102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB4249

 

Introduced 1/5/2022, by Rep. David Friess

 

SYNOPSIS AS INTRODUCED:
 
See Index

    Amends the Downstate Police and Illinois Municipal Retirement Fund (IMRF) Articles of the Illinois Pension Code. Provides that an active IMRF member who is a sheriff's law enforcement employee may transfer up to 15 years of creditable service under the Downstate Police Article to IMRF. Authorizes the reinstatement of creditable service terminated upon receipt of a refund by paying to the police pension fund the amount of the refund plus interest. Provides that, to establish the credit, a person may elect to either pay to IMRF an amount equal to the difference between the amount of employee and employer contributions transferred to IMRF and the amounts that would have been contributed had such contributions been made at the rates applicable to an employee under IMRF, plus interest; or to have the amount of his or her creditable service reduced by an amount corresponding to the amount by which the contributions that would have been required if he or she had participated in IMRF during the period for which credit is being transferred, plus interest, exceeds the amount actually transferred to IMRF. Provides that a sheriff's law enforcement employee shall be deemed to be a person who first became a sheriff's law enforcement employee before January 1, 2011 if the transferred creditable service was for service as a police officer who first became a police officer before January 1, 2011; at the time the sheriff's law enforcement employee applied to transfer the creditable service, the amount of creditable service under Article 3 was greater than the amount of creditable service the sheriff's law enforcement employee had under IMRF; and other requirements are met. Makes other changes. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.


LRB102 21317 RPS 30429 b

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

 

 

A BILL FOR

 

HB4249LRB102 21317 RPS 30429 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
5changing Sections 3-110.8 and 7-142.1 and by adding Section
67-139.15 as follows:
 
7    (40 ILCS 5/3-110.8)
8    Sec. 3-110.8. Transfer to IMRF.
9    (a) Any Until 60 days after the effective date of this
10amendatory Act of the 97th General Assembly, any active member
11of the Illinois Municipal Retirement Fund who is a sheriff's
12law enforcement employee under Article 7 may apply to transfer
13up to 15 10 years of creditable service in a police pension
14fund under this Article to the Illinois Municipal Retirement
15Fund. The creditable service shall be transferred upon payment
16by the police pension fund to the Illinois Municipal
17Retirement Fund of an amount equal to:
18        (1) the amounts accumulated to the credit of the
19    applicant on the books of the fund on the date of transfer;
20    and
21        (2) employer contributions in an amount equal to the
22    amount determined under subparagraph (1); and
23        (3) any interest paid by the applicant in order to

 

 

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1    reinstate service.
2Creditable service transferred to the Illinois Municipal
3Retirement Fund under this Section shall terminate on the date
4of the transfer.
5    (b) Any Until 60 days after the effective date of this
6amendatory Act of the 97th General Assembly, any active member
7of the Illinois Municipal Retirement Fund may reinstate all or
8any portion of his or her service that was terminated by
9receipt of a refund, by payment to the police pension fund of
10the amount of the refund with interest thereon at the
11actuarially assumed rate, compounded annually, from the date
12of refund to the date of payment.
13(Source: P.A. 97-273, eff. 8-8-11.)
 
14    (40 ILCS 5/7-139.15 new)
15    Sec. 7-139.15. Transfer from Article 3. A sheriff's law
16enforcement employee may transfer to the Illinois Municipal
17Retirement Fund up to 15 years of creditable service
18accumulated under Article 3 of this Code. To establish
19creditable service under this Section, the sheriff's law
20enforcement employee may elect to do either of the following:
21        (1) pay to the Fund an amount to be determined by the
22    board, equal to (i) the difference between the amount of
23    employee and employer contributions transferred to the
24    Fund under Section 3-110.8 and the amounts that would have
25    been contributed had such contributions been made at the

 

 

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1    rates applicable to an employee under this Article, plus
2    (ii) interest thereon at the actuarially assumed rate,
3    compounded annually, from the date of service to the date
4    of payment; or
5        (2) have the amount of his or her creditable service
6    established under this Section reduced by an amount
7    corresponding to the amount by which (i) the employer and
8    employee contributions that would have been required if he
9    or she had participated in this Fund during the period for
10    which credit is being transferred, plus interest thereon
11    at the actuarially assumed rate, compounded annually, from
12    the date of termination of the service for which credit is
13    being transferred to the date of payment, exceeds (ii) the
14    amount actually transferred to the Fund.
 
