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1 | AN ACT in relation to public employee benefits.
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2 | Be it enacted by the People of the State of Illinois, | ||||||||||||||||||||||||||||||||
3 | represented in the General Assembly:
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4 | Section 5. The Illinois Pension Code is amended by changing | ||||||||||||||||||||||||||||||||
5 | Section 4-118.1
and adding Sections 4-108.4, 4-109.3, and | ||||||||||||||||||||||||||||||||
6 | 7-139.10 as follows:
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7 | (40 ILCS 5/4-108.4 new)
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8 | Sec. 4-108.4. Transfer of creditable service from Article 7 | ||||||||||||||||||||||||||||||||
9 | fund.
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10 | (a) Any firefighter who was excluded
from participation in | ||||||||||||||||||||||||||||||||
11 | an Article
4 fund because of age and is a participant in the | ||||||||||||||||||||||||||||||||
12 | Illinois
Municipal Retirement
System may become an active | ||||||||||||||||||||||||||||||||
13 | participant in that firefighter pension fund by
making a
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14 | written application to the Board before January 1, 2006. | ||||||||||||||||||||||||||||||||
15 | Persons so applying
shall begin
participation on the first day | ||||||||||||||||||||||||||||||||
16 | of the month following the month in which the
application is
| ||||||||||||||||||||||||||||||||
17 | received by the Board. An employee who makes application for
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18 | participation
shall not be deemed ineligible to participate in | ||||||||||||||||||||||||||||||||
19 | the firefighter pension fund
by reason of
having failed to | ||||||||||||||||||||||||||||||||
20 | apply within the 3-month period specified in subsection (b) of
| ||||||||||||||||||||||||||||||||
21 | Section 4-107.
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22 | (b) A firefighter who was excluded
from participation in an | ||||||||||||||||||||||||||||||||
23 | Article
4 fund because of age and is a participant in the | ||||||||||||||||||||||||||||||||
24 | Illinois Municipal Retirement
System may also elect to | ||||||||||||||||||||||||||||||||
25 | establish creditable service for
periods of employment as a | ||||||||||||||||||||||||||||||||
26 | firefighter during which he or she did not
participate in an
| ||||||||||||||||||||||||||||||||
27 | Article 4 fund by paying into the fund, before January 1, 2006, | ||||||||||||||||||||||||||||||||
28 | the amount that
the person
would have contributed had | ||||||||||||||||||||||||||||||||
29 | deductions from salary been made for this purpose at
the time | ||||||||||||||||||||||||||||||||
30 | the service was rendered, together with interest thereon at 6% | ||||||||||||||||||||||||||||||||
31 | per
annum, compounded annually, from the time the service was | ||||||||||||||||||||||||||||||||
32 | rendered until the
date of payment, less any amounts |
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| |||||||
1 | transferred from the Illinois Municipal
Retirement Fund under | ||||||
2 | Section 7-139.10.
| ||||||
3 | (c) In no event shall pension credit for the same service | ||||||
4 | rendered by an
employee be accredited in more than one | ||||||
5 | participating system. If an employee applies for service credit | ||||||
6 | under subsection (b), then any creditable
service time | ||||||
7 | accumulated in the Illinois Municipal Retirement Fund for the | ||||||
8 | same
period must be transferred to the Article 4 fund under | ||||||
9 | Section 7-139.10.
| ||||||
10 | (40 ILCS 5/4-109.3 new)
| ||||||
11 | Sec. 4-109.3. Employee creditable service.
| ||||||
12 | (a) As used in this Section:
| ||||||
13 | "Final monthly salary" means the monthly salary attached to | ||||||
14 | the rank held by
the firefighter at the time of his or her last | ||||||
15 | withdrawal from service under a
particular pension fund.
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16 | "Last pension fund" means the pension fund in which the | ||||||
17 | firefighter was
participating at the time of his or her last | ||||||
18 | withdrawal from service.
| ||||||
19 | (b) The benefits provided under this Section are available | ||||||
20 | only to a
firefighter who:
| ||||||
21 | (1) is a firefighter at the time of withdrawal from the | ||||||
22 | last
pension fund and for at least the final 3 years of | ||||||
23 | employment prior to that
withdrawal;
| ||||||
24 | (2) has established service credit with at least one | ||||||
25 | pension fund
established under this Article other than the | ||||||
26 | last pension fund;
| ||||||
27 | (3) has a total of at least 20 years of service under | ||||||
28 | the various
pension funds established under this Article | ||||||
29 | and has attained age 50;
| ||||||
30 | (4) is in service on or after the effective date of | ||||||
31 | this amendatory Act of
the 93rd General Assembly; and
| ||||||
32 | (5) has not received a refund under subsection (c) of | ||||||
33 | Section 4-118.1.
