102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB4681

 

Introduced 1/21/2022, by Rep. Tony McCombie

 

SYNOPSIS AS INTRODUCED:
 
See Index

    Amends the Downstate Police and Illinois Municipal Retirement Fund (IMRF) Articles of the Illinois Pension Code. Provides that, within 12 months after the effective date of the amendatory Act, an active IMRF member who is a sheriff's law enforcement employee may apply to transfer up to 5 years of creditable service under the Downstate Police Article to IMRF. Provides that the credits and creditable service shall be transferred upon payment by the police pension fund of a specified amount. Provides that a sheriff's law enforcement employee applying to transfer service under the provisions may reinstate credits and creditable service terminated upon receipt of a refund by paying to the police pension fund the amount of the refund plus interest. Provides that, to establish the credit, the sheriff's law enforcement employee may elect to either pay to IMRF an amount equal to the difference between the amount of employee and employer contributions transferred to IMRF and the amounts that would have been contributed had such contributions been made at the rates applicable to an employee under the IMRF Article, plus interest at a specified rate; or to have the amount of his or her creditable service reduced by an amount corresponding to the amount by which the employer and employee contributions that would have been required if he or she had participated in IMRF during the period for which credit is being transferred, plus interest at a specified rate, exceeds the amount actually transferred to IMRF. Requires a sheriff's law enforcement employee to pay an additional amount under specified circumstances. Makes conforming and other changes. Amends the State Mandates Act to require implementation without reimbursement by the State. Effective immediately.


LRB102 21803 RPS 30923 b

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

 

 

A BILL FOR

 

HB4681LRB102 21803 RPS 30923 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
5changing Section 3-110.8 and by adding Section 7-139.15 as
6follows:
 
7    (40 ILCS 5/3-110.8)
8    Sec. 3-110.8. Transfer to IMRF.
9    (a) Within 12 months after the effective date of this
10amendatory Act of the 102nd General Assembly Until 60 days
11after the effective date of this amendatory Act of the 97th
12General Assembly, any active member of the Illinois Municipal
13Retirement Fund who is a sheriff's law enforcement employee
14under Article 7 may apply to transfer up to 5 10 years of
15creditable service in a police pension fund under this Article
16to the Illinois Municipal Retirement Fund. The creditable
17service shall be transferred upon payment by the police
18pension fund to the Illinois Municipal Retirement Fund of an
19amount equal to:
20        (1) the amounts accumulated to the credit of the
21    applicant on the books of the fund on the date of transfer;
22    and
23        (2) employer contributions in an amount equal to the

 

 

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1    amount determined under subparagraph (1); and
2        (3) any interest paid by the applicant in order to
3    reinstate service.
4Creditable service transferred to the Illinois Municipal
5Retirement Fund under this Section shall terminate on the date
6of the transfer.
7    (b) Within 12 months after the effective date of this
8amendatory Act of the 102nd General Assembly Until 60 days
9after the effective date of this amendatory Act of the 97th
10General Assembly, any active member of the Illinois Municipal
11Retirement Fund who is a sheriff's law enforcement employee
12may reinstate all or any portion of his or her service that was
13terminated by receipt of a refund, by payment to the police
14pension fund of the amount of the refund with interest thereon
15at the actuarially assumed rate, compounded annually, from the
16date of refund to the date of payment.
17(Source: P.A. 97-273, eff. 8-8-11.)
 
18    (40 ILCS 5/7-139.15 new)
19    Sec. 7-139.15. Transfer from Article 3.
20    (a) Within 12 months after the effective date of this
21amendatory Act of the 102nd General assembly, a sheriff's law
22enforcement employee may transfer to the Illinois Municipal
23Retirement Fund up to 5 years of creditable service
24accumulated under Article 3 of this Code. To establish
25creditable service under this Section, the sheriff's law

 

 

HB4681- 3 -LRB102 21803 RPS 30923 b

1enforcement employee may elect to do either of the following:
2        (1) pay to the Fund an amount to be determined by the
3    board, equal to (i) the difference between the amount of
4    employee and employer contributions transferred to the
5    Fund under Section 3-110.8 and the amounts that would have
6    been contributed had such contributions been made at the
7    rates applicable to an employee under this Article, plus
8    (ii) interest thereon at the actuarially assumed rate,
9    compounded annually, from the date of service to the date
10    of payment; or
11        (2) have the amount of his or her creditable service
12    established under this Section reduced by an amount
13    corresponding to the amount by which (i) the employer and
14    employee contributions that would have been required if he
15    or she had participated in this Fund during the period for
16    which credit is being transferred, plus interest thereon
17    at the actuarially assumed rate, compounded annually, from
18    the date of termination of the service for which credit is
19    being transferred to the date of payment, exceeds (ii) the
20    amount actually transferred to the Fund.
21    (b) The Illinois Municipal Retirement Fund shall certify
22either:
23        (1) that the contributions transferred under Section
24    3-110.8 plus the payments under paragraph (1) of
25    subsection (a) or the value of the reduction under
26    paragraph (2) of subsection (a), whichever is applicable,

 

 

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1    are actuarially sufficient to equal the cost of
2    establishing the creditable service; or
3        (2) an amount equal to the difference between the
4    amount that is actuarially sufficient to equal the cost of
5    establishing the creditable service and the contributions
6    transferred under Section 3-110.8 plus the payments under
7    paragraph (1) of subsection (a) or the value of the
8    reduction under paragraph (2) of subsection (a), whichever
9    is applicable.
10    If the Illinois Municipal Retirement Fund certifies an
11amount under paragraph (2) of this subsection, the sheriff's
12law enforcement employee shall pay an additional amount equal
13to the amount certified under paragraph (2) of this subsection
14before creditable service may be established under this
15Section.
 
16    Section 90. The State Mandates Act is amended by adding
17Section 8.46 as follows:
 
18    (30 ILCS 805/8.46 new)
19    Sec. 8.46. Exempt mandate. Notwithstanding Sections 6 and
208 of this Act, no reimbursement by the State is required for
21the implementation of any mandate created by this amendatory
22Act of the 102nd General Assembly.
 
23    Section 99. Effective date. This Act takes effect upon
24becoming law.

 

 

HB4681- 5 -LRB102 21803 RPS 30923 b

1 INDEX
2 Statutes amended in order of appearance
3    40 ILCS 5/3-110.8
4    40 ILCS 5/7-139.15 new
5    30 ILCS 805/8.46 new