Bill Text: IL HB0688 | 2017-2018 | 100th General Assembly | Enrolled


Bill Title: Amends the Downstate Firefighter and Chicago Firefighter Articles of the Illinois Pension Code. Authorizes a firefighter to transfer up to 10 years of creditable service in a downstate firefighter pension fund to the Firemen's Annuity and Benefit Fund of Chicago upon payment of a specified amount. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.

Spectrum: Moderate Partisan Bill (Democrat 5-1)

Status: (Enrolled) 2017-06-23 - Verified [HB0688 Detail]

Download: Illinois-2017-HB0688-Enrolled.html



HB0688 EnrolledLRB100 06102 RPS 16134 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
5Sections 4-108, 4-108.6, and 6-227 and by adding Section
63-110.12 as follows:
7 (40 ILCS 5/3-110.12 new)
8 Sec. 3-110.12. Transfer to Article 4 fund.
9 (a) At any time during the 6 months following the effective
10date of this Section, an active member of an Article 4
11firefighters' pension fund may apply for transfer to that fund
12of up to 6 years of his or her creditable service accumulated
13in the police pension fund under this Article that is
14administered by the same unit of local government if that
15active member was not subject to disciplinary action when he or
16she terminated employment with that police department. The
17creditable service shall be transferred upon payment by the
18police pension fund to the Article 4 fund of an amount equal
19to:
20 (1) the amounts accumulated to the credit of the
21 applicant on the books of the fund on the date of transfer
22 for the service to be transferred; and
23 (2) employer contributions in an amount equal to the

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1 amount determined under item (1); and
2 (3) any interest paid by the applicant in order to
3 reinstate service.
4 Participation in the police pension fund with respect to
5the transferred creditable service shall terminate on the date
6of transfer.
7 (b) At the time of applying for transfer of creditable
8service under this Section, an active member of an Article 4
9firefighters' pension fund may, for the purpose of that
10transfer, reinstate creditable service that was terminated by
11receipt of a refund, by payment to the police pension fund of
12the amount of the refund with interest thereon at the rate of
136% per year, compounded annually, from the date of the refund
14to the date of payment.
15 (40 ILCS 5/4-108) (from Ch. 108 1/2, par. 4-108)
16 Sec. 4-108. Creditable service.
17 (a) Creditable service is the time served as a firefighter
18of a municipality. In computing creditable service, furloughs
19and leaves of absence without pay exceeding 30 days in any one
20year shall not be counted, but leaves of absence for illness or
21accident regardless of length, and periods of disability for
22which a firefighter received no disability pension payments
23under this Article, shall be counted.
24 (b) Furloughs and leaves of absence of 30 days or less in
25any one year may be counted as creditable service, if the

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1firefighter makes the contribution to the fund that would have
2been required had he or she not been on furlough or leave of
3absence. To qualify for this creditable service, the
4firefighter must pay the required contributions to the fund not
5more than 90 days subsequent to the termination of the furlough
6or leave of absence, to the extent that the municipality has
7not made such contribution on his or her behalf.
8 (c) Creditable service includes:
9 (1) Service in the military, naval or air forces of the
10 United States entered upon when the person was an active
11 firefighter, provided that, upon applying for a permanent
12 pension, and in accordance with the rules of the board the
13 firefighter pays into the fund the amount that would have
14 been contributed had he or she been a regular contributor
15 during such period of service, if and to the extent that
16 the municipality which the firefighter served made no such
17 contributions in his or her behalf. The total amount of
18 such creditable service shall not exceed 5 years, except
19 that any firefighter who on July 1, 1973 had more than 5
20 years of such creditable service shall receive the total
21 amount thereof as of that date.
22 (1.5) Up to 24 months of service in the military,
23 naval, or air forces of the United States that was served
24 prior to employment by a municipality or fire protection
25 district as a firefighter. To receive the credit for the
26 military service prior to the employment as a firefighter,