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34 | (c) A firefighter who is eligible for benefits under this | ||||||
35 | Section may elect
to receive a retirement pension from each |
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1 | pension fund under this Article in
which the firefighter has at | ||||||
2 | least one year of service credit, by applying in
writing and | ||||||
3 | paying the contribution required under subsection (i).
| ||||||
4 | (d) From each such pension fund other than the last pension | ||||||
5 | fund, in lieu
of any retirement pension otherwise payable under | ||||||
6 | this Article, a firefighter
to whom this Section applies may | ||||||
7 | elect to receive a monthly pension of 1/12th
of 2.5% of his or | ||||||
8 | her final monthly salary under that fund for each month of
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9 | service in that fund, subject to a maximum of 75% of that final | ||||||
10 | monthly salary.
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11 | (e) From the last pension fund, in lieu of any retirement | ||||||
12 | pension otherwise
payable under this Article, a firefighter to | ||||||
13 | whom this Section applies may
elect to receive a monthly | ||||||
14 | pension calculated as follows:
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15 | The last pension fund shall calculate the retirement | ||||||
16 | pension that
would be payable to the firefighter under | ||||||
17 | subsection (a) of Section 4-109 if he
or she had
participated | ||||||
18 | in that last pension fund during his or her entire period of
| ||||||
19 | service under all pension funds established under this Article.
| ||||||
20 | From this hypothetical pension there shall be subtracted the | ||||||
21 | original amounts
of the retirement pensions payable to the | ||||||
22 | firefighter by all other pension
funds under subsection (d). | ||||||
23 | The remainder is the retirement pension payable
to the | ||||||
24 | firefighter by the last pension fund under this subsection (e).
| ||||||
25 | (f) Pensions elected under this Section shall be subject to | ||||||
26 | increases as
provided in subsection (d) of Section 4-109.1.
| ||||||
27 | (g) A current firefighter may reinstate creditable service | ||||||
28 | in a
pension fund established under this Article that was | ||||||
29 | terminated upon receipt of
a refund, by payment to that pension | ||||||
30 | fund of the amount of the refund together
with interest thereon | ||||||
31 | at the rate of 6% per year, compounded annually, from the
date | ||||||
32 | of the refund to the date of payment. A repayment of a refund | ||||||
33 | under this
Section may be made in equal installments over a | ||||||
34 | period of up to 10 years, but
must be paid in full prior to | ||||||
35 | retirement.
| ||||||
36 | (h) As a condition of being hired to a position as a |
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1 | firefighter on or after the effective date of this amendatory | ||||||
2 | Act of the
93rd General Assembly, a firefighter must notify
the | ||||||
3 | new employer, all of his or her previous employers under this | ||||||
4 | Article, and
the Public Pension Division of the Department of | ||||||
5 | Insurance, within one year of
being hired, of all periods of | ||||||
6 | service of at
least one year under a pension fund established | ||||||
7 | under this Article.
| ||||||
8 | (i) In order to receive a pension under this Section, a | ||||||
9 | firefighter must
pay to each pension fund under this Article in | ||||||
10 | which he or she has at least
one year of service credit a | ||||||
11 | contribution equal to 1/12th of 1% of
monthly salary for each | ||||||
12 | month of service credit that the firefighter has in
that fund | ||||||
13 | (other than service credit for which the firefighter has | ||||||
14 | already
paid the additional contribution required under | ||||||
15 | subsection (c) of Section
4-118.1), together with interest at | ||||||
16 | the rate of 6% per year, compounded
annually, from the date of | ||||||
17 | the service to the date of payment.
| ||||||
18 | A retired firefighter who receives a pension under this | ||||||
19 | Section may
return to duty as a firefighter if he or she (i) | ||||||
20 | suspends that pension,
and (ii) repays the amount of any | ||||||
21 | pension received under this Section, plus
interest at the rate | ||||||
22 | of 6% per year, compounded annually.
| ||||||
23 | (j) A firefighter who is newly hired or promoted to a | ||||||
24 | position as a
firefighter shall not be denied participation in | ||||||
25 | a fund under this Article
based on his or her age.
| ||||||
26 | (40 ILCS 5/4-118.1) (from Ch. 108 1/2, par. 4-118.1)
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27 | Sec. 4-118.1. Contributions by firefighters.
| ||||||
28 | (a) Beginning January 1, 1976 and until the effective date | ||||||
29 | of this
amendatory Act of the 91st General Assembly, each | ||||||
30 | firefighter shall contribute
to the pension fund 6 3/4% of | ||||||
31 | salary towards the cost of his or her pension.
