Full Text of SB2336 101st General Assembly
SB2336 101ST GENERAL ASSEMBLY |
| | 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 | |
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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.
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| | FISCAL NOTE ACT MAY APPLY | PENSION IMPACT NOTE ACT MAY APPLY | STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT |
| | A BILL FOR |
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| | | SB2336 | | LRB101 16528 RPS 65912 b |
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| 1 | | AN ACT concerning public employee benefits.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Illinois Pension Code is amended by changing | 5 | | Section 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 | 9 | | active service, pension payments shall be suspended while he
or | 10 | | she is in service. If the firefighter again retires or is | 11 | | discharged,
his or her monthly pension shall be resumed in the | 12 | | same amount as was paid
upon first retirement or discharge
| 13 | | unless he or she remained in active service 3 or more years | 14 | | after re-entry
in which case the monthly pension shall be based | 15 | | on the salary attached
to the firefighter's rank at the date of | 16 | | last retirement.
| 17 | | (b) If a deferred pensioner re-enters active service, and | 18 | | again retires
or is discharged from the fire service, his or | 19 | | her pension shall be based
on the salary attached to the rank | 20 | | held in the fire service at the date
of earlier retirement, | 21 | | unless the firefighter remains in active service
for 3 or more | 22 | | years after re-entry, in which case the monthly pension shall
| 23 | | be based on the salary attached to the firefighter's rank at |
| | | SB2336 | - 2 - | LRB101 16528 RPS 65912 b |
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| 1 | | the date of
last retirement.
| 2 | | (c) If a pensioner or deferred pensioner re-enters or is | 3 | | recalled
to active service and
is thereafter injured, and the | 4 | | injury
is not related to an injury for which he or she was | 5 | | previously receiving
a disability pension,
the 3-year 3 year | 6 | | service requirement shall not apply in order
for the | 7 | | firefighter to qualify for the increased pension based on
the | 8 | | rate of pay at the time of the
new injury.
| 9 | | (d) If a fire chief to whom Section 10-1-7.3 of the | 10 | | Illinois Municipal Code applies (i) first becomes a member on | 11 | | or after January 1, 2021, (ii) is receiving pension payments, | 12 | | and (iii) reenters active service with any municipality that | 13 | | has established a pension fund under this Article, that fire | 14 | | chief may continue to receive pension payments while he or she | 15 | | is in active service, but shall only participate in a defined | 16 | | contribution plan established by the municipality pursuant to | 17 | | Section 4-117.2 and may not establish creditable service in the | 18 | | pension fund established by that municipality or have his or | 19 | | her 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 | 23 | | firefighters. | 24 | | (a) A municipality that employs a fire chief described | 25 | | under subsection (d) of Section 4-117 shall establish a defined |
| | | SB2336 | - 3 - | LRB101 16528 RPS 65912 b |
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| 1 | | contribution plan that aggregates firefighter and employer | 2 | | contributions in individual accounts used for retirement. The | 3 | | defined contribution plan, including both firefighter and | 4 | | employer contributions, established by the municipality must, | 5 | | at a minimum: meet the safe harbor provisions of the Internal | 6 | | Revenue Code of 1986, as amended; be a qualified plan under the | 7 | | Internal Revenue Code of 1986, as amended; and comply with all | 8 | | other applicable laws, rules, and regulations. Contributions | 9 | | shall vest immediately upon deposit in the firefighter's | 10 | | account. | 11 | | A firefighter who participates in the defined contribution | 12 | | plan under this Section may not earn creditable service or | 13 | | otherwise participate in the defined benefit plan offered by | 14 | | his or her employing municipality, except as an annuitant in | 15 | | another fund or as a survivor, while he or she is a participant | 16 | | in the defined contribution plan. The defined contribution plan | 17 | | under this Section shall not be construed to be a pension, | 18 | | annuity, or other defined benefit under this Code. | 19 | | A municipality that employs a fire chief described under | 20 | | subsection (d) of Section 4-117 shall provide a disability | 21 | | insurance benefit to that fire chief that is at least | 22 | | equivalent to the disability benefit he or she would be | 23 | | provided if he or she was a participant in the defined benefit | 24 | | plan. | 25 | | (b) As used in this Section, "defined benefit plan" means | 26 | | the retirement plan available to firefighters under this |
| | | SB2336 | - 4 - | LRB101 16528 RPS 65912 b |
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| 1 | | Article who do not participate in the defined contribution plan | 2 | | under this Section. | 3 | | Section 90. The State Mandates Act is amended by adding | 4 | | Section 8.44 as follows: | 5 | | (30 ILCS 805/8.44 new) | 6 | | Sec. 8.44. Exempt mandate. Notwithstanding Sections 6 and 8 | 7 | | of this Act, no reimbursement by the State is required for the | 8 | | implementation of any mandate created by this amendatory Act of | 9 | | the 101st General Assembly.
| 10 | | Section 99. Effective date. This Act takes effect upon | 11 | | becoming law.
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