HB1320eng 99TH GENERAL ASSEMBLY

HB1320 Engrossed LRB099 03940 RPS 23957 b

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 changing Sections 3-109.1 and 3-124.1 as follows:

(40 ILCS 5/3-109.1) (from Ch. 108 1/2, par. 3-109.1)

Sec. 3-109.1. Chief of police.

(a) Beginning January 1, 1990, any person who is employed as the chief of police of a "participating municipality" as defined in Section 7-106 of this Code, may elect to participate in the Illinois Municipal Retirement Fund rather than in a fund created under this Article 3. Except as provided in subsection (b), this election shall be irrevocable, and shall be filed in writing with the Board of the Illinois Municipal Retirement Fund.

(a-5) A chief of police who, after the effective date of this amendatory Act of the 99th General Assembly, elects to participate in the Illinois Municipal Retirement Fund under this Section shall immediately:

(i) give notice of that employment to every police pension fund established under this Article in which he or she has service credit or any entitlement to a pension or other benefit; and

(ii) give notice to the Illinois Municipal Retirement Fund of every police pension fund established under this Article in which he or she has service credit or any entitlement to a pension or other benefit.

(b) Until January 1, 1999, a chief of police who has elected under this Section to participate in IMRF rather than a fund created under this Article may elect to rescind that election and transfer his or her participation to the police pension fund established under this Article by the employing municipality. The chief must notify the boards of trustees of both funds in writing of his or her decision to rescind the election and transfer participation. A chief of police who transfers participation under this subsection (b) shall not be deemed ineligible to participate in the police pension fund by reason of having failed to apply within the 3-month period specified in Section 3-106.

(Source: P.A. 90-460, eff. 8-17-97.)

(40 ILCS 5/3-124.1) (from Ch. 108 1/2, par. 3-124.1)

Sec. 3-124.1. Re-entry into active service.

(a) If a police officer who is receiving pension payments (other than as provided in Section 3-109.3) re-enters active service under this Article with the same municipality, pension payment shall be suspended while he or she is in service. When he or she again retires, pension payments shall be resumed. If the police officer remains in service after re-entry for a period of less than 5 years, the pension shall be the same as upon first retirement. If the officer's service after re-entry is at least 5 years and the officer makes the required contributions during the period of re-entry, his or her pension shall be recomputed by taking into account the additional period of service and salary.

(b) If a person who first entered service under this Article after the effective date of this amendatory Act of the 99th General Assembly is receiving pension payments (other than as provided in Section 3-109.3) and enters active service as a police officer under this Article with a different municipality, he or she shall immediately notify the pension fund that is making those pension payments of the return to service under this Article, and the pension payments shall be suspended while the person is in service. The suspension shall end upon termination of the service, regardless of whether or not the person qualifies for a pension based on that service.

(c) If a person who first entered service under this Article after the effective date of this amendatory Act of the 99th General Assembly is receiving pension payments (other than as provided in Section 3-109.3) and begins employment as a chief of police, then regardless of whether he or she elects to participate in a pension fund under this Article, elects under Section 3-109.1 to participate in the Illinois Municipal Retirement Fund, or chooses not to participate in either of those funds with respect to that employment, he or she shall immediately give notice of that employment to the pension fund that is making the pension payments, and the pension payments shall be suspended for the period of that employment. The suspension shall end upon termination of the employment, regardless of whether or not the person qualifies for a pension, increase in pension, or other retirement benefit based on that employment.

(d) Notwithstanding the other provisions of this Section, if a person is receiving pension payments under this Article and enters active service as a police officer under this Article with a different municipality, he or she is not subject to the notification requirements of this Section and is not subject to suspension of pension payments while in that active service, if that different municipality had a population of less than 6,000 at the time of the return to active service, as determined from the best available census data.

(Source: P.A. 91-939, eff. 2-1-01.)