15    (40 ILCS 5/7-142.1)  (from Ch. 108 1/2, par. 7-142.1)
16    Sec. 7-142.1. Sheriff's law enforcement employees.
17    (a) In lieu of the retirement annuity provided by
18subparagraph 1 of paragraph (a) of Section 7-142:
19    Any sheriff's law enforcement employee who has 20 or more
20years of service in that capacity and who terminates service
21prior to January 1, 1988 shall be entitled at his option to
22receive a monthly retirement annuity for his service as a
23sheriff's law enforcement employee computed by multiplying 2%
24for each year of such service up to 10 years, 2 1/4% for each
25year of such service above 10 years and up to 20 years, and 2

 

 

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11/2% for each year of such service above 20 years, by his
2annual final rate of earnings and dividing by 12.
3    Any sheriff's law enforcement employee who has 20 or more
4years of service in that capacity and who terminates service
5on or after January 1, 1988 and before July 1, 2004 shall be
6entitled at his option to receive a monthly retirement annuity
7for his service as a sheriff's law enforcement employee
8computed by multiplying 2.5% for each year of such service up
9to 20 years, 2% for each year of such service above 20 years
10and up to 30 years, and 1% for each year of such service above
1130 years, by his annual final rate of earnings and dividing by
1212.
13    Any sheriff's law enforcement employee who has 20 or more
14years of service in that capacity and who terminates service
15on or after July 1, 2004 shall be entitled at his or her option
16to receive a monthly retirement annuity for service as a
17sheriff's law enforcement employee computed by multiplying
182.5% for each year of such service by his annual final rate of
19earnings and dividing by 12.
20    If a sheriff's law enforcement employee has service in any
21other capacity, his retirement annuity for service as a
22sheriff's law enforcement employee may be computed under this
23Section and the retirement annuity for his other service under
24Section 7-142.
25    In no case shall the total monthly retirement annuity for
26persons who retire before July 1, 2004 exceed 75% of the

 

 

HB4249- 5 -LRB102 21317 RPS 30429 b

1monthly final rate of earnings. In no case shall the total
2monthly retirement annuity for persons who retire on or after
3July 1, 2004 exceed 80% of the monthly final rate of earnings.
4    (b) Whenever continued group insurance coverage is elected
5in accordance with the provisions of Section 367h of the
6Illinois Insurance Code, as now or hereafter amended, the
7total monthly premium for such continued group insurance
8coverage or such portion thereof as is not paid by the
9municipality shall, upon request of the person electing such
10continued group insurance coverage, be deducted from any
11monthly pension benefit otherwise payable to such person
12pursuant to this Section, to be remitted by the Fund to the
13insurance company or other entity providing the group
14insurance coverage.
15    (c) A sheriff's law enforcement employee who began service
16in that capacity prior to the effective date of this
17amendatory Act of the 97th General Assembly and who has
18service in any other capacity may convert up to 10 years of
19that service into service as a sheriff's law enforcement
20employee by paying to the Fund an amount equal to (1) the
21additional employee contribution required under Section
227-173.1, plus (2) the additional employer contribution
23required under Section 7-172, plus (3) interest on items (1)
24and (2) at the prescribed rate from the date of the service to
25the date of payment. Application must be received by the Board
26while the employee is an active participant in the Fund.

 

 

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1Payment must be received while the member is an active
2participant, except that one payment will be permitted after
3termination of participation.
4    (d) The changes to subsections (a) and (b) of this Section
5made by this amendatory Act of the 94th General Assembly apply
6only to persons in service on or after July 1, 2004. In the
7case of such a person who begins to receive a retirement
8annuity before the effective date of this amendatory Act of
9the 94th General Assembly, the annuity shall be recalculated
10prospectively to reflect those changes, with the resulting
11increase beginning to accrue on the first annuity payment date
12following the effective date of this amendatory Act.
13    (e) Any elected county officer who was entitled to receive
14a stipend from the State on or after July 1, 2009 and on or
15before June 30, 2010 may establish earnings credit for the
16amount of stipend not received, if the elected county official
17applies in writing to the fund within 6 months after the
18effective date of this amendatory Act of the 96th General
19Assembly and pays to the fund an amount equal to (i) employee
20contributions on the amount of stipend not received, (ii)
21employer contributions determined by the Board equal to the
22employer's normal cost of the benefit on the amount of stipend
23not received, plus (iii) interest on items (i) and (ii) at the
24actuarially assumed rate.
25    (f) Notwithstanding any other provision of this Article,
26the provisions of this subsection (f) apply to a person who

 

 

