Officer Precluded from Membership in Second Police Pension Fund
An Illinois Appellate Court upheld a pension board's decision to deny an application for pension membership in Kooistra v. Board of Trustees of Sycamore Police Pension Fund.
A deputy chief in a municipal police department retired from that department and began receiving a retirement pension. Subsequently, he was hired as a patrol officer in a second municipal police department and submitted an application for membership in the second municipality's pension fund. His application was denied by the police pension board based on section 3-124.1(b) of the Police Pension Code, which states as follows:
(b) If a police officer who first becomes a member on or after January 1, 2019 is receiving pension payments (other than as provided in Section 3-109.3) and re-enters active service with any municipality that has established a pension fund under this Article, that police officer may continue to receive pension payments while he or she is in active service, but shall only participate in a defined contribution plan established by the municipality pursuant to Section 3-109.4 and may not establish creditable service in the pension fund established by that municipality or have his or her pension recomputed.” 40 ILCS 5/3-124.1(b)
The pension board determined that this statute precluded the officer from membership in the second municipality's pension fund because he was already receiving pension payments from the first municipality's pension fund; however, he could participate in a defined contribution plan. The officer appealed the pension board's decision to the circuit court which upheld the pension board's decision, and that ruling was then appealed to the Appellate Court.
On appeal, the Appellate Court analyzed the language in Section 3-124.1(b) and determined that it applied to the officer who was drawing a pension from his former employer. The Court rejected the officer's argument that the statutory provision did not apply to him because he became a "member" of the first municipality's pension fund before January 1, 2019. Instead, the Court agreed with the pension board's interpretation of the statute that it applies to the officer because he became a member of the second municipality's police department after the statutory cutoff date. In the Court's view, that was the most logical interpretation because the officer "first" becomes a member of the second municipality's police department upon reentry into active service, which would allow him to continue to receive pension payments from the first municipality but preclude him from participating in the second municipality's pension fund. The Court noted that this interpretation was consistent with the legislative intent of this section which was to prevent "double dipping" in two pension funds.
The unfortunate part is the court was not privy to the actual conversations between the sponsor and the police associations at the time and that he gave us some reassurance that it would not effect currently employed officers, only future officers and was making a statement by the legislation because of a situation in his home community. The intent would have been more plausible as the court stated if the General Assembly had actually moved forward with other pension funds and occupations instead of singling out police officers. Numerous police officers in the state have been accepted into a second defined benefit fund (Art 3) since 2019 and several pension attorneys have opined that the law shouldn't effect officers employed before January 1, 2019. Now what?
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