SB0550eng 96TH GENERAL ASSEMBLY

SB0550 Engrossed LRB096 06603 AMC 16687 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 5-234 and by adding Section 6-229 as follows:

(40 ILCS 5/5-234) (from Ch. 108 1/2, par. 5-234)

Sec. 5-234. Transfer of credits.

(a) Any police officer who has at least 10 years of creditable service in the Fund may transfer to this Fund credits and creditable service accumulated under any other pension fund or retirement system established under Article 8 or 12 of this Code, by making application and paying to the Fund before January 1, 1990 the amount by which the employee contributions that would have been required if he had participated in this Fund during the period for which credit is being transferred, plus interest, exceeds the amount actually transferred from such other fund or system to this Fund under item (1) of Section 8-226.5 or item (1) of Section 12-127.5.

(b) Any police officer who has at least 10 years of creditable service in the Fund may transfer to this Fund up to 48 months of creditable service accumulated under Article 9 of this Code as a correctional officer with the county department of corrections prior to January 1, 1994, by making application to the Fund within 6 months after the effective date of this amendatory Act of the 96th General Assembly and by paying 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 9-121.17 and the amounts that would have been contributed had such contributions been made at the rates applicable to members of this Fund, plus (ii) interest thereon at the actuarially assumed rate for each year, compounded annually, from the date of service to the date of payment.

(c) A policeman may transfer to this Fund up to 10 years of credits and creditable service accumulated under the pension fund established under Article 6 of this Code, by making written application to the Fund within 6 months after the effective date of this amendatory Act of the 96th General Assembly. For the transfer to be effective, the policeman must pay to the Fund before withdrawal from service the amount, if any, by which the employee contributions that would have been required if he or she had participated in this Fund during the period for which credit is being transferred, plus interest, exceeds the amount actually transferred from the Article 6 fund to this Fund under Section 6-229.

(Source: P.A. 96-727, eff. 8-25-09.)

(40 ILCS 5/6-229 new)

Sec. 6-229. Transfer of creditable service to Article 5 fund.

(a) Any policeman, as defined in Section 5-109 of this Code, who is a participant in the pension fund established under Article 5 of this Code may apply for transfer of up to 10 years of his or her credits and creditable service accumulated in this Fund to that Article 5 fund, if he or she applies to transfer those credits and creditable service within 6 months of the effective date of this amendatory Act of the 96th General Assembly. Such creditable service shall be transferred forthwith. Payment by this Fund to the Article 5 fund shall be made at the same time and shall consist of:

(1) the amounts accumulated to the credit of the applicant, including interest, on the books of the Fund on the date of transfer, but excluding any additional or optional credits, which credits shall be refunded to the applicant; and

(2) municipality credits computed and credited under this Article, including interest, on the books of the Fund on the date the member terminated service under the Fund.

Participation in this Fund as to any credits transferred under this Section shall terminate on the date of transfer.

(b) Any such elected policeman may reinstate credits and creditable service terminated upon receipt of a separation benefit, by payment to the Fund of the amount of the separation benefit plus interest thereon to the date of payment.

Section 90. The State Mandates Act is amended by adding Section 8.34 as follows:

(30 ILCS 805/8.34 new)

Sec. 8.34. 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 96th General Assembly.

Section 99. Effective date. This Act takes effect upon becoming law.