Bill Text: IL HB0418 | 2017-2018 | 100th General Assembly | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Amends the Downstate Police Article of the Illinois Pension Code. Provides that if a person who is receiving a police pension becomes employed as a chief of police, the person must so notify the pension fund paying the pension and any other fund in which the person has service credit, and the pension shall be suspended until the employment as chief terminates; if the person elects to participate in IMRF, the person must also notify IMRF of those police pension funds. Provides that if a person who is receiving a police pension enters service as a police officer with a different municipality, the person must so notify the pension fund paying the pension and the pension shall be suspended until the service terminates, unless the different municipality had a population of less than 6,000 at the time of the return to active service. Applies to persons who first enter service after the effective date of the amendatory Act.

Spectrum: Bipartisan Bill

Status: (Passed) 2017-08-24 - Public Act . . . . . . . . . 100-0281 [HB0418 Detail]

Download: Illinois-2017-HB0418-Introduced.html

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100TH GENERAL ASSEMBLY State of Illinois 2017 and 2018 HB0418 Introduced , by Rep. Grant Wehrli SYNOPSIS AS INTRODUCED:
40 ILCS 5/3-109.1 from Ch. 108 1/2, par. 3-109.1
40 ILCS 5/3-124.1 from Ch. 108 1/2, par. 3-124.1
Amends the Downstate Police Article of the Illinois Pension Code. Provides that if a person who is receiving a police pension becomes employed as a chief of police, the person must so notify the pension fund paying the pension and any other fund in which the person has service credit, and the pension shall be suspended until the employment as chief terminates; if the person elects to participate in IMRF, the person must also notify IMRF of those police pension funds. Provides that if a person who is receiving a police pension enters service as a police officer with a different municipality, the person must so notify the pension fund paying the pension and the pension shall be suspended until the service terminates, unless the different municipality had a population of less than 6,000 at the time of the return to active service. Applies to persons who first enter service after the effective date of the amendatory Act.
LRB100 04239 RPS 14245 b
FISCAL NOTE ACT MAY APPLY PENSION IMPACT NOTE ACT MAY APPLY
A BILL FOR
HB0418 LRB100 04239 RPS 14245 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 changing
Sections 3-109.1 and 3-124.1 as follows:
(40 ILCS 5/3-109.1) (from Ch. 108 1/2, par. 3-109.1)
Sec. 3-109.1. Chief of police.
(a) Beginning January 1, 1990, any person who is employed
as the chief of police of a "participating municipality" as
defined in Section 7-106 of this Code, may elect to participate
in the Illinois Municipal Retirement Fund rather than in a fund
created under this Article 3. Except as provided in subsection
(b), this election shall be irrevocable, and shall be filed in
writing with the Board of the Illinois Municipal Retirement
Fund.
(a-5) A chief of police who, after the effective date of
this amendatory Act of the 100th General Assembly, elects to
participate in the Illinois Municipal Retirement Fund under
this Section shall immediately:
(i) give notice of that employment to every police
pension fund established under this Article in which he or
she has service credit or any entitlement to a pension or
other benefit; and

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(ii) give notice to the Illinois Municipal Retirement
Fund of every police pension fund established under this
Article in which he or she has service credit or any
entitlement to a pension or other benefit.
(b) Until January 1, 1999, a chief of police who has
elected under this Section to participate in IMRF rather than a
fund created under this Article may elect to rescind that
election and transfer his or her participation to the police
pension fund established under this Article by the employing
municipality. The chief must notify the boards of trustees of
both funds in writing of his or her decision to rescind the
election and transfer participation. A chief of police who
transfers participation under this subsection (b) shall not be
deemed ineligible to participate in the police pension fund by
reason of having failed to apply within the 3-month period
specified in Section 3-106.
(Source: P.A. 90-460, eff. 8-17-97.)
(40 ILCS 5/3-124.1) (from Ch. 108 1/2, par. 3-124.1)
Sec. 3-124.1. Re-entry into active service.
(a) If a police officer who is receiving pension payments
(other than as provided in Section 3-109.3) re-enters active
service under this Article with the same municipality, pension
payment shall be suspended while he or she is in service. When
he or she again retires, pension payments shall be resumed. If
the police officer remains in service after re-entry for a

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period of less than 5 years, the pension shall be the same as
upon first retirement. If the officer's service after re-entry
is at least 5 years and the officer makes the required
contributions during the period of re-entry, his or her pension
shall be recomputed by taking into account the additional
period of service and salary.
(b) If a person who first entered service under this
Article after the effective date of this amendatory Act of the
100th General Assembly is receiving pension payments (other
than as provided in Section 3-109.3) and enters active service
as a police officer under this Article with a different
municipality, he or she shall immediately notify the pension
fund that is making those pension payments of the return to
service under this Article, and the pension payments shall be
suspended while the person is in service. The suspension shall
end upon termination of the service, regardless of whether or
not the person qualifies for a pension based on that service.
(c) If a person who first entered service under this
Article after the effective date of this amendatory Act of the
100th General Assembly is receiving pension payments (other
than as provided in Section 3-109.3) and begins employment as a
chief of police, then regardless of whether he or she elects to
participate in a pension fund under this Article, elects under
Section 3-109.1 to participate in the Illinois Municipal
Retirement Fund, or chooses not to participate in either of
those funds with respect to that employment, he or she shall

HB0418 - 4 - LRB100 04239 RPS 14245 b
immediately give notice of that employment to the pension fund
that is making the pension payments, and the pension payments
shall be suspended for the period of that employment. The
suspension shall end upon termination of the employment,
regardless of whether or not the person qualifies for a
pension, increase in pension, or other retirement benefit based
on that employment.
(d) Notwithstanding the other provisions of this Section,
if a person is receiving pension payments under this Article
and enters active service as a police officer under this
Article with a different municipality, he or she is not subject
to the notification requirements of this Section and is not
subject to suspension of pension payments while in that active
service, if that different municipality had a population of
less than 6,000 at the time of the return to active service, as
determined from the best available census data.
(Source: P.A. 91-939, eff. 2-1-01.)