Bill Text: IL SB3687 | 2019-2020 | 101st General Assembly | Introduced

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Bill Title: Amends the Downstate Police Article of the Illinois Pension Code. Provides that an eligible police officer may elect to receive a retirement pension from each pension fund under the Article in which the police officer has at least one year of service credit, but has not received a refund, by applying in writing and paying a specified contribution. Provides that from each such pension fund other than the last pension fund, in lieu of any retirement pension otherwise payable, an eligible police officer may elect to receive a monthly pension of 1/12th of 2.5% of his or her final monthly salary under that fund for each month of service in that fund, subject to a maximum of 75% of that final monthly salary. Provides that the retirement pension from the last pension fund shall be the retirement pension that would be payable to the police officer if he or she had participated in that last pension fund for his or her entire period of service under all pension funds, minus the amounts of the retirement pensions payable to the police officer by all other pension funds. Provides that a police officer must pay to each pension fund from which he or she has elected to receive a pension a contribution equal to 1% of monthly salary for each month of service credit that the police officer has in that fund (other than service credit for which the police officer has already paid a specified additional contribution), together with interest thereon at the rate of 6% per annum, compounded annually. Contains provisions concerning eligibility for the benefit; contributions; refunds; reinstatement of terminated credits; automatic annual increases; and occupational disease disability pensions. Makes conforming and other changes. Amends the State Mandates Act to require implementation without reimbursement.

Spectrum: Partisan Bill (Republican 2-0)

Status: (Failed) 2021-01-13 - Session Sine Die [SB3687 Detail]

Download: Illinois-2019-SB3687-Introduced.html

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101ST GENERAL ASSEMBLY State of Illinois 2019 and 2020 SB3687 Introduced 2/14/2020, by Sen. Donald P. DeWitte SYNOPSIS AS INTRODUCED:
See Index
Amends the Downstate Police Article of the Illinois Pension Code. Provides that an eligible police officer may elect to receive a retirement pension from each pension fund under the Article in which the police officer has at least one year of service credit, but has not received a refund, by applying in writing and paying a specified contribution. Provides that from each such pension fund other than the last pension fund, in lieu of any retirement pension otherwise payable, an eligible police officer may elect to receive a monthly pension of 1/12th of 2.5% of his or her final monthly salary under that fund for each month of service in that fund, subject to a maximum of 75% of that final monthly salary. Provides that the retirement pension from the last pension fund shall be the retirement pension that would be payable to the police officer if he or she had participated in that last pension fund for his or her entire period of service under all pension funds, minus the amounts of the retirement pensions payable to the police officer by all other pension funds. Provides that a police officer must pay to each pension fund from which he or she has elected to receive a pension a contribution equal to 1% of monthly salary for each month of service credit that the police officer has in that fund (other than service credit for which the police officer has already paid a specified additional contribution), together with interest thereon at the rate of 6% per annum, compounded annually. Contains provisions concerning eligibility for the benefit; contributions; refunds; reinstatement of terminated credits; automatic annual increases; and occupational disease disability pensions. Makes conforming and other changes. Amends the State Mandates Act to require implementation without reimbursement.
LRB101 15657 RPS 65006 b
FISCAL NOTE ACT MAY APPLY PENSION IMPACT NOTE ACT MAY APPLY STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT
A BILL FOR
SB3687 LRB101 15657 RPS 65006 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 adding
Section 3-111.2 and changing Sections 3-125.1 and 3-144.6 as
follows:
(40 ILCS 5/3-111.2 new)
Sec. 3-111.2. Employee creditable service.
(a) As used in this Section:
"Final monthly salary" means the monthly salary attached to
the rank held by the police officer at the time of his or her
last withdrawal from service under a particular pension fund.
"Last pension fund" means the pension fund in which the
police officer was participating at the time of his or her last
withdrawal from service.
(b) The benefits provided under this Section are available
only to a police officer who:
(1) is a police officer at the time of withdrawal from
the last pension fund and for at least the final 3 years of
employment prior to that withdrawal;
(2) has established service credit with at least one
pension fund established under this Article other than the
last pension fund;

