The following messages were posted on Feb. 1, 2019 to various groups regarding Public Safety Pension Fund Reform and Consolitation by Brad Cole Executive Director of the Illinois Municipal League at 500 E Capitol Ave, PO Box 5180, Springfield, IL 62705 www.iml.org:
To: Mayors, Village Presidents/Town Presidents Managers/Administrators, Treasurers/Finance Officers/Comptrollers, Clerks
Today, we sent information to members of the 101st General Assembly to make them aware that the Illinois Municipal League (IML) is seeking reform and consolidation of the state’s more than 650 public safety pension funds.
IML is ready to work immediately with the General Assembly and the Pritzker administration, and all other interested individuals or affected organizations, to enact a solution to the public safety pension fund crisis felt throughout our state’s municipalities. Forwarded below is the message I sent to all Senators and Representatives, which includes a detailed listing of each IML proposal and a link to each specific bill.
Your involvement is critical in achieving this goal. Now is the time to call your state legislators. Tell them that this issue is of the utmost importance to your community and that the General Assembly must support the reform and consolidation of these pension funds. Please also reach out to other leaders in your community, such as the chamber of commerce and community groups, to share our efforts and seek their input and support. Ask your legislators and local leaders to actively support IML’s efforts through the proposals we have submitted.
IML is also collecting information about how the public safety pension crisis may be affecting your individual community. Please take a few minutes to fill out a survey (available via this link) so that we can incorporate your data into our advocacy.
If you have any questions or comments, please feel welcome to contact me by email (bcole@iml.org) or by phone at 217.525.1220. Thanks.
To: Members of the 101st General Assembly
The Illinois Municipal League’s (IML) public safety pension fund reform and consolidation proposals have now been introduced in the Illinois House and Illinois Senate. Descriptions of each proposal are below.
These bills show the forward-thinking solutions IML is proposing (without any benefit reductions) in order to address the public safety pension fund crisis municipalities throughout Illinois are facing. As municipal leaders, our members are uniquely qualified to address this problem, and we stand ready to work with the General Assembly and the Pritzker administration to enact a solution during this legislative session that will ultimately benefit employers, employees, pensioners and taxpayers. We are equally committed to working with representatives of organized labor groups to reach consensus through cooperation in this process.
If you have any questions, please feel welcome to contact me by phone at 217.525.1220. Thanks.
SB 1106/HB 1566: Consolidation into IMRF, with IMRF Formula for New Hires
Consolidates all downstate public safety pension funds into the Illinois Municipal Retirement Fund (IMRF) and requires the regular IMRF pension formula to apply to all newly hired public safety employees after a certain date. Local pension boards would be abolished following consolidation.
SB 1107/HB 1567: Consolidation into IMRF, while Retaining Police and Firefighter Benefit Formulas
Consolidates all downstate public safety pension funds into IMRF. This proposal would allow the benefit formulas of these funds to remain the same, but the funds would be under the management and administration of IMRF. Local pension boards would be abolished following consolidation.
SB 1108/HB 1568: Consolidation with IMRF, for Investment Funds Only
Consolidates the investments (only) of all local pension funds by the transfer of assets and investment authority into IMRF and maintains local pension boards for each fund to administer pension determinations.
SB 1109/HB 1569: Consolidation Creating a Single Downstate Police Pension Fund
Consolidates all downstate police pension funds into a single downstate police pension fund. The fund would have one statewide board that would carry out all aspects of the fund’s management, thereby eliminating the local pension boards.
SB 1110/HB 1570: Consolidation Creating a Single Downstate Firefighter Pension Fund
Consolidates all downstate firefighter pension funds into a single downstate firefighter pension fund. The fund would have one statewide board that would carry out all aspects of the fund’s management, thereby eliminating the local pension boards.
SB 1111/HB 1571: Consolidation with IMRF, for Investment Funds Only, By City Council Action, Maintaining Local Pension Boards
Allows municipal officials to direct the local pension fund board to transfer and consolidate its investment funds into a single statewide fund. Allows local pension boards to maintain all other authority, such as pension awards and disability determinations. Participating communities would see their property tax levies for pensions be exempted from the Property Tax Extension Limitation Law (PTELL).
SB 1112/HB 1572: Extend the Amortization Period and Reduce the Funded Ratio Target
Maintains all characteristics of each local pension fund (i.e., no consolidation), extends the amortization period from 2040 to 2050 and reduces the required funding ratio target from 90% to 80%, and directs a comprehensive study be done to examine the costs and benefits of full consolidation.
These bills and more information about IML’s public safety pension reform and consolidation efforts are also available on our website, at www.irnl.org/pensions.
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