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1 the firefighter must apply in writing to the fund and must
2 make contributions to the fund equal to (i) the employee
3 contributions that would have been required had the service
4 been rendered as a member, plus (ii) an amount determined
5 by the fund to be equal to the employer's normal cost of
6 the benefits accrued for that military service, plus (iii)
7 interest at the actuarially assumed rate provided by the
8 Department of Financial and Professional Regulation,
9 compounded annually from the first date of membership in
10 the fund to the date of payment on items (i) and (ii). The
11 changes to this paragraph (1.5) by this amendatory Act of
12 the 95th General Assembly apply only to participating
13 employees in service on or after its effective date.
14 (2) Service prior to July 1, 1976 by a firefighter
15 initially excluded from participation by reason of age who
16 elected to participate and paid the required contributions
17 for such service.
18 (3) Up to 8 years of service by a firefighter as an
19 officer in a statewide firefighters' association when he is
20 on a leave of absence from a municipality's payroll,
21 provided that (i) the firefighter has at least 10 years of
22 creditable service as an active firefighter, (ii) the
23 firefighter contributes to the fund the amount that he
24 would have contributed had he remained an active member of
25 the fund, (iii) the employee or statewide firefighter
26 association contributes to the fund an amount equal to the

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1 employer's required contribution as determined by the
2 board, and (iv) for all leaves of absence under this
3 subdivision (3), including those beginning before the
4 effective date of this amendatory Act of the 97th General
5 Assembly, the firefighter continues to remain in sworn
6 status, subject to the professional standards of the public
7 employer or those terms established in statute.
8 (4) Time spent as an on-call fireman for a
9 municipality, calculated at the rate of one year of
10 creditable service for each 5 years of time spent as an
11 on-call fireman, provided that (i) the firefighter has at
12 least 18 years of creditable service as an active
13 firefighter, (ii) the firefighter spent at least 14 years
14 as an on-call firefighter for the municipality, (iii) the
15 firefighter applies for such creditable service within 30
16 days after the effective date of this amendatory Act of
17 1989, (iv) the firefighter contributes to the Fund an
18 amount representing employee contributions for the number
19 of years of creditable service granted under this
20 subdivision (4), based on the salary and contribution rate
21 in effect for the firefighter at the date of entry into the
22 Fund, to be determined by the board, and (v) not more than
23 3 years of creditable service may be granted under this
24 subdivision (4).
25 Except as provided in Section 4-108.5, creditable
26 service shall not include time spent as a volunteer

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1 firefighter, whether or not any compensation was received
2 therefor. The change made in this Section by Public Act
3 83-0463 is intended to be a restatement and clarification
4 of existing law, and does not imply that creditable service
5 was previously allowed under this Article for time spent as
6 a volunteer firefighter.
7 (5) Time served between July 1, 1976 and July 1, 1988
8 in the position of protective inspection officer or
9 administrative assistant for fire services, for a
10 municipality with a population under 10,000 that is located
11 in a county with a population over 3,000,000 and that
12 maintains a firefighters' pension fund under this Article,
13 if the position included firefighting duties,
14 notwithstanding that the person may not have held an
15 appointment as a firefighter, provided that application is
16 made to the pension fund within 30 days after the effective
17 date of this amendatory Act of 1991, and the corresponding
18 contributions are paid for the number of years of service
19 granted, based upon the salary and contribution rate in
20 effect for the firefighter at the date of entry into the
21 pension fund, as determined by the Board.
22 (6) Service before becoming a participant by a
23 firefighter initially excluded from participation by
24 reason of age who becomes a participant under the amendment
25 to Section 4-107 made by this amendatory Act of 1993 and
26 pays the required contributions for such service.

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1 (7) Up to 3 years of time during which the firefighter
2 receives a disability pension under Section 4-110,
3 4-110.1, or 4-111, provided that (i) the firefighter
4 returns to active service after the disability for a period
5 at least equal to the period for which credit is to be
6 established and (ii) the firefighter makes contributions
7 to the fund based on the rates specified in Section 4-118.1
8 and the salary upon which the disability pension is based.
9 These contributions may be paid at any time prior to the
10 commencement of a retirement pension. The firefighter may,
11 but need not, elect to have the contributions deducted from
12 the disability pension or to pay them in installments on a
13 schedule approved by the board. If not deducted from the
14 disability pension, the contributions shall include
15 interest at the rate of 6% per year, compounded annually,
16 from the date for which service credit is being established
17 to the date of payment. If contributions are paid under
18 this subdivision (c)(7) in excess of those needed to
19 establish the credit, the excess shall be refunded. This
20 subdivision (c)(7) applies to persons receiving a
21 disability pension under Section 4-110, 4-110.1, or 4-111
22 on the effective date of this amendatory Act of the 91st
23 General Assembly, as well as persons who begin to receive
24 such a disability pension after that date.
25 (8) Up to 6 years of service as a police officer and
26 participant in an Article 3 police pension fund

