Illinois General Assembly - Full Text of HB1042
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Full Text of HB1042  98th General Assembly

HB1042eng 98TH GENERAL ASSEMBLY

  
  
  

 


 
HB1042 EngrossedLRB098 07361 EFG 37425 b

1    AN ACT concerning public employee benefits.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Pension Code is amended by changing
5Sections 3-110.11 and 5-237.5 as follows:
 
6    (40 ILCS 5/3-110.11)
7    Sec. 3-110.11. Transfer of creditable service from Article
85 fund. For a period of 180 60 days after the effective date of
9this amendatory Act of the 98th General Assembly Section, a
10person may transfer to a fund established under this Article up
11to 10 years of creditable service accumulated under Article 5
12of this Code upon payment to the fund of an amount to be
13determined by the board, equal to (i) the difference between
14the amount of employee and employer contributions transferred
15to the fund under Section 5-237.5 and the amounts that would
16have been contributed had such contributions been made at the
17rates applicable to an employee under this Article, plus (ii)
18interest thereon at the actuarially assumed rate, compounded
19annually, from the date of service to the date of payment, plus
20(iii) if the board determines that the amount transferred is
21less than the true cost to the Fund of allowing that creditable
22service to be established, then in order to establish that
23creditable service, the member must pay to the Fund an

 

 

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1additional contribution equal to the difference, as determined
2by the board in accordance with the rules and procedures
3adopted under this Section. If the member does not make the
4full additional payment as required by this Section prior to
5termination of his or her participation with that employer,
6then his or her creditable service shall be reduced by an
7amount equal to the difference between the amount transferred
8under Section 3-110.3, including any payments made by the
9member under this paragraph prior to termination, and the true
10cost to the Fund of allowing that creditable service to be
11established, as determined by the board in accordance with the
12rules and procedures adopted under this Section.
13    The board shall establish by rule the manner of making the
14calculation required under this Section, taking into account
15the appropriate actuarial assumptions, the member's service,
16age, and salary history, and any other factors that the board
17determines to be relevant.
18(Source: P.A. 97-326, eff. 8-12-11.)
 
19    (40 ILCS 5/5-237.5)
20    Sec. 5-237.5. Transfer of creditable service to Article 3
21fund.
22    (a) Any person who is an active participant in a pension
23fund established under Article 3 of this Code may, for a period
24of 60 days after the effective date of this amendatory Act of
25the 98th General Assembly Section, apply for transfer of his or

 

 

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1her credits and creditable service accumulated in this Fund to
2that Article 3 fund. Upon receipt of a written application to
3make this transfer, the Fund shall pay to the Article 3 fund an
4amount consisting of:
5        (1) the amounts credited to the applicant through
6    employee contributions, plus accumulated interest; plus
7        (2) an amount representing municipality contributions,
8    equal to the amount determined under item (1); plus
9        (3) any interest paid to the Fund in order to reinstate
10    credits and creditable service under subsection (b).
11Participation in this Fund shall terminate on the date of the
12transfer.
13    (b) As part of a transfer under subsection (a), a person
14may reinstate credits and creditable service that was
15terminated upon receipt of a refund, by paying to the Fund the
16amount of the refund plus interest thereon at the actuarially
17assumed rate, compounded annually, from the date of the refund
18to the date of payment.
19(Source: P.A. 97-326, eff. 8-12-11.)
 
20    Section 90. The State Mandates Act is amended by adding
21Section 8.37 as follows:
 
22    (30 ILCS 805/8.37 new)
23    Sec. 8.37. Exempt mandate. Notwithstanding Sections 6 and 8
24of this Act, no reimbursement by the State is required for the

 

 

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1implementation of any mandate created by this amendatory Act of
2the 98th General Assembly.
 
3    Section 99. Effective date. This Act takes effect upon
4becoming law.