Current through Register Vol. 46, No. 15, April 8, 2022
Within 14 days after receipt of the prior pension funds
notification, the current pension fund shall notify the requesting officer
of:
a) The additional contribution
needed from the officer to transfer the designated creditable service time as
required by Section 3-110 of the Illinois Pension Code [
40 ILCS
5/3-110 ] should the officer elect to have all
creditable service time earned in the prior fund credited to the current fund
under
40 ILCS
5/3-110(d)(2), option (A). The
additional contribution should represent the true cost necessary to transfer
the designated creditable service time minus the amount payable by the prior
pension funds as calculated pursuant to Section
4404.73
of this Part, leaving a balance payable by the officer to satisfy the true cost
of effectively transferring the designated creditable service time. This
additional contribution is in addition to any amount required to be paid by the
officer to reinstate the prior creditable service when a refund had been
received as calculated in Section
4404.76
of this Part. In addition, the current pension fund must:
1) Specify the method of payment as either a
lump sum or a schedule of payments, to include 6% annual interest on the
declining balance, and any fees, not to exceed the 5 year statutory limit (see
40 ILCS
5/3-110(d)(3) ), deemed acceptable by
the current pension fund board of trustees and that payment must be made in
full before the officer terminates service; and
2) Notify the officer that once final
authorization has been given pursuant to Section
4404.90
of this Part, the transfer cannot be reversed, and failure to satisfy the
agreed to payment arrangement will result in a forfeiture of the employer paid
portion and any accumulated interest on the designated creditable service time
pursuant to Section 3-110.7 of the Illinois Pension Code [40 ILCS
5/3-110.7].
b) The amount of creditable service time that
will be credited to the current pension fund should the officer elect to have
the creditable service time earned in the prior pension fund and credited to
the current fund reduced in lieu of payment of an additional contribution. The
reduced amount of creditable service time to be credited to the current pension
fund shall equal the portion of the creditable service time accumulated in the
prior pension fund after applying to that creditable service time the ratio of
the amount of monies transferred from the prior pension fund to the appropriate
true cost amount as determined under Section
4404.50
of this Part. If the ratio of the amount transferred from the prior pension
fund to the appropriate true cost amount is greater than one, only the amount
of actual creditable service time accumulated in the prior pension fund is
credited to the current pension fund. Any amount required to be paid by the
officer to reinstate the prior creditable service when a refund had been
received as calculated in Section
4404.76
of this Part must still be paid to the prior pension fund.
|
Service Credited To Current Fund
|
=
|
Service Accumulated In Prior Fund
|
X
|
(Monies from Prior Fund)
|
|
(Appropriate True Cost)
|
In addition, the current pension fund must notify the officer
that, once final authorization has been given pursuant to Section
4404.90
of this Part, the transfer cannot be reversed. Creditable service time
transferred out of the prior pension fund and not credited to the current
pension fund is lost. It may not be transferred to another pension fund and may
not be reinstated in the pension fund from which it was
transferred.