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(3) has a total of at least 20 years of service under
the various pension funds established under this Article
and has attained age 50; and
(4) is in service on or after the effective date of
this amendatory Act of the 101st General Assembly.
(c) A police officer who is eligible for benefits under
this Section may elect to receive a retirement pension from
each pension fund under this Article in which the police
officer has at least one year of service credit, but has not
received a refund under Section 3-124 (unless the police
officer repays that refund under subsection (g)) or subsection
(b) of Section 3-125.1, by applying in writing and paying the
contribution required under subsection (i).
(d) From each such pension fund other than the last pension
fund, in lieu of any retirement pension otherwise payable under
this Article, a police officer to whom this Section applies may
elect to receive a monthly pension of 1/12th of 2.5% of his or
her final monthly salary under that fund for each month of
service in that fund, subject to a maximum of 75% of that final
monthly salary.
(e) From the last pension fund, in lieu of any retirement
pension otherwise payable under this Article, a police officer
to whom this Section applies may elect to receive a monthly
pension calculated as follows:
The last pension fund shall calculate the retirement
pension that would be payable to the police officer under

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Section 3-111 as if he or she had participated in that last
pension fund during his or her entire period of service under
all pension funds established under this Article (excluding any
period of service for which the police officer has received a
refund under Section 3-124, unless the police officer repays
that refund under subsection (g), or for which the police
officer has received a refund under subsection (b) of Section
3-125.1). From this hypothetical pension there shall be
subtracted the original amounts of the retirement pensions
payable to the police officer by all other pension funds under
subsection (d). The remainder is the retirement pension payable
to the police officer by the last pension fund under this
subsection (e).
(f) Pensions elected under this Section shall be subject to
increases as provided in Section 3-111.1.
(g) A current police officer may reinstate creditable
service in a pension fund established under this Article that
was terminated upon receipt of a refund, by payment to that
pension fund of the amount of the refund together with interest
thereon at the rate of 6% per year, compounded annually, from
the date of the refund to the date of payment. A repayment of a
refund under this Section may be made in equal installments
over a period of up to 10 years, but must be paid in full prior
to retirement.
(h) As a condition of being eligible for the benefits
provided in this Section, a person who is hired to a position

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as a police officer on or after July 1, 2021 must, within 21
months after being hired, notify the new employer, all of his
or her previous employers under this Article, and the Public
Pension Division of the Department of Insurance of his or her
intent to receive the benefits provided under this Section.
(i) In order to receive a pension under this Section or an
occupational disease disability pension for which he or she
becomes eligible due to the application of subsection (m) of
this Section, a police officer must pay to each pension fund
from which he or she has elected to receive a pension under
this Section a contribution equal to 1% of monthly salary for
each month of service credit that the police officer has in
that fund (other than service credit for which the police
officer has already paid the additional contribution required
under subsection (b) of Section 3-125.1), together with
interest thereon at the rate of 6% per annum, compounded
annually, from the police officer's first day of employment
with that fund or the first day of the fiscal year of that fund
that immediately precedes the police officer's first day of
employment with that fund, whichever is earlier.
(j) A retired police officer who is receiving pension
payments under Section 3-111 may reenter active service under
this Article. Subject to the provisions of Section 3-124.1, the
police officer may receive credit for service performed after
the reentry if the police officer (1) applies to receive credit
for that service, (2) suspends his or her pensions under this

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Section, and (3) makes the contributions required under
subsection (i).
(k) A police officer who is newly hired or promoted to a
position as a police officer shall not be denied participation
in a fund under this Article based on his or her age.
(l) If a police officer who elects to make contributions
under subsection (b) of Section 3-125.1 for the pension
benefits provided under this Section becomes entitled to a
disability pension under Section 3-114.1, the last pension fund
is responsible for paying that disability pension and the
amount of that disability pension shall be based only on the
police officer's service with the last pension fund.
(m) Notwithstanding any provision in Section 3-114.6 to the
contrary, if a police officer who elects to make contributions
under subsection (b) of Section 3-125.1 for the pension
benefits provided under this Section becomes entitled to an
occupational disease disability pension under Section 3-114.6,
each pension fund to which the police officer has made
contributions under subsection (b) of Section 3-125.1 must pay
a portion of that occupational disease disability pension equal
to the proportion that the police officer's service credit with
that pension fund for which the contributions under subsection
(b) of Section 3-125.1 have been made bears to the police
officer's total service credit with all of the pension funds
for which the contributions under subsection (b) of Section
3-125.1 have been made. A police officer who has made

