Full Text of HB1042 98th General Assembly
HB1042eng 98TH GENERAL ASSEMBLY |
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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 | | Sections 3-110.11 and 5-237.5 as follows: | 6 | | (40 ILCS 5/3-110.11) | 7 | | Sec. 3-110.11. Transfer of creditable service from Article | 8 | | 5 fund. For a period of 180 60 days after the effective date of | 9 | | this amendatory Act of the 98th General Assembly Section , a | 10 | | person may transfer to a fund established under this Article up | 11 | | to 10 years of creditable service accumulated under Article 5 | 12 | | of this Code upon payment to the fund of an amount to be | 13 | | determined by the board, equal to (i) the difference between | 14 | | the amount of employee and employer contributions transferred | 15 | | to the fund under Section 5-237.5 and the amounts that would | 16 | | have been contributed had such contributions been made at the | 17 | | rates applicable to an employee under this Article, plus (ii) | 18 | | interest thereon at the actuarially assumed rate, compounded | 19 | | annually, from the date of service to the date of payment , plus | 20 | | (iii) if the board determines that the amount transferred is | 21 | | less than the true cost to the Fund of allowing that creditable | 22 | | service to be established, then in order to establish that | 23 | | creditable service, the member must pay to the Fund an |
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| 1 | | additional contribution equal to the difference, as determined | 2 | | by the board in accordance with the rules and procedures | 3 | | adopted under this Section. If the member does not make the | 4 | | full additional payment as required by this Section prior to | 5 | | termination of his or her participation with that employer, | 6 | | then his or her creditable service shall be reduced by an | 7 | | amount equal to the difference between the amount transferred | 8 | | under Section 3-110.3, including any payments made by the | 9 | | member under this paragraph prior to termination, and the true | 10 | | cost to the Fund of allowing that creditable service to be | 11 | | established, as determined by the board in accordance with the | 12 | | rules and procedures adopted under this Section .
| 13 | | The board shall establish by rule the manner of making the | 14 | | calculation required under this Section, taking into account | 15 | | the appropriate actuarial assumptions, the member's service, | 16 | | age, and salary history, and any other factors that the board | 17 | | determines to be relevant. | 18 | | (Source: P.A. 97-326, eff. 8-12-11.) | 19 | | (40 ILCS 5/5-237.5) | 20 | | Sec. 5-237.5. Transfer of creditable service to Article 3 | 21 | | fund. | 22 | | (a) Any person who is an active participant in a pension | 23 | | fund established under Article 3 of this Code may, for a period | 24 | | of 60 days after the effective date of this amendatory Act of | 25 | | the 98th General Assembly Section , apply for transfer of his or |
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| 1 | | her credits and creditable service accumulated in this Fund to | 2 | | that Article 3 fund. Upon receipt of a written application to | 3 | | make this transfer, the Fund shall pay to the Article 3 fund an | 4 | | amount consisting of: | 5 | | (1) the amounts credited to the applicant through
| 6 | | employee contributions, plus accumulated interest; plus | 7 | | (2) an amount representing municipality
contributions, | 8 | | equal to the amount determined under item (1); plus | 9 | | (3) any interest paid to the Fund in order to
reinstate | 10 | | credits and creditable service under subsection (b). | 11 | | Participation in this Fund shall terminate on the date of the | 12 | | transfer. | 13 | | (b) As part of a transfer under subsection (a), a person | 14 | | may reinstate credits and creditable service that was | 15 | | terminated upon receipt of a refund, by paying to the Fund the | 16 | | amount of the refund plus interest thereon at the actuarially | 17 | | assumed rate, compounded annually, from the date of the refund | 18 | | to the date of payment.
| 19 | | (Source: P.A. 97-326, eff. 8-12-11.)
| 20 | | Section 90. The State Mandates Act is amended by adding | 21 | | Section 8.37 as follows: | 22 | | (30 ILCS 805/8.37 new) | 23 | | Sec. 8.37. Exempt mandate. Notwithstanding Sections 6 and 8 | 24 | | of this Act, no reimbursement by the State is required for the |
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| 1 | | implementation of any mandate created by this amendatory Act of | 2 | | the 98th General Assembly. | 3 | | Section 99. Effective date. This Act takes effect upon | 4 | | becoming law.
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