Bill Text: IL HB4566 | 2019-2020 | 101st General Assembly | Introduced

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Bill Title: 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.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2020-02-05 - Referred to Rules Committee [HB4566 Detail]

Download: Illinois-2019-HB4566-Introduced.html

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101ST GENERAL ASSEMBLY State of Illinois 2019 and 2020 HB4566 Introduced , 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.
LRB101 17588 RPS 67007 b
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
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 4-108.7 and 6-227.1 as follows:
(40 ILCS 5/4-108.7)
Sec. 4-108.7. Transfer of creditable service from the
Firemen's Annuity and Benefit Fund of Chicago. Until January 1,
2021 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 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,

HB4566 - 2 - LRB101 17588 RPS 67007 b
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.
(Source: P.A. 101-474, eff. 8-23-19.)
(40 ILCS 5/6-227.1)
Sec. 6-227.1. Transfer of creditable service to Article 4.
(a) Until January 1, 2021 6 months after the effective date
of this 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

HB4566 - 3 - LRB101 17588 RPS 67007 b
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.
(Source: P.A. 101-474, eff. 8-23-19.)
Section 90. The State Mandates Act is amended by adding
Section 8.44 as follows:
(30 ILCS 805/8.44 new)
Sec. 8.44. 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.