Beginning on the | ||||||
32 | effective date of this amendatory Act of the 91st General
| ||||||
33 | Assembly, each firefighter shall contribute to the pension fund | ||||||
34 | 6.955% of
salary towards the cost of his or her pension.
| ||||||
35 | (b) In addition, beginning January 1, 1976, each |
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1 | firefighter shall
contribute 1% of salary toward the cost of | ||||||
2 | the increase in pension provided in
Section 4-109.1; beginning | ||||||
3 | January 1, 1987, such contribution shall be 1.5% of
salary.
| ||||||
4 | (c) Beginning on the effective date of this amendatory Act | ||||||
5 | of the 93rd
General Assembly, each firefighter who elects to | ||||||
6 | receive a pension under
Section 4-109.3 and who has | ||||||
7 | participated in
at least one other pension fund under this | ||||||
8 | Article for a period of at
least one year shall contribute an | ||||||
9 | additional 1.0% of salary toward the
cost of the pensions | ||||||
10 | provided in Section 4-109.3. In the event that
the firefighter | ||||||
11 | does not elect to receive the retirement pensions
provided | ||||||
12 | under Section 4-109.3, he or she shall, upon withdrawal from
| ||||||
13 | the last pension fund as defined in Section 4-109.3, be | ||||||
14 | entitled to receive,
from each fund to which he or she has paid | ||||||
15 | additional contributions under
this subsection (c), a refund of | ||||||
16 | those contributions without interest.
A firefighter who | ||||||
17 | accepts any refund under this subsection is thereafter
| ||||||
18 | ineligible to receive the pensions provided under Section | ||||||
19 | 4-109.3.
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20 | (d) "Salary" means the annual salary, including longevity, | ||||||
21 | attached
to the firefighter's rank, as established by the | ||||||
22 | municipality appropriation
ordinance, including any | ||||||
23 | compensation for overtime which is included in the
salary so | ||||||
24 | established, but excluding any "overtime pay", "holiday pay",
| ||||||
25 | "bonus pay", "merit pay", or any other cash benefit not | ||||||
26 | included in the
salary so established.
| ||||||
27 | (e) The contributions shall be deducted and withheld from | ||||||
28 | the salary
of firefighters.
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29 | (Source: P.A. 91-466, eff. 8-6-99.)
| ||||||
30 | (40 ILCS 5/7-139.10 new)
| ||||||
31 | Sec. 7-139.10. Transfer to Article 4 pension fund. Until | ||||||
32 | January 1, 2006,
a person who has elected under Section 4-108.4 | ||||||
33 | to become an
active participant in a firefighter pension fund | ||||||
34 | established under Article 4 of
this Code may apply for transfer | ||||||
35 | to that Article 4 fund of his or her
creditable service |
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| |||||||
1 | accumulated under this Article for municipal firefighter
| ||||||
2 | service. At the time of the transfer, the Fund
shall pay to the | ||||||
3 | firefighter pension fund an amount equal to:
| ||||||
4 | (1) the amounts accumulated to the credit of the | ||||||
5 | applicant for municipal
firefighter service, including | ||||||
6 | interest;
| ||||||
7 | (2) any interest paid by the applicant in order to | ||||||
8 | reinstate that service;
and
| ||||||
9 | (3) the municipality credits based on that service, | ||||||
10 | including interest.
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11 | Participation in this fund with respect to the transferred | ||||||
12 | credits shall
terminate on the date of transfer.
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13 | For the purpose of this Section, "municipal firefighter | ||||||
14 | service" means
service with the fire department of a | ||||||
15 | participating municipality for which the
applicant
established
| ||||||
16 | creditable service under this Article.
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17 | Section 90. The State Mandates Act is amended by adding | ||||||
18 | Section 8.28 as
follows:
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19 | (30 ILCS 805/8.28 new)
| ||||||
20 | Sec. 8.28. Exempt mandate. Notwithstanding Sections 6 and 8 | ||||||
21 | of this
Act, no reimbursement by the State is required for the | ||||||
22 | implementation of
any mandate created by this amendatory Act of | ||||||
23 | the 93rd General Assembly.
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24 | Section 99. Effective date. This Act takes effect upon | ||||||
25 | becoming law.
|