Board Resolution 1968-7033(c)

Meeting room

Topic: Creditable Service
Subtopic: Out-Of-State
Date: 1/26/1968
Status: Active

WHEREAS, amendments to Article 7 of the Illinois Pension Code, effective December 31, 1967, must be implemented, and

WHEREAS, it is desirable that the Board of Trustees adopt rules and regulations for the direction of the Executive Director and staff;

NOW, THEREFORE, BE IT RESOLVED by the Board of Trustees that the following rules and regulations shall be adopted (all references are to sections of the Illinois Pension Code):

Creditable service in an amount not to exceed 120 months shall be granted to participating employees for service in out-of-state local governmental bodies if the conditions set forth in this paragraph are met. Local governmental body shall include municipal corporations, political subdivisions and other local political entities which are separate and distinct from the states of the United States. It shall not include the District of Columbia, the states of the United States and their departments, boards, commissions, institutions or agencies, or any territories or possessions of the United States and their political subdivisions, or any governmental body outside of the United States of America. Creditable service shall not be granted unless the out-of-state service was service covered by a public pension system. Creditable service may be established at any time after the employee has completed two years as a participating employee has completed two years as a participating employee in the Fund, the municipality certifies that the governing body has authorized the employee to establish such service, the employee makes a lump sum contribution computed at 8% (normal) plus 2% (widow-male employees only) of the period of creditable service granted times the rate of earnings at the date of entrance into service of a participating municipality or participating instrumentality with interest at the effective rate from that date to the date of establishment of the credits. No creditable service shall be granted unless the employee has certified that he has irrevocably forfeited all rights to benefits in the pension system covering the out-of-state service. If by operation of law or otherwise the employee or any other person receives or qualifies for a pension from any other source other than the Fund by reason of such service, prior to the grant of an annuity by the Board of Trustees, then the creditable service granted pursuant to this paragraph shall not be considered in computing the retirement annuity or any other benefit payable to any person by reason of his service. In such cases, a separation benefit shall be payable for the contributions made pursuant to this paragraph.