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SB 1986

PEN CD-POLICE TO IMRF-TRANSFER

104th Regular Session Introduced by Chapin Rose

Reopens a six-month window to transfer up to 10 years of Article 3 police pension credits to IMRF, with payment options and no state reimbursement.

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Bill Summary · SB 1986

SB 1986 — Summary (PEN CD — Police to IMRF — Transfer)

Status: Rule 3‑9(a) / Re‑referred to Assignments
Sponsor: Sen. Chapin Rose (filed Feb 6, 2025 / introduced March 6, 2025)
Statutes affected: 40 ILCS 5/3‑110.14; 40 ILCS 5/7‑139.1a; 30 ILCS 805/8.49 (new)

Purpose

SB 1986 reopens a limited window allowing participating sheriff’s law‑enforcement employees to transfer creditable service from Downstate Police pension funds (Article 3) into the Illinois Municipal Retirement Fund (IMRF, Article 7). The bill updates timing and procedural language and adds a requirement under the State Mandates Act that implementation is without state reimbursement.

Key provisions

  • Reauthorizes transfers of up to 10 years of creditable service from an Article 3 (downstate police) fund to IMRF (Article 7).
  • Establishes a new transfer window: transfers may be elected “on and after the effective date of this amendatory Act but no later than 6 months after” that effective date.
  • Payment / credit options to establish IMRF service:
    • Option A — employee pays an amount (determined by the IMRF Board) equal to the difference between (i) contributions transferred from the Article 3 fund and (ii) the contributions that would have been required had the member been an IMRF sheriff’s law‑enforcement employee, plus interest at the actuarially assumed rate compounded annually from the date of service to payment; or
    • Option B — the employee accepts a reduction in the amount of credited service corresponding to the shortfall (i.e., the amount by which required contributions with interest exceed amounts actually transferred).
  • If the dollar amount transferred to IMRF exceeds the amount needed for the service credit calculation, the excess is credited to the employing unit’s account.
  • Participation in the police pension fund for the transferred service terminates on the date of transfer; previously forfeited Article 3 credits may not be reinstated.
  • Amends the State Mandates Act to specify implementation without state reimbursement (i.e., no mandate relief funding).

Who is affected

  • Primary: participating sheriff’s law‑enforcement employees who previously earned service in a Downstate Police (Article 3) pension fund and who are eligible IMRF participants.
  • Employers (counties/municipalities): may receive excess transferred amounts credited to their IMRF employer account; may face administrative duties and potential contribution/actuarial impacts.
  • Pension systems: Article 3 funds will lose transferred service/amounts; IMRF will gain members and associated assets/liabilities.

Timing & procedural notes

  • The bill replaces prior deadlines (earlier transfer windows in 2022–2023) with a new six‑month election period starting on the bill’s effective date.
  • Legislative history: filed in early 2025, discussed in committees (Pensions, Health & Human Services, etc.), placed on the General State Calendar and re‑referred under Rule 3‑9(a) as of May 2025.

Potential fiscal and policy impacts

  • Individual employees can change the legal basis for future benefit calculation (IMRF vs. police formula), which may affect retirement benefits, vesting, and contribution obligations.
  • Shifts in membership and assets between pension funds could have actuarial consequences for both Article 3 funds and IMRF.
  • The State Mandates Act change indicates local units will not receive state reimbursement for any costs created by administering this transfer option.

Compiled from official sources — confirm details with the bill’s official record.

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