(40 ILCS 5/3‑101)(from Ch. 108 1/2, par. 3‑101) Sec. 3‑101. Creation of fund. In each municipality, as defined in Section 3‑103, the city council or the board of trustees, as the case may be, shall establish and administer a police pension fund, as prescribed in this Article, for the benefit of its police officers and of their surviving spouses, children, and certain other dependents. (Source: P.A. 83‑1440.)
(40 ILCS 5/3‑102)(from Ch. 108 1/2, par. 3‑102) Sec. 3‑102. Terms defined. The terms used in this Article have the meanings ascribed to them in Sections 3‑103 through 3‑108.3, except when the context otherwise requires. (Source: P.A. 90‑507, eff. 8‑22‑97.)
(40 ILCS 5/3‑103)(from Ch. 108 1/2, par. 3‑103) Sec. 3‑103. Municipality. "Municipality": (1) Any city, village or incorporated town of 5,000 or more but less than 500,000 inhabitants, as determined from the United States Government statistics or a census taken at any time by the city, village or incorporated town and (2) any city, village or incorporated town of less than 5,000 inhabitants which, by referendum held under Section 3‑145 adopts this Article. (Source: P.A. 83‑1440.)
(40 ILCS 5/3‑105)(from Ch. 108 1/2, par. 3‑105) Sec. 3‑105. Board. "Board": The board of trustees of the police pension fund of a municipality as established in Section 3‑128. (Source: P.A. 83‑1440.)
(40 ILCS 5/3‑105.1)(from Ch. 108 1/2, par. 3‑105.1) Sec. 3‑105.1. Deferred Pensioner. "Deferred Pensioner": a police officer who has retired having accumulated enough creditable service to qualify for a pension, but who has not attained the required age. (Source: P.A. 84‑1010.)
(40 ILCS 5/3‑105.2) Sec. 3‑105.2. Self‑Managed Plan. "Self‑managed plan": The defined contribution retirement program established for eligible employees under Section 3‑109.3. The self‑managed plan includes disability benefits as provided in Sections 3‑114.1, 3‑114.2, 3‑114.3, and 3‑114.6 (but disregarding disability retirement annuities under Section 3‑116.1). The self‑managed plan does not include any retirement annuities, death benefits, or survivors insurance benefits payable directly from the fund under Section 3‑111, 3‑111.1, 3‑112, 3‑114.1, 3‑114.2, 3‑114.3, 3‑114.6, or 3‑116.1 or any refunds determined under Section 3‑124. (Source: P.A. 91‑939, eff. 2‑1‑01.)
(40 ILCS 5/3‑106)(from Ch. 108 1/2, par. 3‑106) Sec. 3‑106. Police officer, officer. "Police officer" or "officer": Any person who (1) is appointed to the police force of a police department and sworn and commissioned to perform police duties; and (2) within 3 months after receiving his or her first appointment and, if reappointed, within 3 months thereafter, or as otherwise provided in Section 3‑109, makes written application to the board to come under the provisions of this Article. Police officers serving initial probationary periods, if otherwise eligible, shall be police officers within the meaning of this Section. (Source: P.A. 89‑52, eff. 6‑30‑95.)
(40 ILCS 5/3‑107)(from Ch. 108 1/2, par. 3‑107) Sec. 3‑107. Gender. "Gender": The masculine gender whenever used in this Article includes the female gender unless manifestly inconsistent with the context. (Source: P.A. 83‑1440.)
(40 ILCS 5/3‑108)(from Ch. 108 1/2, par. 3‑108) Sec. 3‑108. Child or children. "Child" or "children": "Child" or "children" includes a police officer's natural and legally adopted children. (Source: P.A. 95‑279, eff. 1‑1‑08.)
(40 ILCS 5/3‑108.1)(from Ch. 108 1/2, par. 3‑108.1) Sec. 3‑108.1. Dependent parent. "Dependent parent": A parent who furnishes satisfactory proof that the deceased police officer at the time of his or her death was the sole support of the parent or that the parent was the dependent of the deceased police officer for federal income tax purposes. (Source: P.A. 83‑1440.)
(40 ILCS 5/3‑108.2) Sec. 3‑108.2. Participant. "Participant": A police officer or deferred pensioner of a pension fund, or a beneficiary of the pension fund. (Source: P.A. 90‑507, eff. 8‑22‑97.)
(40 ILCS 5/3‑108.3) Sec. 3‑108.3. Beneficiary. "Beneficiary": A person receiving benefits from a pension fund, including, but not limited to, retired pensioners, disabled pensioners, their surviving spouses, minor children, disabled children, and dependent parents. If a special needs trust as described in Section 1396p(d)(4) of Title 42 of the United States Code, as amended from time to time, has been established for a disabled adult child, then the special needs trust may stand in lieu of the disabled adult child as a beneficiary for the purposes of this Article. (Source: P.A. 96‑1143, eff. 7‑21‑10.)
(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 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 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 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. (g) A person employed by the Village of Glen Carbon 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 January 1, 2011. 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 July 1, 2011, (i) employee contributions that the person would have contributed had deductions from salary been made for this purpose at the time the service was rendered, (ii) employer contributions that the employer would have contributed had deductions from salary been made for this purpose at the time the service was rendered, plus (iii) interest on items (i) and (ii) at the actuarially assumed interest rate, compounded annually, from the time the service was rendered until the date of payment. (Source: P.A. 95‑483, eff. 8‑28‑07; 96‑775, eff. 8‑28‑09; 96‑1252, eff. 7‑23‑10.)
