Bill Text: IL HB3522 | 2019-2020 | 101st General Assembly | Engrossed
Bill Title: Amends the Illinois Pension Code. Makes a technical change in a Section concerning definitions.
Spectrum: Slight Partisan Bill (Republican 5-3)
Status: (Engrossed - Dead) 2020-04-12 - Pursuant to Senate Rule 3-9(b) / Referred to Assignments [HB3522 Detail]
Download: Illinois-2019-HB3522-Engrossed.html
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1 | AN ACT concerning public employee benefits.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Illinois Pension Code is amended by changing | ||||||
5 | Section 4-117 and by adding Section 4-117.2 as follows:
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6 | (40 ILCS 5/4-117) (from Ch. 108 1/2, par. 4-117)
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7 | Sec. 4-117. Reentry into active service. | ||||||
8 | (a) If a firefighter receiving
pension payments
reenters | ||||||
9 | active service, pension payments shall be suspended while he
or | ||||||
10 | she is in service. If the firefighter again retires or is | ||||||
11 | discharged,
his or her monthly pension shall be resumed in the | ||||||
12 | same amount as was paid
upon first retirement or discharge
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13 | unless he or she remained in active service 3 or more years | ||||||
14 | after re-entry
in which case the monthly pension shall be based | ||||||
15 | on the salary attached
to the firefighter's rank at the date of | ||||||
16 | last retirement.
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17 | (b) If a deferred pensioner re-enters active service, and | ||||||
18 | again retires
or is discharged from the fire service, his or | ||||||
19 | her pension shall be based
on the salary attached to the rank | ||||||
20 | held in the fire service at the date
of earlier retirement, | ||||||
21 | unless the firefighter remains in active service
for 3 or more | ||||||
22 | years after re-entry, in which case the monthly pension shall
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23 | be based on the salary attached to the firefighter's rank at |
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1 | the date of
last retirement.
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2 | (c) If a pensioner or deferred pensioner re-enters or is | ||||||
3 | recalled
to active service and
is thereafter injured, and the | ||||||
4 | injury
is not related to an injury for which he or she was | ||||||
5 | previously receiving
a disability pension,
the 3 year service | ||||||
6 | requirement shall not apply in order
for the firefighter to | ||||||
7 | qualify for the increased pension based on
the rate of pay at | ||||||
8 | the time of the
new injury.
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9 | (d) If a fire chief to whom Section 10-1-7.3 of the | ||||||
10 | Illinois Municipal Code applies (i) first becomes a member on | ||||||
11 | or after January 1, 2020, (ii) is receiving pension payments, | ||||||
12 | and (iii) reenters active service with any municipality that | ||||||
13 | has established a pension fund under this Article, that fire | ||||||
14 | chief may continue to receive pension payments while he or she | ||||||
15 | is in active service, but shall only participate in a defined | ||||||
16 | contribution plan established by the municipality pursuant to | ||||||
17 | Section 4-117.2 and may not establish creditable service in the | ||||||
18 | pension fund established by that municipality or have his or | ||||||
19 | her pension recomputed. | ||||||
20 | (Source: P.A. 83-1440.)
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21 | (40 ILCS 5/4-117.2 new) | ||||||
22 | Sec. 4-117.2. Defined contribution plan for certain | ||||||
23 | firefighters. | ||||||
24 | (a) A municipality that employs a fire chief described | ||||||
25 | under subsection (d) of Section 4-117 shall establish a defined |
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1 | contribution plan that aggregates firefighter and employer | ||||||
2 | contributions in individual accounts used for retirement. The | ||||||
3 | defined contribution plan, including both firefighter and | ||||||
4 | employer contributions, established by the municipality must, | ||||||
5 | at a minimum: meet the safe harbor provisions of the Internal | ||||||
6 | Revenue Code of 1986, as amended; be a qualified plan under the | ||||||
7 | Internal Revenue Code of 1986, as amended; and comply with all | ||||||
8 | other applicable laws, rules, and regulations. Contributions | ||||||
9 | shall vest immediately upon deposit in the firefighter's | ||||||
10 | account. | ||||||
11 | A firefighter who participates in the defined contribution | ||||||
12 | plan under this Section may not earn creditable service or | ||||||
13 | otherwise participate in the defined benefit plan offered by | ||||||
14 | his or her employing municipality, except as an annuitant in | ||||||
15 | another fund or as a survivor, while he or she is a participant | ||||||
16 | in the defined contribution plan. The defined contribution plan | ||||||
17 | under this Section shall not be construed to be a pension, | ||||||
18 | annuity, or other defined benefit under this Code. | ||||||
19 | A municipality that employs a fire chief described under | ||||||
20 | subsection (d) of Section 4-117 shall provide a disability | ||||||
21 | insurance benefit to that fire chief that is at least | ||||||
22 | equivalent to the disability benefit he or she would be | ||||||
23 | provided if he or she was a participant in the defined benefit | ||||||
24 | plan. | ||||||
25 | (b) As used in this Section, "defined benefit plan" means | ||||||
26 | the retirement plan available to firefighters under this |
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1 | Article who do not participate in the defined contribution plan | ||||||
2 | under this Section.
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3 | Section 90. The State Mandates Act is amended by adding | ||||||
4 | Section 8.43 as follows:
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5 | (30 ILCS 805/8.43 new) | ||||||
6 | Sec. 8.43. Exempt mandate. Notwithstanding Sections 6 and 8 | ||||||
7 | of this Act, no reimbursement by the State is required for the | ||||||
8 | implementation of any mandate created by this amendatory Act of | ||||||
9 | the 101st General Assembly.
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10 | Section 99. Effective date. This Act takes effect upon | ||||||
11 | becoming law.
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