On November 9, 2017 the Illinois Senate voted to override the Governor’s veto of HB-688. Public Act 100-544 amends Articles 3, 4, and 6 of the Illinois Pension Code as follows:
- The Act creates section 3-110.12 and opens a 6 month window that allows an active member of an Article 4 firefighters’ pension fund to transfer up to 6 years of creditable service accumulated in an Article 3 police pension fund administered by the same unit of local government if the active member was not subject to disciplinary action when he or she terminated employment with the police department. In order to take advantage of this transfer, the firefighter must make application within the 6 month window.
- Upon application, the Article 3 fund must transfer the following amounts to the Article 4 fund: (1) the firefighters’ accumulated employee contributions, (2) an amount representing employer contributions that is equal to the amount calculated in number 1, and (3) any interest paid by the applicant in order to reinstate creditable service. If the firefighter previously took a refund of his or her Article 3 contributions, the firefighter can reinstate creditable service with the Article 3 fund by repaying his or her refund plus interest at 6% per year compounded annually from the date of refund to the date of payment.
- Once these amounts are transferred, this time will count as creditable service for the firefighter pursuant to 40 ILCS 5/4-108(c)(8).
- Additionally, an active Chicago firefighter can now transfer up to 10 years of creditable service accumulated in an Article 4 pension fund. The Chicago firefighter has a 6 month window to apply for the transfer. The Article 4 fund is required to transfer the amounts as listed in number 2 above.
- Once these amounts are transferred, this time will count as creditable service for the Chicago firefighter pursuant 40 ILCS 5/6-227. There may also be a true cost component that a Chicago firefighter must pay the Chicago Fireman’s Annuity and Benefit Fund.