(40 ILCS 5/3‑109.1)(from Ch. 108 1/2, par. 3‑109.1) Sec. 3‑109.1. Chief of police. (a) Beginning January 1, 1990, any person who is employed as the chief of police of a "participating municipality" as defined in Section 7‑106 of this Code, may elect to participate in the Illinois Municipal Retirement Fund rather than in a fund created under this Article 3. Except as provided in subsection (b), this election shall be irrevocable, and shall be filed in writing with the Board of the Illinois Municipal Retirement Fund. (b) Until January 1, 1999, a chief of police who has elected under this Section to participate in IMRF rather than a fund created under this Article may elect to rescind that election and transfer his or her participation to the police pension fund established under this Article by the employing municipality. The chief must notify the boards of trustees of both funds in writing of his or her decision to rescind the election and transfer participation. A chief of police who transfers participation under this subsection (b) shall not be deemed ineligible to participate in the police pension fund by reason of having failed to apply within the 3‑month period specified in Section 3‑106. (Source: P.A. 90‑460, eff. 8‑17‑97.)
(40 ILCS 5/3‑109.2) Sec. 3‑109.2. Retirement Program Elections. (a) For the purposes of this Section and Section 3‑109.3: "Eligible employee" means a police officer who is hired on or within one year after the effective date of the self‑managed plan established under Section 3‑109.3. "Ineligible employee" means a police officer who is hired before or more than one year after that effective date. (b) Each eligible employee may elect to participate in the self‑managed plan with respect to all periods of covered employment occurring on and after the effective date of the eligible employee's election. The election must be made in writing, in the manner prescribed by the fund, and within 6 months after the later of (i) the date upon which the self‑managed plan takes effect or (ii) the date of hire. The election, once made, is irrevocable. If an employee terminates employment after making the election, then upon his or her subsequent re‑employment under this Article with the same municipality, the original election shall automatically be reinstated. A police officer who does not elect to participate in the self‑managed plan within the permitted time shall participate in the defined benefit plan otherwise provided under this Article. The employer shall not remit contributions to the fund on behalf of an eligible employee until the earlier of the expiration of the employee's 6‑month election period or the date on which the employee submits a properly completed election to the employer or to the fund. (c) Each eligible employee shall be provided with written information prepared or prescribed by the fund, describing the employee's retirement program choices. The eligible employee shall be offered an opportunity to receive counseling from the fund prior to making his or her election. This counseling may consist of videotaped materials, group presentations, individual consultation with an employee or authorized representative of the fund in person or by telephone or other electronic means, or any combination of these methods. (Source: P.A. 91‑939, eff. 2‑1‑01.)
(40 ILCS 5/3‑109.3) Sec. 3‑109.3. Self‑managed plan. (a) Purpose. The General Assembly finds that it is important for municipalities to be able to attract and retain the most qualified police officers and that in order to attract and retain these police officers, municipalities should have the flexibility to provide a defined contribution plan as an alternative for eligible employees who elect not to participate in a defined benefit retirement program provided under this Article. Accordingly, a self‑managed plan shall be provided, which shall offer participating employees the opportunity to accumulate assets for retirement through a combination of employee and employer contributions that may be invested in mutual funds, collective investment funds, or other investment products and used to purchase annuity contracts, either fixed or variable, or a combination thereof. The plan must be qualified under the Internal Revenue Code of 1986. (b) Study by Commission; Adoption of plan. The Illinois Pension Laws Commission (or its successor, the Commission on Government Forecasting and Accountability) shall study and evaluate the creation of a statewide self‑managed plan for eligible employees under this Article. The Commission shall report its findings and recommendations to the General Assembly no later than January 1, 2002. In accordance with the recommendations of the Commission and any action taken by the General Assembly in response to those recommendations, a statewide self‑managed plan shall be adopted for eligible employees under this Article. The self‑managed plan shall take effect as specified in the plan, but in no event earlier than July 1, 2002 or the date of its approval by the U.S. Internal Revenue Service, whichever occurs later. The self‑managed plan shall include a plan document and shall provide for the adoption of such rules and procedures as are necessary or desirable for the administration of the self‑managed plan. Consistent with fiduciary duty to the participants and beneficiaries of the self‑managed plan, it may provide for delegation of suitable aspects of plan administration to companies authorized to do business in this State. (c) Selection of service providers and funding vehicles. The principal administrator of the self‑managed plan shall solicit proposals to provide administrative services and funding vehicles for the self‑managed plan from insurance and annuity companies and mutual fund companies, banks, trust companies, or other financial institutions authorized to do business in this State. In reviewing the proposals received and approving and contracting with no fewer than 2 and no more than 7 companies, the principal administrator shall consider, among other things, the following criteria: (1) the nature and extent of the benefits that would
be provided to the participants;
(2) the reasonableness of the benefits in relation to
the premium charged;
(3) the suitability of the benefits to the needs and
interests of the participating employees and the employer;
(4) the ability of the company to provide benefits
under the contract and the financial stability of the company; and
(5) the efficacy of the contract in the recruitment
and retention of employees.
