HB4209 102ND GENERAL ASSEMBLY

LRB102 20423 RPS 29284 b

102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB4209

Introduced 1/5/2022, by Rep. Katie Stuart

SYNOPSIS AS INTRODUCED:

40 ILCS 5/3-110.10
40 ILCS 5/7-139.14
40 ILCS 5/3-110.13 new
40 ILCS 5/15-134.4	from Ch. 108 1/2, par. 15-134.4
30 ILCS 805/8.46 new

Amends the Downstate Police, Illinois Municipal Retirement Fund (IMRF), and State Universities Articles of the Illinois Pension Code. Provides that no later than December 31, 2022, a person may transfer to a fund established under the Downstate Police Article creditable service accumulated under IMRF for service as a sheriff's law enforcement employee, person employed by a participating municipality to perform police duties, law enforcement officer employed on a full-time basis by a forest preserve district, or person employed by a participating municipality to perform administrative duties related to law enforcement. Provides that no later than 6 months after the effective date of the amendatory Act, a person may transfer to a fund established under the Downstate Police Article creditable service accumulated under the State Universities Retirement System for service as a police officer upon payment to the police pension fund of a specified amount to be determined by the board. Authorizes a person applying to transfer service under the provisions to reinstate credits and creditable service that were terminated by paying a specified amount to IMRF or the State Universities Retirement System. Makes conforming and other changes. Amends the State Mandates Act to require implementation without reimbursement. Certain changes to the Downstate Police and IMRF Articles of the Illinois Pension Code and the State Mandates Act are effective immediately.

FISCAL NOTE ACT MAY APPLY

PENSION IMPACT NOTE ACT MAY APPLY

STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT

A BILL FOR

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 3-110.10 and 7-139.14 as follows:

(40 ILCS 5/3-110.10)

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 date of payment.

No later than December 31, 2022 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, 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 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.)

(40 ILCS 5/7-139.14)

Sec. 7-139.14. Transfer to Article 3 pension fund.

(a) No later than December 31, 2022 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 district, or person employed by a participating municipality 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 90 days after notification by the Fund of the cost of such reinstatement.

(Source: P.A. 102-113, eff. 7-23-21.)

Section 10. The Illinois Pension Code is amended by adding Section 3-110.13 and by changing Section 15-134.4 as follows:

(40 ILCS 5/3-110.13 new)

Sec. 3-110.13. Transfer from Article 15. No later than 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 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.

(40 ILCS 5/15-134.4) (from Ch. 108 1/2, par. 15-134.4)

Sec. 15-134.4. Transfer of creditable service to an Article 3 pension fund, the Article 5 Pension Fund, or the Article 14 System.

(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 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 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).

Participation in this System with respect to such credits shall terminate on the date of transfer.

(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:

(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

(2) employer contributions equal in amount to the accumulated employee contributions as determined in item (1); and

(3) any interest paid by the applicant to reinstate such service.

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

(c) Any person applying to transfer service under subsection (b) or (d) 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 6 months after the effective date of this amendatory Act of the 102nd General Assembly, 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

(2) employer contributions equal in amount to the accumulated employee contributions as determined in item (1); and

(3) any interest paid by the applicant to reinstate such service.

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

(Source: P.A. 95-530, eff. 8-28-07.)

Section 90. The State Mandates Act is amended by adding Section 8.46 as follows:

(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.

Section 99. Effective date. This Section, Section 5, and Section 90 take effect upon becoming law.