HB2502 EngrossedLRB101 08689 RPS 53774 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 adding
5Sections 4-108.7 and 6-227.1 as follows:
6    (40 ILCS 5/4-108.7 new)
7    Sec. 4-108.7. Transfer of creditable service from the
8Firemen's Annuity and Benefit Fund of Chicago. Until 6 months
9after the effective date of this amendatory Act of the 101st
10General Assembly, any active participant in a fund established
11under this Article may transfer to that fund creditable service
12accumulated under Article 6 of this Code upon payment to the
13Article 4 fund, within 5 years after the date of application,
14of an amount equal to the difference between the amount of
15employee and employer contributions transferred to the Article
164 fund under Section 6-227.1 and the amounts determined by the
17Article 4 fund in accordance with this Section, plus interest
18on that difference at the actuarially assumed rate, compounded
19annually, from the date of service to the date of payment.
20    The Article 4 fund must determine the firefighter's payment
21required to establish creditable service under this Section by
22taking into account the appropriate actuarial assumptions,
23including without limitation the firefighter's service, age,



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1and salary history; the level of funding of the Article 4 fund;
2and any other factors that the Article 4 fund determines to be
3relevant. For this purpose, the firefighter's required payment
4should result in no significant increase to the Article 4
5fund's unfunded actuarial accrued liability determined as of
6the most recent actuarial valuation, based on the same
7assumptions and methods used to develop and report the Article
84 fund's actuarial accrued liability and actuarial value of
9assets under Statement No. 25 of Governmental Accounting
10Standards Board or any subsequent applicable Statement.
11    (40 ILCS 5/6-227.1 new)
12    Sec. 6-227.1. Transfer of creditable service to Article 4.
13    (a) Until 6 months after the effective date of this
14amendatory Act of the 101st General Assembly, any active
15participant in an Article 4 pension fund may apply for transfer
16of creditable service accumulated in the Firemen's Annuity and
17Benefit Fund of Chicago to any Article 4 pension fund. Such
18creditable service shall be transferred only upon payment by
19the Firemen's Annuity and Benefit Fund of Chicago to the
20Article 4 fund of an amount equal to:
21        (1) the amounts accumulated to the credit of the
22    applicant on the books of the fund on the date of transfer;
23        (2) employer contributions in an amount equal to the
24    amount determined under subparagraph (1); and
25        (3) any interest paid by the applicant in order to



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1    reinstate service.
2    Participation in the Firemen's Annuity and Benefit Fund of
3Chicago as to any credits transferred under this Section shall
4terminate on the date of transfer.
5    (b) An active participant in an Article 4 pension fund
6applying for a transfer of creditable service under subsection
7(a) may reinstate credits and creditable service terminated
8upon receipt of a refund by payment to the Article 4 pension
9fund of the amount of the refund with interest thereon at the
10actuarially assumed rate, compounded annually, from the date of
11the refund to the date of payment.
12    Section 90. The State Mandates Act is amended by adding
13Section 8.43 as follows:
14    (30 ILCS 805/8.43 new)
15    Sec. 8.43. Exempt mandate. Notwithstanding Sections 6 and 8
16of this Act, no reimbursement by the State is required for the
17implementation of any mandate created by this amendatory Act of
18the 101st General Assembly.
19    Section 99. Effective date. This Act takes effect upon
20becoming law.