The principal administrator shall periodically review each approved company. A company may continue to provide administrative services and funding vehicles for the self‑managed plan only so long as it continues to be an approved company under contract with the principal administrator. (d) Employee Direction. Employees who are participating in the program must be allowed to direct the transfer of their account balances among the various investment options offered, subject to applicable contractual provisions. The participant shall not be deemed a fiduciary by reason of providing such investment direction. A person who is a fiduciary shall not be liable for any loss resulting from such investment direction and shall not be deemed to have breached any fiduciary duty by acting in accordance with that direction. The self‑managed plan does not guarantee any of the investments in the employee's account balances. (e) Participation. An eligible employee must make a written election in accordance with the provisions of Section 3‑109.2 and the procedures established under the self‑managed plan. Participation in the self‑managed plan by an eligible employee who elects to participate in the self‑managed plan shall begin on the first day of the first pay period following the later of the date the employee's election is filed with the fund or the employer, but in no event sooner than the effective date of the self‑managed plan. A police officer who has elected to participate in the self‑managed plan under this Section must continue participation while employed in an eligible position, and may not participate in any other retirement program administered by the municipality while employed as a police officer by that municipality. Participation in the self‑managed plan under this Section shall constitute membership in an Article 3 pension fund. (f) No Duplication of Service Credit. Notwithstanding any other provision of this Article, a police officer may not purchase or receive service or service credit applicable to any other retirement program administered by a fund under this Article for any period during which the police officer was a participant in the self‑managed plan established under this Section. (g) Contributions. The self‑managed plan shall be funded by contributions from participants in the self‑managed plan and employer contributions as provided in this Section. The contribution rate for a participant in the self‑managed plan under this Section shall be a minimum of 10% of his or her salary. This required contribution shall be made as an "employer pick‑up" under Section 414(h) of the Internal Revenue Code of 1986 or any successor Section thereof. An employee may make additional contributions to the self‑managed plan in accordance with the terms of the plan. The self‑managed plan shall provide for employer contributions to be credited to each self‑managed plan participant at a rate of 10% of the participating employee's salary, less the amount of the employer contribution used to provide disability benefits for the employee. The amounts so credited shall be paid into the participant's self‑managed plan accounts in the manner prescribed by the plan. An amount of employer contribution, not exceeding 1.5% of the participating employee's salary, shall be used for the purpose of providing disability benefits to the participating employee. Prior to the beginning of each plan year under the self‑managed plan, the principal administrator shall determine, as a percentage of salary, the amount of employer contributions to be allocated during that plan year for providing disability benefits for employees in the self‑managed plan. (h) Vesting; Withdrawal; Return to Service. A participant in the self‑managed plan becomes fully vested in the employer contributions credited to his or her account in the self‑managed plan on the earliest to occur of the following: (1) completion of 6 years of service with the
municipality; or
(2) the death of the participating employee while
employed by the municipality, if the participant has completed at least 1.5 years of service.
A participant in the self‑managed plan who receives a distribution of his or her vested amounts from the self‑managed plan upon or after termination of employment shall forfeit all service credit and accrued rights in the fund of his or her employer; if subsequently re‑employed, the participant shall be considered a new employee. If a former participant again becomes a participating employee and continues as such for at least 2 years, all such rights, service credit, and previous status as a participant shall be restored upon repayment of the amount of the distribution without interest. (i) Benefit amounts. If a participating employee who is fully vested in employer contributions terminates employment, the participating employee shall be entitled to a benefit which is based on the account values attributable to both employer and employee contributions and any investment return thereon. If a participating employee who is not fully vested in employer contributions terminates employment, the employee shall be entitled to a benefit based on the account values attributable to the employee's contributions and any investment return thereon, plus the following percentage of employer contributions and any investment return thereon: 20% after the second year; 40% after the third year; 60% after the fourth year; 80% after the fifth year; and 100% after the sixth year. The remainder of employer contributions and investment return thereon shall be forfeited. Any employer contributions that are forfeited shall be held in escrow by the company investing those contributions and shall be used as directed by the municipality for future allocations of employer contributions or for the restoration of amounts previously forfeited by former participants who again become participating employees. (Source: P.A. 93‑632, eff. 2‑1‑04; 93‑1067, eff. 1‑15‑05.)
(40 ILCS 5/3‑110)(from Ch. 108 1/2, par. 3‑110) Sec. 3‑110. Creditable service. (a) "Creditable service" is the time served by a police officer as a member of a regularly constituted police force of a municipality. 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 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 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 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 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. If the board of the pension fund to which creditable service and related contributions are transferred under Section 3‑110.7 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 police officer may elect (A) to establish that creditable service by paying to the pension fund, within the payment period specified in paragraph (3) of this subsection (d), 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 (d) or (B) to have his or her creditable service reduced by an amount equal to the difference between the amount transferred under Section 3‑110.7 and the true cost to the pension fund of allowing that creditable service to be established, as determined by the board in accordance with the rules and procedures adopted under paragraph (6) of this subsection (d).
(3) Except as provided in paragraph (4), the
additional contribution that is required or elected under paragraph (2) of this subsection (d) 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 that is required
or elected under paragraph (2) of this subsection (d) 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 interest paid by the police officer to the prior pension fund in order to reinstate service terminated by acceptance of a refund.
(40 ILCS 5/3‑101)(from Ch. 108 1/2, par. 3‑101) Sec. 3‑101. Creation of fund. In each municipality, as defined in Section 3‑103, the city council or the board of trustees, as the case may be, shall establish and administer a police pension fund, as prescribed in this Article, for the benefit of its police officers and of their surviving spouses, children, and certain other dependents. (Source: P.A. 83‑1440.)
(40 ILCS 5/3‑102)(from Ch. 108 1/2, par. 3‑102) Sec. 3‑102. Terms defined. The terms used in this Article have the meanings ascribed to them in Sections 3‑103 through 3‑108.3, except when the context otherwise requires. (Source: P.A. 90‑507, eff. 8‑22‑97.)
(40 ILCS 5/3‑103)(from Ch. 108 1/2, par. 3‑103) Sec. 3‑103. Municipality. "Municipality": (1) Any city, village or incorporated town of 5,000 or more but less than 500,000 inhabitants, as determined from the United States Government statistics or a census taken at any time by the city, village or incorporated town and (2) any city, village or incorporated town of less than 5,000 inhabitants which, by referendum held under Section 3‑145 adopts this Article. (Source: P.A. 83‑1440.)
(40 ILCS 5/3‑105)(from Ch. 108 1/2, par. 3‑105) Sec. 3‑105. Board. "Board": The board of trustees of the police pension fund of a municipality as established in Section 3‑128. (Source: P.A. 83‑1440.)
(40 ILCS 5/3‑105.1)(from Ch. 108 1/2, par. 3‑105.1) Sec. 3‑105.1. Deferred Pensioner. "Deferred Pensioner": a police officer who has retired having accumulated enough creditable service to qualify for a pension, but who has not attained the required age. (Source: P.A. 84‑1010.)
