101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB4511

 

Introduced 2/4/2020, by Rep. Kathleen Willis

 

SYNOPSIS AS INTRODUCED:
 
40 ILCS 5/4-109.3
30 ILCS 805/8.44 new

    Amends the Downstate Firefighter Article of the Illinois Pension Code. In a provision concerning firefighters with service credit in more than one fund, provides that the benefits under the provision are available to a Tier 2 firefighter who has a total of at least 10 years of service under the various pension funds established under the Article, has attained the required age, and meets other qualifications. Makes a conforming change. In a provision concerning the calculation of the pension amount for Tier 2 firefighters with service credit in more than one fund, provides that the salary calculation shall be the average monthly salary obtained by dividing the total salary of the firefighter during the last 48 consecutive months of service within the last 60 months of service in which the total salary was the highest by the number of months of service in that period, regardless of which fund service was earned under. Amends the State Mandates Act to require implementation without reimbursement by the State.


LRB101 18663 RPS 68118 b

FISCAL NOTE ACT MAY APPLY
PENSION IMPACT NOTE ACT MAY APPLY
STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT

 

 

A BILL FOR

 

HB4511LRB101 18663 RPS 68118 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
5Section 4-109.3 as follows:
 
6    (40 ILCS 5/4-109.3)
7    Sec. 4-109.3. Employee creditable service.
8    (a) As used in this Section:
9    "Final monthly salary" means the monthly salary attached to
10the rank held by the firefighter at the time of his or her last
11withdrawal from service under a particular pension fund.
12    "Last pension fund" means the pension fund in which the
13firefighter was participating at the time of his or her last
14withdrawal from service.
15    (b) The benefits provided under this Section are available
16only to a firefighter who:
17        (1) is a firefighter at the time of withdrawal from the
18    last pension fund and for at least the final 3 years of
19    employment prior to that withdrawal;
20        (2) has established service credit with at least one
21    pension fund established under this Article other than the
22    last pension fund;
23        (3) has a total of (A) at least 20 years of service

 

 

HB4511- 2 -LRB101 18663 RPS 68118 b

1    under the various pension funds established under this
2    Article and has attained age 50 or (B) 10 years of service
3    under the various pension funds established under this
4    Article if qualifying for a pension under subsection (c) of
5    Section 4-109 and has attained the required age; and
6        (4) is in service on or after the effective date of
7    this amendatory Act of the 93rd General Assembly.
8    (c) A firefighter who is eligible for benefits under this
9Section or Section 4-109 may elect to receive a retirement
10pension from each pension fund under this Article in which the
11firefighter has at least one year of service credit but has not
12received a refund under Section 4-116 (unless the firefighter
13repays that refund under subsection (g)) or subsection (c) of
14Section 4-118.1, by applying in writing and paying the
15contribution required under subsection (i).
16    (d) From each such pension fund other than the last pension
17fund, in lieu of any retirement pension otherwise payable under
18this Article, a firefighter to whom this Section applies may
19elect to receive a monthly pension of 1/12th of 2.5% of his or
20her final monthly salary under that fund for each month of
21service in that fund, subject to a maximum of 75% of that final
22monthly salary.
23    (e) From the last pension fund, in lieu of any retirement
24pension otherwise payable under this Article, a firefighter to
25whom this Section applies may elect to receive a monthly
26pension calculated as follows:

 

 

HB4511- 3 -LRB101 18663 RPS 68118 b

1    The last pension fund shall calculate the retirement
2pension that would be payable to the firefighter under
3subsection (a) of Section 4-109 as if he or she had
4participated in that last pension fund during his or her entire
5period of service under all pension funds established under
6this Article (excluding any period of service for which the
7firefighter has received a refund under Section 4-116, unless
8the firefighter repays that refund under subsection (g), or for
9which the firefighter has received a refund under subsection
10(c) of Section 4-118.1). From this hypothetical pension there
11shall be subtracted the original amounts of the retirement
12pensions payable to the firefighter by all other pension funds
13under subsection (d). The remainder is the retirement pension
14payable to the firefighter by the last pension fund under this
15subsection (e).
16    For individuals qualifying for a pension under subsection
17(c) of Section 4-109, the salary calculation shall be the
18average monthly salary obtained by dividing the total salary of
19the firefighter during the last 48 consecutive months of
20service within the last 60 months of service in which the total
21salary was the highest by the number of months of service in
22that period, regardless of which fund service was earned under.
23    (f) Pensions elected under this Section shall be subject to
24increases as provided in subsection (d) of Section 4-109.1.
25    (g) A current firefighter may reinstate creditable service
26in a pension fund established under this Article that was

 

 

HB4511- 4 -LRB101 18663 RPS 68118 b

1terminated upon receipt of a refund, by payment to that pension
2fund of the amount of the refund together with interest thereon
3at the rate of 6% per year, compounded annually, from the date
4of the refund to the date of payment. A repayment of a refund
5under this Section may be made in equal installments over a
6period of up to 10 years, but must be paid in full prior to
7retirement.
8    (h) As a condition of being eligible for the benefits
9provided in this Section, a person who is hired to a position
10as a firefighter on or after July 1, 2004 must, within 21
11months after being hired, notify the new employer, all of his
12or her previous employers under this Article, and the Public
13Pension Division of the Division of Insurance of the Department
14of Financial and Professional Regulation of his or her intent
15to receive the benefits provided under this Section.
16    (i) In order to receive a pension under this Section or an
17occupational disease disability pension for which he or she
18becomes eligible due to the application of subsection (m) of
19this Section, a firefighter must pay to each pension fund from
20which he or she has elected to receive a pension under this
21Section a contribution equal to 1% of monthly salary for each
22month of service credit that the firefighter has in that fund
23(other than service credit for which the firefighter has
24already paid the additional contribution required under
25subsection (c) of Section 4-118.1), together with interest
26thereon at the rate of 6% per annum, compounded annually, from

