97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB4503

 

Introduced 1/31/2012, by Rep. Edward J. Acevedo

 

SYNOPSIS AS INTRODUCED:
 
40 ILCS 5/4-108.6
40 ILCS 5/4-108.7 new
40 ILCS 5/6-227
40 ILCS 5/6-227.1 new
30 ILCS 805/8.36 new

    Amends the Downstate Firefighter and Chicago Firefighter Articles of the Illinois Pension Code. Extends the period during which creditable service may be transferred from municipal firefighters' pension funds to the Firemen's Annuity and Benefit Fund of Chicago. Authorizes the transfer of creditable service from the Firemen's Annuity and Benefit Fund of Chicago to municipal firefighters' pension funds. Amends the State Mandates Act to provide for implementation without reimbursement. Effective immediately.


LRB097 16908 JDS 62096 b

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

 

 

A BILL FOR

 

HB4503LRB097 16908 JDS 62096 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 4-108.6 and 6-227 and by adding Sections 4-108.7 and
66-227.1 as follows:
 
7    (40 ILCS 5/4-108.6)
8    Sec. 4-108.6. Transfer of creditable service to the
9Firemen's Annuity and Benefit Fund of Chicago.
10    (a) Any Until January 1, 2010, any active member of the
11Firemen's Annuity and Benefit Fund of Chicago may apply for
12transfer of up to 10 years of creditable service accumulated in
13any pension fund established under this Article to the
14Firemen's Annuity and Benefit Fund of Chicago. Such creditable
15service shall be transferred only upon payment by such pension
16fund to the Firemen's Annuity and Benefit Fund of Chicago of an
17amount 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        (2) employer contributions in an amount equal to the
21    amount determined under subparagraph (1); and
22        (3) any interest paid by the applicant in order to
23    reinstate service.

 

 

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1    Participation in such pension fund as to any credits
2transferred under this Section shall terminate on the date of
3transfer.
4    (b) An active member of the Firemen's Annuity and Benefit
5Fund of Chicago applying for a transfer of creditable service
6under subsection (a) may reinstate credits and creditable
7service terminated upon receipt of a refund by payment to the
8Firemen's Annuity and Benefit Fund of Chicago of the amount of
9the refund with interest thereon at the actuarially assumed
10rate, compounded annually, from the date of the refund to the
11date of payment.
12(Source: P.A. 96-727, eff. 8-25-09.)
 
13    (40 ILCS 5/4-108.7 new)
14    Sec. 4-108.7. Transfer of creditable service from the
15Firemen's Annuity and Benefit Fund of Chicago. Any active
16participant in a fund established under this Article may
17transfer to that fund creditable service accumulated under
18Article 6 of this Code upon payment to the Article 4 fund,
19within 5 years after the date of application, of an amount
20equal to the difference between the amount of employee and
21employer contributions transferred to the Article 4 fund under
22Section 6-227.1 and the amounts determined by the Article 4
23fund in accordance with this Section, plus interest on that
24difference at the actuarially assumed rate, compounded
25annually, from the date of service to the date of payment.

 

 

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1    The Article 4 fund must determine the firefighter's payment
2required to establish creditable service under this Section by
3taking into account the appropriate actuarial assumptions,
4including without limitation the firefighter's service, age,
5and salary history; the level of funding of the Article 4 fund;
6and any other factors that the Article 4 fund determines to be
7relevant. For this purpose, the firefighter's required payment
8should result in no significant increase to the Article 4
9fund's unfunded actuarial accrued liability determined as of
10the most recent actuarial valuation, based on the same
11assumptions and methods used to develop and report the Article
124 fund's actuarial accrued liability and actuarial value of
13assets under Statement No. 25 of Governmental Accounting
14Standards Board or any subsequent applicable Statement.
 
15    (40 ILCS 5/6-227)
16    Sec. 6-227. Transfer of creditable service from Article 4.
17Any Until January 1, 2010, any active member of the Firemen's
18Annuity and Benefit Fund of Chicago may transfer to the Fund up
19to a total of 10 years of creditable service accumulated under
20Article 4 of this Code upon payment to the Fund within 5 years
21after the date of application of an amount equal to the
22difference between the amount of employee and employer
23contributions transferred to the Fund under Section 4-108.6 and
24the amounts determined by the Fund in accordance with this
25Section, plus interest on that difference at the actuarially

 

 

HB4503- 4 -LRB097 16908 JDS 62096 b

1assumed rate, compounded annually, from the date of service to
2the date of payment.
3    The Fund must determine the fireman's payment required to
4establish creditable service under this Section by taking into
5account the appropriate actuarial assumptions, including
6without limitation the fireman's service, age, and salary
7history; the level of funding of the Fund; and any other
8factors that the Fund determines to be relevant. For this
9purpose, the fireman's required payment should result in no
10significant increase to the Fund's unfunded actuarial accrued
11liability determined as of the most recent actuarial valuation,
12based on the same assumptions and methods used to develop and
13report the Fund's actuarial accrued liability and actuarial
14value of assets under Statement No. 25 of Governmental
15Accounting Standards Board or any subsequent applicable
16Statement.
17(Source: P.A. 96-727, eff. 8-25-09.)
 
18    (40 ILCS 5/6-227.1 new)
19    Sec. 6-227.1. Transfer of creditable service to Article 4.
20    (a) Any active participant in an Article 4 pension fund may
21apply for transfer of creditable service accumulated in the
22Firemen's Annuity and Benefit Fund of Chicago to any Article 4
23pension fund. Such creditable service shall be transferred only
24upon payment by the Firemen's Annuity and Benefit Fund of
25Chicago to the Article 4 fund of an amount equal to:

 

 

HB4503- 5 -LRB097 16908 JDS 62096 b

1        (1) the amounts accumulated to the credit of the
2    applicant on the books of the fund on the date of transfer;
3        (2) employer contributions in an amount equal to the
4    amount determined under subparagraph (1); and
5        (3) any interest paid by the applicant in order to
6    reinstate service.
7    Participation in the Firemen's Annuity and Benefit Fund of
8Chicago as to any credits transferred under this Section shall
9terminate on the date of transfer.
10    (b) An active participant in an Article 4 pension fund
11applying for a transfer of creditable service under subsection
12(a) may reinstate credits and creditable service terminated
13upon receipt of a refund by payment to the Article 4 pension
14fund of the amount of the refund with interest thereon at the
15actuarially assumed rate, compounded annually, from the date of
16the refund to the date of payment.
 
17    Section 90. The State Mandates Act is amended by adding
18Section 8.36 as follows:
 
19    (30 ILCS 805/8.36 new)
20    Sec. 8.36. Exempt mandate. Notwithstanding Sections 6 and 8
21of this Act, no reimbursement by the State is required for the
22implementation of any mandate created by this amendatory Act of
23the 97th General Assembly.
 
24    Section 99. Effective date. This Act takes effect upon

 

 

HB4503- 6 -LRB097 16908 JDS 62096 b

1becoming law.