Surplus lines broker taxes; certain insurance policies.

2025 Regular Session Introduced by Stella Pekarsky

The bill allows certain elected-officials who previously worked in a non-elected position with the same employer and met specific conditions to receive pension service credit for t

Acts of Assembly Chapter text (CHAP0136)

Main purpose

To clarify and expand when service performed in an elected office can be credited to the Illinois Municipal Retirement Fund (IMRF) for pension purposes. The bill enables certain persons who hold elective office but did not elect IMRF participation for that office to nonetheless receive service credit for that elected service when specific conditions are met.

Key provisions

Adds a new subsection to Section 7‑137.1 of the Illinois Pension Code providing that a person who holds an elective office and has not elected to participate in IMRF with respect to that office shall not be disqualified from receiving service credit for that elected office if all of the following are true:

The person previously participated in a non‑elected position with the same employer for which they are now an elected official.
The employer continued to make member contributions for that period of (non‑elected) service.
There is no gap in service credit between the non‑elected position and the elected office.

Retains existing related language about historic elections/revocations to participate in IMRF (including references to revocation before Jan 1, 1992) and clarifies that prior rules (Sections 7‑141 and 7‑144) remain relevant.

Adds Section 8.49 to the State Mandates Act stating that the mandate created by this amendatory Act is an “exempt mandate” — i.e., the State is not required to reimburse local units of government for costs of implementing the change.

Who is affected

Current and former municipal employees who moved from a non‑elected IMRF position into an elected office with the same employer and meet the three conditions above — they may gain pension service credit for the elected service.

Employers (cities, counties, towns, other IMRF employers) and IMRF administration — adjustments in recordkeeping and benefit calculations may be required.

Potentially affects retirees and future beneficiaries whose pension calculations rely on total service credit.

Fiscal and policy implications

The bill permits crediting elected‑office service under limited conditions where employer contributions were already made and there is continuous service credit. Because required member contributions must have already been paid by the employer for the non‑elected period, the bill does not on its face direct new retroactive employer payments. However, granting additional credited service may increase future pension benefits and IMRF liabilities; the magnitude depends on covered members meeting the conditions and the system’s funding status.

The State Mandates Act amendment removes state reimbursement obligations for local costs arising from implementation.

Procedural status (selected)

Introduced: 2025‑01‑28 by Senator Karina Villa.

Referred to Assignments; assigned to Pensions (02‑04‑2025).

Subsequent docketing: Rule 3‑9(a) / Re‑referred to Assignments (03‑21‑2025).

Companion bill: HB 208.

If you want, I can (1) produce a side‑by‑side comparison of current law versus the bill’s changes to Section 7‑137.1, or (2) draft a brief fiscal‑impact checklist for municipal employers and IMRF.

Bill