Full Text of HB3522 101st General Assembly
HB3522 101ST GENERAL ASSEMBLY |
| | 101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020 HB3522 Introduced , by Rep. Grant Wehrli SYNOPSIS AS INTRODUCED: |
| 40 ILCS 5/4-117 | from Ch. 108 1/2, par. 4-117 | 40 ILCS 5/4-117.2 new | | 30 ILCS 805/8.43 new | |
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Amends the Downstate Firefighter Article of the Illinois Pension Code. Requires each municipality to establish a defined contribution plan that aggregates firefighter and employer contributions in individual accounts used for retirement. Provides that if a firefighter who has more than 10 years of creditable service in a fund enters active service with a different municipality, he or she may elect to participate in the defined contribution plan in lieu of the defined benefit plan. Provides that if a fire chief to whom a specified provision of the Illinois Municipal Code applies (i) first becomes a member on or after January 1, 2020, (ii) is receiving pension payments, and (iii) reenters active service with any municipality that has established a pension fund under the Article, that fire chief may continue to receive pension payments while he or she is in active service, but shall only participate in a defined contribution plan and may not establish creditable service in the pension fund established by that municipality or have his or her pension recomputed. Makes other changes. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.
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| | FISCAL NOTE ACT MAY APPLY | PENSION IMPACT NOTE ACT MAY APPLY | STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT |
| | A BILL FOR |
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| | | HB3522 | | LRB101 11181 RPS 56422 b |
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| 1 | | AN ACT concerning public employee benefits.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Illinois Pension Code is amended by changing | 5 | | Section 4-117 and by adding Section 4-117.2 as follows:
| 6 | | (40 ILCS 5/4-117) (from Ch. 108 1/2, par. 4-117)
| 7 | | Sec. 4-117. Reentry into active service. | 8 | | (a) If a firefighter receiving
pension payments
reenters | 9 | | active service, pension payments shall be suspended while he
or | 10 | | she is in service. If the firefighter again retires or is | 11 | | discharged,
his or her monthly pension shall be resumed in the | 12 | | same amount as was paid
upon first retirement or discharge
| 13 | | unless he or she remained in active service 3 or more years | 14 | | after re-entry
in which case the monthly pension shall be based | 15 | | on the salary attached
to the firefighter's rank at the date of | 16 | | last retirement.
| 17 | | (b) If a deferred pensioner re-enters active service, and | 18 | | again retires
or is discharged from the fire service, his or | 19 | | her pension shall be based
on the salary attached to the rank | 20 | | held in the fire service at the date
of earlier retirement, | 21 | | unless the firefighter remains in active service
for 3 or more | 22 | | years after re-entry, in which case the monthly pension shall
| 23 | | be based on the salary attached to the firefighter's rank at |
| | | HB3522 | - 2 - | LRB101 11181 RPS 56422 b |
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| 1 | | the date of
last retirement.
| 2 | | (c) If a pensioner or deferred pensioner re-enters or is | 3 | | recalled
to active service and
is thereafter injured, and the | 4 | | injury
is not related to an injury for which he or she was | 5 | | previously receiving
a disability pension,
the 3 year service | 6 | | requirement shall not apply in order
for the firefighter to | 7 | | qualify for the increased pension based on
the rate of pay at | 8 | | the time of the
new injury.
| 9 | | (d) If a fire chief to whom Section 10-1-7.3 of the | 10 | | Illinois Municipal Code applies (i) first becomes a member on | 11 | | or after January 1, 2020, (ii) is receiving pension payments, | 12 | | and (iii) reenters active service with any municipality that | 13 | | has established a pension fund under this Article, that fire | 14 | | chief may continue to receive pension payments while he or she | 15 | | is in active service, but shall only participate in a defined | 16 | | contribution plan established by the municipality pursuant to | 17 | | Section 4-117.2 and may not establish creditable service in the | 18 | | pension fund established by that municipality or have his or | 19 | | her pension recomputed. | 20 | | (Source: P.A. 83-1440.)
| 21 | | (40 ILCS 5/4-117.2 new) | 22 | | Sec. 4-117.2. Defined contribution plan for certain | 23 | | firefighters. | 24 | | (a) Each municipality shall establish a defined | 25 | | contribution plan that aggregates firefighter and employer |
| | | HB3522 | - 3 - | LRB101 11181 RPS 56422 b |
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| 1 | | contributions in individual accounts used for retirement. The | 2 | | defined contribution plan, including both firefighter and | 3 | | employer contributions, established by the municipality must, | 4 | | at a minimum: meet the safe harbor provisions of the Internal | 5 | | Revenue Code of 1986, as amended; be a qualified plan under the | 6 | | Internal Revenue Code of 1986, as amended; and comply with all | 7 | | other applicable laws, rules, and regulations. Contributions | 8 | | shall vest immediately upon deposit in the firefighter's | 9 | | account. | 10 | | A firefighter who participates in the defined contribution | 11 | | plan under this Section may not earn creditable service or | 12 | | otherwise participate in the defined benefit plan offered by | 13 | | his or her employing municipality, except as an annuitant in | 14 | | another fund or as a survivor, while he or she is a participant | 15 | | in the defined contribution plan. The defined contribution plan | 16 | | under this Section shall not be construed to be a pension, | 17 | | annuity, or other defined benefit under this Code. | 18 | | (b) If a firefighter who has more than 10 years of | 19 | | creditable service in a fund enters active service with a | 20 | | different municipality, he or she may elect to participate in | 21 | | the defined contribution plan under this Section in lieu of the | 22 | | defined benefit plan. | 23 | | A firefighter who has elected under this subsection to | 24 | | participate in the defined contribution plan may, in writing, | 25 | | rescind that election in accordance with the rules of the | 26 | | board. Any employer contributions, and the earnings thereon, |
| | | HB3522 | - 4 - | LRB101 11181 RPS 56422 b |
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| 1 | | shall remain vested in the firefighter's account. A firefighter | 2 | | who rescinds the election may begin participating in the | 3 | | defined benefit plan on the first day of the month following | 4 | | the rescission. | 5 | | (c) As used in this Section, "defined benefit plan" means | 6 | | the retirement plan available to firefighters under this | 7 | | Article who do not participate in the defined contribution plan | 8 | | under this Section. | 9 | | Section 90. The State Mandates Act is amended by adding | 10 | | Section 8.43 as follows: | 11 | | (30 ILCS 805/8.43 new) | 12 | | Sec. 8.43. Exempt mandate. Notwithstanding Sections 6 and 8 | 13 | | of this Act, no reimbursement by the State is required for the | 14 | | implementation of any mandate created by this amendatory Act of | 15 | | the 101st General Assembly.
| 16 | | Section 99. Effective date. This Act takes effect upon | 17 | | becoming law.
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