Bill Text: IL HB2484 | 2025-2026 | 104th General Assembly | Introduced

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Bill Title: Amends the Downstate Police and Illinois Municipal Retirement Fund (IMRF) Articles of the Illinois Pension Code. Removes language providing that a person may not elect to participate in IMRF with respect to his or her employment as a chief of police of a participating municipality, unless that person became a participating employee in IMRF before January 1, 2019. Makes conforming changes. In the Downstate Police Article, provides that, on and after the effective date of the amendatory Act, a municipality is not required to establish a defined contribution plan. Provides that a municipality is required to maintain a defined contribution plan for persons who began participating in the defined contribution plan before the effective date of the amendatory Act. In provisions authorizing certain police officers to elect to participate in the defined contribution plan, restricts participation to police officers who first became police officers before the effective date of the amendatory Act and to municipalities that established a defined contribution plan before the effective date of the amendatory Act. Amends the State Mandates Act to require implementation without reimbursement.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2025-02-04 - Referred to Rules Committee [HB2484 Detail]

Download: Illinois-2025-HB2484-Introduced.html

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104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB2484 Introduced , by Rep. Stephanie A. Kifowit SYNOPSIS AS INTRODUCED:
40 ILCS 5/3-109.1 from Ch. 108 1/2, par. 3-109.1
40 ILCS 5/3-109.4
40 ILCS 5/3-124.1 from Ch. 108 1/2, par. 3-124.1
40 ILCS 5/7-109 from Ch. 108 1/2, par. 7-109
Amends the Downstate Police and Illinois Municipal Retirement Fund (IMRF) Articles of the Illinois Pension Code. Removes language providing that a person may not elect to participate in IMRF with respect to his or her employment as a chief of police of a participating municipality, unless that person became a participating employee in IMRF before January 1, 2019. Makes conforming changes. In the Downstate Police Article, provides that, on and after the effective date of the amendatory Act, a municipality is not required to establish a defined contribution plan. Provides that a municipality is required to maintain a defined contribution plan for persons who began participating in the defined contribution plan before the effective date of the amendatory Act. In provisions authorizing certain police officers to elect to participate in the defined contribution plan, restricts participation to police officers who first became police officers before the effective date of the amendatory Act and to municipalities that established a defined contribution plan before the effective date of the amendatory Act. Amends the State Mandates Act to require implementation without reimbursement.
LRB104 10783 RPS 20863 b
STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY
A BILL FOR
HB2484 LRB104 10783 RPS 20863 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, 3-109.4, 3-124.1, and 7-109 and by
adding Section 3-109.4 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 Except as provided in subsection (a-5),
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) On or after January 1, 2019, a person may not elect
to participate in the Illinois Municipal Retirement Fund with
respect to his or her employment as the chief of police of a
participating municipality, unless that person became a
participating employee in the Illinois Municipal Retirement
Fund before January 1, 2019.

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(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. 100-281, eff. 8-24-17.)
(40 ILCS 5/3-109.4)
Sec. 3-109.4. Defined contribution plan for certain police
officers.
(a) Except as otherwise provided in this Section, each
Each municipality shall establish a defined contribution plan
that aggregates police officer and employer contributions in
individual accounts used for retirement. The defined
contribution plan, including both police officer and employer
contributions, established by the municipality must, at a
minimum: meet the safe harbor provisions of the Internal
Revenue Code of 1986, as amended; be a qualified plan under the
Internal Revenue Code of 1986, as amended; and comply with all

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other applicable laws, rules, and regulations. Contributions
shall vest immediately upon deposit in the police officer's
account.
On and after the effective date of this amendatory Act of
the 104th General Assembly, a municipality is not required to
establish a defined contribution plan under this Section.
However, a municipality is required to maintain a defined
contribution plan for persons who began participating in the
defined contribution plan before the effective date of this
amendatory Act of the 104th General Assembly.
A police officer who participates in the defined
contribution plan under this Section may not earn creditable
service or otherwise participate in the defined benefit plan
offered by his or her employing municipality, except as an
annuitant in another fund or as a survivor, while he or she is
a participant in the defined contribution plan. The defined
contribution plan under this Section shall not be construed to
be a pension, annuity, or other defined benefit under this
Code.
(b) If a police officer who first became a police officer
under this Article before the effective date of this
amendatory Act of the 104th General Assembly and 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 under this
Section in lieu of the defined benefit plan if the

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municipality has such a defined contribution plan.
A police officer who has elected under this subsection to
participate in the defined contribution plan may, in writing,
rescind that election in accordance with the rules of the
board. Any employer contributions, and the earnings thereon,
shall remain vested in the police officer's account. A police
officer who rescinds the election may begin participating in
the defined benefit plan on the first day of the month
following the rescission.
(c) As used in this Section, "defined benefit plan" means
the retirement plan available to police officers under this
Article who do not participate in the defined contribution
plan under this Section.
(Source: P.A. 100-281, eff. 8-24-17.)
(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, 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
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

HB2484 - 5 - LRB104 10783 RPS 20863 b
pension shall be recomputed by taking into account the
additional period of service and salary.
(b) If a police officer who first becomes a member on or
after January 1, 2019 but before the effective date of this
amendatory Act of the 104th General Assembly is receiving
pension payments (other than as provided in Section 3-109.3)
and re-enters active service with any municipality that has
established a pension fund under this Article, that police
officer may continue to receive pension payments while he or
she is in active service, but shall only participate in a
defined contribution plan established by the municipality
pursuant to Section 3-109.4, if the municipality has
established such 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.
(Source: P.A. 100-281, eff. 8-24-17.)
(40 ILCS 5/7-109) (from Ch. 108 1/2, par. 7-109)
Sec. 7-109. Employee.
(1) "Employee" means any person who:
(a) 1. Receives earnings as payment for the
performance of personal services or official duties out of
the general fund of a municipality, or out of any special
fund or funds controlled by a municipality, or by an
instrumentality thereof, or a participating
instrumentality, including, in counties, the fees or

