Pension systems would suspend benefits after service-related felony charges

A retirement system or pension fund board would suspend a member’s or participant’s benefit or annuity payments. The rule would cover members and participants in retirement systems and pension funds established under the Illinois Pension Code. The person must be indicted or charged by information with a felony. The board must determine that the felony relates to, arises from, or is connected with the person’s service as a member or participant. If the person is not convicted, payments would resume and the system would pay the suspended amounts with interest set by the board. If the person is convicted, the suspended payments would not be paid, but the person would be entitled to a contribution refund under applicable felony-forfeiture rules. The provision would apply when the Act becomes law, including to people who joined a retirement system before that date.

The State would not reimburse costs of carrying out a mandate created by the Act. The exemption would apply to any mandate created by this Act under the State Mandates Act. The provision would override the State Mandates Act’s usual reimbursement requirements for this Act’s mandates. The exemption would apply when the Act becomes law.