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1first becomes a sheriff's law enforcement employee under this
2Article on or after January 1, 2011. However, a person shall be
3deemed to be a person who first became a sheriff's law
4enforcement employee under this Article before January 1, 2011
5if: (1) that person transferred creditable service under
6Section 7-139.15; (2) the transferred creditable service was
7for service as a police officer who first became a police
8officer before January 1, 2011; and (3) at the time the
9sheriff's law enforcement employee applied to transfer the
10creditable service under Section 3-110.8, the amount of
11creditable service under Article 3 was greater than the amount
12of creditable service the sheriff's law enforcement employee
13had under this Article.
14    A sheriff's law enforcement employee age 55 or more who
15has 10 or more years of service in that capacity shall be
16entitled at his option to receive a monthly retirement annuity
17for his or her service as a sheriff's law enforcement employee
18computed by multiplying 2.5% for each year of such service by
19his or her final rate of earnings.
20    The retirement annuity of a sheriff's law enforcement
21employee who is retiring after attaining age 50 with 10 or more
22years of creditable service shall be reduced by one-half of 1%
23for each month that the sheriff's law enforcement employee's
24age is under age 55.
25    The maximum retirement annuity under this subsection (f)
26shall be 75% of final rate of earnings.

 

 

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1    For the purposes of this subsection (f), "final rate of
2earnings" means the average monthly earnings obtained by
3dividing the total salary of the sheriff's law enforcement
4employee during the 96 consecutive months of service within
5the last 120 months of service in which the total earnings was
6the highest by the number of months of service in that period.
7    Notwithstanding any other provision of this Article,
8beginning on January 1, 2011, for all purposes under this Code
9(including without limitation the calculation of benefits and
10employee contributions), the annual earnings of a sheriff's
11law enforcement employee to whom this Section applies shall
12not include overtime and shall not exceed $106,800; however,
13that amount shall annually thereafter be increased by the
14lesser of (i) 3% of that amount, including all previous
15adjustments, or (ii) one-half the annual unadjusted percentage
16increase (but not less than zero) in the consumer price
17index-u for the 12 months ending with the September preceding
18each November 1, including all previous adjustments.
19    (g) Notwithstanding any other provision of this Article,
20the monthly annuity of a person who first becomes a sheriff's
21law enforcement employee under this Article on or after
22January 1, 2011 shall be increased on the January 1 occurring
23either on or after the attainment of age 60 or the first
24anniversary of the annuity start date, whichever is later.
25Each annual increase shall be calculated at 3% or one-half the
26annual unadjusted percentage increase (but not less than zero)

 

 

HB4249- 9 -LRB102 21317 RPS 30429 b

1in the consumer price index-u for the 12 months ending with the
2September preceding each November 1, whichever is less, of the
3originally granted retirement annuity. If the annual
4unadjusted percentage change in the consumer price index-u for
5a 12-month period ending in September is zero or, when
6compared with the preceding period, decreases, then the
7annuity shall not be increased.
8    (h) Notwithstanding any other provision of this Article,
9for a person who first becomes a sheriff's law enforcement
10employee under this Article on or after January 1, 2011, the
11annuity to which the surviving spouse, children, or parents
12are entitled under this subsection (h) shall be in the amount
13of 66 2/3% of the sheriff's law enforcement employee's earned
14annuity at the date of death.
15    (i) Notwithstanding any other provision of this Article,
16the monthly annuity of a survivor of a person who first becomes
17a sheriff's law enforcement employee under this Article on or
18after January 1, 2011 shall be increased on the January 1 after
19attainment of age 60 by the recipient of the survivor's
20annuity and each January 1 thereafter by 3% or one-half the
21annual unadjusted percentage increase in the consumer price
22index-u for the 12 months ending with the September preceding
23each November 1, whichever is less, of the originally granted
24pension. If the annual unadjusted percentage change in the
25consumer price index-u for a 12-month period ending in
26September is zero or, when compared with the preceding period,

 

 

HB4249- 10 -LRB102 21317 RPS 30429 b

1decreases, then the annuity shall not be increased.
2    (j) For the purposes of this Section, "consumer price
3index-u" means the index published by the Bureau of Labor
4Statistics of the United States Department of Labor that
5measures the average change in prices of goods and services
6purchased by all urban consumers, United States city average,
7all items, 1982-84 = 100. The new amount resulting from each
8annual adjustment shall be determined by the Public Pension
9Division of the Department of Insurance and made available to
10the boards of the pension funds.
11(Source: P.A. 100-148, eff. 8-18-17.)
 
12    Section 90. The State Mandates Act is amended by adding
13Section 8.46 as follows:
 
14    (30 ILCS 805/8.46 new)
15    Sec. 8.46. Exempt mandate. Notwithstanding Sections 6 and
168 of this Act, no reimbursement by the State is required for
17the implementation of any mandate created by this amendatory
18Act of the 102nd General Assembly.
 
19    Section 99. Effective date. This Act takes effect upon
20becoming law.

 

 

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1 INDEX
2 Statutes amended in order of appearance
3    40 ILCS 5/3-110.8
4    40 ILCS 5/7-139.15 new
5    40 ILCS 5/7-142.1from Ch. 108 1/2, par. 7-142.1
6    30 ILCS 805/8.46 new