94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006
HB0820


 
Introduced 02/02/05, by Rep. John D'Amico
 
SYNOPSIS AS INTRODUCED:
 		
















40 ILCS 5/6-127.5 new





40 ILCS 5/6-209.2 new





40 ILCS 5/14-105.8 new





30 ILCS 805/8.29 new










    Amends the Chicago Firefighter Article of the Illinois Pension Code.
Provides an alternative payment option, under which a qualifying member may
convert up to 3 years of service credit into a lump sum payment at the time of
retirement.  Authorizes transfer of service credits earned for employment in
the Office of the State Fire Marshal from the State Employee Retirement System
to the Fund.  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









 











HB0820

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    AN ACT in relation to public employee benefits. 

 
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    Be it enacted by the People of the State of Illinois, 
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represented in the General Assembly: 


 
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    Section 5. The Illinois Pension Code is amended by adding 
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Sections
6-127.5, 6-209.2, and 14-105.8 as follows:


 
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    (40 ILCS 5/6-127.5 new)

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    Sec. 6-127.5. Alternative payment option.
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    (a) This Section applies only to a fireman who (i) has at 
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least 23 years of
creditable service, (ii) has attained age 50, 
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and (iii) withdraws from service
on or after the effective date 
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of this Section.

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    (b) A qualifying fireman may elect, at the time of applying 
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for an age and
service annuity under this Article, to receive a 
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lump sum payment at the time
of retirement, in exchange for 
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which he or she agrees to forfeit one, 2, or 3
years of service 
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credit.  The lump sum payment shall be an amount equal to 30%
of 
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the average salary used in the calculation of the fireman's age 
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and service
annuity, multiplied by the number of years of 
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service credit that the fireman
has elected to forfeit.

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    (c) Service credit forfeited under this Section shall not 
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be included in
the calculation of the fireman's age and service 
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annuity, nor used for any
other purpose.  Contributions relating 
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to the forfeited service credit are
not refundable.

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    (d) Election of the alternative payment option under this 
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Section becomes
irrevocable upon receipt of the lump sum 
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payment.


 
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    (40 ILCS 5/6-209.2 new)

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    Sec. 6-209.2. Credit for certain State Fire Marshal 
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Service.  Service
credits transferred to this Fund under Section 
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14-105.8 of this Code shall be
included in the computation of 
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service for annuity purposes under this Article,
provided that 
 


 






HB0820
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the sums to be transferred to the Fund under that Section have

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been received by the Fund.


 
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    (40 ILCS 5/14-105.8 new)

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    Sec. 14-105.8. Transfer to Article 6 fund.   A member of 
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this System who
has at least 20 years of service credit in the 
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Article 6 fund may apply for
transfer to the Article 6 fund of 
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his or her creditable service in this System
for service as an 
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employee of the Office of the State Fire Marshal.  Such

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creditable service shall be transferred forthwith.  Payment by 
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this System
to the Article 6 fund shall be made at the same 
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time and shall consist of:

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        (1) the amounts accumulated to the credit of the 
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    applicant for that
service, including regular interest, on 
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    the books of the System on the date
of transfer; and

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        (2) an amount representing employer contributions, 
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    equal to the amount
determined under item (1).

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Participation in this System as to the credits transferred 
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under this
Section shall terminate on the date of transfer.



 
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    Section 90. The State Mandates Act is amended by adding 
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Section 8.29 as
follows:


 
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    (30 ILCS 805/8.29 new)

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    Sec. 8.29. Exempt mandate. Notwithstanding Sections 6 and 8 
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of this
Act, no reimbursement by the State is required for the 
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implementation of
any mandate created by this amendatory Act of 
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the 94th General Assembly.

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