Bill Text: IL HB3522 | 2019-2020 | 101st General Assembly | Engrossed


Bill Title: Amends the Downstate Firefighter Article of the Illinois Pension Code. Requires each municipality to establish a defined contribution plan that aggregates firefighter and employer contributions in individual accounts used for retirement. Provides that if a firefighter who has more than 10 years of creditable service in a fund enters active service with a different municipality, he or she may elect to participate in the defined contribution plan in lieu of the defined benefit plan. Provides that if a fire chief to whom a specified provision of the Illinois Municipal Code applies (i) first becomes a member on or after January 1, 2020, (ii) is receiving pension payments, and (iii) reenters active service with any municipality that has established a pension fund under the Article, that fire chief may continue to receive pension payments while he or she is in active service, but shall only participate in a defined contribution plan and may not establish creditable service in the pension fund established by that municipality or have his or her pension recomputed. Makes other changes. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.

Spectrum: Slight Partisan Bill (Republican 5-3)

Status: (Engrossed) 2019-05-10 - Rule 3-9(a) / Re-referred to Assignments [HB3522 Detail]

Download: Illinois-2019-HB3522-Engrossed.html



HB3522 EngrossedLRB101 11181 RPS 56422 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
5Section 4-117 and by adding Section 4-117.2 as follows:
6 (40 ILCS 5/4-117) (from Ch. 108 1/2, par. 4-117)
7 Sec. 4-117. Reentry into active service.
8 (a) If a firefighter receiving pension payments reenters
9active service, pension payments shall be suspended while he or
10she is in service. If the firefighter again retires or is
11discharged, his or her monthly pension shall be resumed in the
12same amount as was paid upon first retirement or discharge
13unless he or she remained in active service 3 or more years
14after re-entry in which case the monthly pension shall be based
15on the salary attached to the firefighter's rank at the date of
16last retirement.
17 (b) If a deferred pensioner re-enters active service, and
18again retires or is discharged from the fire service, his or
19her pension shall be based on the salary attached to the rank
20held in the fire service at the date of earlier retirement,
21unless the firefighter remains in active service for 3 or more
22years after re-entry, in which case the monthly pension shall
23be based on the salary attached to the firefighter's rank at

HB3522 Engrossed- 2 -LRB101 11181 RPS 56422 b
1the date of last retirement.
2 (c) If a pensioner or deferred pensioner re-enters or is
3recalled to active service and is thereafter injured, and the
4injury is not related to an injury for which he or she was
5previously receiving a disability pension, the 3 year service
6requirement shall not apply in order for the firefighter to
7qualify for the increased pension based on the rate of pay at
8the time of the new injury.
9 (d) If a fire chief to whom Section 10-1-7.3 of the
10Illinois Municipal Code applies (i) first becomes a member on
11or after January 1, 2020, (ii) is receiving pension payments,
12and (iii) reenters active service with any municipality that
13has established a pension fund under this Article, that fire
14chief may continue to receive pension payments while he or she
15is in active service, but shall only participate in a defined
16contribution plan established by the municipality pursuant to
17Section 4-117.2 and may not establish creditable service in the
18pension fund established by that municipality or have his or
19her pension recomputed.
20(Source: P.A. 83-1440.)
21 (40 ILCS 5/4-117.2 new)
22 Sec. 4-117.2. Defined contribution plan for certain
23firefighters.
24 (a) A municipality that employs a fire chief described
25under subsection (d) of Section 4-117 shall establish a defined

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1contribution plan that aggregates firefighter and employer
2contributions in individual accounts used for retirement. The
3defined contribution plan, including both firefighter and
4employer contributions, established by the municipality must,
5at a minimum: meet the safe harbor provisions of the Internal
6Revenue Code of 1986, as amended; be a qualified plan under the
7Internal Revenue Code of 1986, as amended; and comply with all
8other applicable laws, rules, and regulations. Contributions
9shall vest immediately upon deposit in the firefighter's
10account.
11 A firefighter who participates in the defined contribution
12plan under this Section may not earn creditable service or
13otherwise participate in the defined benefit plan offered by
14his or her employing municipality, except as an annuitant in
15another fund or as a survivor, while he or she is a participant
16in the defined contribution plan. The defined contribution plan
17under this Section shall not be construed to be a pension,
18annuity, or other defined benefit under this Code.
19 A municipality that employs a fire chief described under
20subsection (d) of Section 4-117 shall provide a disability
21insurance benefit to that fire chief that is at least
22equivalent to the disability benefit he or she would be
23provided if he or she was a participant in the defined benefit
24plan.
25 (b) As used in this Section, "defined benefit plan" means
26the retirement plan available to firefighters under this

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1Article who do not participate in the defined contribution plan
2under this Section.
3 Section 90. The State Mandates Act is amended by adding
4Section 8.43 as follows:
5 (30 ILCS 805/8.43 new)
6 Sec. 8.43. Exempt mandate. Notwithstanding Sections 6 and 8
7of this Act, no reimbursement by the State is required for the
8implementation of any mandate created by this amendatory Act of
9the 101st General Assembly.
10 Section 99. Effective date. This Act takes effect upon
11becoming law.
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