SB3487 Summary: Downstate Police Pension Fund Consolidation

• Consolidates all individual Article 3 police pension funds into a single Downstate Police Pension Fund effective January 1, 2020, with a Transition Board overseeing the merger until a new Board of Trustees assumes duties January 1, 2021.

• Creates an 11-member Transition Board responsible for planning and administering the consolidation, including asset transfers, establishing accounting systems, determining municipal contribution rates, and ensuring uninterrupted benefit payments.

• Increases Tier 1 participant employee contribution rates from 9.91% to 35% of salary beginning January 1, 2020, while allowing voluntary, irrevocable elections to become Tier 2 participants for future service.

• Establishes a new 11-member Board of Trustees for the consolidated fund consisting of executive trustees (appointed by municipalities), police officer trustees (elected by active officers), and annuitant trustees (elected by retirees).

• Requires implementation without state reimbursement under the State Mandates Act, with most changes effective January 1, 2020.