Illinois General Assembly - Full Text of HB2637
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Full Text of HB2637  93rd General Assembly

HB2637 93rd General Assembly


093_HB2637

 
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 1        AN ACT in relation to public employee benefits.

 2        Be it enacted by the People of  the  State  of  Illinois,
 3    represented in the General Assembly:

 4        Section  5.   The  Illinois  Pension  Code  is amended by
 5    changing  Section  4-118.1  and  adding   Sections   4-108.4,
 6    4-109.3, and 7-139.10 as follows:

 7        (40 ILCS 5/4-108.4 new)
 8        Sec. 4-108.4. Transfer of creditable service from Article
 9    7 fund.
10        (a)  Any   exempt  firefighter,  as  defined  in  Section
11    4-109.3, who was excluded from participation in an Article  4
12    fund  because  of  age  and  is a participant in the Illinois
13    Municipal Retirement System may become an active  participant
14    in   that  firefighter  pension  fund  by  making  a  written
15    application to the Board before January 1, 2004.  Persons  so
16    applying  shall  begin  participation on the first day of the
17    month  following  the  month  in  which  the  application  is
18    received  by  the  Board.  An  exempt  employee   who   makes
19    application  for participation shall not be deemed ineligible
20    to participate in the firefighter pension fund by  reason  of
21    having failed to apply within the 3-month period specified in
22    subsection (b) of Section 4-107.
23        (b)  An   exempt   firefighter,  as  defined  in  Section
24    4-109.3, who was excluded from participation in an Article  4
25    fund  because  of  age  and  is a participant in the Illinois
26    Municipal Retirement  System  may  also  elect  to  establish
27    creditable service for periods of employment as a firefighter
28    during  which  he  or she did not participate in an Article 4
29    fund by paying into the fund, before  January  1,  2004,  the
30    amount  that the person would have contributed had deductions
31    from salary been made  for  this  purpose  at  the  time  the
 
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 1    service  was  rendered,  together with interest thereon at 6%
 2    per annum, compounded annually, from the time the service was
 3    rendered  until  the  date  of  payment,  less  any   amounts
 4    transferred from the Illinois Municipal Retirement Fund under
 5    Section 7-139.10.
 6        (c)  In  no  event  shall  pension  credit  for  the same
 7    service rendered by an employee be accredited  in  more  than
 8    one  participating  system. If an exempt employee applies for
 9    service credit under  subsection  (b),  then  any  creditable
10    service time accumulated in the Illinois Municipal Retirement
11    Fund for the same period must be transferred to the Article 4
12    fund under Section 7-139.10.

13        (40 ILCS 5/4-109.3 new)
14        Sec. 4-109.3.  Exempt employee creditable service.
15        (a)  As used in this Section:
16        "Exempt  firefighter"  means  a  firefighter who is not a
17    party to a collective bargaining agreement under the Illinois
18    Public Labor Relations Act by virtue of being employed  as  a
19    supervisor for the purposes of that Act.
20        "Final  monthly salary" means the monthly salary attached
21    to the rank held by the firefighter at the time of his or her
22    last withdrawal from service under a particular pension fund.
23        "Last pension fund" means the pension fund in  which  the
24    firefighter  was participating at the time of his or her last
25    withdrawal from service.
26        (b)  The  benefits  provided  under  this   Section   are
27    available only to a firefighter who:
28             (1)  is   an  exempt  firefighter  at  the  time  of
29        withdrawal from the last pension fund and  for  at  least
30        the final 3 years of employment prior to that withdrawal;
31             (2)  has  established  service  credit with at least
32        one pension fund established  under  this  Article  other
33        than the last pension fund;
 
