Personnel and Pensions Committee
Filed: 4/17/2007
 
 

 




 

 		












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AMENDMENT TO HOUSE BILL 1974 




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    AMENDMENT NO. ______. Amend House Bill 1974  by replacing 
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everything after the enacting clause with the following:

 
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    "Section 5. The Illinois Pension Code is amended  by adding 
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Section 6-127.5 as follows:
 
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    (40 ILCS 5/6-127.5  new)
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    Sec. 6-127.5. One-time lump sum payment election.
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    (a) This Section applies only to active firemen not in 
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receipt of disability benefits who (i) have at least 23 years 
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of creditable service, and (ii) have attained age 50, and (iii) 
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withdraw from service on or after the effective date of this 
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Section.
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    (b) A qualifying fireman may make an election under this 
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Section at the time application for an age and service annuity 
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under this Article is made, to receive a lump sum payment in 
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exchange for which he or she agrees to forfeit up to 36 months 
 


 






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of service credit. The lump sum payment shall be an amount 
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equal to (1) the  employee contributions credited to his or her  
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account that correspond to the service credit being forfeited, 
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plus (2) an additional 2.26 times that amount representing the 
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corresponding employer contributions made to the Fund, plus (3) 
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the amount of any annuity payments the fireman would have been 
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entitled to during the time of the forfeited service. Members 
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electing to receive a lump sum distribution under this Section 
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may request that it be rolled over into other qualified plans.
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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 under this Act. The 
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monthly retirement annuity, as reduced by any such lump sum 
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distribution under this Section, shall constitute the 
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originally granted annuity amount for all purposes of this Act. 
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Any agreement to reduce total service credit for annuity 
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calculation purposes shall not reduce career service for any 
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purpose used by the City of Chicago. A lump sum distribution 
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election under this Section is not considered a refund of 
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contribution as defined for other purposes in this Article.
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    (d) Election of the lump sum payment distribution under 
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this Section becomes irrevocable upon receipt of the lump sum 
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payment.

 
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    Section 90. The State Mandates Act is amended by adding 
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Section 8.31 as follows:
 
 


 






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    (30 ILCS 805/8.31 new)
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    Sec. 8.31. 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 95th General Assembly.
 

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