House Sponsors: SMITH,MICHAEL-MOFFITT-BOLAND AND O'BRIEN. Short description: PEN CD-DNST FIRE-DROP PLAN Synopsis of Bill as introduced: Amends the Downstate Firefighter Article of the Illinois Pension Code. Provides for a Deferred Retirement Option Plan, under which a firefighter who is at least age 50 with 20 years of service may continue in active service for up to 5 years while having his or her pension contributions and retirement pension paid into a special account, to be distributed to the firefighter upon retirement. Bases the retirement pension on the firefighter's service and salary at the time of joining the DROP plan. Requires termination of service at the end of the DROP plan participation period. Requires approval of the employer; provides that the approval is within the sole discretion of the employer and not subject to mandatory collective bargaining. Also changes the manner of determining the actuarial requirements of the pension fund when a DROP plan is in effect. Effective immediately. PENSION NOTE (Pension Laws Commission) Based on 1996 membership data, HB 195 would increase the acc- rued liability by an estimated $71.6 million. The resulting estimated increase in total annual cost is estimated to be $7.5 million, or 2.14% of payroll. These cost estimates assume all employers offer a five-year DROP plan and that 100% of those eligible will participate. Participation is assumed to begin an average of one year after becoming eligible, and continue for a maximum five-year period. According to the Commission's actu- ary, the cost of a 3 or 4 year DROP plan is higher than the cost of a 5 year DROP plan. Last action on Bill: SESSION SINE DIE Last action date: JAN-07-2003 Location: House Amendments to Bill: AMENDMENTS ADOPTED: HOUSE - 0 SENATE - 0 END OF INQUIRY Full Text Bill Status