(40 ILCS 5/3‑105.2) Sec. 3‑105.2. Self‑Managed Plan. "Self‑managed plan": The defined contribution retirement program established for eligible employees under Section 3‑109.3. The self‑managed plan includes disability benefits as provided in Sections 3‑114.1, 3‑114.2, 3‑114.3, and 3‑114.6 (but disregarding disability retirement annuities under Section 3‑116.1). The self‑managed plan does not include any retirement annuities, death benefits, or survivors insurance benefits payable directly from the fund under Section 3‑111, 3‑111.1, 3‑112, 3‑114.1, 3‑114.2, 3‑114.3, 3‑114.6, or 3‑116.1 or any refunds determined under Section 3‑124. (Source: P.A. 91‑939, eff. 2‑1‑01.)
(40 ILCS 5/3‑106)(from Ch. 108 1/2, par. 3‑106) Sec. 3‑106. Police officer, officer. "Police officer" or "officer": Any person who (1) is appointed to the police force of a police department and sworn and commissioned to perform police duties; and (2) within 3 months after receiving his or her first appointment and, if reappointed, within 3 months thereafter, or as otherwise provided in Section 3‑109, makes written application to the board to come under the provisions of this Article. Police officers serving initial probationary periods, if otherwise eligible, shall be police officers within the meaning of this Section. (Source: P.A. 89‑52, eff. 6‑30‑95.)
(40 ILCS 5/3‑107)(from Ch. 108 1/2, par. 3‑107) Sec. 3‑107. Gender. "Gender": The masculine gender whenever used in this Article includes the female gender unless manifestly inconsistent with the context. (Source: P.A. 83‑1440.)
(40 ILCS 5/3‑108)(from Ch. 108 1/2, par. 3‑108) Sec. 3‑108. Child or children. "Child" or "children": "Child" or "children" includes a police officer's natural and legally adopted children. (Source: P.A. 95‑279, eff. 1‑1‑08.)
(40 ILCS 5/3‑108.1)(from Ch. 108 1/2, par. 3‑108.1) Sec. 3‑108.1. Dependent parent. "Dependent parent": A parent who furnishes satisfactory proof that the deceased police officer at the time of his or her death was the sole support of the parent or that the parent was the dependent of the deceased police officer for federal income tax purposes. (Source: P.A. 83‑1440.)
(40 ILCS 5/3‑108.2) Sec. 3‑108.2. Participant. "Participant": A police officer or deferred pensioner of a pension fund, or a beneficiary of the pension fund. (Source: P.A. 90‑507, eff. 8‑22‑97.)
(40 ILCS 5/3‑108.3) Sec. 3‑108.3. Beneficiary. "Beneficiary": A person receiving benefits from a pension fund, including, but not limited to, retired pensioners, disabled pensioners, their surviving spouses, minor children, disabled children, and dependent parents. If a special needs trust as described in Section 1396p(d)(4) of Title 42 of the United States Code, as amended from time to time, has been established for a disabled adult child, then the special needs trust may stand in lieu of the disabled adult child as a beneficiary for the purposes of this Article. (Source: P.A. 96‑1143, eff. 7‑21‑10.)
(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 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 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 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. (g) A person employed by the Village of Glen Carbon 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 January 1, 2011. 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 July 1, 2011, (i) employee contributions that the person would have contributed had deductions from salary been made for this purpose at the time the service was rendered, (ii) employer contributions that the employer would have contributed had deductions from salary been made for this purpose at the time the service was rendered, plus (iii) interest on items (i) and (ii) at the actuarially assumed interest rate, compounded annually, from the time the service was rendered until the date of payment. (Source: P.A. 95‑483, eff. 8‑28‑07; 96‑775, eff. 8‑28‑09; 96‑1252, eff. 7‑23‑10.)
(40 ILCS 5/3‑109.1)(from Ch. 108 1/2, par. 3‑109.1) Sec. 3‑109.1. Chief of police. (a) Beginning January 1, 1990, any person who is employed as the chief of police of a "participating municipality" as defined in Section 7‑106 of this Code, may elect to participate in the Illinois Municipal Retirement Fund rather than in a fund created under this Article 3. Except as provided in subsection (b), this election shall be irrevocable, and shall be filed in writing with the Board of the Illinois Municipal Retirement Fund. (b) Until January 1, 1999, a chief of police who has elected under this Section to participate in IMRF rather than a fund created under this Article may elect to rescind that election and transfer his or her participation to the police pension fund established under this Article by the employing municipality. The chief must notify the boards of trustees of both funds in writing of his or her decision to rescind the election and transfer participation. A chief of police who transfers participation under this subsection (b) shall not be deemed ineligible to participate in the police pension fund by reason of having failed to apply within the 3‑month period specified in Section 3‑106. (Source: P.A. 90‑460, eff. 8‑17‑97.)
(40 ILCS 5/3‑109.2) Sec. 3‑109.2. Retirement Program Elections. (a) For the purposes of this Section and Section 3‑109.3: "Eligible employee" means a police officer who is hired on or within one year after the effective date of the self‑managed plan established under Section 3‑109.3. "Ineligible employee" means a police officer who is hired before or more than one year after that effective date. (b) Each eligible employee may elect to participate in the self‑managed plan with respect to all periods of covered employment occurring on and after the effective date of the eligible employee's election. The election must be made in writing, in the manner prescribed by the fund, and within 6 months after the later of (i) the date upon which the self‑managed plan takes effect or (ii) the date of hire. The election, once made, is irrevocable. If an employee terminates employment after making the election, then upon his or her subsequent re‑employment under this Article with the same municipality, the original election shall automatically be reinstated. A police officer who does not elect to participate in the self‑managed plan within the permitted time shall participate in the defined benefit plan otherwise provided under this Article. The employer shall not remit contributions to the fund on behalf of an eligible employee until the earlier of the expiration of the employee's 6‑month election period or the date on which the employee submits a properly completed election to the employer or to the fund. (c) Each eligible employee shall be provided with written information prepared or prescribed by the fund, describing the employee's retirement program choices. The eligible employee shall be offered an opportunity to receive counseling from the fund prior to making his or her election. This counseling may consist of videotaped materials, group presentations, individual consultation with an employee or authorized representative of the fund in person or by telephone or other electronic means, or any combination of these methods. (Source: P.A. 91‑939, eff. 2‑1‑01.)
