IL SB3454

Amends the Illinois Pension Code to create a separate Comptroller intercept schedule for downstate police and firefighter pension funds that have assets exceeding 5 years of current liabilities, beginning in fiscal year 2021.

For pension funds meeting the asset threshold, the State Comptroller will deduct delinquent municipal pension contributions from State fund payments using a graduated schedule: one-tenth (FY 2021), one-fifth (FY 2022), three-tenths (FY 2023), two-fifths (FY 2024), and one-half (FY 2025 and thereafter).

Pension funds not meeting the asset threshold continue under the existing intercept schedule established in fiscal year 2016: one-third (FY 2016), two-thirds (FY 2017), and full amount (FY 2018 onward).

The Comptroller may not deduct more than the actual amount of delinquent payments certified by the pension fund.

Takes effect immediately upon becoming law.