Bill Text: IL HB2502 | 2019-2020 | 101st General Assembly | Chaptered


Bill Title: Amends the Downstate Firefighter and Chicago Firefighter Articles of the Illinois Pension Code. Provides that until 6 months after the effective date of the amendatory Act, creditable service may be transferred from municipal firefighters' pension funds to the Firemen's Annuity and Benefit Fund of Chicago. Removes a provision restricting the amount of creditable service that may be transferred. Authorizes, until 6 months after the effective date of the amendatory Act, the transfer of creditable service from the Firemen's Annuity and Benefit Fund of Chicago to municipal firefighters' pension funds. Amends the State Mandates Act to provide for implementation without reimbursement. Effective immediately.

Spectrum: Slight Partisan Bill (Democrat 7-3)

Status: (Passed) 2019-08-23 - Public Act . . . . . . . . . 101-0474 [HB2502 Detail]

Download: Illinois-2019-HB2502-Chaptered.html



Public Act 101-0474
HB2502 EnrolledLRB101 08689 RPS 53774 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 adding
Sections 4-108.7 and 6-227.1 as follows:
(40 ILCS 5/4-108.7 new)
Sec. 4-108.7. Transfer of creditable service from the
Firemen's Annuity and Benefit Fund of Chicago. Until 6 months
after the effective date of this amendatory Act of the 101st
General Assembly, any active participant in a fund established
under this Article may transfer to that fund creditable service
accumulated under Article 6 of this Code upon payment to the
Article 4 fund, within 5 years after the date of application,
of an amount equal to the difference between the amount of
employee and employer contributions transferred to the Article
4 fund under Section 6-227.1 and the amounts determined by the
Article 4 fund in accordance with this Section, plus interest
on that difference at the actuarially assumed rate, compounded
annually, from the date of service to the date of payment.
The Article 4 fund must determine the firefighter's payment
required to establish creditable service under this Section by
taking into account the appropriate actuarial assumptions,
including without limitation the firefighter's service, age,
and salary history; the level of funding of the Article 4 fund;
and any other factors that the Article 4 fund determines to be
relevant. For this purpose, the firefighter's required payment
should result in no significant increase to the Article 4
fund's unfunded actuarial accrued liability determined as of
the most recent actuarial valuation, based on the same
assumptions and methods used to develop and report the Article
4 fund's actuarial accrued liability and actuarial value of
assets under Statement No. 25 of Governmental Accounting
Standards Board or any subsequent applicable Statement.
(40 ILCS 5/6-227.1 new)
Sec. 6-227.1. Transfer of creditable service to Article 4.
(a) Until 6 months after the effective date of this
amendatory Act of the 101st General Assembly, any active
participant in an Article 4 pension fund may apply for transfer
of creditable service accumulated in the Firemen's Annuity and
Benefit Fund of Chicago to any Article 4 pension fund. Such
creditable service shall be transferred only upon payment by
the Firemen's Annuity and Benefit Fund of Chicago to the
Article 4 fund of an amount equal to:
(1) the amounts accumulated to the credit of the
applicant on the books of the fund on the date of transfer;
(2) employer contributions in an amount equal to the
amount determined under subparagraph (1); and
(3) any interest paid by the applicant in order to
reinstate service.
Participation in the Firemen's Annuity and Benefit Fund of
Chicago as to any credits transferred under this Section shall
terminate on the date of transfer.
(b) An active participant in an Article 4 pension fund
applying for a transfer of creditable service under subsection
(a) may reinstate credits and creditable service terminated
upon receipt of a refund by payment to the Article 4 pension
fund of the amount of the refund with interest thereon at the
actuarially assumed rate, compounded annually, from the date of
the refund to the date of payment.
Section 90. The State Mandates Act is amended by adding
Section 8.43 as follows:
(30 ILCS 805/8.43 new)
Sec. 8.43. Exempt mandate. Notwithstanding Sections 6 and 8
of this Act, no reimbursement by the State is required for the
implementation of any mandate created by this amendatory Act of
the 101st General Assembly.
Section 99. Effective date. This Act takes effect upon
becoming law.
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