Bill Text: IL SB1986 | 2025-2026 | 104th General Assembly | Introduced

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Bill Title: Amends the Downstate Police and Illinois Municipal Retirement Fund (IMRF) Articles of the Illinois Pension Code. Provides that, until 6 months after the effective date of the amendatory Act, a participating sheriff's law enforcement employee may elect to transfer service credit from a downstate police pension fund to IMRF. Provides that to establish that creditable service, the sheriff's law enforcement employee may elect to either pay a specified amount to IMRF or have the amount of his or her creditable service reduced by a specified amount. 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. Makes conforming changes. Amends the State Mandates Act to require implementation without reimbursement.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced) 2025-02-06 - Referred to Assignments [SB1986 Detail]

Download: Illinois-2025-SB1986-Introduced.html

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104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB1986 Introduced 2/6/2025, by Sen. Chapin Rose SYNOPSIS AS INTRODUCED:
40 ILCS 5/3-110.14
40 ILCS 5/7-139.1a
30 ILCS 805/8.49 new
Amends the Downstate Police and Illinois Municipal Retirement Fund (IMRF) Articles of the Illinois Pension Code. Provides that, until 6 months after the effective date of the amendatory Act, a participating sheriff's law enforcement employee may elect to transfer service credit from a downstate police pension fund to IMRF. Provides that to establish that creditable service, the sheriff's law enforcement employee may elect to either pay a specified amount to IMRF or have the amount of his or her creditable service reduced by a specified amount. 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. Makes conforming changes. Amends the State Mandates Act to require implementation without reimbursement.
LRB104 08481 RPS 18533 b
STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY
A BILL FOR
SB1986 LRB104 08481 RPS 18533 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
changing Sections 3-110.14 and 7-139.1a as follows:
(40 ILCS 5/3-110.14)
Sec. 3-110.14. Transfer to Article 7.
(a) 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
(2) employer contributions in an amount equal to the
amount determined under paragraph (1).

SB1986 - 2 - LRB104 08481 RPS 18533 b
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.
(b) On and after the effective date of this amendatory Act
of the 104th General Assembly but no later than 6 months after
the effective date of this amendatory Act of the 104th General
Assembly, a participating employee who is actively employed as
a sheriff's law enforcement employee under Article 7 may make
a written election to transfer 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
(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.

SB1986 - 3 - LRB104 08481 RPS 18533 b
(Source: P.A. 102-1061, eff. 6-10-22.)
(40 ILCS 5/7-139.1a)
Sec. 7-139.1a. Transfer from Article 3.
(a) 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
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

SB1986 - 4 - LRB104 08481 RPS 18533 b
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.
(b) On and after the effective date of this amendatory Act
of the 104th General Assembly but no later than 6 months after
the effective date of this amendatory Act of the 104th General
Assembly, a participating sheriff's law enforcement employee
may elect to transfer 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

SB1986 - 5 - LRB104 08481 RPS 18533 b
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
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
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.
(Source: P.A. 102-1061, eff. 6-10-22.)
Section 90. The State Mandates Act is amended by adding
Section 8.49 as follows:

SB1986 - 6 - LRB104 08481 RPS 18533 b
(30 ILCS 805/8.49 new)
Sec. 8.49. 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 104th General Assembly.