Third Reading Consulting Group, an NASL member firm, provides an update on the latest legislative news below:
On January 19, the Illinois Supreme Court unanimously upheld a 2019 law (SB 1300) to consolidate local police and firefighter pension systems. This was the final hurdle to the consolidation of local funds into one police fund (IPOPIF) and one firefighter fund (IFPIF) for all municipalities in the state outside of Chicago. The 2019 legislation intended to boost investment returns and cut administrative costs for managing each fund through pension consolidation. The law took effect in 2020 but gave local funds until June 30, 2022 to transfer their assets into the combined funds.
A group of 18, mostly police local pension funds and some active and retired police officers and firefighters, worked to challenge the law in court. They argued that the legislation violated the state Constitution’s guarantee that public pension benefits “shall not be diminished or impaired” because fewer people would manage the combined funds than when each municipality had its pension fund. The case was heard in two lower courts before finally reaching the Illinois Supreme Court. Courts at all three levels ruled in favor of the state that Constitutional protection is only about the money within the pension funds and not the people managing the funds.
Before the Supreme Court ruling, 333 of the 357 police departments merged their assets with IPOPIF, leaving only 24 holdouts. All fire departments merged assets with IFPIF before the Supreme Court ruling. As a result of the ruling, these final holdouts will be required to merge assets with the combined funds. No timeframe has been provided yet.
Important Upcoming Dates – Statewide
February 9 – House and Senate Bill Introduction Deadline
February 21 – Governor’s Budget and State of the State Address
March 15 – Senate Committee Deadline
March 19 – 2024 Primary Election
April 5 – House Committee Deadline
April 12 – Senate Third Reading Deadline
April 19 – House Third Reading Deadline
May 3 – Opposite Chamber Committee Deadline
May 17 – Opposite Chamber Third Reading Deadline
May 24 – Adjournment
May 25-31 – Contingent Session Days for Budget
November 5 – 2024 General Election