HB3522eng 101ST GENERAL ASSEMBLY

HB3522 Engrossed LRB101 11181 RPS 56422 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 Section 4-117 and by adding Section 4-117.2 as follows:

(40 ILCS 5/4-117) (from Ch. 108 1/2, par. 4-117)

Sec. 4-117. Reentry into active service.

(a) If a firefighter receiving pension payments reenters active service, pension payments shall be suspended while he or she is in service. If the firefighter again retires or is discharged, his or her monthly pension shall be resumed in the same amount as was paid upon first retirement or discharge unless he or she remained in active service 3 or more years after re-entry in which case the monthly pension shall be based on the salary attached to the firefighter's rank at the date of last retirement.

(b) If a deferred pensioner re-enters active service, and again retires or is discharged from the fire service, his or her pension shall be based on the salary attached to the rank held in the fire service at the date of earlier retirement, unless the firefighter remains in active service for 3 or more years after re-entry, in which case the monthly pension shall be based on the salary attached to the firefighter's rank at the date of last retirement.

(c) If a pensioner or deferred pensioner re-enters or is recalled to active service and is thereafter injured, and the injury is not related to an injury for which he or she was previously receiving a disability pension, the 3 year service requirement shall not apply in order for the firefighter to qualify for the increased pension based on the rate of pay at the time of the new injury.

(d) If a fire chief to whom Section 10-1-7.3 of the Illinois Municipal Code applies (i) first becomes a member on or after January 1, 2020, (ii) is receiving pension payments, and (iii) reenters active service with any municipality that has established a pension fund under this Article, that fire chief may continue to receive pension payments while he or she is in active service, but shall only participate in a defined contribution plan established by the municipality pursuant to Section 4-117.2 and may not establish creditable service in the pension fund established by that municipality or have his or her pension recomputed.

(Source: P.A. 83-1440.)

(40 ILCS 5/4-117.2 new)

Sec. 4-117.2. Defined contribution plan for certain firefighters.

(a) A municipality that employs a fire chief described under subsection (d) of Section 4-117 shall establish a defined contribution plan that aggregates firefighter and employer contributions in individual accounts used for retirement. The defined contribution plan, including both firefighter and employer contributions, established by the municipality must, at a minimum: meet the safe harbor provisions of the Internal Revenue Code of 1986, as amended; be a qualified plan under the Internal Revenue Code of 1986, as amended; and comply with all other applicable laws, rules, and regulations. Contributions shall vest immediately upon deposit in the firefighter's account.

A firefighter who participates in the defined contribution plan under this Section may not earn creditable service or otherwise participate in the defined benefit plan offered by his or her employing municipality, except as an annuitant in another fund or as a survivor, while he or she is a participant in the defined contribution plan. The defined contribution plan under this Section shall not be construed to be a pension, annuity, or other defined benefit under this Code.

A municipality that employs a fire chief described under subsection (d) of Section 4-117 shall provide a disability insurance benefit to that fire chief that is at least equivalent to the disability benefit he or she would be provided if he or she was a participant in the defined benefit plan.

(b) As used in this Section, "defined benefit plan" means the retirement plan available to firefighters under this Article who do not participate in the defined contribution plan under this Section.

Section 90. The State Mandates Act is amended by adding Section 8.43 as follows:

(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.