101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB4566

 

Introduced 2/5/2020, by Rep. John M. Cabello

 

SYNOPSIS AS INTRODUCED:
 
40 ILCS 5/4-108.7
40 ILCS 5/6-227.1
30 ILCS 805/8.44 new

    Amends the Downstate Firefighter and Chicago Firefighter Articles of the Illinois Pension Code. Provides that until January 1, 2021 (instead of 6 months after August 23, 2019 (the effective date of Public Act 101-474)), creditable service may be transferred from a municipal firefighters' pension fund to the Firemen's Annuity and Benefit Fund of Chicago and may be transferred from the Firemen's Annuity and Benefit Fund of Chicago to a municipal firefighters' pension fund. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.


LRB101 17588 RPS 67007 b

FISCAL NOTE ACT MAY APPLY
PENSION IMPACT NOTE ACT MAY APPLY
STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT

 

 

A BILL FOR

 

HB4566LRB101 17588 RPS 67007 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
5Sections 4-108.7 and 6-227.1 as follows:
 
6    (40 ILCS 5/4-108.7)
7    Sec. 4-108.7. Transfer of creditable service from the
8Firemen's Annuity and Benefit Fund of Chicago. Until January 1,
92021 6 months after the effective date of this amendatory Act
10of the 101st General Assembly, any active participant in a fund
11established under this Article may transfer to that fund
12creditable service accumulated under Article 6 of this Code
13upon payment to the Article 4 fund, within 5 years after the
14date of application, of an amount equal to the difference
15between the amount of employee and employer contributions
16transferred to the Article 4 fund under Section 6-227.1 and the
17amounts determined by the Article 4 fund in accordance with
18this Section, plus interest on that difference at the
19actuarially assumed rate, compounded annually, from the date of
20service to the date of payment.
21    The Article 4 fund must determine the firefighter's payment
22required to establish creditable service under this Section by
23taking into account the appropriate actuarial assumptions,

 

 

HB4566- 2 -LRB101 17588 RPS 67007 b

1including without limitation the firefighter's service, age,
2and salary history; the level of funding of the Article 4 fund;
3and any other factors that the Article 4 fund determines to be
4relevant. For this purpose, the firefighter's required payment
5should result in no significant increase to the Article 4
6fund's unfunded actuarial accrued liability determined as of
7the most recent actuarial valuation, based on the same
8assumptions and methods used to develop and report the Article
94 fund's actuarial accrued liability and actuarial value of
10assets under Statement No. 25 of Governmental Accounting
11Standards Board or any subsequent applicable Statement.
12(Source: P.A. 101-474, eff. 8-23-19.)
 
13    (40 ILCS 5/6-227.1)
14    Sec. 6-227.1. Transfer of creditable service to Article 4.
15    (a) Until January 1, 2021 6 months after the effective date
16of this amendatory Act of the 101st General Assembly, any
17active participant in an Article 4 pension fund may apply for
18transfer of creditable service accumulated in the Firemen's
19Annuity and Benefit Fund of Chicago to any Article 4 pension
20fund. Such creditable service shall be transferred only upon
21payment by the Firemen's Annuity and Benefit Fund of Chicago to
22the Article 4 fund of an amount equal to:
23        (1) the amounts accumulated to the credit of the
24    applicant on the books of the fund on the date of transfer;
25        (2) employer contributions in an amount equal to the

 

 

HB4566- 3 -LRB101 17588 RPS 67007 b

1    amount determined under subparagraph (1); and
2        (3) any interest paid by the applicant in order to
3    reinstate service.
4    Participation in the Firemen's Annuity and Benefit Fund of
5Chicago as to any credits transferred under this Section shall
6terminate on the date of transfer.
7    (b) An active participant in an Article 4 pension fund
8applying for a transfer of creditable service under subsection
9(a) may reinstate credits and creditable service terminated
10upon receipt of a refund by payment to the Article 4 pension
11fund of the amount of the refund with interest thereon at the
12actuarially assumed rate, compounded annually, from the date of
13the refund to the date of payment.
14(Source: P.A. 101-474, eff. 8-23-19.)
 
15    Section 90. The State Mandates Act is amended by adding
16Section 8.44 as follows:
 
17    (30 ILCS 805/8.44 new)
18    Sec. 8.44. 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 101st General Assembly.
 
22    Section 99. Effective date. This Act takes effect upon
23becoming law.