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1 administered by the unit of local government that employs
2 the firefighter under this Article, provided that the
3 service has been transferred to, and the required payment
4 received by, the Article 4 fund in accordance with Section
5 3-110.12 of this Code.
6(Source: P.A. 97-651, eff. 1-5-12.)
7 (40 ILCS 5/4-108.6)
8 Sec. 4-108.6. Transfer of creditable service to the
9Firemen's Annuity and Benefit Fund of Chicago.
10 (a) Until 6 months after the effective date of this
11amendatory Act of the 100th General Assembly, January 1, 2010,
12any active member of the Firemen's Annuity and Benefit Fund of
13Chicago may apply for transfer of up to 10 years of creditable
14service accumulated in any pension fund established under this
15Article to the Firemen's Annuity and Benefit Fund of Chicago.
16Such creditable service shall be transferred only upon payment
17by such pension fund to the Firemen's Annuity and Benefit Fund
18of Chicago of an amount equal to:
19 (1) the amounts accumulated to the credit of the
20 applicant on the books of the fund on the date of transfer;
21 (2) employer contributions in an amount equal to the
22 amount determined under subparagraph (1); and
23 (3) any interest paid by the applicant in order to
24 reinstate service.
25 Participation in such pension fund as to any credits

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1transferred under this Section shall terminate on the date of
2transfer.
3 (b) An active member of the Firemen's Annuity and Benefit
4Fund of Chicago applying for a transfer of creditable service
5under subsection (a) may reinstate credits and creditable
6service terminated upon receipt of a refund by payment to the
7Firemen's Annuity and Benefit Fund of Chicago of the amount of
8the refund with interest thereon at the actuarially assumed
9rate, compounded annually, from the date of the refund to the
10date of payment.
11(Source: P.A. 96-727, eff. 8-25-09.)
12 (40 ILCS 5/6-227)
13 Sec. 6-227. Transfer of creditable service from Article 4.
14Until 6 months after the effective date of this amendatory Act
15of the 100th General Assembly, January 1, 2010, any active
16member of the Firemen's Annuity and Benefit Fund of Chicago may
17transfer to the Fund up to a total of 10 years of creditable
18service accumulated under Article 4 of this Code upon payment
19to the Fund within 5 years after the date of application of an
20amount equal to the difference between the amount of employee
21and employer contributions transferred to the Fund under
22Section 4-108.6 and the amounts determined by the Fund in
23accordance with this Section, plus interest on that difference
24at the actuarially assumed rate, compounded annually, from the
25date of service to the date of payment.

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1 The Fund must determine the fireman's payment required to
2establish creditable service under this Section by taking into
3account the appropriate actuarial assumptions, including
4without limitation the fireman's service, age, and salary
5history; the level of funding of the Fund; and any other
6factors that the Fund determines to be relevant. For this
7purpose, the fireman's required payment should result in no
8significant increase to the Fund's unfunded actuarial accrued
9liability determined as of the most recent actuarial valuation,
10based on the same assumptions and methods used to develop and
11report the Fund's actuarial accrued liability and actuarial
12value of assets under Statement No. 25 of Governmental
13Accounting Standards Board or any subsequent applicable
14Statement.
15(Source: P.A. 96-727, eff. 8-25-09.)
16 Section 90. The State Mandates Act is amended by adding
17Section 8.41 as follows:
18 (30 ILCS 805/8.41 new)
19 Sec. 8.41. Exempt mandate. Notwithstanding Sections 6 and 8
20of this Act, no reimbursement by the State is required for the
21implementation of any mandate created by this amendatory Act of
22the 100th General Assembly.
23 Section 99. Effective date. This Act takes effect upon
24becoming law.
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