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 1             (3)  has  a  total  of  at least 20 years of service
 2        under the various pension funds  established  under  this
 3        Article and has attained age 50;
 4             (4)  is in service on or after the effective date of
 5        this amendatory Act of the 93rd General Assembly; and
 6             (5)  has  not received a refund under subsection (c)
 7        of Section 4-118.1.
 8        (c)  A firefighter who is  eligible  for  benefits  under
 9    this  Section  may elect to receive a retirement pension from
10    each pension fund under this Article in which the firefighter
11    has at least one year  of  service  credit,  by  applying  in
12    writing and paying the contribution required under subsection
13    (i).
14        (d)  From  each  such  pension  fund  other than the last
15    pension fund, in lieu of  any  retirement  pension  otherwise
16    payable  under  this  Article,  a  firefighter  to  whom this
17    Section applies may elect to receive  a  monthly  pension  of
18    1/12th  of 2.5% of his or her final monthly salary under that
19    fund for each month of service in that  fund,  subject  to  a
20    maximum of 75% of that final monthly salary.
21        (e)  From   the   last  pension  fund,  in  lieu  of  any
22    retirement pension otherwise payable under  this  Article,  a
23    firefighter to whom this Section applies may elect to receive
24    a monthly pension calculated as follows:
25        The  last  pension  fund  shall  calculate the retirement
26    pension that  would  be  payable  to  the  firefighter  under
27    subsection (a) of Section 4-109 if he or she had participated
28    in  that last pension fund during his or her entire period of
29    service  under  all  pension  funds  established  under  this
30    Article.  From  this  hypothetical  pension  there  shall  be
31    subtracted  the  original  amounts of the retirement pensions
32    payable to the firefighter by all other pension  funds  under
33    subsection  (d).   The  remainder  is  the retirement pension
34    payable to the firefighter by the  last  pension  fund  under
 
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 1    this subsection (e).
 2        (f)  Pensions elected under this Section shall be subject
 3    to  increases  as  provided  in  subsection  (d)  of  Section
 4    4-109.1.
 5        (g)  A   current   exempt   firefighter   may   reinstate
 6    creditable  service  in a pension fund established under this
 7    Article that was terminated upon  receipt  of  a  refund,  by
 8    payment  to  that  pension  fund  of the amount of the refund
 9    together with interest thereon at the rate of  6%  per  year,
10    compounded  annually, from the date of the refund to the date
11    of payment.  A repayment of a refund under this  Section  may
12    be  made  in  equal  installments  over  a period of up to 10
13    years, but must be paid in full prior to retirement.
14        (h)  As a condition of being hired for or promoted  to  a
15    position  as  an exempt firefighter on or after the effective
16    date of this amendatory Act of the 93rd General  Assembly,  a
17    firefighter  must  notify the new employer, all of his or her
18    previous employers under this Article, and the Public Pension
19    Division of the Department of Insurance, within one  year  of
20    being  hired or promoted to an exempt rank, of all periods of
21    service of at least one year under a pension fund established
22    under this Article.
23        (i)  In order to receive a pension under this Section,  a
24    firefighter  must pay to each pension fund under this Article
25    in which he or she has at least one year of service credit  a
26    contribution equal to 1/12th of 1% of monthly salary for each
27    month of service credit that the firefighter has in that fund
28    (other  than  service  credit  for  which the firefighter has
29    already  paid  the  additional  contribution  required  under
30    subsection (c) of Section 4-118.1), together with interest at
31    the rate of 6% per year, compounded annually, from  the  date
32    of the service to the date of payment.
33        A retired exempt firefighter who receives a pension under
34    this  Section  may return to duty as an exempt firefighter if
 
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 1    he or she (i) suspends that  pension,  and  (ii)  repays  the
 2    amount  of  any  pension  received  under  this Section, plus
 3    interest at the rate of 6% per year, compounded annually.
 4        (j)  A firefighter who is newly hired or  promoted  to  a
 5    position  as  an  exempt  firefighter  shall  not  be  denied
 6    participation  in  a  fund under this Article based on his or
 7    her age.