(40 ILCS 5/3‑109.3) Sec. 3‑109.3. Self‑managed plan. (a) Purpose. The General Assembly finds that it is important for municipalities to be able to attract and retain the most qualified police officers and that in order to attract and retain these police officers, municipalities should have the flexibility to provide a defined contribution plan as an alternative for eligible employees who elect not to participate in a defined benefit retirement program provided under this Article. Accordingly, a self‑managed plan shall be provided, which shall offer participating employees the opportunity to accumulate assets for retirement through a combination of employee and employer contributions that may be invested in mutual funds, collective investment funds, or other investment products and used to purchase annuity contracts, either fixed or variable, or a combination thereof. The plan must be qualified under the Internal Revenue Code of 1986. (b) Study by Commission; Adoption of plan. The Illinois Pension Laws Commission (or its successor, the Commission on Government Forecasting and Accountability) shall study and evaluate the creation of a statewide self‑managed plan for eligible employees under this Article. The Commission shall report its findings and recommendations to the General Assembly no later than January 1, 2002. In accordance with the recommendations of the Commission and any action taken by the General Assembly in response to those recommendations, a statewide self‑managed plan shall be adopted for eligible employees under this Article. The self‑managed plan shall take effect as specified in the plan, but in no event earlier than July 1, 2002 or the date of its approval by the U.S. Internal Revenue Service, whichever occurs later. The self‑managed plan shall include a plan document and shall provide for the adoption of such rules and procedures as are necessary or desirable for the administration of the self‑managed plan. Consistent with fiduciary duty to the participants and beneficiaries of the self‑managed plan, it may provide for delegation of suitable aspects of plan administration to companies authorized to do business in this State. (c) Selection of service providers and funding vehicles. The principal administrator of the self‑managed plan shall solicit proposals to provide administrative services and funding vehicles for the self‑managed plan from insurance and annuity companies and mutual fund companies, banks, trust companies, or other financial institutions authorized to do business in this State. In reviewing the proposals received and approving and contracting with no fewer than 2 and no more than 7 companies, the principal administrator shall consider, among other things, the following criteria: (1) the nature and extent of the benefits that would
be provided to the participants;
(2) the reasonableness of the benefits in relation to
the premium charged;
(3) the suitability of the benefits to the needs and
interests of the participating employees and the employer;
(4) the ability of the company to provide benefits
under the contract and the financial stability of the company; and
(5) the efficacy of the contract in the recruitment
and retention of employees.
The principal administrator shall periodically review each approved company. A company may continue to provide administrative services and funding vehicles for the self‑managed plan only so long as it continues to be an approved company under contract with the principal administrator. (d) Employee Direction. Employees who are participating in the program must be allowed to direct the transfer of their account balances among the various investment options offered, subject to applicable contractual provisions. The participant shall not be deemed a fiduciary by reason of providing such investment direction. A person who is a fiduciary shall not be liable for any loss resulting from such investment direction and shall not be deemed to have breached any fiduciary duty by acting in accordance with that direction. The self‑managed plan does not guarantee any of the investments in the employee's account balances. (e) Participation. An eligible employee must make a written election in accordance with the provisions of Section 3‑109.2 and the procedures established under the self‑managed plan. Participation in the self‑managed plan by an eligible employee who elects to participate in the self‑managed plan shall begin on the first day of the first pay period following the later of the date the employee's election is filed with the fund or the employer, but in no event sooner than the effective date of the self‑managed plan. A police officer who has elected to participate in the self‑managed plan under this Section must continue participation while employed in an eligible position, and may not participate in any other retirement program administered by the municipality while employed as a police officer by that municipality. Participation in the self‑managed plan under this Section shall constitute membership in an Article 3 pension fund. (f) No Duplication of Service Credit. Notwithstanding any other provision of this Article, a police officer may not purchase or receive service or service credit applicable to any other retirement program administered by a fund under this Article for any period during which the police officer was a participant in the self‑managed plan established under this Section. (g) Contributions. The self‑managed plan shall be funded by contributions from participants in the self‑managed plan and employer contributions as provided in this Section. The contribution rate for a participant in the self‑managed plan under this Section shall be a minimum of 10% of his or her salary. This required contribution shall be made as an "employer pick‑up" under Section 414(h) of the Internal Revenue Code of 1986 or any successor Section thereof. An employee may make additional contributions to the self‑managed plan in accordance with the terms of the plan. The self‑managed plan shall provide for employer contributions to be credited to each self‑managed plan participant at a rate of 10% of the participating employee's salary, less the amount of the employer contribution used to provide disability benefits for the employee. The amounts so credited shall be paid into the participant's self‑managed plan accounts in the manner prescribed by the plan. An amount of employer contribution, not exceeding 1.5% of the participating employee's salary, shall be used for the purpose of providing disability benefits to the participating employee. Prior to the beginning of each plan year under the self‑managed plan, the principal administrator shall determine, as a percentage of salary, the amount of employer contributions to be allocated during that plan year for providing disability benefits for employees in the self‑managed plan. (h) Vesting; Withdrawal; Return to Service. A participant in the self‑managed plan becomes fully vested in the employer contributions credited to his or her account in the self‑managed plan on the earliest to occur of the following: (1) completion of 6 years of service with the
municipality; or
(2) the death of the participating employee while
employed by the municipality, if the participant has completed at least 1.5 years of service.
