IL HB3522

Allows fire chiefs who first became members on or after January 1, 2020, to continue receiving pension payments while reentering active service, but restricts them to participation in a defined contribution plan rather than the standard defined benefit plan.

Requires municipalities employing such fire chiefs to establish a defined contribution plan with immediate vesting of contributions that meets Internal Revenue Code safe harbor and qualification requirements.

Fire chiefs in the defined contribution plan cannot earn creditable service in the defined benefit plan, but municipalities must provide disability insurance benefits equivalent to what would be available under the defined benefit plan.

Suspends pension payments for other firefighters who reenter active service, resuming the original pension amount unless they serve 3 or more additional years, in which case the pension recalculates based on current salary.

Exempts the state from reimbursing local governments for costs associated with implementing this Act under the State Mandates Act.