State of Illinois
2017 and 2018


Introduced , by Rep. Michael J. Zalewski


40 ILCS 5/4-108.6
40 ILCS 5/6-227
30 ILCS 805/8.41 new

    Amends the Downstate Firefighter and Chicago Firefighter Articles of the Illinois Pension Code. Authorizes a firefighter to transfer up to 10 years of creditable service in a downstate firefighter pension fund to the Firemen's Annuity and Benefit Fund of Chicago upon payment of a specified amount. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.

LRB100 06102 RPS 16134 b






HB0688LRB100 06102 RPS 16134 b

1    AN ACT concerning public employee benefits.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 5. The Illinois Pension Code is amended by changing
5Section 4-108.6 and Section 6-227 as follows:
6    (40 ILCS 5/4-108.6)
7    Sec. 4-108.6. Transfer of creditable service to the
8Firemen's Annuity and Benefit Fund of Chicago.
9    (a) Any Until January 1, 2010, any active member of the
10Firemen's Annuity and Benefit Fund of Chicago may apply for
11transfer of up to 10 years of creditable service accumulated in
12any pension fund established under this Article to the
13Firemen's Annuity and Benefit Fund of Chicago. Such creditable
14service shall be transferred only upon payment by such pension
15fund to the Firemen's Annuity and Benefit Fund of Chicago of an
16amount equal to:
17        (1) the amounts accumulated to the credit of the
18    applicant on the books of the fund on the date of transfer;
19        (2) employer contributions in an amount equal to the
20    amount determined under subparagraph (1); and
21        (3) any interest paid by the applicant in order to
22    reinstate service.
23    Participation in such pension fund as to any credits



HB0688- 2 -LRB100 06102 RPS 16134 b

1transferred under this Section shall terminate on the date of
3    (b) An active member of the Firemen's Annuity and Benefit
4Fund of Chicago applying for a transfer of creditable service
5under subsection (a) may reinstate credits and creditable
6service terminated upon receipt of a refund by payment to the
7Firemen's Annuity and Benefit Fund of Chicago of the amount of
8the refund with interest thereon at the actuarially assumed
9rate, compounded annually, from the date of the refund to the
10date of payment.
11(Source: P.A. 96-727, eff. 8-25-09.)
12    (40 ILCS 5/6-227)
13    Sec. 6-227. Transfer of creditable service from Article 4.
14Any Until January 1, 2010, any active member of the Firemen's
15Annuity and Benefit Fund of Chicago may transfer to the Fund up
16to a total of 10 years of creditable service accumulated under
17Article 4 of this Code upon payment to the Fund within 5 years
18after the date of application of an amount equal to the
19difference between the amount of employee and employer
20contributions transferred to the Fund under Section 4-108.6 and
21the amounts determined by the Fund in accordance with this
22Section, plus interest on that difference at the actuarially
23assumed rate, compounded annually, from the date of service to
24the date of payment.
25    The Fund must determine the fireman's payment required to



HB0688- 3 -LRB100 06102 RPS 16134 b

1establish creditable service under this Section by taking into
2account the appropriate actuarial assumptions, including
3without limitation the fireman's service, age, and salary
4history; the level of funding of the Fund; and any other
5factors that the Fund determines to be relevant. For this
6purpose, the fireman's required payment should result in no
7significant increase to the Fund's unfunded actuarial accrued
8liability determined as of the most recent actuarial valuation,
9based on the same assumptions and methods used to develop and
10report the Fund's actuarial accrued liability and actuarial
11value of assets under Statement No. 25 of Governmental
12Accounting Standards Board or any subsequent applicable
14(Source: P.A. 96-727, eff. 8-25-09.)
15    Section 90. The State Mandates Act is amended by adding
16Section 8.41 as follows:
17    (30 ILCS 805/8.41 new)
18    Sec. 8.41. Exempt mandate. Notwithstanding Sections 6 and 8
19of this Act, no reimbursement by the State is required for the
20implementation of any mandate created by this amendatory Act of
21the 100th General Assembly.
22    Section 99. Effective date. This Act takes effect upon
23becoming law.