A participant in the self‑managed plan who receives a distribution of his or her vested amounts from the self‑managed plan upon or after termination of employment shall forfeit all service credit and accrued rights in the fund of his or her employer; if subsequently re‑employed, the participant shall be considered a new employee. If a former participant again becomes a participating employee and continues as such for at least 2 years, all such rights, service credit, and previous status as a participant shall be restored upon repayment of the amount of the distribution without interest. (i) Benefit amounts. If a participating employee who is fully vested in employer contributions terminates employment, the participating employee shall be entitled to a benefit which is based on the account values attributable to both employer and employee contributions and any investment return thereon. If a participating employee who is not fully vested in employer contributions terminates employment, the employee shall be entitled to a benefit based on the account values attributable to the employee's contributions and any investment return thereon, plus the following percentage of employer contributions and any investment return thereon: 20% after the second year; 40% after the third year; 60% after the fourth year; 80% after the fifth year; and 100% after the sixth year. The remainder of employer contributions and investment return thereon shall be forfeited. Any employer contributions that are forfeited shall be held in escrow by the company investing those contributions and shall be used as directed by the municipality for future allocations of employer contributions or for the restoration of amounts previously forfeited by former participants who again become participating employees. (Source: P.A. 93‑632, eff. 2‑1‑04; 93‑1067, eff. 1‑15‑05.)
(40 ILCS 5/3‑110)(from Ch. 108 1/2, par. 3‑110) Sec. 3‑110. Creditable service. (a) "Creditable service" is the time served by a police officer as a member of a regularly constituted police force of a municipality. 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 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 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 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 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. If the board of the pension fund to which creditable service and related contributions are transferred under Section 3‑110.7 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 police officer may elect (A) to establish that creditable service by paying to the pension fund, within the payment period specified in paragraph (3) of this subsection (d), 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 (d) or (B) to have his or her creditable service reduced by an amount equal to the difference between the amount transferred under Section 3‑110.7 and the true cost to the pension fund of allowing that creditable service to be established, as determined by the board in accordance with the rules and procedures adopted under paragraph (6) of this subsection (d).
(3) Except as provided in paragraph (4), the
additional contribution that is required or elected under paragraph (2) of this subsection (d) 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 that is required
or elected under paragraph (2) of this subsection (d) 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 interest paid by the police officer to the prior pension fund in order to reinstate service terminated by acceptance of a refund.
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(40 ILCS 5/3‑101)(from Ch. 108 1/2, par. 3‑101) Sec. 3‑101. Creation of fund. In each municipality, as defined in Section 3‑103, the city council or the board of trustees, as the case may be, shall establish and administer a police pension fund, as prescribed in this Article, for the benefit of its police officers and of their surviving spouses, children, and certain other dependents. (Source: P.A. 83‑1440.)
(40 ILCS 5/3‑102)(from Ch. 108 1/2, par. 3‑102) Sec. 3‑102. Terms defined. The terms used in this Article have the meanings ascribed to them in Sections 3‑103 through 3‑108.3, except when the context otherwise requires. (Source: P.A. 90‑507, eff. 8‑22‑97.)
(40 ILCS 5/3‑103)(from Ch. 108 1/2, par. 3‑103) Sec. 3‑103. Municipality. "Municipality": (1) Any city, village or incorporated town of 5,000 or more but less than 500,000 inhabitants, as determined from the United States Government statistics or a census taken at any time by the city, village or incorporated town and (2) any city, village or incorporated town of less than 5,000 inhabitants which, by referendum held under Section 3‑145 adopts this Article. (Source: P.A. 83‑1440.)
(40 ILCS 5/3‑105)(from Ch. 108 1/2, par. 3‑105) Sec. 3‑105. Board. "Board": The board of trustees of the police pension fund of a municipality as established in Section 3‑128. (Source: P.A. 83‑1440.)
(40 ILCS 5/3‑105.1)(from Ch. 108 1/2, par. 3‑105.1) Sec. 3‑105.1. Deferred Pensioner. "Deferred Pensioner": a police officer who has retired having accumulated enough creditable service to qualify for a pension, but who has not attained the required age. (Source: P.A. 84‑1010.)
(40 ILCS 5/3‑105.2) Sec. 3‑105.2. Self‑Managed Plan. "Self‑managed plan": The defined contribution retirement program established for eligible employees under Section 3‑109.3. The self‑managed plan includes disability benefits as provided in Sections 3‑114.1, 3‑114.2, 3‑114.3, and 3‑114.6 (but disregarding disability retirement annuities under Section 3‑116.1). The self‑managed plan does not include any retirement annuities, death benefits, or survivors insurance benefits payable directly from the fund under Section 3‑111, 3‑111.1, 3‑112, 3‑114.1, 3‑114.2, 3‑114.3, 3‑114.6, or 3‑116.1 or any refunds determined under Section 3‑124. (Source: P.A. 91‑939, eff. 2‑1‑01.)
(40 ILCS 5/3‑106)(from Ch. 108 1/2, par. 3‑106) Sec. 3‑106. Police officer, officer. "Police officer" or "officer": Any person who (1) is appointed to the police force of a police department and sworn and commissioned to perform police duties; and (2) within 3 months after receiving his or her first appointment and, if reappointed, within 3 months thereafter, or as otherwise provided in Section 3‑109, makes written application to the board to come under the provisions of this Article. Police officers serving initial probationary periods, if otherwise eligible, shall be police officers within the meaning of this Section. (Source: P.A. 89‑52, eff. 6‑30‑95.)
(40 ILCS 5/3‑107)(from Ch. 108 1/2, par. 3‑107) Sec. 3‑107. Gender. "Gender": The masculine gender whenever used in this Article includes the female gender unless manifestly inconsistent with the context. (Source: P.A. 83‑1440.)
(40 ILCS 5/3‑108)(from Ch. 108 1/2, par. 3‑108) Sec. 3‑108. Child or children. "Child" or "children": "Child" or "children" includes a police officer's natural and legally adopted children. (Source: P.A. 95‑279, eff. 1‑1‑08.)
(40 ILCS 5/3‑108.1)(from Ch. 108 1/2, par. 3‑108.1) Sec. 3‑108.1. Dependent parent. "Dependent parent": A parent who furnishes satisfactory proof that the deceased police officer at the time of his or her death was the sole support of the parent or that the parent was the dependent of the deceased police officer for federal income tax purposes. (Source: P.A. 83‑1440.)
