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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 adding | ||||||
| 5 | Section 6-127.5 as follows: | ||||||
| 6 | (40 ILCS 5/6-127.5 new) | ||||||
| 7 | Sec. 6-127.5. One-time lump sum payment election. | ||||||
| 8 | (a) This Section applies only to active firemen not in | ||||||
| 9 | receipt of disability benefits who (i) have at least 23 years | ||||||
| 10 | of creditable service, and (ii) have attained age 50, and (iii) | ||||||
| 11 | withdraw from service on or after the effective date of this | ||||||
| 12 | Section. | ||||||
| 13 | (b) A qualifying fireman may make an election under this | ||||||
| 14 | Section at the time application for an age and service annuity | ||||||
| 15 | under this Article is made, to receive a lump sum payment in | ||||||
| 16 | exchange for which he or she agrees to forfeit up to 36 months | ||||||
| 17 | of service credit. The lump sum payment shall be an amount | ||||||
| 18 | equal to (1) the employee contributions credited to his or her | ||||||
| 19 | account that correspond to the service credit being forfeited, | ||||||
| 20 | plus (2) an additional 2.26 times that amount representing the | ||||||
| 21 | corresponding employer contributions made to the Fund, plus (3) | ||||||
| 22 | the amount of any annuity payments the fireman would have been | ||||||
| 23 | entitled to during the time of the forfeited service. Members | ||||||
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| 1 | electing to receive a lump sum distribution under this Section | ||||||
| 2 | may request that it be rolled over into other qualified plans. | ||||||
| 3 | (c) Service credit forfeited under this Section shall not | ||||||
| 4 | be included in the calculation of the fireman's age and service | ||||||
| 5 | annuity, nor used for any other purpose under this Act. The | ||||||
| 6 | monthly retirement annuity, as reduced by any such lump sum | ||||||
| 7 | distribution under this Section, shall constitute the | ||||||
| 8 | originally granted annuity amount for all purposes of this Act. | ||||||
| 9 | Any agreement to reduce total service credit for annuity | ||||||
| 10 | calculation purposes shall not reduce career service for any | ||||||
| 11 | purpose used by the City of Chicago. A lump sum distribution | ||||||
| 12 | election under this Section is not considered a refund of | ||||||
| 13 | contribution as defined for other purposes in this Article. | ||||||
| 14 | (d) Election of the lump sum payment distribution under | ||||||
| 15 | this Section becomes irrevocable upon receipt of the lump sum | ||||||
| 16 | payment.
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| 17 | Section 90. The State Mandates Act is amended by adding | ||||||
| 18 | Section 8.31 as follows: | ||||||
| 19 | (30 ILCS 805/8.31 new) | ||||||
| 20 | Sec. 8.31. 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 95th General Assembly.
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| 24 | Section 99. Effective date. This Act takes effect upon | ||||||
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| 1 | becoming law.
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