Full Text of HB5007 93rd General Assembly
HB5007 93RD GENERAL ASSEMBLY
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93RD GENERAL ASSEMBLY
State of Illinois
2003 and 2004 HB5007
Introduced 2/5/2004, by Sidney H. Mathias SYNOPSIS AS INTRODUCED: |
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40 ILCS 5/4-108.4 new |
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40 ILCS 5/4-109.3 new |
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40 ILCS 5/4-118.1 |
from Ch. 108 1/2, par. 4-118.1 |
40 ILCS 5/7-139.10 new |
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30 ILCS 805/8.28 new |
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Amends the Downstate Firefighter Article and the IMRF Article of the
Illinois Pension Code. Provides a special retirement formula for firefighters who receive a retirement annuity from more than one Article 4
pension fund. Requires additional contributions. Authorizes firefighters who participate in IMRF to become members of a downstate
firefighter pension fund and to transfer their creditable service from IMRF to
that downstate firefighter pension fund. 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 |
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A BILL FOR
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HB5007 |
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| AN ACT in relation to public employee benefits.
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| Be it enacted by the People of the State of Illinois, | 3 |
| represented in the General Assembly:
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| Section 5. The Illinois Pension Code is amended by changing | 5 |
| Section 4-118.1
and adding Sections 4-108.4, 4-109.3, and | 6 |
| 7-139.10 as follows:
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| (40 ILCS 5/4-108.4 new)
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| Sec. 4-108.4. Transfer of creditable service from Article 7 | 9 |
| fund.
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| (a) Any firefighter who was excluded
from participation in | 11 |
| an Article
4 fund because of age and is a participant in the | 12 |
| Illinois
Municipal Retirement
System may become an active | 13 |
| participant in that firefighter pension fund by
making a
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| written application to the Board before January 1, 2006. | 15 |
| Persons so applying
shall begin
participation on the first day | 16 |
| of the month following the month in which the
application is
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| received by the Board. An employee who makes application for
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| participation
shall not be deemed ineligible to participate in | 19 |
| the firefighter pension fund
by reason of
having failed to | 20 |
| apply within the 3-month period specified in subsection (b) of
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| Section 4-107.
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| (b) A firefighter who was excluded
from participation in an | 23 |
| Article
4 fund because of age and is a participant in the | 24 |
| Illinois Municipal Retirement
System may also elect to | 25 |
| establish creditable service for
periods of employment as a | 26 |
| firefighter during which he or she did not
participate in an
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| Article 4 fund by paying into the fund, before January 1, 2006, | 28 |
| the amount that
the person
would have contributed had | 29 |
| deductions from salary been made for this purpose at
the time | 30 |
| the service was rendered, together with interest thereon at 6% | 31 |
| per
annum, compounded annually, from the time the service was | 32 |
| rendered until the
date of payment, less any amounts |
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| transferred from the Illinois Municipal
Retirement Fund under | 2 |
| Section 7-139.10.
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| (c) In no event shall pension credit for the same service | 4 |
| rendered by an
employee be accredited in more than one | 5 |
| participating system. If an employee applies for service credit | 6 |
| under subsection (b), then any creditable
service time | 7 |
| accumulated in the Illinois Municipal Retirement Fund for the | 8 |
| same
period must be transferred to the Article 4 fund under | 9 |
| Section 7-139.10.
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| (40 ILCS 5/4-109.3 new)
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| Sec. 4-109.3. Employee creditable service.
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| (a) As used in this Section:
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| "Final monthly salary" means the monthly salary attached to | 14 |
| the rank held by
the firefighter at the time of his or her last | 15 |
| withdrawal from service under a
particular pension fund.
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| "Last pension fund" means the pension fund in which the | 17 |
| firefighter was
participating at the time of his or her last | 18 |
| withdrawal from service.