(40 ILCS 5/3‑108.2) Sec. 3‑108.2. Participant. "Participant": A police officer or deferred pensioner of a pension fund, or a beneficiary of the pension fund. (Source: P.A. 90‑507, eff. 8‑22‑97.)
(40 ILCS 5/3‑108.3) Sec. 3‑108.3. Beneficiary. "Beneficiary": A person receiving benefits from a pension fund, including, but not limited to, retired pensioners, disabled pensioners, their surviving spouses, minor children, disabled children, and dependent parents. If a special needs trust as described in Section 1396p(d)(4) of Title 42 of the United States Code, as amended from time to time, has been established for a disabled adult child, then the special needs trust may stand in lieu of the disabled adult child as a beneficiary for the purposes of this Article. (Source: P.A. 96‑1143, eff. 7‑21‑10.)
(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 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 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 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. (g) A person employed by the Village of Glen Carbon 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 January 1, 2011. 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 July 1, 2011, (i) employee contributions that the person would have contributed had deductions from salary been made for this purpose at the time the service was rendered, (ii) employer contributions that the employer would have contributed had deductions from salary been made for this purpose at the time the service was rendered, plus (iii) interest on items (i) and (ii) at the actuarially assumed interest rate, compounded annually, from the time the service was rendered until the date of payment. (Source: P.A. 95‑483, eff. 8‑28‑07; 96‑775, eff. 8‑28‑09; 96‑1252, eff. 7‑23‑10.)
(40 ILCS 5/3‑109.1)(from Ch. 108 1/2, par. 3‑109.1) Sec. 3‑109.1. Chief of police. (a) Beginning January 1, 1990, any person who is employed as the chief of police of a "participating municipality" as defined in Section 7‑106 of this Code, may elect to participate in the Illinois Municipal Retirement Fund rather than in a fund created under this Article 3. Except as provided in subsection (b), this election shall be irrevocable, and shall be filed in writing with the Board of the Illinois Municipal Retirement Fund. (b) Until January 1, 1999, a chief of police who has elected under this Section to participate in IMRF rather than a fund created under this Article may elect to rescind that election and transfer his or her participation to the police pension fund established under this Article by the employing municipality. The chief must notify the boards of trustees of both funds in writing of his or her decision to rescind the election and transfer participation. A chief of police who transfers participation under this subsection (b) shall not be deemed ineligible to participate in the police pension fund by reason of having failed to apply within the 3‑month period specified in Section 3‑106. (Source: P.A. 90‑460, eff. 8‑17‑97.)
(40 ILCS 5/3‑109.2) Sec. 3‑109.2. Retirement Program Elections. (a) For the purposes of this Section and Section 3‑109.3: "Eligible employee" means a police officer who is hired on or within one year after the effective date of the self‑managed plan established under Section 3‑109.3. "Ineligible employee" means a police officer who is hired before or more than one year after that effective date. (b) Each eligible employee may elect to participate in the self‑managed plan with respect to all periods of covered employment occurring on and after the effective date of the eligible employee's election. The election must be made in writing, in the manner prescribed by the fund, and within 6 months after the later of (i) the date upon which the self‑managed plan takes effect or (ii) the date of hire. The election, once made, is irrevocable. If an employee terminates employment after making the election, then upon his or her subsequent re‑employment under this Article with the same municipality, the original election shall automatically be reinstated. A police officer who does not elect to participate in the self‑managed plan within the permitted time shall participate in the defined benefit plan otherwise provided under this Article. The employer shall not remit contributions to the fund on behalf of an eligible employee until the earlier of the expiration of the employee's 6‑month election period or the date on which the employee submits a properly completed election to the employer or to the fund. (c) Each eligible employee shall be provided with written information prepared or prescribed by the fund, describing the employee's retirement program choices. The eligible employee shall be offered an opportunity to receive counseling from the fund prior to making his or her election. This counseling may consist of videotaped materials, group presentations, individual consultation with an employee or authorized representative of the fund in person or by telephone or other electronic means, or any combination of these methods. (Source: P.A. 91‑939, eff. 2‑1‑01.)
(40 ILCS 5/3‑109.3) Sec. 3‑109.3. Self‑managed plan. (a) Purpose. The General Assembly finds that it is important for municipalities to be able to attract and retain the most qualified police officers and that in order to attract and retain these police officers, municipalities should have the flexibility to provide a defined contribution plan as an alternative for eligible employees who elect not to participate in a defined benefit retirement program provided under this Article. Accordingly, a self‑managed plan shall be provided, which shall offer participating employees the opportunity to accumulate assets for retirement through a combination of employee and employer contributions that may be invested in mutual funds, collective investment funds, or other investment products and used to purchase annuity contracts, either fixed or variable, or a combination thereof. The plan must be qualified under the Internal Revenue Code of 1986. (b) Study by Commission; Adoption of plan. The Illinois Pension Laws Commission (or its successor, the Commission on Government Forecasting and Accountability) shall study and evaluate the creation of a statewide self‑managed plan for eligible employees under this Article. The Commission shall report its findings and recommendations to the General Assembly no later than January 1, 2002. In accordance with the recommendations of the Commission and any action taken by the General Assembly in response to those recommendations, a statewide self‑managed plan shall be adopted for eligible employees under this Article. The self‑managed plan shall take effect as specified in the plan, but in no event earlier than July 1, 2002 or the date of its approval by the U.S. Internal Revenue Service, whichever occurs later. The self‑managed plan shall include a plan document and shall provide for the adoption of such rules and procedures as are necessary or desirable for the administration of the self‑managed plan. Consistent with fiduciary duty to the participants and beneficiaries of the self‑managed plan, it may provide for delegation of suitable aspects of plan administration to companies authorized to do business in this State. (c) Selection of service providers and funding vehicles. The principal administrator of the self‑managed plan shall solicit proposals to provide administrative services and funding vehicles for the self‑managed plan from insurance and annuity companies and mutual fund companies, banks, trust companies, or other financial institutions authorized to do business in this State. In reviewing the proposals received and approving and contracting with no fewer than 2 and no more than 7 companies, the principal administrator shall consider, among other things, the following criteria: (1) the nature and extent of the benefits that would
be provided to the participants;
(2) the reasonableness of the benefits in relation to
the premium charged;
(3) the suitability of the benefits to the needs and
interests of the participating employees and the employer;
(4) the ability of the company to provide benefits
under the contract and the financial stability of the company; and
(5) the efficacy of the contract in the recruitment
and retention of employees.
