Public Act 101-0522 Public Act 0522 101ST GENERAL ASSEMBLY |
Public Act 101-0522 | SB0037 Enrolled | LRB101 02871 RPS 47879 b |
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| AN ACT concerning public employee benefits.
| Be it enacted by the People of the State of Illinois,
| represented in the General Assembly:
| Section 5. The Illinois Pension Code is amended by adding | Section 4-110.2 and by changing Section 4-118 as follows: | (40 ILCS 5/4-110.2 new) | Sec. 4-110.2. Secondary employer injury and exposure | reporting. The fire chief of a secondary employer, as described | in Section 4-118, shall report any injury, illness, or exposure | incurred by a secondary employee during his or her employment | to the primary employer's pension fund within 96 hours from the | time of the occurrence. The reporting requirements shall be | consistent with the recommendations found in Chapters 4, 13, | and 14 of the NFPA 1500 Standard on Fire Department | Occupational Safety, Health, and Wellness Program.
| (40 ILCS 5/4-118) (from Ch. 108 1/2, par. 4-118)
| Sec. 4-118. Financing.
| (a) The city council or the board of trustees
of the | municipality shall annually levy a tax upon all the taxable | property
of the municipality at the rate on the dollar which | will produce an amount
which, when added to the deductions from | the salaries or wages of
firefighters and revenues available |
| from other sources, will equal a sum
sufficient to meet the | annual actuarial requirements of the pension fund,
as | determined by an enrolled actuary employed by the Illinois | Department of
Insurance or by an enrolled actuary retained by | the pension fund or
municipality. For the purposes of this | Section, the annual actuarial
requirements of the pension fund | are equal to (1) the normal cost of the
pension fund, or 17.5% | of the salaries and wages to be paid to firefighters
for the | year involved, whichever is greater, plus (2) an annual amount
| sufficient to bring the total assets of the pension fund up to | 90% of the total actuarial liabilities of the pension fund by | the end of municipal fiscal year 2040, as annually updated and | determined by an enrolled actuary employed by the Illinois | Department of Insurance or by an enrolled actuary retained by | the pension fund or the municipality. In making these | determinations, the required minimum employer contribution | shall be calculated each year as a level percentage of payroll | over the years remaining up to and including fiscal year 2040 | and shall be determined under the projected unit credit | actuarial cost method. The amount
to be applied towards the | amortization of the unfunded accrued liability in any
year | shall not be less than the annual amount required to amortize | the unfunded
accrued liability, including interest, as a level | percentage of payroll over
the number of years remaining in the | 40 year amortization period.
| (a-2) A municipality that has established a pension fund |
| under this Article and who employs a full-time firefighter, as | defined in Section 4-106, shall be deemed a primary employer | with respect to that full-time firefighter. Any municipality of | 5,000 or more inhabitants that employs or enrolls a firefighter | while that firefighter continues to earn service credit as a | participant in a primary employer's pension fund under this | Article shall be deemed a secondary employer and such employees | shall be deemed to be secondary employee firefighters. To | ensure that the primary employer's pension fund under this | Article is aware of additional liabilities and risks to which | firefighters are exposed when performing work as firefighters | for secondary employers, a secondary employer shall annually | prepare a report accounting for all hours worked by and wages | and salaries paid to the secondary employee firefighters it | receives services from or employs for each fiscal year in which | such firefighters are employed and transmit a certified copy of | that report to the primary employer's pension fund and the | secondary employee firefighter no later than 30 days after the | end of any fiscal year in which wages were paid to the | secondary employee firefighters. | Nothing in this Section shall be construed to allow a | secondary employee to qualify for benefits or creditable | service for employment as a firefighter for a secondary | employer. | (a-5) For purposes of determining the required employer | contribution to a pension fund, the value of the pension fund's |
| assets shall be equal to the actuarial value of the pension | fund's assets, which shall be calculated as follows: | (1) On March 30, 2011, the actuarial value of a pension | fund's assets shall be equal to the market value of the | assets as of that date. | (2) In determining the actuarial value of the pension | fund's assets for fiscal years after March 30, 2011, any | actuarial gains or losses from investment return incurred | in a fiscal year shall be recognized in equal annual | amounts over the 5-year period following that fiscal year. | (b) The tax shall be levied and collected in the same | manner
as the general taxes of the municipality, and shall be | in addition
to all other taxes now or hereafter authorized to | be levied upon all
property within the municipality, and in | addition to the amount authorized
to be levied for general | purposes, under Section 8-3-1 of the Illinois
Municipal Code or | under Section 14 of the Fire Protection District Act. The
tax | shall be forwarded directly to the treasurer of the board | within 30
business days of receipt by the county
(or, in the | case of amounts
added to the tax levy under subsection (f), | used by the municipality to pay the
employer contributions | required under subsection (b-1) of Section 15-155 of
this | Code).