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earnings of any county fee office; and
2. Under the usual common law rules applicable in
determining the employer-employee relationship, has the
status of an employee with a municipality, or any
instrumentality thereof, or a participating
instrumentality, including alderpersons, county
supervisors and other persons (excepting those employed as
independent contractors) who are paid compensation, fees,
allowances or other emolument for official duties, and, in
counties, the several county fee offices.
(b) Serves as a township treasurer appointed under the
School Code, as heretofore or hereafter amended, and who
receives for such services regular compensation as
distinguished from per diem compensation, and any regular
employee in the office of any township treasurer whether
or not his earnings are paid from the income of the
permanent township fund or from funds subject to
distribution to the several school districts and parts of
school districts as provided in the School Code, or from
both such sources; or is the chief executive officer,
chief educational officer, chief fiscal officer, or other
employee of a Financial Oversight Panel established
pursuant to Article 1H of the School Code, other than a
superintendent or certified school business official,
except that such person shall not be treated as an
employee under this Section if that person has negotiated

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with the Financial Oversight Panel, in conjunction with
the school district, a contractual agreement for exclusion
from this Section.
(c) Holds an elective office in a municipality,
instrumentality thereof or participating instrumentality.
(2) "Employee" does not include persons who:
(a) Are eligible for inclusion under any of the
following laws:
1. "An Act in relation to an Illinois State
Teachers' Pension and Retirement Fund", approved May
27, 1915, as amended;
2. Articles 15 and 16 of this Code.
However, such persons shall be included as employees
to the extent of earnings that are not eligible for
inclusion under the foregoing laws for services not of an
instructional nature of any kind.
However, any member of the armed forces who is
employed as a teacher of subjects in the Reserve Officers
Training Corps of any school and who is not certified
under the law governing the certification of teachers
shall be included as an employee.
(b) Are designated by the governing body of a
municipality in which a pension fund is required by law to
be established for policemen or firemen, respectively, as
performing police or fire protection duties, except that
when such persons are the heads of the police or fire

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department and are not eligible to be included within any
such pension fund, they shall be included within this
Article; provided, that such persons shall not be excluded
to the extent of concurrent service and earnings not
designated as being for police or fire protection duties.
However, (i) any head of a police department who was a
participant under this Article immediately before October
1, 1977 and did not elect, under Section 3-109 of this Act,
to participate in a police pension fund shall be an
"employee", and (ii) any chief of police who became a
participating employee under this Article before January
1, 2019 and who elects to participate in this Fund under
Section 3-109.1 of this Code, regardless of whether such
person continues to be employed as chief of police or is
employed in some other rank or capacity within the police
department, shall be an employee under this Article for so
long as such person is employed to perform police duties
by a participating municipality and has not lawfully
rescinded that election.
(b-5) Were not participating employees under this
Article before August 26, 2018 (the effective date of
Public Act 100-1097) and participated as a chief of police
in a fund under Article 3 and return to work in any
capacity with the police department, with any oversight of
the police department, or in an advisory capacity for the
police department with the same municipality with which

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that pension was earned, regardless of whether they are
considered an employee of the police department or are
eligible for inclusion in the municipality's Article 3
fund.
(c) Are contributors to or eligible to contribute to a
Taft-Hartley pension plan to which the participating
municipality is required to contribute as the person's
employer based on earnings from the municipality. Nothing
in this paragraph shall affect service credit or
creditable service for any period of service prior to July
16, 2014 (the effective date of Public Act 98-712), and
this paragraph shall not apply to individuals who are
participating in the Fund prior to July 16, 2014 (the
effective date of Public Act 98-712).
(d) Become an employee of any of the following
participating instrumentalities on or after January 1,
2017 (the effective date of Public Act 99-830): the
Illinois Municipal League; the Illinois Association of
Park Districts; the Illinois Supervisors, County
Commissioners and Superintendents of Highways Association;
an association, or not-for-profit corporation, membership
in which is authorized under Section 85-15 of the Township
Code; the United Counties Council; or the Will County
Governmental League.
(e) Are members of the Board of Trustees of the
Firefighters' Pension Investment Fund, as created under

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Article 22C of this Code, in their capacity as members of
the Board of Trustees of the Firefighters' Pension
Investment Fund.
(f) Are members of the Board of Trustees of the Police
Officers' Pension Investment Fund, as created under
Article 22B of this Code, in their capacity as members of
the Board of Trustees of the Police Officers' Pension
Investment Fund.
(3) All persons, including, without limitation, public
defenders and probation officers, who receive earnings from
general or special funds of a county for performance of
personal services or official duties within the territorial
limits of the county, are employees of the county (unless
excluded by subsection (2) of this Section) notwithstanding
that they may be appointed by and are subject to the direction
of a person or persons other than a county board or a county
officer. It is hereby established that an employer-employee
relationship under the usual common law rules exists between
such employees and the county paying their salaries by reason
of the fact that the county boards fix their rates of
compensation, appropriate funds for payment of their earnings
and otherwise exercise control over them. This finding and
this amendatory Act shall apply to all such employees from the
date of appointment whether such date is prior to or after the
effective date of this amendatory Act and is intended to
clarify existing law pertaining to their status as

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participating employees in the Fund.
(Source: P.A. 102-15, eff. 6-17-21; 102-637, eff. 8-27-21;
102-813, eff. 5-13-22.)