Public Act 102-0059
 
HB0351 EnrolledLRB102 09956 RPS 15274 b


  
    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 
changing Sections 4-110.2 and 4-118 as follows:
 
    (40 ILCS 5/4-110.2)
    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 and the 
Department of Insurance 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.

(Source: P.A. 101-522, eff. 8-23-19.)
 



    (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 40 year amortization period.

    (a-2) A municipality that has established a pension fund 
under this Article and that 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, the Department of Insurance, 
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; (2.5) all moneys received from the 
Firefighters' Pension Investment Fund as provided in Article 
22C of this Code; (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. 101-522, eff. 8-23-19; 101-610, eff. 1-1-20; 
revised 8-20-20.)

  
 
 
    Section 99. Effective date. This Act takes effect upon 
becoming law.