| (b-5) If a participating municipality fails to transmit to | the fund contributions required of it under this Article for | more than 90 days after the payment of those contributions is |
| due, the fund may, after giving notice to the municipality, | certify to the State Comptroller the amounts of the delinquent | payments in accordance with any applicable rules of the | Comptroller, and the Comptroller must, beginning in fiscal year | 2016, deduct and remit to the fund the certified amounts or a | portion of those amounts from the following proportions of | payments of State funds to the municipality: | (1) in fiscal year 2016, one-third of the total amount | of any payments of State funds to the municipality; | (2) in fiscal year 2017, two-thirds of the total amount | of any payments of State funds to the municipality; and | (3) in fiscal year 2018 and each fiscal year | thereafter, the total amount of any payments of State funds | to the municipality. | The State Comptroller may not deduct from any payments of | State funds to the municipality more than the amount of | delinquent payments certified to the State Comptroller by the | fund. | (c) The board shall make available to the membership and | the general public
for inspection and copying at reasonable | times the most recent Actuarial
Valuation Balance Sheet and Tax | Levy Requirement issued to the fund by the
Department of | Insurance.
| (d) The firefighters' pension fund shall consist of the | following moneys
which shall be set apart by the treasurer of | the municipality: (1) all
moneys derived from the taxes levied |
| hereunder; (2) contributions
by firefighters as provided under | Section 4-118.1; (3) all
rewards in money, fees, gifts, and | emoluments that may be paid or given
for or on account of | extraordinary service by the fire department or any
member | thereof, except when allowed to be retained by competitive | awards;
and (4) any money, real estate or personal property | received by the board.
| (e) For the purposes of this Section, "enrolled actuary" | means an actuary:
(1) who is a member of the Society of | Actuaries or the American
Academy of Actuaries; and (2) who is | enrolled under Subtitle
C of Title III of the Employee | Retirement Income Security Act of 1974, or
who has been engaged | in providing actuarial services to one or more public
| retirement systems for a period of at least 3 years as of July | 1, 1983.
| (f) The corporate authorities of a municipality that | employs a person
who is described in subdivision (d) of Section | 4-106 may add to the tax levy
otherwise provided for in this | Section an amount equal to the projected cost of
the employer | contributions required to be paid by the municipality to the | State
Universities Retirement System under subsection (b-1) of | Section 15-155 of this
Code. | (g) The Commission on Government Forecasting and
| Accountability shall conduct a study of all funds established
| under this Article and shall report its findings to the General
| Assembly on or before January 1, 2013. To the fullest extent |
| possible, the study shall include, but not be limited to, the | following: | (1) fund balances; | (2) historical employer contribution rates for each
| fund; | (3) the actuarial formulas used as a basis for employer
| contributions, including the actual assumed rate of return
| for each year, for each fund; | (4) available contribution funding sources; | (5) the impact of any revenue limitations caused by
| PTELL and employer home rule or non-home rule status; and | (6) existing statutory funding compliance procedures
| and funding enforcement mechanisms for all municipal
| pension funds.
| (Source: P.A. 99-8, eff. 7-9-15.)
| Section 90. The State Mandates Act is amended by adding | Section 8.43 as follows: | (30 ILCS 805/8.43 new) | Sec. 8.43. Exempt mandate. Notwithstanding Sections 6 and 8 | of this Act, no reimbursement by the State is required for the | implementation of any mandate created by this amendatory Act of | the 101st General Assembly.
| Section 99. Effective date. This Act takes effect upon | becoming law.
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Effective Date: 8/23/2019
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