Full Text of HB4566 101st General Assembly
HB4566 101ST GENERAL ASSEMBLY |
| | 101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020 HB4566 Introduced 2/5/2020, by Rep. John M. Cabello SYNOPSIS AS INTRODUCED: |
| 40 ILCS 5/4-108.7 | | 40 ILCS 5/6-227.1 | | 30 ILCS 805/8.44 new | |
|
Amends the Downstate Firefighter and Chicago Firefighter Articles of the Illinois Pension Code. Provides that until January 1, 2021 (instead of 6 months after August 23, 2019 (the effective date of Public Act 101-474)), creditable service may be transferred from a municipal firefighters' pension fund to the Firemen's Annuity and Benefit Fund of Chicago and may be transferred from the Firemen's Annuity and Benefit Fund of Chicago to a municipal firefighters' pension fund. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.
|
| |
| | FISCAL NOTE ACT MAY APPLY | PENSION IMPACT NOTE ACT MAY APPLY | STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT |
| | A BILL FOR |
|
| | | HB4566 | | LRB101 17588 RPS 67007 b |
|
| 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 4-108.7 and 6-227.1 as follows: | 6 | | (40 ILCS 5/4-108.7) | 7 | | Sec. 4-108.7. Transfer of creditable service from the | 8 | | Firemen's Annuity and Benefit Fund of Chicago. Until January 1, | 9 | | 2021 6 months after the effective date of this amendatory Act | 10 | | of the 101st General Assembly , any active participant in a fund | 11 | | established under this Article may transfer to that fund | 12 | | creditable service accumulated under Article 6 of this Code | 13 | | upon payment to the Article 4 fund, within 5 years after the | 14 | | date of application, of an amount equal to the difference | 15 | | between the amount of employee and employer contributions | 16 | | transferred to the Article 4 fund under Section 6-227.1 and the | 17 | | amounts determined by the Article 4 fund in accordance with | 18 | | this Section, plus interest on that difference at the | 19 | | actuarially assumed rate, compounded annually, from the date of | 20 | | service to the date of payment. | 21 | | The Article 4 fund must determine the firefighter's payment | 22 | | required to establish creditable service under this Section by | 23 | | taking into account the appropriate actuarial assumptions, |
| | | HB4566 | - 2 - | LRB101 17588 RPS 67007 b |
|
| 1 | | including without limitation the firefighter's service, age, | 2 | | and salary history; the level of funding of the Article 4 fund; | 3 | | and any other factors that the Article 4 fund determines to be | 4 | | relevant. For this purpose, the firefighter's required payment | 5 | | should result in no significant increase to the Article 4 | 6 | | fund's unfunded actuarial accrued liability determined as of | 7 | | the most recent actuarial valuation, based on the same | 8 | | assumptions and methods used to develop and report the Article | 9 | | 4 fund's actuarial accrued liability and actuarial value of | 10 | | assets under Statement No. 25 of Governmental Accounting | 11 | | Standards Board or any subsequent applicable Statement.
| 12 | | (Source: P.A. 101-474, eff. 8-23-19.) | 13 | | (40 ILCS 5/6-227.1) | 14 | | Sec. 6-227.1. Transfer of creditable service to Article 4. | 15 | | (a) Until January 1, 2021 6 months after the effective date | 16 | | of this amendatory Act of the 101st General Assembly , any | 17 | | active participant in an Article 4 pension fund may apply for | 18 | | transfer of creditable service accumulated in the Firemen's | 19 | | Annuity and Benefit Fund of Chicago to any Article 4 pension | 20 | | fund. Such creditable service shall be transferred only upon | 21 | | payment by the Firemen's Annuity and Benefit Fund of Chicago to | 22 | | the Article 4 fund of an amount equal to: | 23 | | (1) the amounts accumulated to the credit of the | 24 | | applicant on the books of the fund on the date of transfer; | 25 | | (2) employer contributions in an amount equal to the |
| | | HB4566 | - 3 - | LRB101 17588 RPS 67007 b |
|
| 1 | | amount determined under subparagraph (1); and | 2 | | (3) any interest paid by the applicant in order to | 3 | | reinstate service. | 4 | | Participation in the Firemen's Annuity and Benefit Fund of | 5 | | Chicago as to any credits transferred under this Section shall | 6 | | terminate on the date of transfer. | 7 | | (b) An active participant in an Article 4 pension fund | 8 | | applying for a transfer of creditable service under subsection | 9 | | (a) may reinstate credits and creditable service terminated | 10 | | upon receipt of a refund by payment to the Article 4 pension | 11 | | fund of the amount of the refund with interest thereon at the | 12 | | actuarially assumed rate, compounded annually, from the date of | 13 | | the refund to the date of payment.
| 14 | | (Source: P.A. 101-474, eff. 8-23-19.) | 15 | | Section 90. The State Mandates Act is amended by adding | 16 | | Section 8.44 as follows: | 17 | | (30 ILCS 805/8.44 new) | 18 | | Sec. 8.44. Exempt mandate. Notwithstanding Sections 6 and 8 | 19 | | of this Act, no reimbursement by the State is required for the | 20 | | implementation of any mandate created by this amendatory Act of | 21 | | the 101st General Assembly.
| 22 | | Section 99. Effective date. This Act takes effect upon | 23 | | becoming law.
|
|