HB1042eng 98TH GENERAL ASSEMBLY

HB1042 Engrossed LRB098 07361 EFG 37425 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 3-110.11 and 5-237.5 as follows:

(40 ILCS 5/3-110.11)

Sec. 3-110.11. Transfer of creditable service from Article 5 fund. For a period of 180 60 days after the effective date of this amendatory Act of the 98th General Assembly Section, a person may transfer to a fund established under this Article up to 10 years of creditable service accumulated under Article 5 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 5-237.5 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, plus (iii) if the board determines that the amount transferred is less than the true cost to the Fund of allowing that creditable service to be established, then in order to establish that creditable service, the member must pay to the Fund an additional contribution equal to the difference, as determined by the board in accordance with the rules and procedures adopted under this Section. If the member does not make the full additional payment as required by this Section prior to termination of his or her participation with that employer, then his or her creditable service shall be reduced by an amount equal to the difference between the amount transferred under Section 3-110.3, including any payments made by the member under this paragraph prior to termination, and the true cost to the Fund of allowing that creditable service to be established, as determined by the board in accordance with the rules and procedures adopted under this Section.

The board shall establish by rule the manner of making the calculation required under this Section, taking into account the appropriate actuarial assumptions, the member's service, age, and salary history, and any other factors that the board determines to be relevant.

(Source: P.A. 97-326, eff. 8-12-11.)

(40 ILCS 5/5-237.5)

Sec. 5-237.5. Transfer of creditable service to Article 3 fund.

(a) Any person who is an active participant in a pension fund established under Article 3 of this Code may, for a period of 60 days after the effective date of this amendatory Act of the 98th General Assembly Section, apply for transfer of his or her credits and creditable service accumulated in this Fund to that Article 3 fund. Upon receipt of a written application to make this transfer, the Fund shall pay to the Article 3 fund an amount consisting of:

(1) the amounts credited to the applicant through employee contributions, plus accumulated interest; plus

(2) an amount representing municipality contributions, equal to the amount determined under item (1); plus

(3) any interest paid to the Fund in order to reinstate credits and creditable service under subsection (b). Participation in this Fund shall terminate on the date of the transfer.

(b) As part of a transfer under subsection (a), a person may reinstate credits and creditable service that was terminated upon receipt of a refund, by paying to the Fund the amount of the refund plus interest thereon at the actuarially assumed rate, compounded annually, from the date of the refund to the date of payment.

(Source: P.A. 97-326, eff. 8-12-11.)

Section 90. The State Mandates Act is amended by adding Section 8.37 as follows:

(30 ILCS 805/8.37 new)

Sec. 8.37. 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 98th General Assembly.

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