Bill Title: Reinserts the provisions of the engrossed bill with the following changes. Further amends the Downstate Police and Illinois Municipal Retirement Fund (IMRF) Articles of the Illinois Pension Code. Provides that on and after July 1, 2022 but no later than December 1, 2022, a participating employee who is actively employed as a sheriff's law enforcement employee under IMRF may make a written election to transfer up to 10 years of creditable service from a fund established under the Downstate Police Article to IMRF. Provides that to establish that service, the participating employee must either elect to pay a specified amount to IMRF or have the amount of his or her creditable service established reduced by a specified amount. Provides that in no event shall the service credit established under the provisions exceed the lesser of 10 years or the actual amount of service credit that had been earned in the police pension fund. Provides that if the amount transferred to IMRF is greater than a specified amount, the additional amount shall be credited to the account of the sheriff's law enforcement employee's employer. Effective immediately, except that certain provisions are effective January 1, 2023.
Spectrum: Moderate Partisan Bill (Democrat 7-1)
Status: (Passed) 2022-06-10 - Public Act . . . . . . . . . 102-1061
[HB4209 Detail]Download: Illinois-2021-HB4209-Chaptered.html
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Public Act 102-1061
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HB4209 Enrolled | LRB102 20423 RPS 29284 b |
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AN ACT concerning public employee benefits.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 5. The Illinois Pension Code is amended by |
changing Sections 3-110.10 and 7-139.14 as follows:
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(40 ILCS 5/3-110.10)
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Sec. 3-110.10. Transfer from Article 7. Until January 1, |
2009, a person may transfer to a fund established under this |
Article up to 8 years of creditable service accumulated under |
Article 7 of this Code upon payment to the fund of an amount to |
be determined by
the board, equal to (i) the difference |
between the amount of
employee and employer contributions |
transferred to the fund
under Section 7-139.11 and the amounts |
that would have been contributed had such
contributions been |
made at the rates applicable to an employee under this |
Article, plus (ii) interest thereon at the actuarially assumed |
rate, compounded annually, from the date of service to the
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date of payment.
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No later than September 30, 2023 6 months after the |
effective date of this amendatory Act of the 102nd General |
Assembly , a person may transfer to a fund established under |
this Article creditable service accumulated under Article 7 of |
this Code for service as a sheriff's law enforcement employee, |
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person employed by a participating municipality to perform |
police duties, or law enforcement officer employed on a |
full-time basis by a forest preserve district , or person |
employed by a participating municipality or instrumentality to |
perform administrative duties related to law enforcement upon |
payment to the fund of an amount to be determined by the board, |
equal to (i) the difference between the amount of employee and |
employer contributions transferred to the fund under Section |
7-139.14 and the amounts that would have been contributed had |
such contributions been made at the rates applicable to an |
employee under this Article, plus (ii) interest thereon at the |
actuarially assumed rate, compounded annually, from the date |
of service to the date of payment. |
(Source: P.A. 102-113, eff. 7-23-21.)
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(40 ILCS 5/7-139.14) |
Sec. 7-139.14. Transfer to Article 3 pension fund. |
(a) No later than June 30, 2023 Within 6 months after the |
effective date of this amendatory Act of the 102nd General |
Assembly , an active member of a pension fund established under |
Article 3 of this Code may apply for transfer to that Article 3 |
pension fund of his or her credits and creditable service |
accumulated in this Fund for service as a sheriff's law |
enforcement employee, person employed by a participating |
municipality to perform police duties, or law enforcement |
officer employed on a full-time basis by a forest preserve |
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district , or person employed by a participating municipality |
or instrumentality to perform administrative duties related to |
law enforcement . The creditable service shall be transferred |
only upon payment by this Fund to such Article 3 pension fund |
of an amount equal to: |
(1) the amounts accumulated to the credit of the |
applicant for the service to be transferred, including |
interest; and |
(2) an amount representing employer contributions, |
equal to the total amount determined under item (1); and |
(3) any interest paid by the applicant to reinstate |
such service. |
Participation in this Fund as to any credits transferred |
under this Section shall terminate on the date of transfer. |
(b) Notwithstanding any other provision of this Code, any |
person applying to transfer service under this Section may |
reinstate credits and creditable service terminated upon |
receipt of a separation benefit by paying to the Fund the |
amount of the separation benefit plus interest thereon at the |
actuarially assumed rate of interest to the date of payment. |
Such payment must be made within 60 90 days after notification |
by the Fund of the cost of such reinstatement.
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(Source: P.A. 102-113, eff. 7-23-21.)
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Section 10. The Illinois Pension Code is amended by adding |
Section 3-110.13 and by changing Section 15-134.4 as follows:
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(40 ILCS 5/3-110.13 new) |
Sec. 3-110.13. Transfer from Article 15. No later than |
June 30, 2023, a person may irrevocably apply under Section |
15-134.4 to transfer to a fund established under this Article |
creditable service accumulated under Article 15 of this Code |
for service as a police officer upon payment to the fund of an |
amount, to be determined by the board, equal to (i) the |
difference between the amount of employee and employer |
contributions transferred to the fund under Section 15-134.4 |
and the amounts that would have been contributed had such |
contributions been made at the rates applicable to an employee |
under this Article, plus (ii) interest thereon at the |
actuarially assumed rate, compounded annually, from the date |
of service to the date of payment.
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(40 ILCS 5/15-134.4) (from Ch. 108 1/2, par. 15-134.4)
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Sec. 15-134.4. Transfer of creditable service to an |
Article 3 pension fund, the
Article 5 Pension Fund , or the |
Article 14 System.