 8        (40 ILCS 5/4-118.1) (from Ch. 108 1/2, par. 4-118.1)
 9        Sec. 4-118.1.  Contributions by firefighters.
10        (a)  Beginning January 1, 1976 and  until  the  effective
11    date  of  this  amendatory  Act of the 91st General Assembly,
12    each firefighter shall contribute to the pension fund  6 3/4%
13    of  salary towards the cost of his or her pension.  Beginning
14    on the effective date of this  amendatory  Act  of  the  91st
15    General  Assembly,  each  firefighter shall contribute to the
16    pension fund 6.955% of salary towards the cost of his or  her
17    pension.
18        (b)  In   addition,   beginning  January  1,  1976,  each
19    firefighter shall contribute 1% of salary toward the cost  of
20    the   increase   in  pension  provided  in  Section  4-109.1;
21    beginning January 1, 1987, such contribution shall be 1.5% of
22    salary.
23        (c)  Beginning on the effective date of  this  amendatory
24    Act  of the 93rd General Assembly, each firefighter who is an
25    exempt firefighter as defined in Section 4-109.3  who  elects
26    to  receive  a  pension  under  Section  4-109.3  and who has
27    participated in at least one other pension  fund  under  this
28    Article for a period of at least one year shall contribute an
29    additional  1.0%  of  salary  toward the cost of the pensions
30    provided in Section 4-109.3.  In the event  that  the  exempt
31    firefighter does not elect to receive the retirement pensions
32    provided  under  Section  4-109.3,  he  or  she  shall,  upon
33    withdrawal  from  the last pension fund as defined in Section
 
                            -6-      LRB093 11072 LRD 11779 b
 1    4-109.3, be entitled to receive, from each fund to  which  he
 2    or   she   has   paid  additional  contributions  under  this
 3    subsection (c),  a  refund  of  those  contributions  without
 4    interest.    A  firefighter who accepts any refund under this
 5    subsection is thereafter ineligible to receive  the  pensions
 6    provided under Section 4-109.3.
 7        (d)  "Salary"   means   the   annual   salary,  including
 8    longevity, attached to the firefighter's rank, as established
 9    by the municipality appropriation  ordinance,  including  any
10    compensation  for overtime which is included in the salary so
11    established, but excluding any "overtime pay", "holiday pay",
12    "bonus pay", "merit pay",  or  any  other  cash  benefit  not
13    included in the salary so established.
14        (e)  The  contributions  shall  be  deducted and withheld
15    from the salary of firefighters.
16    (Source: P.A. 91-466, eff. 8-6-99.)

17        (40 ILCS 5/7-139.10 new)
18        Sec. 7-139.10. Transfer to Article 4 pension fund.  Until
19    January 1, 2004, a  person  who  has  elected  under  Section
20    4-108.4  to  become  an  active  participant in a firefighter
21    pension fund established under Article 4  of  this  Code  may
22    apply  for  transfer  to  that  Article  4 fund of his or her
23    creditable  service  accumulated  under  this   Article   for
24    municipal  firefighter  service.  At the time of the transfer
25    the Fund shall pay to the firefighter pension fund an  amount
26    equal to:
27             (1)  the  amounts  accumulated  to the credit of the
28        applicant for municipal  firefighter  service,  including
29        interest;
30             (2)  any  interest paid by the applicant in order to
31        reinstate that service; and
32             (3)  the municipality credits based on that service,
33        including interest.
 
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 1        Participation  in  this  fund   with   respect   to   the
 2    transferred credits shall terminate on the date of transfer.
 3        For  the  purpose of this Section, "municipal firefighter
 4    service"  means  service  with  the  fire  department  of   a
 5    participating    municipality   for   which   the   applicant
 6    established creditable service under this Article.

 7        Section 90.  The State Mandates Act is amended by  adding
 8    Section 8.27 as follows:

 9        (30 ILCS 805/8.27 new)
10        Sec.  8.27.  Exempt  mandate.  Notwithstanding Sections 6
11    and 8 of this Act, no reimbursement by the State is  required
12    for  the  implementation  of  any  mandate  created  by  this
13    amendatory Act of the 93rd General Assembly.

14        Section  99.  Effective date.  This Act takes effect upon
15    becoming law.