HB0287 95TH GENERAL ASSEMBLY

LRB095 05114 AMC 25183 b

95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008
HB0287

Introduced 1/19/2007, by Rep. Jack D. Franks

SYNOPSIS AS INTRODUCED:

40 ILCS 5/3-110.9 new
40 ILCS 5/4-108.4
30 ILCS 805/8.31 new

Amends the Illinois Pension Code. Allows an active member of a pension fund established under Article 4 (Downstate Firefighters Article) to apply for transfer of his or her creditable service accumulated in any police pension fund under Article 3 (Downstate Police Article) to a pension fund created under Article 4. 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 3-110.9 and by changing Section 4-108.4 as follows:

(40 ILCS 5/3-110.9 new)

Sec. 3-110.9. Transfer of creditable service to Article 4 Fund.

(a) An active member of a pension fund established under Article 4 of this Code may apply for transfer of his or her creditable service as a public safety officer accumulated in any police pension fund under this Article to a pension fund created under Article 4. The creditable service shall be transferred only upon payment by the police pension fund to the pension fund created under Article 4 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 the police pension fund shall terminate on the date of transfer.

(b) An active member of a pension fund established under Article 4 may reinstate service as a public safety officer that was terminated by receipt of a refund by paying to the police pension fund the amount of the refund with interest thereon at the rate of 6% per year, compounded annually, from the date of refund to the date of payment.

(40 ILCS 5/4-108.4)

Sec. 4-108.4. Transfer of creditable service from Article 3 or Article 7 fund.

(a) Any firefighter who was excluded from participation in an Article 4 fund because the firefighter earned credit for that service under Article 7 of this Code and who is a participant in the Illinois Municipal Retirement Fund may become an active participant in that firefighter pension fund by making a written application to the Board. Persons so applying shall begin participation on the first day of the month following the month in which the application is received by the Board. An employee who makes application for participation shall not be deemed ineligible to participate in the firefighter pension fund by reason of having failed to apply within the 3-month period specified in subsection (b) of Section 4-107.

(b) A firefighter who was excluded from participation in an Article 4 fund because the firefighter earned credit for that service under Article 7 of this Code and who is a participant in the Illinois Municipal Retirement Fund may also elect to establish creditable service for those periods of employment as a firefighter during which he or she was excluded from participation in an Article 4 fund by paying into the fund 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, less any amounts transferred from the Illinois Municipal Retirement Fund under Section 7-139.10.

(c) In no event shall pension credit for the same service rendered by an employee be accredited in more than one pension fund or retirement system under this Code. If an employee applies for service credit under subsection (b), then any creditable service time accumulated in the Illinois Municipal Retirement Fund for the same period must be transferred to the Article 4 fund under Section 7-139.10.

(d) A firefighter whose service as a public safety officer was excluded from participation in an Article 4 fund because the firefighter earned credit for that service under Article 3 of this Code and who is a participant in a police pension fund under that Article may elect to establish creditable service for those periods of employment as a public safety officer during which he or she was excluded from participation in an Article 4 fund by paying into the fund 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, less any amounts transferred from the police pension fund under Section 3-110.9.

(Source: P.A. 93-689, eff. 7-1-04.)

Section 90. The State Mandates Act is amended by adding Section 8.31 as follows:

(30 ILCS 805/8.31 new)

Sec. 8.31. 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 95th General Assembly.