Illinois General Assembly - Full Text of HB2502
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Full Text of HB2502  101st General Assembly


Rep. Kathleen Willis

Filed: 2/27/2019





10100HB2502ham001LRB101 08689 RPS 56596 a


2    AMENDMENT NO. ______. Amend House Bill 2502 by replacing
3everything after the enacting clause with the following:
4    "Section 5. The Illinois Pension Code is amended by adding
5Sections 4-108.7 and 6-227.1 as follows:
6    (40 ILCS 5/4-108.7 new)
7    Sec. 4-108.7. Transfer of creditable service from the
8Firemen's Annuity and Benefit Fund of Chicago. Until 6 months
9after the effective date of this amendatory Act of the 101st
10General Assembly, any active participant in a fund established
11under this Article may transfer to that fund creditable service
12accumulated under Article 6 of this Code upon payment to the
13Article 4 fund, within 5 years after the date of application,
14of an amount equal to the difference between the amount of
15employee and employer contributions transferred to the Article
164 fund under Section 6-227.1 and the amounts determined by the



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1Article 4 fund in accordance with this Section, plus interest
2on that difference at the actuarially assumed rate, compounded
3annually, from the date of service to the date of payment.
4    The Article 4 fund must determine the firefighter's payment
5required to establish creditable service under this Section by
6taking into account the appropriate actuarial assumptions,
7including without limitation the firefighter's service, age,
8and salary history; the level of funding of the Article 4 fund;
9and any other factors that the Article 4 fund determines to be
10relevant. For this purpose, the firefighter's required payment
11should result in no significant increase to the Article 4
12fund's unfunded actuarial accrued liability determined as of
13the most recent actuarial valuation, based on the same
14assumptions and methods used to develop and report the Article
154 fund's actuarial accrued liability and actuarial value of
16assets under Statement No. 25 of Governmental Accounting
17Standards Board or any subsequent applicable Statement.
18    (40 ILCS 5/6-227.1 new)
19    Sec. 6-227.1. Transfer of creditable service to Article 4.
20    (a) Until 6 months after the effective date of this
21amendatory Act of the 101st General Assembly, any active
22participant in an Article 4 pension fund may apply for transfer
23of creditable service accumulated in the Firemen's Annuity and
24Benefit Fund of Chicago to any Article 4 pension fund. Such
25creditable service shall be transferred only upon payment by



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1the Firemen's Annuity and Benefit Fund of Chicago to the
2Article 4 fund of an amount equal to:
3        (1) the amounts accumulated to the credit of the
4    applicant on the books of the fund on the date of transfer;
5        (2) employer contributions in an amount equal to the
6    amount determined under subparagraph (1); and
7        (3) any interest paid by the applicant in order to
8    reinstate service.
9    Participation in the Firemen's Annuity and Benefit Fund of
10Chicago as to any credits transferred under this Section shall
11terminate on the date of transfer.
12    (b) An active participant in an Article 4 pension fund
13applying for a transfer of creditable service under subsection
14(a) may reinstate credits and creditable service terminated
15upon receipt of a refund by payment to the Article 4 pension
16fund of the amount of the refund with interest thereon at the
17actuarially assumed rate, compounded annually, from the date of
18the refund to the date of payment.
19    Section 90. The State Mandates Act is amended by adding
20Section 8.43 as follows:
21    (30 ILCS 805/8.43 new)
22    Sec. 8.43. Exempt mandate. Notwithstanding Sections 6 and 8
23of this Act, no reimbursement by the State is required for the
24implementation of any mandate created by this amendatory Act of



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1the 101st General Assembly.
2    Section 99. Effective date. This Act takes effect upon
3becoming law.".