SB1542 96TH GENERAL ASSEMBLY

LRB096 10953 AMC 21209 b

96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010
SB1542

Introduced 2/18/2009, by Sen. David Koehler

SYNOPSIS AS INTRODUCED:

40 ILCS 5/3-110.8
40 ILCS 5/3-110.10
40 ILCS 5/7-139.11
40 ILCS 5/7-139.13
30 ILCS 805/8.33 new

Amends the Downstate Police and Illinois Municipal Retirement Fund (IMRF) Articles of the Illinois Pension Code. Allows participants of a downstate police pension fund to transfer up to 10 years of creditable service to the IMRF and allows participants of IMRF to transfer up to 10 years of creditable service to the a downstate police pension fund. Requires the participant to either pay the difference in contributions or have the creditable service reduced accordingly. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.

FISCAL NOTE ACT MAY APPLY

PENSION IMPACT NOTE ACT MAY APPLY

STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT

A BILL FOR

AN ACT in relation to 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 Sections 3-110.8, 3-110.10, 7-139.11, and 7-139.13 as follows:

(40 ILCS 5/3-110.8)

Sec. 3-110.8. Transfer to IMRF.

(a) Until January 1, 2011 2008, any active member of the Illinois Municipal Retirement Fund may apply to transfer up to 10 years of creditable service earned in a police pension fund under this Article who has less than 8 years of creditable service in a police pension fund under this Article, may apply for transfer of his or her creditable service accumulated in that fund to the Illinois Municipal Retirement Fund. The creditable service shall be transferred upon payment by the police pension fund to the Illinois Municipal Retirement Fund of an amount equal to:

(1) the amounts accumulated to the credit of the applicant on the books of the fund on the date of transfer; and

(2) employer contributions in an amount equal to the amount determined under subparagraph (1); and

(3) any interest paid by the applicant in order to reinstate service. Creditable service transferred to the Illinois Municipal Retirement Fund under this Section shall terminate on the date of the transfer. Participation in this Fund shall terminate on the date of transfer.

(b) Until January 1, 2011 2008, any member under subsection (a) may reinstate service which was terminated by receipt of a refund, by payment to the police pension fund of the amount of the refund with interest thereon at the rate of 6% per year, compounded annually, from the date of refund to the date of payment.

(Source: P.A. 94-356, eff. 7-29-05; 95-530, eff. 8-28-07.)

(40 ILCS 5/3-110.10)

Sec. 3-110.10. Transfer from Article 7. Until January 1, 2011, any active member of a police pension fund established under this Article may either (A) 2008, a person may transfer to a fund established under this Article up to 10 8 years of creditable service accumulated under Article 7 of this Code upon payment to the fund of an amount to be determined by the board, equal to (i) the difference between the amount of employee and employer contributions transferred to the fund under Section 7-139.11 and the amounts that would have been contributed had such contributions been made at the rates applicable to an employee under this Article, plus (ii) interest thereon at the effective rate for each year, compounded annually, from the date of service to the date of payment or (B) establish creditable service in the police pension fund for service transferred from the Illinois Municipal Retirement Fund under Section 7-139.11, with the amount of service to be determined under subsection (e) of Section 3-110.

(Source: P.A. 95-530, eff. 8-28-07; 95-876, eff. 8-21-08.)

(40 ILCS 5/7-139.11)

Sec. 7-139.11. Transfer to Article 3 pension fund.

(a) Until January 1, 2011 2008, a person who has less than 8 years of creditable service under this Article and who has become an active participant in a police pension fund established under Article 3 of this Code may apply for transfer to that Article 3 fund up to 10 years of his or her creditable service accumulated under this Article. At the time of the transfer the Fund shall pay to the police pension fund an amount equal to:

(1) the amounts accumulated to the credit of the applicant under this Article, including interest; and

(2) the municipality credits based on that service, including interest; and

(3) any interest paid by the applicant in order to reinstate that service. Participation in this Fund with respect to the transferred credits shall terminate on the date of transfer.

(b) An active member of a pension fund established under Article 3 of this Code may reinstate creditable service under this Article that was terminated by receipt of a refund, by paying to the Fund the amount of the refund plus interest thereon at the effective rate of 6% per year, compounded annually, from the date of refund to the date of payment.

(Source: P.A. 94-356, eff. 7-29-05; 95-530, eff. 8-28-07.)

(40 ILCS 5/7-139.13)

Sec. 7-139.13. Transfer from Article 3. Until January 1, 2011 2008, a participating employee may either (A) person may transfer to the Illinois Municipal Retirement Systems up to 8 years of creditable service accumulated under Article 3 of this Code upon payment to the Fund of an amount to be determined by the board, equal to (i) the difference between the amount of employee and employer contributions transferred to the Fund under Section 3-110.8 and the amounts that would have been contributed had such contributions been made at the rates applicable to an employee under this Article, plus (ii) interest thereon at the effective rate for each year, compounded annually, from the date of service to the date of payment or (B) establish creditable service in this Fund for service transferred under Section 3-110.8, with the amount of service to be determined under item 10 of subsection (a) of Section 7-139.

(Source: P.A. 95-530, eff. 8-28-07; 95-876, eff. 8-21-08.)

Section 90. The State Mandates Act is amended by adding Section 8.33 as follows:

(30 ILCS 805/8.33 new)

Sec. 8.33. 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 96th General Assembly.

Section 99. Effective date. This Act takes effect upon becoming law.