HB5510 95TH GENERAL ASSEMBLY

LRB095 18208 AMC 44292 b

95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008
HB5510

Introduced , by Rep. Arthur L. Turner

SYNOPSIS AS INTRODUCED:

40 ILCS 5/4-108.6 new
40 ILCS 5/6-227 new
30 ILCS 805/8.32 new

Amends the Downstate Firefighter and Chicago Firefighter Articles of the Illinois Pension Code. Allows a member of a pension fund established under the Downstate Firefighter Article to forfeit service credit for the purpose of establishing a corresponding amount of service credit under the Chicago Firefighter Article of the Code. Amends the State Mandates Act to require implementation without reimbursement.

FISCAL NOTE ACT MAY APPLY

PENSION IMPACT NOTE ACT MAY APPLY

STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT

A BILL FOR

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 adding Sections 4-108.6 and 6-227 as follows:

(40 ILCS 5/4-108.6 new)

Sec. 4-108.6. Transfer to Article 6. Any member of a fund established under this Article may forfeit service credit for the purpose of establishing a corresponding amount of service credit under Article 6 of this Code. Upon notification by the board established under Article 6 of this Code, a fund established under this Article shall provide information relating to the firefighter electing forfeit of service credit, and shall transfer the corresponding funds to the board established under Article 6 in a timely manner. If the total amount of funds on deposit is greater than the total amount required by the board established under Article 6, the fund shall retain the difference.

(40 ILCS 5/6-227 new)

Sec. 6-227. Transfer from Article 4.

(a) A firefighter in active service under this Article may transfer all or some of his or her accumulated creditable service established as a member of a fund or funds established under Article 4 of this Code, to a fund established under this Article by making an irrevocable election to the board forfeiting all service credit previously established under Article 4 and providing the payments required by this Section.

(b) Upon receipt of the election required by subsection (a), the board shall contact the fund or funds established under Article 4 in which the firefighter has established creditable service. The fund shall verify the total amount that (i) employee contributions paid into the fund or funds established under Article 4 of this Code, including, but not limited to, amounts paid for regular and optional service credit, (ii) any employer contributions corresponding to regular and optional service, and (iii) any actual investment returns that were generated by employee and employer contributions relating to the firefighters creditable service, less any reasonable fees and administrative expense experienced by the fund in relation to those contributions. The Board must then request a transfer of all funds verified under this Section, and shall immediately deposit those funds in a manner consistent with its investment policy.

(c) After verifying the total amount of service credit available for transfer, the fund shall establish the total amount of employer contributions, employee contributions, and interest that would have been required if the firefighter had been employed by the City of Chicago as a firefighter during the same time that the firefighter was establishing credit under Article 4 of this Code. In establishing these contributions, the fund shall use the actual salary earned by the firefighter when service was established.

(d) When the board has verified the total amount of funds available for deposit under subsection (b), it shall provide a written statement, which includes (i) the amount verified and available for transfer under subsection (b), (ii) the total amount of creditable service available for transfer, (iii) the total cost established under subsection (c) and the difference, if any of the amount in subsection (b) less the amount in subsection (c), and (iv) the amount of creditable service where contributions required under subsection (c) would be equal to the amount available under subsection (b).

(e) Within 30 days after receiving the written statement, the firefighter may establish an amount of service credit equal to the amount of forfeited service credit previously established under Article 4 by paying, if necessary, the difference between subsection (b) and the amount in subsection (c). Alternatively, the firefighter may reduce the number of years of creditable service established under this Article by receiving the amount of creditable service where contributions required under subsection (c) would be equal to the amount available under subsection (b).

Section 90. The State Mandates Act is amended by adding Section 8.32 as follows:

(30 ILCS 805/8.32 new)

Sec. 8.32. 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 95th General Assembly.