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(a) An active member of the Pension Fund established under |
Article 5 of this
Code may apply, not later than January 1, |
1990, to transfer his or her
credits and creditable service
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accumulated under this System for service with the City |
Colleges of Chicago
teaching in the Criminal Justice Program, |
to the Article 5 Fund. Such
credits and creditable service |
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shall be transferred forthwith. |
Payment by this
System to the Article 5 Fund shall be made |
at the same time and shall
consist of: |
(1) the amounts credited to the applicant for such |
service
through employee contributions, including |
interest, as of the date of
transfer; and |
(2) employer contributions equal in amount to the |
accumulated
employee contributions as determined in item |
(1).
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Participation in this
System with respect to such credits |
shall terminate on the date of transfer.
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(b) Any active member of the State Employees' Retirement |
System who is
a State policeman, an investigator for the |
Secretary of State, or a conservation police officer , and who |
is not a participating employee in this System, may apply for |
transfer of
some or all of his or her creditable service |
accumulated
in this System for service as a police officer to |
the State Employees'
Retirement System in accordance with |
Section 14-110. The creditable service shall be transferred |
only upon payment
by this System to the State Employees' |
Retirement System of an amount equal to:
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(1) the amounts accumulated to the credit of the |
applicant for the service to be transferred, including |
interest, as of the date of transfer , and any interest |
paid by the applicant to reinstate such service ; and
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(2) employer contributions equal in amount to the |
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accumulated
employee contributions as determined in item |
(1) . ; and
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(3) any interest paid by the applicant to reinstate |
such service.
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Participation in this System as to any credits transferred |
under this
Section shall terminate on the date of transfer.
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(c) Any person applying to transfer service under |
subsection (b) may reinstate credits and
creditable service |
terminated upon receipt of a refund by paying
to the System the |
amount of the refund plus interest thereon at the
rate of 6% |
per year from the date of the refund to the date of payment. |
(d) No later than June 30, 2023, any active member of a |
pension fund established under Article 3 of this Code who is |
not a participating employee in this System may apply for |
transfer of some or all of his or her creditable service |
accumulated in this System for service as a police officer to |
that Article 3 pension fund in accordance with Section |
3-110.13. The creditable service shall be transferred only |
upon payment by this System to that Article 3 pension fund of |
an amount equal to: |
(1) the amounts accumulated to the credit of the |
applicant for the service to be transferred, including |
interest, as of the date of transfer, and any interest |
paid by the applicant to reinstate such service; and |
(2) employer contributions equal in amount to the |
accumulated employee contributions as determined in item |
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(1). |
Participation in this System as to any credits transferred |
under this Section shall terminate on the date of transfer. |
(e) An application to transfer credits and creditable |
service under this Section shall be irrevocable. |
(Source: P.A. 95-530, eff. 8-28-07.)
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Section 15. The Illinois Pension Code is amended by adding |
Sections 3-110.14 and 7-139.1a as follows:
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(40 ILCS 5/3-110.14 new) |
Sec. 3-110.14. Transfer to Article 7. On and after July 1, |
2022 but no later than December 1, 2023, a participating |
employee who is actively employed as a sheriff's law |
enforcement employee under Article 7 may make a written |
election to transfer up to 10 years of creditable service from |
a fund established under this Article to the Illinois |
Municipal Retirement Fund established under Article 7. Upon |
receiving a written election by a participant under this |
Section, the creditable service shall be transferred to the |
Illinois Municipal Retirement Fund as soon as practicable upon |
payment by the police pension fund to the Illinois Municipal |
Retirement 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 the |
transfer; and |
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(2) employer contributions in an amount equal to the |
amount determined under paragraph (1). |
Participation in the police pension fund with respect to the |
service to be transferred shall terminate on the date of |
transfer. This Section does not allow reinstatement of credits |
in this Article that were previously forfeited.
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(40 ILCS 5/7-139.1a new) |
Sec. 7-139.1a. Transfer from Article 3. On and after July |
1, 2022 but no later than January 1, 2023, a participating |
sheriff's law enforcement employee may elect to transfer up to |
10 years of service credit to the Fund as set forth in Section |
3-110.14. To establish creditable service under this Section, |
the sheriff's law enforcement employee may elect to do either |
of the following: |
(1) pay to the Fund an amount to be determined by the |
Board, equal to (i) the difference between the amount of |
employee and employer contributions transferred to the |
Fund under Section 3-110.14 and the amounts that would |
have been contributed had such contributions been made at |
the rates applicable to a sheriff's law enforcement |
employee under this Article, plus (ii) interest thereon at |
the actuarially assumed rate, compounded annually, from |
the date of service to the date of payment; or |
(2) have the amount of his or her creditable service |
established under this Section reduced by an amount |
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corresponding to the amount by which (i) the employer and |
employee contributions that would have been required if he |
or she had participated in the Fund as a sheriff's law |
enforcement employee during the period for which credit is |
being transferred, plus interest thereon at the |
actuarially assumed rate, compounded annually, from the |
date of termination of the service for which credit is |
being transferred to the date of payment, exceeds (ii) the |
amount actually transferred to the Fund. |
Notwithstanding the amount transferred by the Article 3 |
fund pursuant to Section 3-110.14, in no event shall the |
service credit established under this Section exceed the |
lesser of 10 years or the actual amount of service credit that |
had been earned in the Article 3 fund. If an amount greater |
than the amount described under paragraph (1) is transferred |
to the Fund, the additional amount shall be credited to the |
account of the sheriff's law enforcement employee's employer.
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Section 90. The State Mandates Act is amended by adding |
Section 8.46 as follows:
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(30 ILCS 805/8.46 new) |
Sec. 8.46. 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 102nd General Assembly.
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Section 99. Effective date. This Act takes effect upon |
becoming law, except that Sections 5 and 10 take effect |
January 1, 2023.
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