HB1567 Summary: Police and Firefighter Pension Fund Consolidation

• Merges all Article 3 (downstate police) and Article 4 (downstate firefighter) individual pension funds into the Illinois Municipal Retirement Fund (IMRF) effective January 1, 2021.

• Creates separate Transition Boards for police and firefighters (11 members each) responsible for planning and administering the consolidation, including asset/liability transfers and establishing municipal contribution rates through the Fund.

• Establishes that the IMRF becomes the legal successor to all consolidated pension funds; municipalities maintain separate accounts within the Fund with individually-determined contribution rates based on their respective police/firefighter populations.

• Protects all existing benefits—consolidation does not diminish benefits for current/former officers, their survivors, or dependents, and does not change employee contribution rates.

• Amends the Property Tax Extension Limitation Law to exclude special purpose extensions for contributions to IMRF for police and firefighter benefits from the aggregate extension calculation; exempts implementation from State Mandates Act reimbursement requirements.