HB4640 99TH GENERAL ASSEMBLY

LRB099 20062 EFG 44474 b

99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
HB4640

Introduced , by Rep. Robert W. Pritchard

SYNOPSIS AS INTRODUCED:

40 ILCS 5/3-103	from Ch. 108 1/2, par. 3-103
40 ILCS 5/3-145	from Ch. 108 1/2, par. 3-145
40 ILCS 5/4-103	from Ch. 108 1/2, par. 4-103
40 ILCS 5/4-141	from Ch. 108 1/2, par. 4-141

Amends the Downstate Police and Downstate Firefighter Articles of the Illinois Pension Code. In the definition of "municipality", increases the threshold for mandatory creation of a pension fund from 5,000 to 10,000 inhabitants. Provides that any city, village or incorporated town of 5,000 or more but less than 10,000 inhabitants that has not established a pension fund may elect to do so by ordinance or referendum. Effective immediately.

PENSION IMPACT NOTE ACT MAY APPLY

A BILL FOR

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 3-103, 3-145, 4-103, and 4-141 as follows:

(40 ILCS 5/3-103) (from Ch. 108 1/2, par. 3-103)

Sec. 3-103. Municipality. "Municipality": (1) Any city, village or incorporated town of 10,000 5,000 or more but less than 500,000 inhabitants, as determined from the United States Government statistics or a census taken at any time by the city, village or incorporated town; and (2) any city, village or incorporated town of 5,000 or more but less than 10,000 inhabitants that has established a pension fund under this Article on or before the effective date of this amendatory Act of the 99th General Assembly or elects, by ordinance, to adopt this Article after that effective date; and (3) any city, village or incorporated town of less than 10,000 5,000 inhabitants which, by referendum held under Section 3-145, adopts this Article.

(Source: P.A. 83-1440.)

(40 ILCS 5/3-145) (from Ch. 108 1/2, par. 3-145)

Sec. 3-145. Referendum in municipalities less than 10,000 5,000.

(a) As used in this Section, the term "municipality" means any city, village, or incorporated town in Illinois, notwithstanding Section 3-103 of this Article.

This Article shall become not be effective in any municipality having a population of less than 10,000 if 5,000 unless the proposition to adopt the Article is submitted to and approved by the voters of the municipality in the manner herein provided.

Whenever the electors of the municipality, equal in number to 5% of the number of legal votes cast at the last preceding general municipal election, petition the city, village or town clerk to submit the proposition whether that municipality shall adopt this Article, the officer to whom the petition is addressed shall certify the proposition to the proper election officials who shall submit the proposition in accordance with the general election law at a regular election in the municipality provided that notice of the referendum, if held before July 1, 1999, has been given in accordance with the provisions of Section 12-5 of the Election Code in effect at the time of the bond referendum, at least 10 and not more than 45 days before the date of the election, notwithstanding the time for publication otherwise imposed by Section 12-5. Notices required in connection with the submission of public questions on or after July 1, 1999 shall be as set forth in Section 12-5 of the Election Code. If the proposition is not adopted at that election, it may be submitted in like manner at any regular election thereafter. The proposition shall be substantially in the following form:

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Shall the city (or village or incorporated town) of.... adopt YES Article 3 of the "Illinois Pension -----------------------

Code", pertaining to the creation NO of a police pension fund?

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If a majority of the votes cast on the proposition is for the proposition, this Article is adopted in that municipality.

(b) For a period of 60 days after August 10, 2009 (the effective date of Public Act 96-216) this amendatory Act of the 96th General Assembly, if a municipality having a population of less than 5,000 has adopted this Article in accordance with the provisions of subsection (a), the municipality may elect to terminate participation under this Article if all of the following conditions are met:

(1) An independent auditor certifies that the fund created under this Article has no liabilities and there are no members or participants in the fund and no beneficiaries entitled to benefits under the fund.

(2) The corporate authorities of the municipality, by ordinance, approve the closing of the fund.

If the conditions of this subsection (b) are met and the closed fund contains assets, those assets shall be transferred to the municipality for its general corporate purposes.

If a municipality that terminates participation under this Article in accordance with this subsection (b) wants to reinstate the fund, then the proposition to re-adopt the Article must be submitted to and approved by the voters of the municipality in the manner provided in subsection (a).

(Source: P.A. 96-216, eff. 8-10-09.)

(40 ILCS 5/4-103) (from Ch. 108 1/2, par. 4-103)

Sec. 4-103. Municipality. "Municipality": (1) Any city, township, village or incorporated town of 10,000 5,000 or more but less than 500,000 inhabitants, and any fire protection district having any full-time paid firefighters; , and (2) any city, village or incorporated town of 5,000 or more but less than 10,000 inhabitants that has established a pension fund under this Article on or before the effective date of this amendatory Act of the 99th General Assembly or elects, by ordinance, to adopt this Article after that effective date; and (3) any city, village, incorporated town or township of less than 10,000 5,000 inhabitants having a full-time paid fire department which adopts the provisions of this article pursuant to the provisions of Section 4-141.

The term "city council" or "board of trustees" includes the board of trustees of a fire protection district and the board of town trustees or other persons empowered to draft the tentative budget and appropriation ordinance and the electors of such a township acting at the annual or special meeting of town electors.

(Source: P.A. 83-1440.)

(40 ILCS 5/4-141) (from Ch. 108 1/2, par. 4-141)

Sec. 4-141. Referendum in municipalities less than 10,000 5,000.

(a) As used in this Section, the term "municipality" means any city, village, or incorporated town in Illinois, notwithstanding Section 4-103 of this Article.

(b) This Article shall become effective in any municipality having a population of less than 10,000 5,000, population if the proposition to adopt the Article is submitted to and approved by the voters of the municipality in the manner herein provided.

(c) Whenever the electors of the municipality equal in number to 5% of the number of legal votes cast at the last preceding general municipal election for mayor or president, as the case may be, petition the corporate authorities of the municipality to submit the proposition whether that municipality shall adopt this Article, the municipal clerk shall certify the proposition to the proper election official who shall submit it to the electors in accordance with the general election law at the next succeeding regular election in the municipality. If the proposition is not adopted at that election, it may be submitted in like manner at any regular election thereafter.

The proposition shall be substantially in the following form:

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Shall the city (or village or incorporated town as the case may be) YES of.... adopt Article 4 of the "Illinois Pension Code", ------------------

providing for a Firefighters' NO Pension Fund and the levying of an annual tax therefor?

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If a majority of the votes cast on the proposition is for the proposition, this Article is adopted in that municipality.

(Source: P.A. 83-1440.)

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