101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
SB2336

 

Introduced 1/8/2020, by Sen. Dan McConchie

 

SYNOPSIS AS INTRODUCED:
 
40 ILCS 5/4-117  from Ch. 108 1/2, par. 4-117
40 ILCS 5/4-117.3 new
30 ILCS 805/8.44 new

    Amends the Downstate Firefighter Article of the Illinois Pension Code. Provides that a municipality that employs a fire chief who meets certain requirements shall establish a defined contribution plan that aggregates firefighter and employer contributions in individual accounts used for retirement. Provides that if a fire chief to whom a specified provision of the Illinois Municipal Code applies (i) first becomes a member on or after January 1, 2021, (ii) is receiving pension payments, and (iii) reenters active service with any municipality that has established a pension fund under the 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 and may not establish creditable service in the pension fund established by that municipality or have his or her pension recomputed. Provides that a municipality that employs a fire chief who participates in a defined contribution plan required to be established by the amendatory Act 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. Makes other changes. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.


LRB101 16528 RPS 65912 b

FISCAL NOTE ACT MAY APPLY
PENSION IMPACT NOTE ACT MAY APPLY
STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT

 

 

A BILL FOR

 

SB2336LRB101 16528 RPS 65912 b

1    AN ACT concerning public employee benefits.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Pension Code is amended by changing
5Section 4-117 and by adding Section 4-117.3 as follows:
 
6    (40 ILCS 5/4-117)  (from Ch. 108 1/2, par. 4-117)
7    Sec. 4-117. Reentry into active service.
8    (a) If a firefighter receiving pension payments reenters
9active service, pension payments shall be suspended while he or
10she is in service. If the firefighter again retires or is
11discharged, his or her monthly pension shall be resumed in the
12same amount as was paid upon first retirement or discharge
13unless he or she remained in active service 3 or more years
14after re-entry in which case the monthly pension shall be based
15on the salary attached to the firefighter's rank at the date of
16last retirement.
17    (b) If a deferred pensioner re-enters active service, and
18again retires or is discharged from the fire service, his or
19her pension shall be based on the salary attached to the rank
20held in the fire service at the date of earlier retirement,
21unless the firefighter remains in active service for 3 or more
22years after re-entry, in which case the monthly pension shall
23be based on the salary attached to the firefighter's rank at

 

 

SB2336- 2 -LRB101 16528 RPS 65912 b

1the date of last retirement.
2    (c) If a pensioner or deferred pensioner re-enters or is
3recalled to active service and is thereafter injured, and the
4injury is not related to an injury for which he or she was
5previously receiving a disability pension, the 3-year 3 year
6service requirement shall not apply in order for the
7firefighter to qualify for the increased pension based on the
8rate of pay at the time of the new injury.
9    (d) If a fire chief to whom Section 10-1-7.3 of the
10Illinois Municipal Code applies (i) first becomes a member on
11or after January 1, 2021, (ii) is receiving pension payments,
12and (iii) reenters active service with any municipality that
13has established a pension fund under this Article, that fire
14chief may continue to receive pension payments while he or she
15is in active service, but shall only participate in a defined
16contribution plan established by the municipality pursuant to
17Section 4-117.2 and may not establish creditable service in the
18pension fund established by that municipality or have his or
19her pension recomputed.
20(Source: P.A. 83-1440; revised 7-17-19.)
 
21    (40 ILCS 5/4-117.3 new)
22    Sec. 4-117.3. Defined contribution plan for certain
23firefighters.
24    (a) A municipality that employs a fire chief described
25under subsection (d) of Section 4-117 shall establish a defined

 

 

SB2336- 3 -LRB101 16528 RPS 65912 b

1contribution plan that aggregates firefighter and employer
2contributions in individual accounts used for retirement. The
3defined contribution plan, including both firefighter and
4employer contributions, established by the municipality must,
5at a minimum: meet the safe harbor provisions of the Internal
6Revenue Code of 1986, as amended; be a qualified plan under the
7Internal Revenue Code of 1986, as amended; and comply with all
8other applicable laws, rules, and regulations. Contributions
9shall vest immediately upon deposit in the firefighter's
10account.
11    A firefighter who participates in the defined contribution
12plan under this Section may not earn creditable service or
13otherwise participate in the defined benefit plan offered by
14his or her employing municipality, except as an annuitant in
15another fund or as a survivor, while he or she is a participant
16in the defined contribution plan. The defined contribution plan
17under this Section shall not be construed to be a pension,
18annuity, or other defined benefit under this Code.
19    A municipality that employs a fire chief described under
20subsection (d) of Section 4-117 shall provide a disability
21insurance benefit to that fire chief that is at least
22equivalent to the disability benefit he or she would be
23provided if he or she was a participant in the defined benefit
24plan.
25    (b) As used in this Section, "defined benefit plan" means
26the retirement plan available to firefighters under this

 

 

SB2336- 4 -LRB101 16528 RPS 65912 b

1Article who do not participate in the defined contribution plan
2under this Section.
 
3    Section 90. The State Mandates Act is amended by adding
4Section 8.44 as follows:
 
5    (30 ILCS 805/8.44 new)
6    Sec. 8.44. Exempt mandate. Notwithstanding Sections 6 and 8
7of this Act, no reimbursement by the State is required for the
8implementation of any mandate created by this amendatory Act of
9the 101st General Assembly.
 
10    Section 99. Effective date. This Act takes effect upon
11becoming law.