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contributions under subsection (b) of Section 3-125.1 for at
least 5 years of creditable service shall be deemed to have met
the 5-year creditable service requirement under Section
3-114.6, regardless of whether the police officer has 5 years
of creditable service with the last pension fund.
(n) If a police officer who elects to make contributions
under subsection (b) of Section 3-125.1 for the pension
benefits provided under this Section becomes entitled to a
disability pension under Section 3-114.2, the last pension fund
is responsible for paying that disability pension if the police
officer has at least 7 years of creditable service with the
last pension fund. If a police officer began employment with a
new employer as a result of an intergovernmental agreement that
resulted in the elimination of the previous employer's police
department, the police officer shall not be required to have 7
years of creditable service with the last pension fund to
qualify for a disability pension under Section 3-114.2. Under
this circumstance, a police officer shall be required to have 7
years of total combined creditable service time to qualify for
a disability pension under Section 3-114.2. The disability
pension received pursuant to this Section shall be paid by the
previous employer and new employer in proportion to the police
officer's years of service with each employer.
(40 ILCS 5/3-125.1) (from Ch. 108 1/2, par. 3-125.1)
Sec. 3-125.1. Contributions by police officers.

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(a) Each police officer shall contribute to the pension
fund the following percentages of salary for the periods
stated: Beginning July 1, 1909 and prior to July 23, 1943, 1%
(except that prior to July 1, 1921 not more than one dollar per
month shall be deducted, and except that beginning July 1, 1921
and prior to July 1, 1927 not more than $2 per month shall be
deducted); beginning July 23, 1943 and prior to July 20, 1949,
3%; beginning July 20, 1949 and prior to July 17, 1959, 5%;
beginning July 17, 1959 and prior to July 1, 1971, 7%;
beginning July 1, 1971 and prior to July 1, 1975, 7 1/2%;
beginning July 1, 1975 and prior to January 1, 1987, 8 1/2%;
beginning January 1, 1987 and prior to January 1, 2001, 9%; and
beginning January 1, 2001, 9.91%. Such sums shall be paid or
deducted monthly. Contribution to the self-managed plan shall
be no less than 10% of salary.
(b) Each police officer who elects to receive a pension
under Section 3-111.2 and who has participated in at least one
other pension fund under this Article for a period of at least
one year shall contribute an additional 1% of salary toward the
cost of the increase in pensions provided in Section 3-111.2.
If a police officer does not elect to receive a retirement
pension provided under Section 3-111.2 from one or more of the
pension funds in which the police officer has credit, he or she
shall, upon withdrawal from the last pension fund as defined in
Section 3-111.2, be entitled to receive, from each such fund to
which he or she has paid additional contributions under this

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subsection (b) and from which he or she does not receive a
refund under Section 3-124, a refund of those contributions
without interest.
A refund of total contributions to a particular police
officer pension fund under Section 3-124 shall include any
refund of additional contributions paid to that fund under this
subsection (b), but a police officer who accepts a refund from
a pension fund under Section 3-124 is thereafter ineligible to
receive a pension provided under Section 3-111.2 from that
fund. A police officer who meets the eligibility requirements
of Section 3-111.2 may receive a pension under Section 3-111.2
from any pension fund from which the police officer has not
received a refund under Section 3-124 or under this subsection
(b).
(c) "Salary" means the annual salary, including longevity,
attached to the police officer's rank, as established by the
municipality's appropriation ordinance, including any
compensation for overtime which is included in the salary so
established, but excluding any "overtime pay", "holiday pay",
"bonus pay", "merit pay", or any other cash benefit not
included in the salary so established.
(Source: P.A. 91-939, eff. 2-1-01.)
(40 ILCS 5/3-144.6)
Sec. 3-144.6. Dissolution and reestablishment of inactive
police pension funds. The corporate authorities of a

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municipality for which a pension fund has been established
under this Article may, by resolution or ordinance, dissolve
the fund if an independent auditor has certified to the
authorities that the fund has no liabilities, participants, or
beneficiaries entitled to benefits, and the authorities shall
reestablish the fund if a police officer of the municipality
seeks to establish service credit in the fund or if
reestablishment of the fund is required upon a former police
officer's reinstatement of creditable service under subsection
(b) of Section 3-110.7 or subsection (g) of Section 3-111.2 of
this Code.
The Public Pension Division of the Department of Insurance
shall adopt rules regarding the process and procedures for (i)
dissolving a pension fund under this Section and (ii)
redistributing assets and reestablishing the fund if
reestablishment of the fund is necessary.
(Source: P.A. 97-99, eff. 1-1-12.)
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.
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INDEX
Statutes amended in order of appearance