Bill Text: IL HB1042 | 2013-2014 | 98th General Assembly | Engrossed
Bill Title: Amends the Downstate Police and Chicago Police Articles of the Illinois Pension Code. Makes it possible for a person to transfer service credit from the Chicago Police Pension Fund to a downstate police pension fund for a period of 60 days after the effective date of the amendatory Act. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Failed) 2014-12-03 - Session Sine Die [HB1042 Detail]
Download: Illinois-2013-HB1042-Engrossed.html
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1 | AN ACT concerning public employee benefits.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Illinois Pension Code is amended by changing | ||||||
5 | Sections 3-110.11 and 5-237.5 as follows:
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6 | (40 ILCS 5/3-110.11) | ||||||
7 | Sec. 3-110.11. Transfer of creditable service from Article | ||||||
8 | 5 fund. For a period of 180 60 days after the effective date of | ||||||
9 | this amendatory Act of the 98th General Assembly Section , a | ||||||
10 | person may transfer to a fund established under this Article up | ||||||
11 | to 10 years of creditable service accumulated under Article 5 | ||||||
12 | of this Code upon payment to the fund of an amount to be | ||||||
13 | determined by the board, equal to (i) the difference between | ||||||
14 | the amount of employee and employer contributions transferred | ||||||
15 | to the fund under Section 5-237.5 and the amounts that would | ||||||
16 | have been contributed had such contributions been made at the | ||||||
17 | rates applicable to an employee under this Article, plus (ii) | ||||||
18 | interest thereon at the actuarially assumed rate, compounded | ||||||
19 | annually, from the date of service to the date of payment , plus | ||||||
20 | (iii) if the board determines that the amount transferred is | ||||||
21 | less than the true cost to the Fund of allowing that creditable | ||||||
22 | service to be established, then in order to establish that | ||||||
23 | creditable service, the member must pay to the Fund an |
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1 | additional contribution equal to the difference, as determined | ||||||
2 | by the board in accordance with the rules and procedures | ||||||
3 | adopted under this Section. If the member does not make the | ||||||
4 | full additional payment as required by this Section prior to | ||||||
5 | termination of his or her participation with that employer, | ||||||
6 | then his or her creditable service shall be reduced by an | ||||||
7 | amount equal to the difference between the amount transferred | ||||||
8 | under Section 3-110.3, including any payments made by the | ||||||
9 | member under this paragraph prior to termination, and the true | ||||||
10 | cost to the Fund of allowing that creditable service to be | ||||||
11 | established, as determined by the board in accordance with the | ||||||
12 | rules and procedures adopted under this Section .
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13 | The board shall establish by rule the manner of making the | ||||||
14 | calculation required under this Section, taking into account | ||||||
15 | the appropriate actuarial assumptions, the member's service, | ||||||
16 | age, and salary history, and any other factors that the board | ||||||
17 | determines to be relevant. | ||||||
18 | (Source: P.A. 97-326, eff. 8-12-11.)
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19 | (40 ILCS 5/5-237.5) | ||||||
20 | Sec. 5-237.5. Transfer of creditable service to Article 3 | ||||||
21 | fund. | ||||||
22 | (a) Any person who is an active participant in a pension | ||||||
23 | fund established under Article 3 of this Code may, for a period | ||||||
24 | of 60 days after the effective date of this amendatory Act of | ||||||
25 | the 98th General Assembly Section , apply for transfer of his or |
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1 | her credits and creditable service accumulated in this Fund to | ||||||
2 | that Article 3 fund. Upon receipt of a written application to | ||||||
3 | make this transfer, the Fund shall pay to the Article 3 fund an | ||||||
4 | amount consisting of: | ||||||
5 | (1) the amounts credited to the applicant through
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6 | employee contributions, plus accumulated interest; plus | ||||||
7 | (2) an amount representing municipality
contributions, | ||||||
8 | equal to the amount determined under item (1); plus | ||||||
9 | (3) any interest paid to the Fund in order to
reinstate | ||||||
10 | credits and creditable service under subsection (b). | ||||||
11 | Participation in this Fund shall terminate on the date of the | ||||||
12 | transfer. | ||||||
13 | (b) As part of a transfer under subsection (a), a person | ||||||
14 | may reinstate credits and creditable service that was | ||||||
15 | terminated upon receipt of a refund, by paying to the Fund the | ||||||
16 | amount of the refund plus interest thereon at the actuarially | ||||||
17 | assumed rate, compounded annually, from the date of the refund | ||||||
18 | to the date of payment.
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19 | (Source: P.A. 97-326, eff. 8-12-11.)
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20 | Section 90. The State Mandates Act is amended by adding | ||||||
21 | Section 8.37 as follows:
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22 | (30 ILCS 805/8.37 new) | ||||||
23 | Sec. 8.37. Exempt mandate. Notwithstanding Sections 6 and 8 | ||||||
24 | of this Act, no reimbursement by the State is required for the |
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1 | implementation of any mandate created by this amendatory Act of | ||||||
2 | the 98th General Assembly.
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3 | Section 99. Effective date. This Act takes effect upon | ||||||
4 | becoming law.
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