HB3655 96TH GENERAL ASSEMBLY

LRB096 08605 AMC 18728 b

96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010
HB3655

Introduced 2/24/2009, by Rep. Daniel J. Burke

SYNOPSIS AS INTRODUCED:

40 ILCS 5/4-108.6 new
40 ILCS 5/6-227 new
40 ILCS 5/8-226.8 new
40 ILCS 5/11-125.9 new
30 ILCS 805/8.33 new

Amends the Downstate Firefighters, Chicago Firefighters, Chicago Municipal, and Chicago Laborers Articles of the Illinois Pension Code. Allows an active fireman who is a member of the Firemen's Annuity and Benefit Fund of Chicago to transfer up to a total of 10 years of service credit in 6-month increments for service for covered employment under the Downstate Firefighters, Chicago Municipal, and Chicago Laborers Articles. Amends the State Mandates Act to require implementation without reimbursement.

FISCAL NOTE ACT MAY APPLY

PENSION IMPACT NOTE ACT MAY APPLY

STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT

A BILL FOR

AN ACT concerning public employee benefits.

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

Section 5. The Illinois Pension Code is amended by adding Sections 4-108.6, 6-227, 8-226.8, and 11-125.9 as follows:

(40 ILCS 5/4-108.6 new)

Sec. 4-108.6. Transfer of creditable service to the Firemen's Annuity and Benefit Fund of Chicago.

(a) Until January 1, 2010, any active member of the Firemen's Annuity and Benefit Fund of Chicago may apply for transfer of up to 10 years of creditable service accumulated in any pension fund established under this Article to the Firemen's Annuity and Benefit Fund of Chicago. Such creditable service shall be transferred only upon payment by such pension fund to the Firemen's Annuity and Benefit Fund of Chicago of an amount equal to:

(1) the amounts accumulated to the credit of the applicant on the books of the fund on the date of transfer;

(2) employer contributions in an amount equal to the amount determined under subparagraph (1); and

(3) any interest paid by the applicant in order to reinstate service.

Participation in such pension fund as to any credits transferred under this Section shall terminate on the date of transfer.

(40 ILCS 5/6-227 new)

Sec. 6-227. Transfer of creditable service from Articles 4, 8, and 11. Until January 1, 2010, any active member of the Firemen's Annuity and Benefit Fund of Chicago may transfer to the Fund up to a total of 10 years of creditable service accumulated under Articles 4, 8, and 11 of this Code upon payment to the Fund of an amount to be determined by the Board, equal to (i) the difference between the amount of employee and employer contributions transferred to the Fund under Section 4-108.6, 8-226.8, or 11-125.9 and the amounts that would have been contributed had such contributions been made at the rates applicable to an employee under this Article, taking into account the appropriate actuarial assumptions, including without limitation the member's service, age, and salary history, plus (ii) interest thereon at the actuarially assumed rate of interest for each year, compounded annually, from the date of service to the date of payment.

(40 ILCS 5/8-226.8 new)

Sec. 8-226.8. Transfer of creditable service to the Firemen's Annuity and Benefit Fund of Chicago.

(a) Until January 1, 2010, any active member of the Firemen's Annuity and Benefit Fund of Chicago may apply for transfer of up to 10 years of his or her credits and creditable service accumulated under this Fund to the Firemen's Annuity and Benefit Fund of Chicago. Such creditable service shall be transferred only upon payment by such pension fund to the Firemen's Annuity and Benefit Fund of Chicago of an amount equal to:

(1) the amounts accumulated to the credit of the applicant for that service, including interest, on the books of the Fund on the date of transfer; and

(2) the corresponding employer credits computed and credited for that service under this Article, including interest, on the books of the Fund on the date of transfer.

Participation in this Fund as to any credits transferred under this Section shall terminate on the date of transfer.

(40 ILCS 5/11-125.9 new)

Sec. 11-125.9. Transfer of creditable service to the Firemen's Annuity and Benefit Fund of Chicago.

(a) Until January 1, 2010, any active member of the Firemen's Annuity and Benefit Fund of Chicago may apply for transfer of up to 10 years of creditable service accumulated in this Fund to the Firemen's Annuity and Benefit Fund of Chicago. Such creditable service shall be transferred only upon payment by this Fund to the Firemen's Annuity and Benefit Fund of Chicago of an amount equal to:

(1) the amounts accumulated to the credit of the applicant for that service, including interest, on the books of the Fund on the date of transfer; and

(2) the corresponding employer credits computed and credited for that service under this Article, including interest, on the books of the Fund on the date of transfer.

Participation in this Fund as to any credits transferred under this Section shall terminate on the date of transfer.

Section 90. The State Mandates Act is amended by adding Section 8.33 as follows:

(30 ILCS 805/8.33 new)

Sec. 8.33. Exempt mandate. Notwithstanding Sections 6 and 8 of this Act, no reimbursement by the State is required for the implementation of any mandate created by this amendatory Act of the 96th General Assembly.