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| (b) The benefits provided under this Section are available | 20 |
| only to a
firefighter who:
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| (1) is a firefighter at the time of withdrawal from the | 22 |
| last
pension fund and for at least the final 3 years of | 23 |
| employment prior to that
withdrawal;
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| (2) has established service credit with at least one | 25 |
| pension fund
established under this Article other than the | 26 |
| last pension fund;
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| (3) has a total of at least 20 years of service under | 28 |
| the various
pension funds established under this Article | 29 |
| and has attained age 50;
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| (4) is in service on or after the effective date of | 31 |
| this amendatory Act of
the 93rd General Assembly; and
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| (5) has not received a refund under subsection (c) of | 33 |
| Section 4-118.1.
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| (c) A firefighter who is eligible for benefits under this | 35 |
| Section may elect
to receive a retirement pension from each |
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| pension fund under this Article in
which the firefighter has at | 2 |
| least one year of service credit, by applying in
writing and | 3 |
| paying the contribution required under subsection (i).
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| (d) From each such pension fund other than the last pension | 5 |
| fund, in lieu
of any retirement pension otherwise payable under | 6 |
| this Article, a firefighter
to whom this Section applies may | 7 |
| elect to receive a monthly pension of 1/12th
of 2.5% of his or | 8 |
| her final monthly salary under that fund for each month of
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| service in that fund, subject to a maximum of 75% of that final | 10 |
| monthly salary.
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| (e) From the last pension fund, in lieu of any retirement | 12 |
| pension otherwise
payable under this Article, a firefighter to | 13 |
| whom this Section applies may
elect to receive a monthly | 14 |
| pension calculated as follows:
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| The last pension fund shall calculate the retirement | 16 |
| pension that
would be payable to the firefighter under | 17 |
| subsection (a) of Section 4-109 if he
or she had
participated | 18 |
| in that last pension fund during his or her entire period of
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| service under all pension funds established under this Article.
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| From this hypothetical pension there shall be subtracted the | 21 |
| original amounts
of the retirement pensions payable to the | 22 |
| firefighter by all other pension
funds under subsection (d). | 23 |
| The remainder is the retirement pension payable
to the | 24 |
| firefighter by the last pension fund under this subsection (e).
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| (f) Pensions elected under this Section shall be subject to | 26 |
| increases as
provided in subsection (d) of Section 4-109.1.
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| (g) A current firefighter may reinstate creditable service | 28 |
| in a
pension fund established under this Article that was | 29 |
| terminated upon receipt of
a refund, by payment to that pension | 30 |
| fund of the amount of the refund together
with interest thereon | 31 |
| at the rate of 6% per year, compounded annually, from the
date | 32 |
| of the refund to the date of payment. A repayment of a refund | 33 |
| under this
Section may be made in equal installments over a | 34 |
| period of up to 10 years, but
must be paid in full prior to | 35 |
| retirement.
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| (h) As a condition of being hired to a position as a |
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| firefighter on or after the effective date of this amendatory | 2 |
| Act of the
93rd General Assembly, a firefighter must notify
the | 3 |
| new employer, all of his or her previous employers under this | 4 |
| Article, and
the Public Pension Division of the Department of | 5 |
| Insurance, within one year of
being hired, of all periods of | 6 |
| service of at
least one year under a pension fund established | 7 |
| under this Article.
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| (i) In order to receive a pension under this Section, a | 9 |
| firefighter must
pay to each pension fund under this Article in | 10 |
| which he or she has at least
one year of service credit a | 11 |
| contribution equal to 1/12th of 1% of
monthly salary for each | 12 |
| month of service credit that the firefighter has in
that fund | 13 |
| (other than service credit for which the firefighter has | 14 |
| already
paid the additional contribution required under | 15 |
| subsection (c) of Section
4-118.1), together with interest at | 16 |
| the rate of 6% per year, compounded
annually, from the date of | 17 |
| the service to the date of payment.
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| A retired firefighter who receives a pension under this | 19 |
| Section may
return to duty as a firefighter if he or she (i) | 20 |
| suspends that pension,
and (ii) repays the amount of any | 21 |
| pension received under this Section, plus
interest at the rate | 22 |
| of 6% per year, compounded annually.
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| (j) A firefighter who is newly hired or promoted to a | 24 |
| position as a
firefighter shall not be denied participation in | 25 |
| a fund under this Article
based on his or her age.
