8 11. For service transferred from an Article 3 system 9 under Section 3-110.3 or 3-110.15: Credits and creditable 10 service shall be granted for service under Article 3 of 11 this Code Act as provided in Section 3-110.3 or 3-110.15, 12 to any active member of this Fund, upon transfer of such 13 credits pursuant to Section 3-110.3 or 3-110.15. If the 14 board determines that the amount transferred is less than 15 the true cost to the Fund of allowing that creditable 16 service to be established, then in order to establish that 17 creditable service, the member must pay to the Fund an 18 additional contribution equal to the difference, as 19 determined by the board in accordance with the rules and 20 procedures adopted under this paragraph. If the member 21 does not make the full additional payment as required by 22 this paragraph prior to termination of his participation 23 with that employer, then his or her creditable service 24 shall be reduced by an amount equal to the difference 25 between the amount transferred under Section 3-110.3 or 26 3-110.15, including any payments made by the member under SB1582 - 15 - LRB103 28419 RPS 54799 b SB1582- 16 -LRB103 28419 RPS 54799 b SB1582 - 16 - LRB103 28419 RPS 54799 b SB1582 - 16 - LRB103 28419 RPS 54799 b 1 this paragraph prior to termination, and the true cost to 2 the Fund of allowing that creditable service to be 3 established, as determined by the board in accordance with 4 the rules and procedures adopted under this paragraph. 5 The board shall establish by rule the manner of making 6 the calculation required under this paragraph 11, taking 7 into account the appropriate actuarial assumptions; the 8 member's service, age, and salary history, and any other 9 factors that the board determines to be relevant. 10 12. For omitted service: Any employee who was employed 11 by a participating employer in a position that required 12 participation, but who was not enrolled in the Fund, may 13 establish such credits under the following conditions: 14 a. Application for such credits is received by the 15 Board while the employee is an active participant of 16 the Fund or a reciprocal retirement system. 17 b. Eligibility for participation and earnings are 18 verified by the Authorized Agent of the participating 19 employer for which the service was rendered. 20 Creditable service under this paragraph shall be 21 granted upon payment of the employee contributions that 22 would have been required had he participated, which shall 23 be calculated by the Fund using the member contribution 24 rate in effect during the period that the service was 25 rendered. 26 (b) Creditable service - amount: SB1582 - 16 - LRB103 28419 RPS 54799 b SB1582- 17 -LRB103 28419 RPS 54799 b SB1582 - 17 - LRB103 28419 RPS 54799 b SB1582 - 17 - LRB103 28419 RPS 54799 b 1 1. One month of creditable service shall be allowed 2 for each month for which a participating employee made 3 contributions as required under Section 7-173, or for 4 which creditable service is otherwise granted hereunder. 5 Not more than 1 month of service shall be credited and 6 counted for 1 calendar month, and not more than 1 year of 7 service shall be credited and counted for any calendar 8 year. A calendar month means a nominal month beginning on 9 the first day thereof, and a calendar year means a year 10 beginning January 1 and ending December 31. 11 2. A seasonal employee shall be given 12 months of 12 creditable service if he renders the number of months of 13 service normally required by the position in a 12-month 14 period and he remains in service for the entire 12-month 15 period. Otherwise a fractional year of service in the 16 number of months of service rendered shall be credited. 17 3. An intermittent employee shall be given creditable 18 service for only those months in which a contribution is 19 made under Section 7-173. 20 (c) No application for correction of credits or creditable 21 service shall be considered unless the board receives an 22 application for correction while (1) the applicant is a 23 participating employee and in active employment with a 24 participating municipality or instrumentality, or (2) while 25 the applicant is actively participating in a pension fund or 26 retirement system which is a participating system under the SB1582 - 17 - LRB103 28419 RPS 54799 b SB1582- 18 -LRB103 28419 RPS 54799 b SB1582 - 18 - LRB103 28419 RPS 54799 b SB1582 - 18 - LRB103 28419 RPS 54799 b 1 Retirement Systems Reciprocal Act. A participating employee or 2 other applicant shall not be entitled to credits or creditable 3 service unless the required employee contributions are made in 4 a lump sum or in installments made in accordance with board 5 rule. Payments made to establish service credit under 6 paragraph 1, 4, 5, 5.1, 6, 7, or 12 of subsection (a) of this 7 Section must be received by the Board while the applicant is an 8 active participant in the Fund or a reciprocal retirement 9 system, except that an applicant may make one payment after 10 termination of active participation in the Fund or a 11 reciprocal retirement system. 12 (d) Upon the granting of a retirement, surviving spouse or 13 child annuity, a death benefit or a separation benefit, on 14 account of any employee, all individual accumulated credits 15 shall thereupon terminate. Upon the withdrawal of additional 16 contributions, the credits applicable thereto shall thereupon 17 terminate. Terminated credits shall not be applied to increase 18 the benefits any remaining employee would otherwise receive 19 under this Article. 20 (Source: P.A. 100-148, eff. 8-18-17; 101-492, eff. 8-23-19.) 21 Section 90. The State Mandates Act is amended by adding 22 Section 8.47 as follows: 23 (30 ILCS 805/8.47 new) 24 Sec. 8.47. Exempt mandate. Notwithstanding Sections 6 and SB1582 - 18 - LRB103 28419 RPS 54799 b SB1582- 19 -LRB103 28419 RPS 54799 b SB1582 - 19 - LRB103 28419 RPS 54799 b SB1582 - 19 - LRB103 28419 RPS 54799 b 1 8 of this Act, no reimbursement by the State is required for 2 the implementation of any mandate created by this amendatory 3 Act of the 103rd General Assembly. 4 Section 99. Effective date. This Act takes effect upon 5 becoming law. SB1582 - 19 - LRB103 28419 RPS 54799 b