Pension Update

Circuit Court stays PA 98-0599, including IMRF-related provisions

The Seventh Judicial Circuit Court of Sangamon County on May 14, 2014, ordered a temporary stop to Public Act 98-0599, the pension “reform” legislation signed by the governor in December 2013.

IMRF was not included in the provisions of PA 98-0599 that alter benefits for current members and retirees of the state-funded systems. However, some provisions of the law do affect future IMRF members. The Circuit Court judge’s order halts the implementation of these IMRF-related provisions, possibly until the Illinois Supreme Court rules on the constitutionality of the entirety of PA 98-0599.

The IMRF-related provisions were announced by IMRF inGeneral Memo 645 on December 16, 2013. In summary, the law stops future members from applying lump-sum payments for sick leave or vacation time toward pensionable salary, and from converting unused, unpaid sick leave to service credit. The legislation also stops future employees of certain instrumentalities from participating in IMRF. These IMRF-related provisions were all included in the judge’s stay order.

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