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| (40 ILCS 5/4-118.1) (from Ch. 108 1/2, par. 4-118.1)
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| Sec. 4-118.1. Contributions by firefighters.
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| (a) Beginning January 1, 1976 and until the effective date | 29 |
| of this
amendatory Act of the 91st General Assembly, each | 30 |
| firefighter shall contribute
to the pension fund 6 3/4% of | 31 |
| salary towards the cost of his or her pension.
Beginning on the | 32 |
| effective date of this amendatory Act of the 91st General
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| Assembly, each firefighter shall contribute to the pension fund | 34 |
| 6.955% of
salary towards the cost of his or her pension.
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| (b) In addition, beginning January 1, 1976, each |
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| firefighter shall
contribute 1% of salary toward the cost of | 2 |
| the increase in pension provided in
Section 4-109.1; beginning | 3 |
| January 1, 1987, such contribution shall be 1.5% of
salary.
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| (c) Beginning on the effective date of this amendatory Act | 5 |
| of the 93rd
General Assembly, each firefighter who elects to | 6 |
| receive a pension under
Section 4-109.3 and who has | 7 |
| participated in
at least one other pension fund under this | 8 |
| Article for a period of at
least one year shall contribute an | 9 |
| additional 1.0% of salary toward the
cost of the pensions | 10 |
| provided in Section 4-109.3. In the event that
the firefighter | 11 |
| does not elect to receive the retirement pensions
provided | 12 |
| under Section 4-109.3, he or she shall, upon withdrawal from
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| the last pension fund as defined in Section 4-109.3, be | 14 |
| entitled to receive,
from each fund to which he or she has paid | 15 |
| additional contributions under
this subsection (c), a refund of | 16 |
| those contributions without interest.
A firefighter who | 17 |
| accepts any refund under this subsection is thereafter
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| ineligible to receive the pensions provided under Section | 19 |
| 4-109.3.
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| (d) "Salary" means the annual salary, including longevity, | 21 |
| attached
to the firefighter's rank, as established by the | 22 |
| municipality appropriation
ordinance, including any | 23 |
| compensation for overtime which is included in the
salary so | 24 |
| established, but excluding any "overtime pay", "holiday pay",
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| "bonus pay", "merit pay", or any other cash benefit not | 26 |
| included in the
salary so established.
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| (e) The contributions shall be deducted and withheld from | 28 |
| the salary
of firefighters.
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| (Source: P.A. 91-466, eff. 8-6-99.)
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| (40 ILCS 5/7-139.10 new)
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| Sec. 7-139.10. Transfer to Article 4 pension fund. Until | 32 |
| January 1, 2006,
a person who has elected under Section 4-108.4 | 33 |
| to become an
active participant in a firefighter pension fund | 34 |
| established under Article 4 of
this Code may apply for transfer | 35 |
| to that Article 4 fund of his or her
creditable service |
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| accumulated under this Article for municipal firefighter
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| service. At the time of the transfer, the Fund
shall pay to the | 3 |
| firefighter pension fund an amount equal to:
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| (1) the amounts accumulated to the credit of the | 5 |
| applicant for municipal
firefighter service, including | 6 |
| interest;
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| (2) any interest paid by the applicant in order to | 8 |
| reinstate that service;
and
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| (3) the municipality credits based on that service, | 10 |
| including interest.
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| Participation in this fund with respect to the transferred | 12 |
| credits shall
terminate on the date of transfer.
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| For the purpose of this Section, "municipal firefighter | 14 |
| service" means
service with the fire department of a | 15 |
| participating municipality for which the
applicant
established
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| creditable service under this Article.
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| Section 90. The State Mandates Act is amended by adding | 18 |
| Section 8.28 as
follows:
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| (30 ILCS 805/8.28 new)
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| Sec. 8.28. Exempt mandate. Notwithstanding Sections 6 and 8 | 21 |
| of this
Act, no reimbursement by the State is required for the | 22 |
| implementation of
any mandate created by this amendatory Act of | 23 |
| the 93rd General Assembly.
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| Section 99. Effective date. This Act takes effect upon | 25 |
| becoming law.
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