The principal administrator shall periodically review each approved company. A company may continue to provide administrative services and funding vehicles for the self‑managed plan only so long as it continues to be an approved company under contract with the principal administrator. (d) Employee Direction. Employees who are participating in the program must be allowed to direct the transfer of their account balances among the various investment options offered, subject to applicable contractual provisions. The participant shall not be deemed a fiduciary by reason of providing such investment direction. A person who is a fiduciary shall not be liable for any loss resulting from such investment direction and shall not be deemed to have breached any fiduciary duty by acting in accordance with that direction. The self‑managed plan does not guarantee any of the investments in the employee's account balances. (e) Participation. An eligible employee must make a written election in accordance with the provisions of Section 3‑109.2 and the procedures established under the self‑managed plan. Participation in the self‑managed plan by an eligible employee who elects to participate in the self‑managed plan shall begin on the first day of the first pay period following the later of the date the employee's election is filed with the fund or the employer, but in no event sooner than the effective date of the self‑managed plan. A police officer who has elected to participate in the self‑managed plan under this Section must continue participation while employed in an eligible position, and may not participate in any other retirement program administered by the municipality while employed as a police officer by that municipality. Participation in the self‑managed plan under this Section shall constitute membership in an Article 3 pension fund. (f) No Duplication of Service Credit. Notwithstanding any other provision of this Article, a police officer may not purchase or receive service or service credit applicable to any other retirement program administered by a fund under this Article for any period during which the police officer was a participant in the self‑managed plan established under this Section. (g) Contributions. The self‑managed plan shall be funded by contributions from participants in the self‑managed plan and employer contributions as provided in this Section. The contribution rate for a participant in the self‑managed plan under this Section shall be a minimum of 10% of his or her salary. This required contribution shall be made as an "employer pick‑up" under Section 414(h) of the Internal Revenue Code of 1986 or any successor Section thereof. An employee may make additional contributions to the self‑managed plan in accordance with the terms of the plan. The self‑managed plan shall provide for employer contributions to be credited to each self‑managed plan participant at a rate of 10% of the participating employee's salary, less the amount of the employer contribution used to provide disability benefits for the employee. The amounts so credited shall be paid into the participant's self‑managed plan accounts in the manner prescribed by the plan. An amount of employer contribution, not exceeding 1.5% of the participating employee's salary, shall be used for the purpose of providing disability benefits to the participating employee. Prior to the beginning of each plan year under the self‑managed plan, the principal administrator shall determine, as a percentage of salary, the amount of employer contributions to be allocated during that plan year for providing disability benefits for employees in the self‑managed plan. (h) Vesting; Withdrawal; Return to Service. A participant in the self‑managed plan becomes fully vested in the employer contributions credited to his or her account in the self‑managed plan on the earliest to occur of the following: (1) completion of 6 years of service with the
municipality; or
(2) the death of the participating employee while
employed by the municipality, if the participant has completed at least 1.5 years of service.
A participant in the self‑managed plan who receives a distribution of his or her vested amounts from the self‑managed plan upon or after termination of employment shall forfeit all service credit and accrued rights in the fund of his or her employer; if subsequently re‑employed, the participant shall be considered a new employee. If a former participant again becomes a participating employee and continues as such for at least 2 years, all such rights, service credit, and previous status as a participant shall be restored upon repayment of the amount of the distribution without interest. (i) Benefit amounts. If a participating employee who is fully vested in employer contributions terminates employment, the participating employee shall be entitled to a benefit which is based on the account values attributable to both employer and employee contributions and any investment return thereon. If a participating employee who is not fully vested in employer contributions terminates employment, the employee shall be entitled to a benefit based on the account values attributable to the employee's contributions and any investment return thereon, plus the following percentage of employer contributions and any investment return thereon: 20% after the second year; 40% after the third year; 60% after the fourth year; 80% after the fifth year; and 100% after the sixth year. The remainder of employer contributions and investment return thereon shall be forfeited. Any employer contributions that are forfeited shall be held in escrow by the company investing those contributions and shall be used as directed by the municipality for future allocations of employer contributions or for the restoration of amounts previously forfeited by former participants who again become participating employees. (Source: P.A. 93‑632, eff. 2‑1‑04; 93‑1067, eff. 1‑15‑05.)
(40 ILCS 5/3‑110)(from Ch. 108 1/2, par. 3‑110) Sec. 3‑110. Creditable service. (a) "Creditable service" is the time served by a police officer as a member of a regularly constituted police force of a municipality. 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 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 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 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 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. If the board of the pension fund to which creditable service and related contributions are transferred under Section 3‑110.7 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 police officer may elect (A) to establish that creditable service by paying to the pension fund, within the payment period specified in paragraph (3) of this subsection (d), 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 (d) or (B) to have his or her creditable service reduced by an amount equal to the difference between the amount transferred under Section 3‑110.7 and the true cost to the pension fund of allowing that creditable service to be established, as determined by the board in accordance with the rules and procedures adopted under paragraph (6) of this subsection (d).
(3) Except as provided in paragraph (4), the
additional contribution that is required or elected under paragraph (2) of this subsection (d) 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 that is required
or elected under paragraph (2) of this subsection (d) 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 interest paid by the police officer to the prior pension fund in order to reinstate service terminated by acceptance of a refund.
