HB1974eng 95TH GENERAL ASSEMBLY

HB1974 Engrossed LRB095 09111 AMC 29304 b

AN ACT concerning public employee benefits.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Illinois Pension Code is amended by adding Section 6-127.5 as follows:

(40 ILCS 5/6-127.5 new)

Sec. 6-127.5. One-time lump sum payment election.

(a) This Section applies only to active firemen not in receipt of disability benefits who (i) have at least 23 years of creditable service, and (ii) have attained age 50, and (iii) withdraw from service on or after the effective date of this Section.

(b) A qualifying fireman may make an election under this Section at the time application for an age and service annuity under this Article is made, to receive a lump sum payment in exchange for which he or she agrees to forfeit up to 36 months of service credit. The lump sum payment shall be an amount equal to (1) the employee contributions credited to his or her account that correspond to the service credit being forfeited, plus (2) an additional 2.26 times that amount representing the corresponding employer contributions made to the Fund, plus (3) the amount of any annuity payments the fireman would have been entitled to during the time of the forfeited service. Members electing to receive a lump sum distribution under this Section may request that it be rolled over into other qualified plans.

(c) Service credit forfeited under this Section shall not be included in the calculation of the fireman's age and service annuity, nor used for any other purpose under this Act. The monthly retirement annuity, as reduced by any such lump sum distribution under this Section, shall constitute the originally granted annuity amount for all purposes of this Act. Any agreement to reduce total service credit for annuity calculation purposes shall not reduce career service for any purpose used by the City of Chicago. A lump sum distribution election under this Section is not considered a refund of contribution as defined for other purposes in this Article.

(d) Election of the lump sum payment distribution under this Section becomes irrevocable upon receipt of the lump sum payment.

Section 90. The State Mandates Act is amended by adding Section 8.31 as follows:

(30 ILCS 805/8.31 new)

Sec. 8.31. Exempt mandate. Notwithstanding Sections 6 and 8 of this Act, no reimbursement by the State is required for the implementation of any mandate created by this amendatory Act of the 95th General Assembly.

Section 99. Effective date. This Act takes effect upon becoming law.