Bill Text: IL HB2502 | 2019-2020 | 101st General Assembly | Introduced

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

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Bill Title: Reinserts the provisions of the introduced bill with the following changes. Removes provisions authorizing a firefighter to transfer creditable service from a municipal firefighters' pension fund to the Firemen's Annuity and Benefit Fund of Chicago.

Spectrum: Slight Partisan Bill (Democrat 7-3)

Status: (Passed) 2019-08-23 - Public Act . . . . . . . . . 101-0474 [HB2502 Detail]

Download: Illinois-2019-HB2502-Introduced.html

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101ST GENERAL ASSEMBLY State of Illinois 2019 and 2020 HB2502 Introduced , by Rep. Kathleen Willis SYNOPSIS AS INTRODUCED:
40 ILCS 5/4-108.6
40 ILCS 5/4-108.7 new
40 ILCS 5/6-227
40 ILCS 5/6-227.1 new
30 ILCS 805/8.43 new
Amends the Downstate Firefighter and Chicago Firefighter Articles of the Illinois Pension Code. Provides that until 6 months after the effective date of the amendatory Act, creditable service may be transferred from municipal firefighters' pension funds to the Firemen's Annuity and Benefit Fund of Chicago. Removes a provision restricting the amount of creditable service that may be transferred. Authorizes, until 6 months after the effective date of the amendatory Act, the transfer of creditable service from the Firemen's Annuity and Benefit Fund of Chicago to municipal firefighters' pension funds. Amends the State Mandates Act to provide for implementation without reimbursement. Effective immediately.
LRB101 08689 RPS 53774 b
FISCAL NOTE ACT MAY APPLY PENSION IMPACT NOTE ACT MAY APPLY STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT
A BILL FOR
HB2502 LRB101 08689 RPS 53774 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 4-108.6 and 6-227 and by adding Sections 4-108.7 and
6-227.1 as follows:
(40 ILCS 5/4-108.6)
Sec. 4-108.6. Transfer of creditable service to the
Firemen's Annuity and Benefit Fund of Chicago.
(a) Until 6 months after the effective date of this
amendatory Act of the 101st General Assembly the effective date
of this amendatory Act of the 100th General Assembly, any
active member of the Firemen's Annuity and Benefit Fund of
Chicago may apply for transfer of up to 10 years of creditable
service accumulated in any pension fund established under this
Article to the Firemen's Annuity and Benefit Fund of Chicago.
Such creditable service shall be transferred only upon payment
by such pension fund to the Firemen's Annuity and Benefit Fund
of Chicago of an amount equal to:
(1) the amounts accumulated to the credit of the
applicant on the books of the fund on the date of transfer;
(2) employer contributions in an amount equal to the
amount determined under subparagraph (1); and

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(3) any interest paid by the applicant in order to
reinstate service.
Participation in such pension fund as to any credits
transferred under this Section shall terminate on the date of
transfer.
(b) An active member of the Firemen's Annuity and Benefit
Fund of Chicago applying for a transfer of creditable service
under subsection (a) may reinstate credits and creditable
service terminated upon receipt of a refund by payment to the
Firemen's Annuity and Benefit Fund of Chicago of the amount of
the refund with interest thereon at the actuarially assumed
rate, compounded annually, from the date of the refund to the
date of payment.
(Source: P.A. 100-544, eff. 11-8-17.)
(40 ILCS 5/4-108.7 new)
Sec. 4-108.7. Transfer of creditable service from the
Firemen's Annuity and Benefit Fund of Chicago. Until 6 months
after the effective date of this amendatory Act of the 101st
General Assembly, any active participant in a fund established
under this Article may transfer to that fund creditable service
accumulated under Article 6 of this Code upon payment to the
Article 4 fund, within 5 years after the date of application,
of an amount equal to the difference between the amount of
employee and employer contributions transferred to the Article
4 fund under Section 6-227.1 and the amounts determined by the

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Article 4 fund in accordance with this Section, plus interest
on that difference at the actuarially assumed rate, compounded
annually, from the date of service to the date of payment.
The Article 4 fund must determine the firefighter's payment
required to establish creditable service under this Section by
taking into account the appropriate actuarial assumptions,
including without limitation the firefighter's service, age,
and salary history; the level of funding of the Article 4 fund;
and any other factors that the Article 4 fund determines to be
relevant. For this purpose, the firefighter's required payment
should result in no significant increase to the Article 4
fund's unfunded actuarial accrued liability determined as of
the most recent actuarial valuation, based on the same
assumptions and methods used to develop and report the Article
4 fund's actuarial accrued liability and actuarial value of
assets under Statement No. 25 of Governmental Accounting
Standards Board or any subsequent applicable Statement.
(40 ILCS 5/6-227)
Sec. 6-227. Transfer of creditable service from Article 4.
Until 6 months after the effective date of this amendatory Act
of the 101st General Assembly the effective date of this
amendatory Act of the 100th General Assembly, any active member
of the Firemen's Annuity and Benefit Fund of Chicago may
transfer to the Fund up to a total of 10 years of creditable
service accumulated under Article 4 of this Code upon payment

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to the Fund within 5 years after the date of application of an
amount equal to the difference between the amount of employee
and employer contributions transferred to the Fund under
Section 4-108.6 and the amounts determined by the Fund in
accordance with this Section, plus interest on that difference
at the actuarially assumed rate, compounded annually, from the
date of service to the date of payment.
The Fund must determine the fireman's payment required to
establish creditable service under this Section by taking into
account the appropriate actuarial assumptions, including
without limitation the fireman's service, age, and salary
history; the level of funding of the Fund; and any other
factors that the Fund determines to be relevant. For this
purpose, the fireman's required payment should result in no
significant increase to the Fund's unfunded actuarial accrued
liability determined as of the most recent actuarial valuation,
based on the same assumptions and methods used to develop and
report the Fund's actuarial accrued liability and actuarial
value of assets under Statement No. 25 of Governmental
Accounting Standards Board or any subsequent applicable
Statement.
(Source: P.A. 100-544, eff. 11-8-17.)
(40 ILCS 5/6-227.1 new)
Sec. 6-227.1. Transfer of creditable service to Article 4.
(a) Until 6 months after the effective date of this

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amendatory Act of the 101st General Assembly, any active
participant in an Article 4 pension fund may apply for transfer
of creditable service accumulated in the Firemen's Annuity and
Benefit Fund of Chicago to any Article 4 pension fund. Such
creditable service shall be transferred only upon payment by
the Firemen's Annuity and Benefit Fund of Chicago to the
Article 4 fund of an amount equal to:
(1) the amounts accumulated to the credit of the
applicant on the books of the fund on the date of transfer;
(2) employer contributions in an amount equal to the
amount determined under subparagraph (1); and
(3) any interest paid by the applicant in order to
reinstate service.
Participation in the Firemen's Annuity and Benefit Fund of
Chicago as to any credits transferred under this Section shall
terminate on the date of transfer.
(b) An active participant in an Article 4 pension fund
applying for a transfer of creditable service under subsection
(a) may reinstate credits and creditable service terminated
upon receipt of a refund by payment to the Article 4 pension
fund of the amount of the refund with interest thereon at the
actuarially assumed rate, compounded annually, from the date of
the refund to the date of payment.
Section 90. The State Mandates Act is amended by adding
Section 8.43 as follows:

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(30 ILCS 805/8.43 new)
Sec. 8.43. Exempt mandate. Notwithstanding Sections 6 and 8
of this Act, no reimbursement by the State is required for the
implementation of any mandate created by this amendatory Act of
the 101st General Assembly.
Section 99. Effective date. This Act takes effect upon
becoming law.