IL HB1042

Extends the window for transferring creditable service from Article 5 pension funds to Article 3 funds from 60 days to 180 days after the effective date of this amendatory act.

Allows transfer of up to 10 years of creditable service accumulated under Article 5, with payment required equal to the difference between amounts actually transferred and amounts that would have been contributed at Article 3 rates, plus interest at the actuarially assumed rate.

Requires additional payment from members if the board determines the transferred amount is less than the true cost to the fund of establishing that creditable service; creditable service is reduced if full additional payment is not made before termination of employment.

Authorizes the board to establish rules for calculating the true cost of creditable service transfers, considering actuarial assumptions, member's service history, age, salary, and other relevant factors.

Exempts any mandate created by this amendatory act from State reimbursement requirements under the State Mandates Act.