 

 

HB4511- 5 -LRB101 18663 RPS 68118 b

1the firefighter's first day of employment with that fund or the
2first day of the fiscal year of that fund that immediately
3precedes the firefighter's first day of employment with that
4fund, whichever is earlier.
5    In order for a firefighter who, as of the effective date of
6this amendatory Act of the 93rd General Assembly, has not begun
7to receive a pension under this Section or an occupational
8disease disability pension under subsection (m) of this Section
9and who has contributed 1/12th of 1% of monthly salary for each
10month of service credit that the firefighter has in that fund
11(other than service credit for which the firefighter has
12already paid the additional contribution required under
13subsection (c) of Section 4-118.1), together with the required
14interest thereon, to receive a pension under this Section or an
15occupational disease disability pension for which he or she
16becomes eligible due to the application of subsection (m) of
17this Section, the firefighter must, within one year after the
18effective date of this amendatory Act of the 93rd General
19Assembly, make an additional contribution equal to 11/12ths of
201% of monthly salary for each month of service credit that the
21firefighter has in that fund (other than service credit for
22which the firefighter has already paid the additional
23contribution required under subsection (c) of Section
244-118.1), together with interest thereon at the rate of 6% per
25annum, compounded annually, from the firefighter's first day of
26employment with that fund or the first day of the fiscal year

 

 

HB4511- 6 -LRB101 18663 RPS 68118 b

1of that fund that immediately precedes the firefighter's first
2day of employment with the fund, whichever is earlier. A
3firefighter who, as of the effective date of this amendatory
4Act of the 93rd General Assembly, has not begun to receive a
5pension under this Section or an occupational disease
6disability pension under subsection (m) of this Section and who
7has contributed 1/12th of 1% of monthly salary for each month
8of service credit that the firefighter has in that fund (other
9than service credit for which the firefighter has already paid
10the additional contribution required under subsection (c) of
11Section 4-118.1), together with the required interest thereon,
12in order to receive a pension under this Section or an
13occupational disease disability pension under subsection (m)
14of this Section, may elect, within one year after the effective
15date of this amendatory Act of the 93rd General Assembly to
16forfeit the benefits provided under this Section and receive a
17refund of that contribution.
18    (j) A retired firefighter who is receiving pension payments
19under Section 4-109 may reenter active service under this
20Article. Subject to the provisions of Section 4-117, the
21firefighter may receive credit for service performed after the
22reentry if the firefighter (1) applies to receive credit for
23that service, (2) suspends his or her pensions under this
24Section, and (3) makes the contributions required under
25subsection (i).
26    (k) A firefighter who is newly hired or promoted to a

 

 

HB4511- 7 -LRB101 18663 RPS 68118 b

1position as a firefighter shall not be denied participation in
2a fund under this Article based on his or her age.
3    (l) If a firefighter who elects to make contributions under
4subsection (c) of Section 4-118.1 for the pension benefits
5provided under this Section becomes entitled to a disability
6pension under Section 4-110, the last pension fund is
7responsible to pay that disability pension and the amount of
8that disability pension shall be based only on the
9firefighter's service with the last pension fund.
10    (m) Notwithstanding any provision in Section 4-110.1 to the
11contrary, if a firefighter who elects to make contributions
12under subsection (c) of Section 4-118.1 for the pension
13benefits provided under this Section becomes entitled to an
14occupational disease disability pension under Section 4-110.1,
15each pension fund to which the firefighter has made
16contributions under subsection (c) of Section 4-118.1 must pay
17a portion of that occupational disease disability pension equal
18to the proportion that the firefighter's service credit with
19that pension fund for which the contributions under subsection
20(c) of Section 4-118.1 have been made bears to the
21firefighter's total service credit with all of the pension
22funds for which the contributions under subsection (c) of
23Section 4-118.1 have been made. A firefighter who has made
24contributions under subsection (c) of Section 4-118.1 for at
25least 5 years of creditable service shall be deemed to have met
26the 5-year creditable service requirement under Section

 

 

HB4511- 8 -LRB101 18663 RPS 68118 b

14-110.1, regardless of whether the firefighter has 5 years of
2creditable service with the last pension fund.
3    (n) If a firefighter who elects to make contributions under
4subsection (c) of Section 4-118.1 for the pension benefits
5provided under this Section becomes entitled to a disability
6pension under Section 4-111, the last pension fund is
7responsible to pay that disability pension, provided that the
8firefighter has at least 7 years of creditable service with the
9last pension fund. In the event a firefighter began employment
10with a new employer as a result of an intergovernmental
11agreement that resulted in the elimination of the previous
12employer's fire department, the firefighter shall not be
13required to have 7 years of creditable service with the last
14pension fund to qualify for a disability pension under Section
154-111. Under this circumstance, a firefighter shall be required
16to have 7 years of total combined creditable service time to
17qualify for a disability pension under Section 4-111. The
18disability pension received pursuant to this Section shall be
19paid by the previous employer and new employer in proportion to
20the firefighter's years of service with each employer.
21(Source: P.A. 95-1032, eff. 2-17-09; 95-1036, eff. 2-17-09.)
 
22    Section 90. The State Mandates Act is amended by adding
23Section 8.44 as follows:
 
24    (30 ILCS 805/8.44 new)

 

 

HB4511- 9 -LRB101 18663 RPS 68118 b

1    Sec. 8.44. Exempt mandate. Notwithstanding Sections 6 and 8
2of this Act, no reimbursement by the State is required for the
3implementation of any mandate created by this amendatory Act of
4the 101st General Assembly.