Here’s a pension bill (House Bill 418) that Governor Bruce Rauner just signed.
Amends the Downstate Police Article of the Illinois Pension Code.
Provides that if a person who is receiving a police pension becomes employed as a chief of police, the person must so notify the pension fund paying the pension and any other fund in which the person has service credit, and the pension shall be suspended until the employment as chief terminates; if the person elects to participate in IMRF, the person must also notify IMRF of those police pension funds.
Provides that if a person who is receiving a police pension enters service as a police officer with a different municipality, the person must so notify the pension fund paying the pension and the pension shall be suspended until the service terminates, unless the different municipality had a population of less than 6,000 at the time of the return to active service.
Applies to persons who first enter service after the effective date of the amendatory Act.
State Rep. David McSweeney is one of the prime co-sponsors.
Here is Governor Bruce Rauner’s press release:
Gov. Rauner signs bill to protect taxpayers from police pension fund abuse
NAPERVILLE (Aug. 24, 2017) – Gov. Bruce Rauner today signed House Bill 418, which prevents retired police officers from opting into the pension system a second time if they return to the force as a police chief or join another municipality’s force.
This bill will protect taxpayers from situations in which police officers are collecting two pensions from the same pension fund — a problem known as “double dipping.” Police officers that are promoted to police chief or join a different force will enroll in 401(k)-style retirement plans instead of opting into the pension fund again.
“Illinois taxpayers can’t afford to pay the same person twice,”Gov. Rauner said. “This bill is an important step to help control Illinois’ unsustainable pension costs. It will protect taxpayers from pension fund abuse while still ensuring our police officers are fairly compensated for their service.”
The bill was sponsored by two Naperville Republicans after controversy over whether a Naperville police chief should be able to accrue new pension payments while simultaneously earning a salary of over $168,000 and collecting payments from his first pension.
“There is a loophole in current law that allows double-dipping into the police pension systems, and it’s costing municipalities and local taxpayers a fortune. Retired law enforcement officers have earned their pensions, but they should not be able to claim multiple pensions that we can’t afford,” said Rep. Grant Wehrli (R-Naperville), the primary sponsor of this legislation. “Closing this loophole is one step toward keeping our struggling pension systems solvent.”
“Illinois’ pension systems are in dire need of repair as our pension liabilities at both the state and local levels continue to rack up,” said Sen. Connelly (R-Naperville). “While I recognize that many changes need to occur within the current system, this law at least gets us going in the right direction.”